Geely and Baidu 'Official Announcement' Will Form Smart Electric Vehicle Company
In the morning of January 11, Baidu and Geely Holding both issued announcements to officially announce the establishment of a smart electric vehicle. Baidu said that it will formally form a smart car company to enter the automotive industry as a vehicle manufacturer, and Geely Holdings will become a strategic partner. The latter’s subsidiary, Geely Automobile, issued an announcement stating that it is not a party to the proposed transaction and has not cooperated with Geely Holdings or provided financing to Geely Holdings.
On the morning of the 11th, Geely Holding and Baidu both issued an official announcement that they would form a smart electric vehicle company. Baidu said that on January 11, 2021, Baidu will enter the automotive industry as a vehicle manufacturer. Geely Holding Group will become a strategic partner of the new company.
Baidu and Geely Automobile announced that they will work together to 'build a smart electric vehicle.'
Geely Holding stated that the cooperation will be based on Geely’s latest global leading pure electric architecture-SEA Haohan Intelligent Evolution Experience Architecture. The architecture is based on the cutting-edge technology of global smart electric vehicles, breaking through the boundaries of traditional car manufacturing, and is committed to building a future travel service system with infinite interaction and extension through the integration of hardware layer, system layer, and ecological layer, providing users with continuously optimized personalized services and The ever-growing mobile travel life. The structure will be open to strategic partners.
It is reported that this cooperation is Geely and Baidu once again 'holding hands'. The two parties have already cooperated extensively in the fields of intelligent network connection, intelligent driving, smart home, and e-commerce.
In fact, the share prices of the two companies have experienced a surge in the news of 'co-building cars'.
On the evening of the 10th Beijing time, Baidu’s stock price rose by 15.57%, and its market value increased by 11 billion US dollars overnight, or about 70 billion yuan. The final stock price closed at 242 US dollars per share, and the market value was also two times apart. Standing at 80 billion US dollars after the year.
Last Friday (January 8), the Hong Kong stock Geely Automobile surged over 20% in intraday trading, and its share price reached 33.85 Hong Kong dollars, setting a new stage high. The latest total market value was 326.8 billion Hong Kong dollars.
Geely Auto Stock Price
Baidu stock price
It is worth mentioning that on the morning of the 11th, Geely Automobile issued an announcement in response to the rumor that “Geely Holdings and Baidu Co-operate to Produce Smart Electric Vehicles” stated that the company is not a party to the proposed transaction. For the proposed transaction, there is no cooperation with Geely Holdings or financing to Geely Holdings. Geely Automobile’s controlling shareholder is Geely Holdings.
The announcement stated that the board of directors, after making reasonable enquiries about the company under relevant circumstances, confirmed that it was not aware of any reasons that led to the price changes of these shares, or that any announcement must be made to avoid false appearances in the company’s securities Market information, or any inside information.
However, Geely Automobile stated, “If the proposed transaction is implemented, it will comply with the securities listing rules of The Stock Exchange of Hong Kong Limited, and in order to consider the overall interests of the company and its shareholders, the company does not rule out seeking The possibility of Baidu’s potential cooperation opportunities.'
In addition, the announcement stated that, given that Geely Holdings is a major shareholder indirectly holding approximately 40.94% of the company’s issued share capital and is an associate of the company’s executive director, Mr. Li Shufu, as far as the listing rules are concerned, Geely Holdings is a connected person of the company. Therefore, if any substantial cooperation between Baidu and the company constitutes a notifiable transaction and/or connected transaction of the company, the company will comply with the relevant listing rules. The company will issue a separate announcement when necessary to provide relevant information to the market
