Phoenix Motor's EdisonFuture International Signs Strategic Cooperation Agreement with Guorun Venture Capital for RMB 1 Billion M&A Fund to Establish EV Manufacturing Sites in China
Phoenix Motor (NASDAQ:PEV) announced that its subsidiary EdisonFuture International has signed a strategic agreement with Beijing Guorun Venture Capital to establish a RMB 1 billion (USD 140 million) M&A investment fund. The fund will support the acquisition and development of EV manufacturing sites in China.
Under the agreement, Guorun will create a specialized M&A investment entity to acquire strategic EV production assets, including land, factories, equipment, and intellectual property in China, as designated by EdisonFuture International. The partnership aims to integrate Phoenix's EV technologies with China's supply chain ecosystem to create a cost-efficient platform serving both domestic and international markets.
EdisonFuture International, based in Hong Kong, serves as Phoenix Motor's global expansion arm targeting Asia, Europe, and South America. This initiative aims to establish the company's presence in China's EV market while optimizing operational efficiencies and cost structures.
Phoenix Motor (NASDAQ:PEV) ha annunciato che la sua controllata EdisonFuture International ha firmato un accordo strategico con Beijing Guorun Venture Capital per creare un fondo di investimento M&A da 1 miliardo di RMB (140 milioni di USD). Il fondo supporterà l'acquisizione e lo sviluppo di siti di produzione di veicoli elettrici (EV) in Cina.
In base all'accordo, Guorun creerà un'entità di investimento M&A specializzata per acquisire beni strategici per la produzione di EV, inclusi terreni, fabbriche, attrezzature e proprietà intellettuale in Cina, come designato da EdisonFuture International. La partnership mira a integrare le tecnologie EV di Phoenix con l'ecosistema della catena di approvvigionamento cinese per creare una piattaforma economica al servizio sia dei mercati domestici che internazionali.
EdisonFuture International, con sede a Hong Kong, funge da braccio di espansione globale di Phoenix Motor, mirando all'Asia, all'Europa e all'America del Sud. Questa iniziativa punta a stabilire la presenza dell'azienda nel mercato EV cinese ottimizzando al contempo le efficienze operative e le strutture dei costi.
Phoenix Motor (NASDAQ:PEV) anunció que su filial EdisonFuture International ha firmado un acuerdo estratégico con Beijing Guorun Venture Capital para establecer un fondo de inversión en M&A de 1 mil millones de RMB (140 millones de USD). El fondo apoyará la adquisición y el desarrollo de sitios de fabricación de vehículos eléctricos (EV) en China.
Según el acuerdo, Guorun creará una entidad de inversión en M&A especializada para adquirir activos estratégicos de producción de EV, incluyendo terrenos, fábricas, equipos y propiedad intelectual en China, según lo designado por EdisonFuture International. La asociación tiene como objetivo integrar las tecnologías EV de Phoenix con el ecosistema de la cadena de suministro de China para crear una plataforma rentable que sirva tanto a mercados nacionales como internacionales.
EdisonFuture International, con sede en Hong Kong, actúa como el brazo de expansión global de Phoenix Motor, enfocándose en Asia, Europa y América del Sur. Esta iniciativa busca establecer la presencia de la empresa en el mercado de EV en China mientras optimiza la eficiencia operativa y las estructuras de costos.
피닉스 모터 (NASDAQ:PEV)는 자회사 에디슨퓨처 인터내셔널이 베이징 과룬 벤처 캐피탈과 10억 위안(1억 4천만 달러) 규모의 M&A 투자 펀드를 설립하기 위한 전략적 계약을 체결했다고 발표했습니다. 이 펀드는 중국 내 전기차(EV) 제조 사이트의 인수 및 개발을 지원할 것입니다.
계약에 따라 과룬은 에디슨퓨처 인터내셔널이 지정한 중국 내 전기차 생산 자산(토지, 공장, 장비 및 지적 재산 포함)을 인수하기 위한 전문 M&A 투자 기관을 설립할 것입니다. 이 파트너십은 피닉스의 전기차 기술을 중국의 공급망 생태계와 통합하여 국내 및 국제 시장 모두에 서비스를 제공하는 비용 효율적인 플랫폼을 만드는 것을 목표로 하고 있습니다.
