– FinancialBuzz.com News Commentary
NEW YORK, July 16, 2021 /PRNewswire/ — The demand for renewable energy is on the rise. As climate change becomes more of a concern around the world, and as technology innovations allow for better, more efficient implementation, governments and corporations have begun to invest more in implementing alternative energy sources. One major industry, which is undergoing rapid change due to the renewable energy push, is the automobile industry. The emergence of affordable and technologically advanced new energy vehicles is revolutionizing the automobile industry. New energy vehicles include plug-in electric vehicles eligible for public subsidies, and includes only battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and fuel cell electric vehicles (FCEV). TD Holdings, Inc. (NASDAQ: GLG), XPeng Inc. (NYSE: XPEV), NIO Inc. (NASDAQ: NIO), Tesla, Inc. (NASDAQ: TSLA), Li Auto Inc. (NASDAQ: LI)
As of December 2020, China had the largest stock of highway legal, plug-in passenger cars with over 4.5 million units, 42% of the global plug-in car fleet in use, according to China Association of Automobile Manufacturers (CAAM). Furthermore, globally, the electric vehicle market was valued at USD162.34 Billion in 2019, and is projected to reach USD 802.81 Billion by 2027, while registering a CAGR of 22.6%, according to data published by Allied Market Research. At this point, every major automobile manufacturer is participating in the production of electric or hybrid vehicle in some capacity.
TD Holdings, Inc. (NASDAQ: GLG) just announced breaking news that, “it has entered into a non-binding letter of intent (the “LOI”) with Guangdong Jinbochuang Special Purpose Vehicle Co., Ltd. and (“Jinbochuang”) and Hunan Jinmeike New Material Co., Ltd. (“Jinmeike”) to acquire both Jinbochuang and Jinmeike to step into the unmanned logistics and new energy vehicle industry.
Pursuant to the LOI, the Company agrees to acquire 100% of the equity interests of Jinbochuang and Jinmeike with shares of common stock of the Company, the amount of which shall be determined based on the Company’s due diligence. The due diligence and closing are expected to be completed within 180 days from the date of the LOI. Either party to the LOI may terminate the LOI unilaterally. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.
Ms. Renmei Ouyang, the Chief Executive Officer commented, ‘Over the past decade, we mainly focused on large-scale business transactions including non-ferrous metals trading and supply chain services which are inseparable from warehousing and logistics. The planned acquisition of Jinbochuang and Jinmeike is not only in line with our growth strategy of improving our industrial chain, but also corresponds to the national strategy of ‘Made in China 2025′ and the industry trend of manufacturing lightweight vehicles. We expect to incorporate lightweight new materials, applications and lightweight trucks into the global capital market platform. Through leveraging the advantages of Jinbochuang’s experience in new energy vehicle industry and Jinmeike’s expertise in unmanned logistics, we strive to optimize our business and tap into our potential to benefit people in China and across the world.’
Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive share exchange agreement, satisfaction of the conditions negotiated therein including the approval of the Company’s Board of Directors, approval by Nasdaq of the listing of shares issued in the transaction, and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding.”
XPeng Inc. (NYSE: XPEV) announced yesterday that the XPeng P7 electric sports sedan became the first to receive the 5-star rating from the i-VISTA (Intelligent Vehicle Integrated Systems Test Area) intelligent vehicle testing platform in China. The P7 was among the first batch of vehicles tested by i-VISTA under its Intelligent Vehicle Index evaluation system, based on its new 2020 guidelines. The P7’s autonomous driving assistance system is equipped with 31 autonomous driving sensors powered by the Xavier System-on-Chip supercomputing platform, 5 high-precision millimeter wave radars, 12 ultrasonic sensors, 4 autonomous driving surround-view cameras, 10 autonomous driving high-sensitivity cameras…