[Global Technology Reporter Wang Huan] On the 21st, Zhuhai Gree Electric Appliances announced that it will commence business cooperation with the pure electric vehicle company "Zhuhai Yinlong New Energy", including the priority purchase of the other product. In order to enter the pure electric vehicle business in autumn 2016, Gree tried to acquire Zhuhai Yinlong without success. In this form of business cooperation, Gree will re-enter the pure electric vehicle business.
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After the approval of the extraordinary general meeting held on March 8, Gree will formally commence business cooperation with Zhuhai Yinlong. Specifically, in the future, Zhuhai Yinlong can purchase Gree's outstanding production equipment and technical services accumulated in the air-conditioning manufacturing sector. On the other hand, Gree can preferentially purchase Zhuhai Yinlong's advantages in pure electric vehicle related parts and technologies.
Gree hopes to absorb its own lack of technology and experience from Zhuhai Yinlong in the field of pure electric vehicles. The mutual preferential purchase and total amount of the two parties shall not exceed RMB 20 billion.
Zhuhai Yinlong had sales of approximately 130 billion yen in 2016. Gree tried to acquire the company for about 200 billion yen in November 2016, but the acquisition plan for new shares was opposed by shareholders and eventually abandoned the acquisition. The sales of Gree's main product air conditioners are declining, and rebuilding profit pillars has become a top priority.
Wuxi Jinle Automobile Motor Factory , https://www.wxjldj.com