GAC Group, Bank of China, GZII Group intend to set up joint fund for NEV, ICV tech development

Shanghai (Gasgoo)- On December 13, GAC Group signed a strategic partnership agreement with Bank of China and Guangzhou Industrial Investment and Capital Operation Holding Group Ltd. ("GZII Group"). The three parties intend to establish the Guangzhou Xinqi Zhilian Equity Investment Fund ("Xinqi Zhilian") is Chinese Pinyin), with a proposed capital contribution ratio of 33.4%, 33.3%, and 33.3% as limited partners (LP).

Notably, the establishment of this investment fund also represents GAC Group's first joint fund with the commercial banking system, achieving a strong alliance of "capital + finance + industry".

Photo credit: GAC Group

According to the plan, the total scale of the fund is 30 billion yuan, with the first phase being 10 billion yuan. Guangzhou Yingpeng (dubbed in Chinese Pinyin), a subsidiary of GAC Capital, will serve as the fund manager. The fund will be used to invest in important projects across the industry chain of intelligent connected new energy vehicles, including power batteries, energy ecosystems, Internet of Vehicles (IoV), intelligent driving, auto chips, smart cities and more.

As GAC Group's automotive investment institution, GAC Capital has made extensive investments in areas such as chips, intelligent connectivity, and new energy vehicles in recent years. Statistics show that GAC Capital's investments in those fields account for over 85% of the total, with approximately 50% each in the chip and intelligent connectivity fields and the new energy battery fiel. Invested companies include WeRide, Holomatic, RoboSense, Greater Bay Technology, Sunwoda EVB, EVTECH, THINKTECH, CanSemi, Calterah and more, many of which are currently undergoing IPO.

By the end of this year, it is reported that GAC Capital has already attracted more than 10 invested companies to settle in Guangzhou, amassing a total market value exceeding 160 billion yuan. These enterprises have collectively injected over 60 billion yuan into Guangzhou, spanning areas such as power batteries, energy ecosystem, automotive chips, autonomous driving, and IoV technology.