Reporter: Duan Siyao Editor: Sun Lei On the evening of August 19, Changan Automobile announced the progress of the “Investment Cooperation Memorandum” and the external investment of its joint venture. Its joint venture, Avita Technology Co., Ltd., held a board meeting and approved the proposal for Avita’s external investment projects. Avita Technology will purchase a 10% stake in Shenzhen Yiwang Intelligent Technology Co., Ltd. from Huawei for 11.5 billion yuan. Avita plans to sign a “Shareholders Agreement” with Huawei and Yiwang. After this transaction, Avita will hold 10% of Yiwang, while Huawei will hold 90%. Changan Automobile previewed in the announcement that it will sign a “Comprehensive Upgrade Strategic Cooperation Agreement” with Huawei on August 20. Both parties will upgrade their strategic cooperation in branding, ecology, cloud and AI technology, green energy, and supply chain collaboration. As of the close on August 19, Changan’s stock price was 13.01 yuan (0$) per share, down 1.59%. Why Avita Technology? Initially, Yiwang aimed to be a diversified equity open platform. Changan was the first intended partner, with potential involvement from more car companies later. Why did Changan leave the opportunity to invest in Yiwang to Avita Technology? Changan stated in the announcement, “This transaction helps Avita gain more empowerment from Huawei and accelerates Changan’s brand enhancement strategy. Changan will use this opportunity to strengthen strategic cooperation with Huawei and push towards becoming a smart, low-carbon mobility technology company.” Previously, Changan’s Party Secretary and Chairman Zhu Huarong said, “As long as Avita needs it, Changan will provide money, personnel, and technology.” He then took the lead as Chairman of Avita Technology.
“Avita Technology holds only a 10% stake in Yiwang. This is much smaller than the previous announcements from Changan Automobile,” a securities analyst told the Daily Economic News. In November 2024, Changan Automobile announced a partnership with Huawei Technologies. The two companies signed a Memorandum of Investment Cooperation. Huawei plans to establish a company focused on developing, designing, producing, selling, and servicing automotive intelligent systems and components. Changan Automobile intends to invest in this new company and pursue strategic cooperation. Changan is the first car company to clearly express its intention to invest in Yiwang. As the unit within Changan with the closest ties to Huawei, Avita’s investment in Yiwang comes as no surprise. This year, Avita’s relationship with Huawei has strengthened. Recently, Avita President Chen Zhuo stated that Avita will work with Huawei to develop a fully liquid-cooled ultra-fast charging network. He also announced the launch of user recruitment for Huawei’s QianKun ADS 3.0 beta version. According to the Comprehensive Strategic Cooperation Agreement between Avita and Huawei, both parties reached a consensus on optimal resource allocation and Huawei’s HI trademark authorization. They will collaborate on the CHN platform to create a series of high-end intelligent electric vehicle products and continue to iterate, aiming to launch four new models by 2025. “Huawei and Avita are not just in a simple supplier relationship. In terms of the intelligent cockpit, Huawei provides the underlying software, while Avita handles product definition and top-level design,” an Avita representative told reporters. Yiwang “starts up.” After Avita’s investment, the number of car companies investing in Yiwang has increased to two. On July 28, Seres announced plans to negotiate with Yiwang and its shareholders to join in the investment. They aim to support Yiwang in becoming a world-class leader in automotive intelligent driving systems and components and to create an open platform for the automotive industry. However, Seres did not disclose specific investment amounts, transaction methods, or prices.
The securities analyst believes that Huawei wants to attract more car companies. However, its dominance may make other companies uncomfortable. The fact that Avita Technology holds only 10% shows this. Avita Technology and Seres have made clear investments. They have officially started to attract more investors. According to the agreement between Avita Technology and Huawei, the 11.5 billion yuan transfer price will be paid in three installments, with specific payment conditions set for each. After the transferor receives the first payment, they will begin transferring technology, assets, and personnel to the target company as agreed in the transaction documents. As more investors enter, how Huawei balances technology support for multiple partners has become a focus. An internal source from Changan Automobile told reporters that there are no detailed plans yet. Each car company chooses a different technology route or collaboration, so services may vary based on the company.