XPeng and Guangdong Provincial Investment Arm Ink Strategic Agreement

Rhea-AI Summary

XPeng Inc. (NYSE: XPEV) announced a strategic cooperation with Guangdong Yuecai Investment Holdings, securing an investment of RMB500 million from the Guangdong Industrial Development Fund. This investment will boost XPeng's subsidiary operations in China, enhancing its position in the Smart EV sector and supporting local economic growth. Guangdong's investment underscores XPeng's commitment to Smart EV development and innovation, as well as its vital role in the automobile sector's transition in the province, which boasts the largest GDP in China.

Positive

• RMB500 million investment from Guangdong Industrial Development Fund to accelerate XPeng's business expansion.
• Acknowledgment of XPeng's leadership in Smart EV industry and contributions to local economic development.
• Enhanced role in the Smart EV sector and support for the strategic transition of the automobile industry in Guangdong.

Negative

• None.

XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV), a leading Chinese smart electric vehicle (“Smart EV”) company, today announced that its subsidiary in China has reached a strategic cooperation agreement with Guangdong Yuecai Investment Holdings Co., Ltd. (“Yuecai”), the investment arm of the Guangdong provincial government. Pursuant to the agreement, Yuecai will invest a total of RMB500 million, through the Guangdong Industrial Development Fund, in XPeng’s subsidiary in China to further accelerate the Company’s business expansion.

XPeng and Guangdong Industrial Development Fund signing ceremony (Photo: Business Wire)

The investment recognizes XPeng’s leadership position in the Smart EV industry in China and its strategy of developing proprietary R&D tailored for local customer needs. The investment also acknowledges XPeng’s significant contributions to local economic development, in particular to the transition of the automobile sector, developing advanced EV technologies, and building the connected and intelligent mobility ecosystem and supply chain, as well as to the local talent base expansion in Guangdong Province.

The Guangdong Industrial Development Fund promotes high quality developments in the manufacturing industry with a keen focus on the strategic development of the automobile industry, one of the economic pillars of Guangdong. The investment in XPeng creates a win-win solution, not only enhancing XPeng’s leading role in the Smart EV sector but also accelerating the automobile industry’s strategic transition in Guangdong.

Headquartered in Guangzhou, the capital city of Guangdong, XPeng has a strong foothold in the Province. The Company currently employs over 5,000 staff, the majority of them based in Guangdong, and has two wholly-owned intelligent manufacturing bases in the Province, one in full operation in Zhaoqing, and the other under construction in Guangzhou.

A key component of China’s Greater Bay Area, Guangdong Province is the largest contributor to the country’s GDP. In 2020, the GDP of Guangdong Province exceeded RMB11 trillion, marking its top GDP ranking in China for 32 consecutive years.

“Guangdong is our birthplace, where we design, innovate, research and build our products. It has nurtured our growth and witnessed our progress for the past six years. This investment from the Guangdong provincial government reinforces our commitment to driving Smart EV transformation with technology and data, and to building a comprehensive EV infrastructure in the fastest-growing areas of China,” said He Xiaopeng, Chairman and CEO of XPeng at the signing ceremony.

The Guangdong Industrial Development Fund manages RMB50 billion of assets, focusing on industrial upgrading and reform developments to foster growth in emerging sectors such as information technology, high-end equipment manufacturing, new energy and biomedicine.

About Xpeng

Xpeng 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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210315005543/en/

FAQ

What is the recent investment XPeng secured from Guangdong Yuecai?

XPeng secured a RMB500 million investment from Guangdong Yuecai Investment Holdings to accelerate its business in the Smart EV sector.

How will XPeng utilize the funds from the Guangdong Industrial Development Fund?

The funds will be used to further develop XPeng's operations and enhance its market presence in the Smart EV industry.

What role does Guangdong play in XPeng's operations?

Guangdong is the birthplace of XPeng and houses its headquarters, manufacturing bases, and a significant portion of its workforce.

Why is the investment from Guangdong significant for XPeng?

The investment reinforces XPeng's leadership in the Smart EV market and supports local economic development in the automotive sector.

What does the Guangdong Industrial Development Fund focus on?

The fund promotes development in various sectors, including the automobile industry, which is a key economic pillar in Guangdong.