Seres Group’s shares surged after revealing plans to invest in Huawei Technologies’ intelligent driving subsidiary, echoing a similar commitment by Changan Automobile.
Seres saw its stock close 5.3 percent higher at CNY77.96 (USD10.75) per share in Shanghai, following a peak increase of 6.6 percent during the morning trading session.
The car production partner of Huawei announced talks with Yinwang Intelligent Technology and its shareholders. This investment aims to transform the unit, established earlier this year in Shenzhen, into an open platform serving the automotive industry. The goal is to elevate Yinwang to a global leader in the intelligent driving system and components sector.
Details of the investment, including its size and financing, remain pending. Seres emphasized that Yinwang will become a unit after the transaction without altering the scope of its consolidated financial statements.
Yinwang, formed by Huawei in January, specializes in intelligent driving solutions, such as smart auto cockpits, controls, cloud platforms, lighting systems, and vehicle-mounted equipment.
Changan Automobile, a leading Chinese car manufacturer, signed a deal with Huawei last November to invest in Yinwang. The final agreement is expected by August 31, according to Changan Auto’s statement in May.
“China needs to create an electric and intelligent open platform that is jointly participated in by the auto industry and has a new technology development leader,” stated Richard Yu, chairman of Huawei’s auto business unit, following the initial deal with Changan Auto.
Yu added, “We’ll also work with more strategic partners in the car-making field to continuously explore new models to achieve openness and win-win results and jointly seize opportunities from the electric and intelligent transformation of the auto industry.”
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