On August 31, Sailun Jinyu Group Co., Ltd. as well as its wholly-owned subsidiary signed a Memorandum of Cooperation with FAW Group Co., Ltd. in Dongying City, Shandong Province for jointly establishing a new company to launch the East China intelligent connected vehicle proving ground project.

According to the Memorandum, FAW is to acquire 85% of shares of Saiya Tire Testing Co., Ltd., a wholly-owned subsidiary under Sailun Jinyu, by capital increment. The planned registered capital of Saiya Tire Testing will reach to 100 Million Yuan. After that, Saiya Tire Testing will be renamed as East China Intelligent Connected Vehicle Proving Ground Co., Ltd.

The business scope of the new company covers detection, test and technical services of finished automobile, assemblies and accessories of automobile/motorbike as well as the test equipment; intelligence application and technological development of pilotless automobile and test and demonstrated operation service of pilotless automobile; and automobile tire quality test and the related test services. 

This cooperation aims to make full use of Sailun Jinyu and FAW’s advantages in vehicle, tire and parts fields to satisfy their joint demands on modern intelligent connected vehicle proving ground and to effectively improve Sailun Jinyu’s R&D strength and tire testing service. Meanwhile, FAW also promised to expand the cooperation with Sailun Jinyu in the related business areas. 

Furthermore, as agreed in the Memorandum, FAW is responsible for designing and building the proving ground, while Sailun Jinyu shall actively give full assistance. The proving ground shall be entrusted with a third-party professional company for operation and management. Priority service shall be provided to shareholders of the proving ground and then to domestic and foreign markets. 

As for the management structure, they have agreed that four persons recommended by FAW and one recommended by Sailun Jinyu constitute the board of directors. The chairman of the board shall be the legal person of new company, who is recommended and appointed by FAW. The operating period of this new company is 20 years, which may be extended through application of both parties within six months before its expiration.