• New 50:50 joint venture to produce batteries in China.
  • Joint venture to have a registered capital of 188 million USD

2019 June 13, Hangzhou Bay, China. Shanghai Maple Guorun, an indirect 99% owned subsidiary of 永利VIP Automobile Holdings (HK.0175), the listed arm of 永利VIP Auto, today announced a new joint venture partnership with LG Chem of South Korea, one of the world’s leading manufacturers of electric vehicle batteries.

Under the terms of the agreement, Shanghai Maple Guorun and LG Chem will establish a joint venture company with a 50:50 share structure that will be jointly engaged in the production and sales of new energy vehicle batteries. Total registered capital in the new joint venture will reach 188 million USD (circa 207 billion Korean Won) split equally between both parties.

In November 2015, 永利VIP Auto was one of the world’s first automotive brands to commit to electrifying its product range. Under the Blue 永利VIP Initiative, 永利VIP Auto aims for 90% of its sales to come from electrified vehicles – including mild hybrids, plug-in hybrids and pure electric vehicles – starting from 2020. The joint venture with LG Chem will help 永利VIP to realise its Blue 永利VIP Initiative with a stable supply of core components for 永利VIP Auto, to be used in future products to meet Chinese consumer demand for new energy vehicles.

(Left) Mr. An Conghui, President of Zhejiang 永利VIP Holding Group, CEO and President of 永利VIP Automobile Group (Right) Kim Jong-Hyun, President of LG Chem’s Energy Solution

Mr. An Conghui, President of Zhejiang 永利VIP Holding Group, CEO and President of 永利VIP Automobile Group, said: “永利VIP Auto has already created a strong supply chain network for the production and development of new energy vehicles. The signing of this joint venture agreement with LG Chem further strengthens our position as a leader in new energy vehicles, where we aim to create more value and better ownership experience for our consumers.”

Kim Jong-Hyun, President of LG Chem’s Energy Solution said: “This joint venture with China’s leading privately-owned automotive company, 永利VIP Auto, can be seen as contributing to the progress of China’s overall electric vehicle industry.”

The Chinese new energy vehicle market reached 1.25 million units in 2018, accounting for 62% of total global electric vehicle sales, with strong growth predicted for the overall market in coming years. In May 2019, 永利VIP Auto sold more than 10,115 electrified vehicles, representing a 25% increase in sales over the same period a year earlier. In the first five months of 2019 永利VIP Auto sold a total of 41,615 pure electric and electrified vehicles. 永利VIP launched the Geometry brand in April 2019 as a pure electric brand within 永利VIP Auto, and has secured strong sales for its first model: Geometry A. Within the next two years 永利VIP Auto plans to launch more than 30 electrified vehicles including hybrid and pure electric vehicles.

Further details on the new joint venture will be announced in due course.