Liuzhou Wuling Motors Industrial Company Ltd., a non-wholly-owned subsidiary of the Wuling Group, and Qingdao Teld New Energy Co., Ltd. (TELD) entered into a Framework Agreement under which Wuling Industrial and TELD will explore the opportunity—and will enter into the Formal Agreement(s) as and when appropriate—to proceed with strategic co-operation on the new energy electrical vehicle business.
TELD is currently recognized as one of the leading operators of public charging stations/terminals for electrical vehicles in the PRC, based the number of public charging stations/terminals established/in operation. The Framework Agreement sets out the development road map and scope of businesses co-operation, which includes:
Launching a “Vehicles, Charging Facilities, Rental” business model through a close co-operation focusing on the sale and promotion of the electrical logistic vehicles produced by Wuling Industrial in the PRC. In particular, the charging services provided by TELD would be given priority to be packaged into the sale of the electrical logistic vehicles produced by Wuling Industrial, and at the same time TELD will prioritize the promotion of Wuling Industrial’s electrical logistic vehicles in the PRC.
Synchronizing the development and adopting mutual prioritizing promotion programsfor the sale and marketing of various models of Wuling new energy vehicles and TELD charging services in Guangxi, the PRC.
Setting up a production plant in Liuzhou for the manufacture of components for charging equipment installed in electrical vehicles, when opportunity arises. The manufacturing and supply of the electrical vehicles and the parts and components for the production of electrical vehicles and charging equipment would be the primary focus of Wuling Industrial.
TELD is a wholly-owned subsidiary of Qingdao Teruide Electrical Company Limited, which is listed on the Shenzhen Stock Exchange ChiNext Market. TELD is principally engaged in the research, manufacture and operation of the charging systems for electrical vehicles. As at 30 September 2017, TELD established a total number of 71 subsidiaries and invested and/or established approximately 180,000 charging terminals on an accumulative basis, in which more than 120,000 charging terminals are currently in operation.
Its charging service network covers 255 cities in the PRC. Furthermore, TELD Group is also currently one of the largest operators of electrical bus charging stations/terminals in Guangxi, where the production base of the Wuling Group’s new energy electrical vehicles is located.
Wuling Industrial began producing electrical vehicles in 2008. Subsequently, Wuling Industrial has developed its own proprietary electrical vehicles in accordance with the national standards and government policies. In 2016, it obtained the national qualification for manufacturing new energy electrical mini-truck in the PRC for logistic and transport use. In co-operation with Guilin Bus Development Co., Limited, a non-wholly-owned subsidiary of Guangxi Automobile, Wuling Industrial also began to participate in the sale and manufacturing of new energy electrical mini-buses.
At present, the production of electrical vehicles by Wuling Industrial represents an insignificant portion of the total production of the specialized vehicle business segment. During the ten months ended 31 October 2017, Wuling Industrial produced and sold approximately 600 electrical vehicles comprising primarily electrical sight-seeing cars, electrical police patrol cars and other electrical vehicles for the government departments.