XPeng Announces Cooperation Agreement for New Smart EV Manufacturing Base in Guangzhou
September 27 2020 - 11:25PM
Business Wire
XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV), a leading
Chinese smart electric vehicle (“Smart EV”) company, announced
today that its wholly owned subsidiary in China, Guangdong Xiaopeng
Motors Technology Co., Ltd. (“Guangdong Xiaopeng”), entered into a
cooperation agreement (“Cooperation Agreement”) with Guangzhou GET
Investment Holdings Co., Ltd. (“Guangzhou GET Investment”), a
wholly owned investment company of Guangzhou Economic and
Technological Development Zone.
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Groundbreaking ceremony for the new XPeng
smart EV manufacturing base in Guangzhou (Photo: Business Wire)
According to the terms of the Cooperation Agreement, Guangzhou
GET Investment agrees to provide RMB4 billion in financing to help
fuel XPeng’s growth as well as support the construction of a new
Smart EV manufacturing base (“Smart EV Manufacturing Base”) for
XPeng in the Guangzhou Economic and Technological Development
Zone.
The Cooperation Agreement marks another milestone achievement in
XPeng’s advancement of manufacturing expansion and puts the
Company’s leadership position at the forefront of the Smart EV
market. In addition to its wholly owned plant in Zhaoqing,
Guangdong province, which has an annual production capacity of
100,000 units, XPeng’s new Smart EV Manufacturing Base in Guangzhou
will significantly expand the Company’s production capacity and
accelerate XPeng’s momentum to achieve its goals in innovation,
technological advancement and growth.
“We are very excited to be selected as a key player in the
Guangzhou Economic and Technological Development Zone,” said He
Xiaopeng, Chairman and Chief Executive Officer of XPeng. “With the
strong support from the Guangzhou government, we are confident we
will execute on our strategic growth initiatives and deliver the
highest quality products and services to meet our customers’
needs.”
Under the Cooperation Agreement, Guangzhou GET Investment will
invest up to RMB1.3 billion to construct the Smart EV Manufacturing
Base according to design requirements and specifications to be
provided by Guangdong Xiaopeng. The Smart EV Manufacturing Base is
expected to commence production by December 2022, upon which
Guangzhou GET Investment will lease it to an operating subsidiary
of Guangdong Xiaopeng (the “Operating Subsidiary”) for a tenure of
seven years. Upon the expiry of the lease, the Operating Subsidiary
will acquire the Smart EV Manufacturing Base from Guangzhou GET
Investment at costs incurred by Guangzhou GET Investment.
Pursuant to the Cooperation Agreement, Guangzhou GET Investment
also agreed to provide or facilitate RMB1.2 billion in financing to
the Operating Subsidiary for its purchase of manufacturing
equipment in the form of fixed-return redeemable investment (with
an annualized return of 4%) or long-term bank loans that Guangzhou
GET Investment will help the Operating Subsidiary to secure with
effective annual interest rates of no more than 4%, after subsidies
that are expected to be made available by the local government.
The new Smart EV Manufacturing Base will provide a comprehensive
range of facilities for R&D, manufacturing, vehicle testing,
sales and other smart mobility functions.
In addition, Guangzhou GET Investment agreed to make investment
of RMB1 billion in a PRC entity to be designated by Guangdong
Xiaopeng by the end of March 2021. Guangzhou GET Investment also
reserved previously approximately RMB0.5 billion for participation
in securities offerings by XPeng, and approximately half of the
amount is still available for additional investments in XPeng
before the end of August 2022.
This press release is not an exhaustive summary of the terms of
the Cooperation Agreement with Guangzhou GET Investment. An English
translation of the agreement will be furnished to the Securities
and Exchange Commission under the cover of a Form 6-K on 28 Sep
2020.
About XPeng
XPeng Inc. is a leading Chinese smart electric vehicle company
that designs, develops, manufactures, and markets Smart EVs that
appeal to the large and growing base of technology-savvy
middle-class consumers in China. Its mission is to drive Smart EV
transformation with technology and data, shaping the mobility
experience of the future. In order to optimize its customers’
mobility experience, XPeng develops in-house its full-stack
autonomous driving technology and in-car intelligent operating
system, as well as core vehicle systems including powertrain and
the electrification/electronic architecture. XPeng is headquartered
in Guangzhou, China, with offices in Beijing, Shanghai, Silicon
Valley, and San Diego in the U.S. The Company’s Smart EVs are
manufactured at plants in Zhaoqing and Zhengzhou, located in
Guangdong and Henan provinces, respectively. For more information,
please visit https://en.xiaopeng.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates” and similar statements. Statements
that are not historical facts, including statements about XPeng’s
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: XPeng’s goal
and strategies; XPeng’s expansion plans; XPeng’s future business
development, financial condition and results of operations; the
trends in, and size of, China’s EV market; XPeng’s expectations
regarding demand for, and market acceptance of, its products and
services; XPeng’s expectations regarding its relationships with
customers, contract manufacturer, suppliers, third-party service
providers, strategic partners and other stakeholders; general
economic and business conditions; and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks is included in XPeng’s filings with the SEC.
All information provided in this press release is as of the date of
this press release, and XPeng does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
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For Investor and Enquiries: IR Department XPeng Inc.
E-mail: ir@xiaopeng.com
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