Liaoning SG Automotive to Acquire Chery Model’s Technical Assets for 132 Million Yuan
Liaoning SG Automotive Group announced that it intends to acquire the advanced technologies of Chery S18 (Ruiqi M1) and S18D (Ruiqi X1) models held by Tianjin Meiya New Energy Automobile Co., Ltd. in an effort to develop and produce pure electric sedans and SUVs. The deal between the two parties is worth 132 million yuan ($20.409 million).
According to the announcement, the acquisition of SG Automotive shares aims to speed up the progress of its pure electric passenger car project, and bring new energy passenger cars to the market as soon as possible. After the transfer of the technology, SG Automotive will integrate it into their own workflow and continue to independently research and develop it. At the same time, it will keep abreast of the latest product and technology development trends of pure electric passenger cars, expand the market and actively promote the implementation of pure electric passenger car projects.
The announcement shows that Tianjin Meiya New Energy Automobile is wholly owned by Chinese automotive manufacturing company Hawtai Motor Group, the controlling shareholder of SG Automotive. In 2017, Tianjin Meiya New Energy Automobile signed a Property Rights Transaction Contract and Patent License Contract with Chery Automobile. Chery Automobile is an automobile enterprise with a complete technology and product R&D system, with well-known brands such as Arrizo, Tiggo and Exeed.
Liaoning SG Automotive Group Co., Ltd., mainly engages in automobile parts manufacturing, specifically vehicle axles and other parts. At present, the company has two major brands, Huanghai Auto and Shuguang Axle, and mainly produces buses, pickup trucks, light passengers and special vehicles.
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In recent years, the vehicle sales performance of SG Automotive has been sluggish, with vehicle sales reaching a high of 21,100 vehicles in 2017, declining to 15,600 vehicles in 2018, and then falling further to 7,710 and 7,892 vehicles in 2019 and 2020. In the first eight months of this year, its total sales volume was 4,874 vehicles, up 19.20% year-on-year.
According to its interim results report, SG Automotive’s operating income in the first half of the year increased by 69.08% year-on-year to 1.408 billion yuan.