Xiaokang's high-end intelligent electric vehicles have been supported by government funds

After the pre-sale of the first new car of Cyris AITO, a high-end intelligent new energy vehicle jointly built with Huawei, the M5, Xiaokang continued to increase the production capacity layout of Cyrus. The company announced on the evening of January 4 that it intends to jointly invest in the establishment of "Xilisi Electric Company" by jinkang new energy, a holding subsidiary, and the relevant government investment platform of Chongqing Municipality, for the construction and operation of the "Xilis intelligent electric vehicle parts assembly project" to enhance the company's high-end intelligent electric vehicle production capacity.

According to the announcement, the registered place of the above-mentioned joint venture company is located in Qingfeng Hi-Tech Industrial Park, Shapingba District, Chongqing (the location of the well-off high-end intelligent networked vehicle production base under construction), with a registered capital of 2 billion yuan. Among them, Jinkang New Energy plans to invest 900 million yuan, accounting for 45%; Chongqing Jingyun Chuangfu Enterprise Management Co., Ltd. intends to invest 800 million yuan, accounting for 40%; and the special fund fund funded by Jingyun Chuangfu and Chongqing Development Investment Co., Ltd. intends to invest 300 million yuan, accounting for 15%. It is reported that the main shareholders of Jingyun Chuangfu include Chongqing Yufu, Chongqing International Logistics Hub Park Construction Company, Chongqing Yuwuxing Logistics Industry Private Equity Investment Fund, Chongqing Modern Logistics Industry Equity Investment Fund Management Company, Chongqing Qingfeng Science and Technology Development Co., Ltd., etc. Chongqing Development is a wholly state-owned company funded by the Chongqing Municipal Finance Bureau on behalf of the Chongqing Municipal Government. The above-mentioned government investment platforms invested a total of 1.1 billion yuan, accounting for 55% of the total. However, the joint venture will be included in the consolidated financial statements by Xiaokang shares.

Xiaokang co., Ltd. said that the development of new energy vehicles is an important way to achieve the goal of "double carbon", and the company's in-depth cross-border cooperation with leading international ICT companies has ushered in a historic opportunity under the new stage of accelerated development of new energy vehicles. In order to seize market opportunities, meet the needs of the company's new energy vehicle business production and operation and business development, and enhance the company's financial strength, the government investment platform has been introduced to support the development of the new energy vehicle business.

The construction and operation of the above-mentioned joint venture company is one of the important layouts of the company's development of new energy vehicle strategy, the completion of the project construction is conducive to improving the company's high-end intelligent electric vehicle intelligent manufacturing level, enhancing the company's high-end intelligent electric vehicle mass production capacity, providing effective guarantee for the company to accelerate the improvement of market share, is conducive to the company's high-quality development, in line with the company's strategic planning and the company's long-term interests.

Xiaokang co., Ltd. also announced the production and sales data of December 2021, the company's new energy vehicle production and sales in that month were 6248 units and 6150 units, respectively, a year-on-year increase of 162.19% and 88.71%; the cumulative production and sales of new energy vehicles in the whole year were 41701 million units and 414.40 million units, an increase of 115.43% and 104.39% respectively. According to the company's 2021 equity incentive plan target, in 2021, the guaranteed sales of new energy vehicles will be 32,000 units, and the target will be 40,000 units, and the company can exercise the rights in full in the first year. (Wang Yi)