Founder Motor Forms CNY 35M Guangxi Intelligent Control JV

Founder Motor and Yuchai Affiliate Establish Joint Venture

Zhejiang Founder Motor Co., Ltd. (Founder Motor) said its wholly owned subsidiary, Shanghai High Energy Auto Electronic Co., Ltd. (Shanghai High Energy), has signed a joint venture agreement with Guangxi Jukong Industrial Investment Co., Ltd. (Guangxi Jukong), an affiliate of Yuchai Group, to establish Guangxi Guixin Intelligent Control Technology. The joint venture will have registered capital of CNY 35 million, with Guangxi Jukong contributing CNY 21.35 million for a 61% stake and Shanghai High Energy contributing CNY 13.65 million for the remaining 39%. The new venture is intended to support engine electronic control and fuel injection businesses.

Ownership Structure and Capital Contribution

The ownership structure gives Guangxi Jukong majority control while providing Shanghai High Energy with a substantial minority position in the new enterprise. Under the agreement, the two parties will combine their participation through a dedicated joint venture focused on engine-related electronic and fuel-system activities. Founder Motor is represented through its wholly owned subsidiary, Shanghai High Energy, while Guangxi Jukong participates as an affiliate of Yuchai Group. The CNY 35 million registered capital establishes the financial base for the venture's planned research, manufacturing and sales operations.

Engine Controller and Fuel System Business Scope

The joint venture will undertake the engine controller, gas injection component, mixer and related product businesses of Yuchai Group and its affiliated enterprises. These activities cover products that support engine control and fuel delivery functions, placing the new company within the engine electronics and fuel-injection supply chain. The scope is specifically tied to the businesses transferred or undertaken from Yuchai Group and affiliated enterprises, rather than representing a broad expansion into unrelated automotive systems.

Research, Manufacturing and Sales Activities

Guangxi Guixin Intelligent Control Technology will engage in the research and development, manufacturing and sales of engine electronic control systems and fuel injection systems. Its planned activities therefore span the product lifecycle from engineering development through production and commercial supply. The stated business scope also establishes a direct connection between the joint venture's operations and the technical requirements of engine management and fuel delivery, providing a defined focus for the company's activities.

Joint Venture Ownership Framework

The agreement also creates a defined ownership and capital framework for the collaboration. Guangxi Jukong will provide 61% of the registered capital and hold the same proportion of the joint venture, while Shanghai High Energy will provide the remaining 39% and receive the corresponding equity stake. This structure aligns each party's equity position with its stated capital contribution and establishes the ownership proportions under which the new company will conduct its engine electronic control and fuel injection businesses.

Frequently Asked Questions

What is the purpose of the new Guangxi Guixin Intelligent Control Technology joint venture?
The venture will undertake engine controller, gas injection component, mixer and related product businesses for Yuchai Group and its affiliated enterprises. It will also conduct research and development, manufacturing and sales of engine electronic control systems and fuel injection systems. The arrangement gives the new company a defined focus on engine electronics and fuel delivery technologies while establishing a dedicated operating structure for these activities.

How is the Guangxi Guixin Intelligent Control Technology joint venture owned and funded?
The joint venture will have registered capital of CNY 35 million, with Guangxi Jukong contributing CNY 21.35 million for a 61% stake and Shanghai High Energy contributing CNY 13.65 million for a 39% stake. Guangxi Jukong therefore holds the majority position, while Shanghai High Energy retains a substantial minority interest. The ownership structure corresponds directly with the capital contributions specified in the joint venture agreement.