The Internet of Vehicles industry takes another step forward: Hongli plans to invest 260 million in HuiShiTong

Following its 18% stake in the Internet of Vehicles manufacturer Jiangsu Nanyi Dina Technology, Hongli Optoelectronics has taken another step forward in the Internet of Vehicles industry. The company announced on the evening of July 17 that it planned to purchase 18.57 million shares of Shenzhen HuiShiTong Technology Co., Ltd. for 195 million yuan in cash, and GF Xinde planned to purchase 1.43 million shares of HuiShiTong for 15 million yuan in cash; both parties would contribute 65 million yuan and 5 million yuan respectively to increase the capital of HuiShiTong. After the completion of this transaction, the company will hold 36.58% of the equity of HuiShiTong, and GF Xinde will hold 2.82% of the equity of HuiShiTong. The company's shares will resume trading on July 20.

According to data, Huishitong has ten years of rich experience in the field of Internet of Vehicles. It is the largest company in China integrating R&D, production, sales and service. It is one of the comprehensive Internet of Vehicles companies that provides comprehensive operation services in the professional field of GPS. Its product applications cover taxis, buses, logistics vehicles, dangerous goods vehicles, car rentals, long-distance passenger transport, private cars and other fields, and has entered the pre-installed market such as Shanghai Volkswagen.

Huishitong shareholders promise that the net profit in 2015 will be no less than 45 million yuan. If Hongli Optoelectronics acquires all the remaining shares of HuiShiTong in 2016, HuiShiTong shareholders promise that HuiShiTong will achieve net profits of 70 million yuan, 90 million yuan, 120 million yuan and 145 million yuan in 2016, 2017, 2018 and 2019 respectively.

As of December 31, 2018, if HuiShiTong fails to IPO successfully or fails to be successfully acquired by a listed company, HuiShiTong shareholders will repurchase the company shares held by Hongli Optoelectronics and GF Xinde based on the total amount of this transaction, and at the same time pay an annualized interest of 15% of the total transaction amount. It is worth noting that if the parties are still unable to sign a formal transaction agreement as of August 31, 2015, this intention agreement will be automatically terminated.

The company stated that if this investment can be formally implemented, it will be an important step for the company after investing in Jiangsu Nanyidina Digital Technology Development Co., Ltd. in the field of Internet of Vehicles. It will further accelerate the company's layout in the emerging industry of Internet of Vehicles, which will help realize the company's future dual main business formats and establish an ecological platform of the company's LED main business + Internet finance + Internet of Vehicles, which will have a positive impact on the company's future development.