news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

TencentNews "First Line"

Author: Liu Kanshun Editor: Liu Peng

On August 20, Avita Investment, a subsidiary of Changan GroupHuaweiYinwang officially signed the contract. After this transaction, Avita Technology holds 10% of Yinwang and Huawei holds 90%, becoming Yinwang's second largest shareholder. People familiar with the matter revealed that Changan is expected to continue investing in Huawei Yinwang in the future, but the change in the shareholding ratio is unknown.

Changan Automobile announced on the evening of August 19 that Avita Technology announced that it would formally invest in Huawei's new company, Yinwang (Shenzhen Yinwang Intelligent Technology Co., Ltd.), holding 10% of the shares, with a transaction amount of RMB 11.5 billion, in cash, and jointly support the company's future development with Huawei. This also means that Yinwang's valuation has reached an astonishing 115 billion.

According to brokerage analysis, Avita will receive more empowerment from Huawei and will enjoy priority in Huawei-related technology/supply chain cooperation in subsequent operations. Changan Automobile will comprehensively strengthen its strategic cooperation with Huawei to help it transform into a smart low-carbon travel technology company.

Yinwang's predecessor was Huawei's automotive BU. In the second half of 2023, Huawei decided to let the automotive BU develop independently and invested in the establishment of Yinwang, while also opening up Yinwang's equity investment to the outside world. On November 26 of the same year, Changan Automobile issued a "Memorandum of Investment Cooperation" showing that Changan Automobile and its affiliates intend to invest in acquiring no more than 40% of Yinwang's equity.

Some media have further interpretations on the above-mentioned proposed investment to acquire no more than 40% of Yinwang’s equity, and claimed that "the original plan was for Changan and its affiliates (including China North Industries Group Corporation Jiyuan and local state-owned assets) to jointly invest 40%, Changan + China North Industries Group Corporation to invest approximately 20%, and local state-owned assets to invest 20%. However, since Yinwang’s headquarters is located in Shenzhen, not Chongqing, local state-owned assets abandoned the investment. The withdrawal of Chongqing state-owned assets also affected Changan’s decision to a certain extent. Therefore, Changan selectively retained 10% of the investment."

However, according to what Tencent Auto learned from insiders, Changan Automobile's investment in Huawei Yinwang, from the previous plan to invest no more than 40% of Yinwang's equity to the current signing of an agreement between Avita and Huawei Yinwang and holding a 10% stake, the reduction in shareholding ratio is due to other reasons, and not the rumored reason of local state-owned assets abandoning investment. At the same time, there is no statement that Changan + China North Industries Group Corporation will invest about 20%. But it is basically certain that in the future, Changan Group will continue to invest in Huawei Yinwang, and its subsidiaries Shenlan and Changan Qiyuan may both be deeply empowered by the new company (Yinwang), but the subsequent additional shareholding ratio cannot be determined at present.

At the signing ceremony, the third model of Avita, Avita 07, was unveiled for the first time. The new car is positioned as a mid-size SUV and will be officially unveiled at the 2024 Chengdu Auto Show, which will open on August 30, and will be put on sale in September. The biggest highlight of the new car is that it is equipped with Huawei's advanced intelligent driving system and HarmonyOS Hongmeng cockpit, and provides pure electric and extended-range power systems. The estimated price is between 250,000 and 350,000 yuan.