Shanghai (ZXZC)- Lifan Industry (Group) Co.,Ltd (hereinafter referred to as Lifan Group) will transfer 100% stake in its wholly-owned subsidiary Chongqing Lifan Motor Co.,Ltd to Chongqing Xinfan Machinery Equipment Co.,Ltd with a value of RMB650 million, the Chongqing-based company announced on December 17.

It is reported that Chongqing Xinfan Machinery Equipment Co.,Ltd is a wholly-owned subsidiary of Chinese EV startup CHJ Automotive. Thus, the transaction will endow the latter with the qualification to manufacture cars.

Aside from Chongqing Lifan Motor Co.,Ltd, Lifan Group still possesses another wholly-owned subsidiary-- Chongqing Lifan Passenger Vehicle Co., Ltd., hence the group will retain its NEV manufacturing qualification and an annual capacity of 150,000 fuel-burning vehicles after the stake transfer completes.

On the same day, Lifan Group and CHJ Automotive signed a strategic cooperation framework agreement, saying that both parties will collaborate on such areas as new energy technologies, NEV development, ICV (Internet-connected vehicle), human-vehicle interaction and data sharing to offer comprehensive, systematic and reliable solutions to eco-friendly mobility, internet connectivity and smart transportation fields.

The cooperation will involve several major programs and cooperative modes, including sharing the R&D achievement of range-extended all-electric power modular control technology, on-board human-machine interaction system and business-oriented tailor-made models for car-sharing and ride-hailing services. Besides, both companies will work on data analysis of ICV-based applications and co-explore and share the data of ICV-based scenarios and aftermarket service modes. They also agreed that Lifan Group has the right to invest in CHJ Automotive’s latest financing round and the EV startup should accept the investment.