홍콩에 본사를 둔 에디슨퓨처 인터내셔널은 아시아, 유럽 및 남미를 목표로 하는 피닉스 모터의 글로벌 확장 기구로 기능합니다. 이 이니셔티브는 중국의 전기차 시장에서 회사의 존재를 확립하면서 운영 효율성과 비용 구조를 최적화하는 것을 목표로 하고 있습니다.
Phoenix Motor (NASDAQ:PEV) a annoncé que sa filiale EdisonFuture International a signé un accord stratégique avec Beijing Guorun Venture Capital pour établir un fonds d'investissement en M&A de 1 milliard de RMB (140 millions de USD). Le fonds soutiendra l'acquisition et le développement de sites de fabrication de véhicules électriques (EV) en Chine.
En vertu de l'accord, Guorun créera une entité d'investissement M&A spécialisée pour acquérir des actifs de production d'EV stratégiques, y compris des terrains, des usines, des équipements et des droits de propriété intellectuelle en Chine, comme désigné par EdisonFuture International. Le partenariat vise à intégrer les technologies EV de Phoenix avec l'écosystème de la chaîne d'approvisionnement en Chine afin de créer une plateforme rentable servant à la fois les marchés nationaux et internationaux.
EdisonFuture International, basé à Hong Kong, sert de bras d'expansion mondiale pour Phoenix Motor, ciblant l'Asie, l'Europe et l'Amérique du Sud. Cette initiative vise à établir la présence de l'entreprise sur le marché chinois des EV tout en optimisant les efficacités opérationnelles et les structures de coûts.
Phoenix Motor (NASDAQ:PEV) gab bekannt, dass seine Tochtergesellschaft EdisonFuture International eine strategische Vereinbarung mit Beijing Guorun Venture Capital unterzeichnet hat, um einen M&A-Investitionsfonds in Höhe von 1 Milliarde RMB (140 Millionen USD) zu gründen. Der Fonds wird die Akquisition und Entwicklung von EV-Produktionsstandorten in China unterstützen.
Im Rahmen der Vereinbarung wird Guorun eine spezialisierte M&A-Investitionseinheit schaffen, um strategische EV-Produktionsvermögen zu erwerben, einschließlich Grundstücke, Fabriken, Ausrüstungen und geistigem Eigentum in China, wie von EdisonFuture International festgelegt. Die Partnerschaft zielt darauf ab, die EV-Technologien von Phoenix mit dem chinesischen Lieferketten-Ökosystem zu integrieren, um eine kosteneffiziente Plattform zu schaffen, die sowohl inländische als auch internationale Märkte bedient.
EdisonFuture International, mit Sitz in Hongkong, fungiert als globaler Expansionsarm von Phoenix Motor, der sich auf Asien, Europa und Südamerika konzentriert. Diese Initiative zielt darauf ab, die Präsenz des Unternehmens auf dem chinesischen EV-Markt zu etablieren und gleichzeitig die betrieblichen Effizienzen und Kostenstrukturen zu optimieren.
- Secured significant funding of RMB 1 billion (USD 140 million) for expansion
- Access to China's cost-efficient supply chain and manufacturing capabilities
- Strategic expansion into world's largest EV market
- Potential for improved operational efficiency and cost reduction
- Significant capital deployment and execution risks in new market
- Potential regulatory and operational challenges in Chinese market
Insights
Phoenix Motor's strategic cooperation with Guorun Venture Capital represents a potentially transformative transaction for a company with a modest
This deal structure appears advantageous as Guorun will "mobilize funds" to acquire strategic EV production assets, suggesting Phoenix gains access to substantial capital while leveraging its technology and IP in the partnership. For a smaller NASDAQ-listed company, this approach could enable rapid scaling without immediate heavy capital outlays or excessive equity dilution.
