On November 28th, by the close of trading, Changan Automobile surged over 9% to a record high, and many Changan Automobile concept stocks also saw gains. Among them, Dong’an Power, Yunnei Power, and Hunan Tianyan all hit their daily limit up, while Dongjian Technology, Bojun Technology, and Xingmin Zhitong all followed suit. The day before, Changan Automobile issued a notice of abnormal stock trading fluctuations, stating that the company’s stock trading price had deviated by more than 20% for three consecutive trading days on November 23, 24, and 27, according to relevant regulations of the Shenzhen Stock Exchange, this constitutes abnormal stock trading fluctuations. On the evening of November 26th, Changan Automobile announced that, after consultation with Huawei, Huawei plans to establish a company engaged in the research, design, production, sales, and service of intelligent automotive systems and components, and Changan Automobile plans to invest in the company and engage in strategic cooperation. Both parties will support the new company to become a leader in the automotive intelligent system and component solution industry, based in China and serving the global industry. Specifically for Changan Automobile, Changan Automobile and its affiliates plan to invest in the company to acquire no more than 40% of the equity, and together with Huawei, support the future development of the company. The two parties also agreed in a memorandum that the new company will gradually open up its equity to existing strategic partner car companies and other investors with strategic value, becoming a diversified company in terms of equity ownership.
According to Blue Whale Finance statistics, among more than 20 related companies, there are more than 10 companies that are bullish. Among them, Dong’an Power and Hunan Tianyan, which have a high stake in Changan Automobile, have seen an increase of nearly 10%. On the supply chain side, Yunnei Power, Weimes, Dongjian Technology, and others have all seen increases of over 5%. It is worth noting that Yunnei Power added the “Changan Automobile concept” on November 27th, which means that, with the continuous progress of Changan’s cooperation with Huawei, more suppliers like Yunnei Power will receive more investment and attention from the market. In addition, more supply chain companies are also releasing favorable information to the market in the heat of this cooperation. As one of the suppliers, Xiang Oil Pump stated on the interactive platform that Changan has always been one of the company’s important customers, mainly supplying it with products such as oil pumps and gearbox pumps, and has been cooperating with Changan’s intelligent network in the field of automatic driving since July 2021. With the official announcement of Changan’s cooperation with Huawei, Huawei’s car BU business direction has also seen results. On November 18th, at the ZhiJie S7 and Huawei Full-Scene Conference, Huawei’s Executive Director and Chairman of the Intelligent Car Solution BU, Yu Chengdong, for the first time stated that Huawei’s car BU business will move towards independent operation and invited car factories such as FAW to participate in co-construction. “This cooperation can be said to be a combination of the strengths of both parties. The strength and experience of Changan Automobile in the traditional automotive field, combined with Huawei’s leading technology and strength in the ICT field, aims to jointly promote the development of the intelligent networked car business.” Bai Wenxi, Chief Economist of IPG China, told Blue Whale Finance that this is a win-win cooperation and is also of great significance for the development of the Chinese automotive industry.