On April 19th, Jianghuai Automobile (600418) revealed that the company plans to issue shares in a non-public offering, with a total amount of not less than 1.3 billion yuan (including capital) and no more than 2 billion yuan (including capital). After deducting the issuance expenses, all the funds raised will be used to repay bank loans and supplement liquidity.
It is worth noting that Jianghuai Automobile will be issued to the company's controlling shareholder, JAC Holdings. Before this issue, the total share capital of Jianghuai Automobile was 1.893 billion shares. As of the date of announcement of this plan, Jianghuai Automobile Holdings, the controlling shareholder of the company, held 325 million shares, accounting for 17.15% of the shares. The number of shares in this non-public offering does not exceed 30% of the total share capital of the company before the issuance. After the completion of this offering, the number and proportion of shares held by Jiangqi Holdings will increase, and the total share capital of the company will also increase. Jiangqi Holdings is still the controlling shareholder of the company. This issue will not lead to a change in the control of the company. At the same time, the participation of controlling shareholders will help to send a positive signal to the market and minority shareholders, and demonstrate Jiangqi Holdings' firm confidence in the future development of listed companies.
On the same day, Jianghuai Automobile and Jianghuai Automobile Holdings also signed the subscription Agreement for non-public offering shares of Anhui Jianghuai Automobile Group Co., Ltd. with conditions in effect. Jianghuai Automobile Holdings agreed to subscribe for the shares of Jianghuai Automobile in cash at the price agreed in the agreement. JAC Holdings agreed to subscribe for all the shares actually issued by Jianghuai Motor. The total amount of the subscription price is the issue price multiplied by the subscription quantity.
In addition, on the same day, Jianghuai Motors also signed a strategic framework agreement with Beijing Horizon Robot Technology Research and Development Co., Ltd., the two sides will rely on their respective advantages in the field of automotive and artificial intelligence, through multi-domain business integration, jointly actively explore intelligent, networked and other automotive technologies, and develop market-leading intelligent and networked automotive products.
According to the agreement, Jianghuai Automobile will evaluate and give priority to the edge artificial intelligence solution and self-driving computing platform and chip provided by Horizon based on the application requirements of intelligent network-connected vehicles. The company is likely to use the range series gauge-level chips and its supporting algorithms provided by Horizon and the "Matrix" series of autopilot computing platforms, awareness systems, map crowdsourcing and positioning solutions as well as intelligent cockpit product solutions on Advanced Autopilot (ADAS) integrated products and L2-L4 autopilot solutions and domain controller series integrated products.
At the same time, Horizon develops the corresponding technology based on the product requirements of Jianghuai Automobile and provides edge artificial intelligence solutions to Jianghuai Automobile, including but not limited to edge artificial intelligence chips, core boards, self-driving computing platforms and perception systems, and its tool chain and other products and solutions. Horizon provides technical support related to hardware, software, algorithms and tool chain related to Jianghuai automobile product development and integration.
The announcement shows that this agreement is valid for five years, and if there is no objection between the two parties within three months before the expiration of the cooperation period, the agreement will be automatically extended for five years.
Jianghuai Motors said that this cooperation project will have a synergistic effect with the company's existing business, which will help the company to promote the intelligent development of automotive products. In 2021, the company will use the products equipped with Horizon Expedition series of gauge-level chips to achieve advanced auxiliary driving (ADAS) and intelligent cockpit interaction functions, which will be of positive significance to the promotion of the company's intelligent vehicles.
