Another EV maker startup will get the qualification for building a car. On September 27th, Nanjing Bordrin New Energy Automobile Co., Ltd. and Tianjin FAW Xiali Automobile Co., Ltd. signed an agreement to officially set up the headquarters of FAW Xiali Company in Tianjin. Established the joint venture company “Tianjin Bordrin Automobile Co., Ltd.” (tentative name, the final name is subject to the approval of the industrial and commercial registration authority).
According to the “Shareholders’ Agreement” signed by the two parties, the registered capital of the joint venture company is 2.540 billion yuan, of which, Bordrin invested RMB 2.034 billion in cash, and the shareholding ratio was 80.1%. FAW Xiali relied on the vehicle and plant related to the evaluation of the vehicle. Assets and liabilities such as equipment were valued at 505 million yuan, and the shareholding ratio was 19.9%.
As early as April this year, Bordrin announced that it would form a joint venture with FAW Xiali to produce and sell new energy vehicles. It is reported that Bordrin will have an absolute controlling interest between two parties, while FAW Xiali will mainly invest in production qualifications. In the future, FAW Xiali’s debt will be borne by the joint venture company.
And FAW Xiali disclosed 2019 semi-annual report data show that in the first half of this year, the company achieved operating income of about 268 million yuan, down 62.45% year-on-year; net profit attributable to shareholders of listed companies was about -55 million yuan, compared with the same period last year, the loss was 13.52% higher than the loss; the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses in the first half of this year was about -596 million yuan.
Founded in 2016, Bordrin is a member of new force in Chinese EV manufacturing industry. It is positioned as a “technology company providing smart travel solutions”, founded by Huang Ximing, a technical expert in the automotive industry. Currently, Bordrin has four R&D centers in Detroit, Nanjing, Shanghai and Beijing. After the establishment of the joint venture company, Tianjin Bordrin will have two production bases in Tianjin and Nanjing, and two planned sites in Shanghai Lingang and Jiangsu Huai’an.
In terms of products, in April of this year, Bordrin made its debut for its brand appearance during the Shanghai Auto Show, launched two electric SUV models, the Bordrin iV6 and the Bordrin iV7, and released three electric vehicle platforms i-SP, i-MP and i-LP for small cars, medium cars and large cars. It is reported that Bordrin iV6 will be put into production at the Tianjin base as the first product after the establishment of the joint venture company.