Wuling Motors’s Subsidiary Entered into Strategic Co-Operation Framework Agreement with TELD

HONG KONG, CHINA–(Marketwired – Oct 31, 2017) –  Wuling Motors Holdings Limited (HKSE: 305) (“Wuling Motors Holdings” or the “Company”) and its subsidiaries (collectively referred to as the “Wuling Group” or the “Group”) today announced that, Liuzhou Wuling Motors Industrial Company Limited (“Wuling Industrial”, which is a non-wholly-owned subsidiary of the Company) and Qingdao Teld New Energy Co., Ltd. (“TELD”) entered into the Framework Agreement, pursuant to which and subject to the results of further research and analysis to be carried out by parties, Wuling Industrial and TELD will explore the opportunity, and will enter into the Formal Agreement(s) as and when appropriate, to proceed with the Strategic Co-operation on new energy electrical vehicle business. In terms of number of public charging stations/terminals established/in operation, TELD is currently recognized as among the leading operators of public charging stations/terminals for electrical vehicles in the PRC.
The Framework Agreement sets out the development road map and scope of businesses co-operation framework of the Strategic Co-operation between Wuling Industrial and TELD in promoting the business opportunities in the new energy vehicle segment, represented primarily by the electrical vehicles, on a joint effort basis on the back of their respective competitive strength in the industry, which includes: (1) the undertaking of the unique business model of “Vehicles, Charging Facilities, Rental” through a close co-operation focusing on the sale and promotion of the electrical logistic vehicles produced by Wuling Industrial in the PRC. In particular, the charging services provided by TELD will be given priority to be packaged into the sale of the electrical logistic vehicles produced by Wuling Industrial, and at the same time TELD will prioritize the promotion of Wuling Industrial’s electrical logistic vehicles in the PRC; (2) in-depth co-operation programmes with respect to the individual market segment in respect of different types of new energy vehicles of Wuling Industrial and the charging services of TELD in Guangxi, the PRC for implementing synchronized strategies of development and the adoption of the abovementioned mutual prioritizing promotion programmes for the sale and marketing of various models of the new energy vehicles of Wuling Industrial and the charging services of TELD in Guangxi, the PRC; and (3) the setup of a production plant in Liuzhou for manufacturing of components for charging equipment installed in electrical vehicles, when opportunity arises. The manufacturing and supply of the electrical vehicles and the parts and components for the production of electrical vehicles and charging equipment would be the primary focus of Wuling Industrial.
TELD is a wholly-owned subsidiary of Qingdao Teruide Electrical Company Limited, which is listed on the Shenzhen Stock Exchange ChiNext Market (stock code: 300001). TELD is principally engaged in the research, manufacture and operation of the charging systems for electrical vehicles. As at 30 September 2017, TELD established a total number of 71 subsidiaries and invested and/or established approximately 180,000 charging terminals on an accumulative basis, in which more than 120,000 charging terminals are currently in operation. Its charging service network which covers 255 cities in the PRC, is currently providing the charging services to the electrical vehicles’ owners in the PRC. Furthermore, TELD Group is also currently one of the largest operators of electrical bus charging stations/terminals in Guangxi, the PRC, at which the production base of the Group’s new energy electrical vehicles is situated.
Supported by the national favourable policies, the number of electrical vehicles is increasing and the business potential is great. Wuling Industrial commenced its production of electrical vehicles back in 2008, by that time producing a small number of electrical community cars for exporting purpose. Throughout the years, Wuling Industrial has conscientiously developed its own proprietary electrical vehicles in accordance with the national standards and government policies. In 2016, it obtained the national qualification for manufacturing new energy electrical mini-truck in the PRC for logistic and transport use. Besides, in co-operation with Guilin Bus Development Co., Limited, a non-wholly-owned subsidiary of Guangxi Automobile, Wuling Industrial also began to participate in the sale and manufacturing of new energy electrical mini-buses.
At present, the production of electrical vehicles by Wuling Industrial represents an insignificant portion of the total production of the specialized vehicle business segment. During the ten months ended 31 October 2017, Wuling Industrial produced and sold approximately 600 electrical vehicles comprising primarily electrical sight-seeing cars, electrical police patrol cars and other electrical vehicles for the government departments. With respect to the Group’s own proprietary electrical logistic vehicles and electrical mini-buses with technical advantages, the Group is also actively developing suitable promotion strategies, in order to achieve satisfactory results upon their launches to the market.
Mr. Yuan Zhijun, the Chairman of Wuling Motors Holdings, said, “Stimulated by the supporting government policies and the growing awareness of the general public towards protection of environment, the emission-free new energy electrical vehicle market is promising. This Framework Agreement will provide the Group with an opportunity to establish a strategic co-operation relationship with TELD for jointly promoting the business opportunities in the electrical vehicle business segment, which in turn will drive the sale and promotion of the Group’s key products, including the electrical logistic vehicles to the market and will place the Group in a better position in sharing valuable market intelligence and identifying the most desirable opportunities. This year marks the 10th anniversary of Wuling industrial. We believe that as the electrical vehicle business will be further expanded, our profitability will also be further improved and we will create better return for our shareholders.”
About Wuling Motos Holdings Limited
Wuling Motors Holdings Limited is principally engaged in the businesses of trading and manufacturing of automotive components, engines and specialized vehicles. The Group’s corporate goal is to grasp the tremendous business opportunities arising from the rapidly growing automobile industry in China and Asia. Wuling Motors Holdings supplies engines and automotive components to commercial-type mini-vehicles and passenger vehicles. It is also a qualified enterprise for manufacturing electrical mini-truck in China. The Group’s main production facilities are located in Liuzhou, Qingdao, Chongqing and Indonesia. Since 2011, it has been ranked as one of the Fortune China 500 Enterprises.