Shanghai (ZXZC)- Tianjin FAW Xiali Automobile Co., Ltd. (FAW Xiali) announced on April 29 that it has signed a framework agreement with the new energy vehicle (NEV) startup Nanjing Bordrin New Energy Vehicle Co., Ltd. to build a joint venture focusing on manufacturing NEVs.

According to the announcement, FAW Xiali is going to make capital contribution in such asset forms as land use right, plants and facilities, while Bordrin will invest in the joint venture with cash. The joint venture will be located at Xiqing District, Tianjin, where FAW Xiali is based.

Bordrin was found in 2016 with a registered capital of RMB126.52 million. Its business scope extends to cover the R&D, production, sales, technology services, transfer and consultation of new energy complete vehicles and auto parts. Based on the agreement, the startup guaranteed that the joint venture's capacity should be fully utilized in terms of the future new product roll-out and development planning.

The Nanjing-headquartered startup displayed two models—the Bordrin iV6 and iV7—at the Auto Shanghai 2019. Of that, the presale of the iV6 started at the same time with prices ranging from RMB250,000 to RMB350,000. However, Bordrin is not qualified to produce NEVs by the time the joint venture with FAW Xiali is founded.

FAW Xiali saw its full-year revenue in 2018 decline 22.5% year on year to RMB1.125 billion. Annual net profit reached round RMB37.31 million. Nevertheless, excluding non-recurring gains and losses, the automaker still suffered a net loss of RMB1.263 billion.