The transaction addresses a critical challenge many EV startups face: manufacturing scale and cost efficiency. By establishing production in China, Phoenix gains access to the world's most developed EV supply chain ecosystem, which should substantially reduce unit economics and improve gross margins. This could accelerate Phoenix's path to profitability while expanding its serviceable market beyond current capabilities.
However, key financial details remain undisclosed, including Phoenix's specific obligations, ownership structure of acquired assets, revenue-sharing mechanisms, and implementation timeline. These factors will ultimately determine the deal's true impact on shareholder value.
This partnership unlocks critical manufacturing capabilities that could resolve Phoenix's production constraints while dramatically improving its cost structure. China's EV manufacturing ecosystem offers three core advantages: established supplier networks, manufacturing efficiency at scale, and significantly lower production costs compared to North American operations.
The
Phoenix's current transit bus and medium-duty vehicle focus requires substantial production space and specialized equipment. Chinese manufacturing facilities can deliver these capabilities at
The real strategic differentiator is Phoenix's intention to serve both Chinese domestic and international markets from these facilities. This dual-market approach improves capacity utilization and spreads fixed costs across larger production volumes. If executed effectively, this manufacturing foundation could become Phoenix's competitive moat in the commercial EV space, turning its small size into an advantage through greater agility and lower overhead.
ANAHEIM, CA / ACCESS Newswire / March 20, 2025 / Phoenix Motor Inc. (NASDAQ:PEV), a leading manufacturer of heavy-duty transit buses and electrification solutions provider for medium-duty vehicles, today announced that its wholly-owned subsidiary, EdisonFuture International Co., Ltd. ("EdisonFuture International"), has entered into a strategic cooperation agreement with Beijing Guorun Venture Capital Co., Ltd. ("Guorun") to establish a specialized RMB 1 billion (approximately USD 140 million) M&A investment fund to support the acquisition and development of EV manufacturing sites in China.
"We are excited to collaborate with Guorun to establish a strong manufacturing footprint in China," said Denton Peng, CEO of Phoenix Motor. "This cooperation allows us to integrate our leading EV solutions with China's robust supply chain ecosystem, creating a scalable and cost-efficient platform to serve both domestic and international markets. It is a pivotal step in our mission to establish EdisonFuture International's global presence and enhance Phoenix's long-term revenue and profitability."
Under the agreement, Guorun will mobilize funds to establish a specialized M&A investment entity dedicated to acquiring strategic EV production assets, including land, factories, equipment, and intellectual property in China, as designated by EdisonFuture International. This partnership marks a significant milestone for Phoenix Motor's international expansion strategy, leveraging the Company's advanced EV technologies, brand, and intellectual property alongside China's extensive supply chain and low-cost capital to accelerate growth and profitability.
EdisonFuture International, based in Hong Kong, was formed as the global expansion arm of Phoenix Motor, targeting key markets across Asia, Europe, and South America. By securing this strategic funding initiative, the Company aims to solidify its foothold in China, one of the world's largest EV markets, while optimizing operational efficiencies and cost structures.
The agreement underscores Phoenix Motor's commitment to scaling its international business through strategic financial partnerships and infrastructure expansion. By integrating Chinese engineering resources and capital efficiency with Phoenix's innovative EV technologies, the Company is well-positioned to meet the growing demand for commercial and light-duty electric vehicles globally.
This initiative aligns with Phoenix's broader vision of advancing sustainable transportation solutions and expanding access to zero-emission vehicles worldwide.
About Phoenix Motor Inc.
Phoenix Motor, a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy duty transit buses and medium and light duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: phoenixev.ai.
Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These risk factors include, among others, those related to our ability to raise additional capital necessary to grow our business, operations and business and financial performance, our ability to grow demand for our products and revenue, our ability to become profitable, our ability to have access to an adequate supply of parts and materials and other critical components for our vehicles on the timeline we expect, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.
Contact: IR@phoenixev.ai
Dave Gentry, CEO RedChip Companies, Inc.1-407-644-4256 PEV@redchip.com
SOURCE: Phoenix Motor Inc.
View the original press release on ACCESS Newswire
FAQ
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