On the evening of July 2, 00175.HK announced that in order to develop the polar krypton brand, the polar krypton group had entered into the CEVT acquisition agreement, the vast energy acquisition agreement and the Ningbo Weirui subscription agreement to acquire the assets and technologies needed for R & D, production and sale of electric vehicles. According to Battery Network, the three agreements involve acquisitions totaling more than 1.6 billion yuan.
CEVT acquisition
On July 2, Polar Krypton, a 51 per cent subsidiary of the company, entered into a CEVT acquisition agreement with Zhejiang Geely Holdings, a subsidiary of Geely Holdings, in which it conditionally agreed to acquire a 100 per cent stake in CEVT through a subsidiary for a cash consideration of about 1.0578 billion kroner (equivalent to about 801.5 million yuan).
Upon completion of the CEVT acquisition, CEVT will become a wholly owned subsidiary of Polar Krypton and its financial results will be consolidated in the Group's consolidated financial statements.
CEVT is a world-class automobile research and development institution located in Sweden. It has a complete R & D system for the development of new energy vehicles, including but not limited to intelligent electric vehicle modeling design, software system development, hardware module development, virtual simulation technology research and development and providing intelligent mobile travel technology solutions. After the CEVT acquisition, the Polar Krypton Group can greatly accelerate the iteration of the renewal of Polar Krypton brand cars and provide continuous and stable technical support for product research and development.
Vast energy acquisition
On July 2nd, polar krypton entered into a vast energy acquisition agreement with Geely Automobile Group, a wholly-owned subsidiary of Geely Holdings, in which it conditionally agreed to acquire a 30 per cent stake in vast Energy through a subsidiary. The cash consideration is about 9 million yuan.
Upon completion of the vast Energy acquisition, the financial results of vast Energy will be accounted for in the Group's consolidated financial statements using the equity method.
Vast Energy is mainly engaged in the research and development of car charging facilities and technology, providing car charging services and operating car charging outlets and networks, focusing on the development of charging services in different situations, including home, road and mobile rescue. Geely believes that it is the industry practice for new energy vehicle manufacturers to invest in car charging facilities and technology, as customers pay more attention to car charging services. These services have become an integral part of providing customers with a more convenient and comfortable experience. Given the high maintenance and depreciation costs of operating car charging facilities, Geely believes that the acquisition of a 30 per cent stake in vast energy through polar krypton will provide the group with the opportunity to benefit from the booming market in the form of light assets.
Ningbo Weirui subscription items
On July 2, Polar Krypton entered into the Ningbo Weirui subscription Agreement with Zhejiang Jichuang and Ningbo Weirui, each of which is wholly owned by Geely Holdings. Polar Krypton conditionally agreed to subscribe for additional capital of Ningbo Weirui at a cash consideration of approximately RMB 860.7 million through a subsidiary.
Upon completion of the Ningbo Weirui subscription, Jikrypton and Zhejiang Jichuang will hold 51% and 49% of the expanded equity of Ningbo Weirui respectively, and Ningbo Weirui will be accounted for as a non-wholly-owned subsidiary of the company. its financial results will be consolidated in the group's consolidated financial statements.
Upon completion of the acquisition and Ningbo Weirui subscription, the Polar Krypton Group will have automotive and electric vehicle related technologies developed by CEVT and will be engaged in the production and sale of electric vehicles, power batteries and electric drive systems and other automotive components. It is expected that the Polar Krypton Group, the Group, Lectra Group and Geely Holdings Group will conduct ongoing connected transactions relating to the production and sale of automotive parts, the provision of R & D services and technical licensing services, as well as polar krypton financing arrangements. The Group will also provide operational services to the Polar Krypton Group to support the day-to-day operation of the Polar Krypton Group.
Ningbo Weirui is engaged in R & D, production and sales of power batteries and electric drive systems and related components, as well as providing after-sales service. In the whole process of electric vehicle development, power battery and electric drive system are regarded as the core elements of electric vehicle, because the performance and service life of battery directly affect the driving mileage and safety of electric vehicle. Through the acquisition and integration of Ningbo Weirui, the Polar Krypton Group will benefit from a sustained and stable supply of power batteries and electric drive systems (key to the production and sale of polar krypton brand cars).
Notably, Geely announced on June 25 that it had decided to withdraw its application for the listing of RMB shares in Science and Technology Innovation Board. With regard to the reasons for withdrawing the application, Geely said it was mainly in view of the company's business decisions and strategic adjustments.
On the afternoon of the 25th, Geely holding Group also signed a strategic cooperation agreement with the Ningbo Municipal people's Government, announcing that the global headquarters of Polar Krypton Intelligent Technology Co., Ltd. has settled in Ningbo. On the same day, Geely also announced that the board of directors had decided to explore different external financing options for polar krypton sustainable development.
