Shanghai (ZXZC)- Ningbo Joynext Technology Co., Ltd. (Joynext), a subsidiary of the leading global auto parts supplier Joyson Electronics, was recently awarded a contract for NIO's 5G-V2X platform project, which is worth roughly 660 million yuan ($96.515 million) and includes the products of V2X 5G-TBOX and 5G-VBOX, a local media outlet reported earlier this week.

(Joyson Electronics' WeChat account)

Joyson Electronics is said to start the product supply from December 2021. The yet-to-be-offered components will be used in the NIO EE7 first and be afterwards introduced to the ES6, the ES8 and the EC6, according to the local report.

According to Joyson Electronics' semi-annual financial results, the company saw its first-half revenue tumbled 33.4% year on year to 20.53 billion yuan ($3.002 billion) due to the impact of the COVID-19 pandemic. The revenue downturn should be primarily blamed for the net loss of 539.077 million yuan ($78.832 million) attributable to shareholders, plunging from the net profit of 513.97 million yuan ($75.161 million) for the year-ago period.

Despite the coronavirus-induced profit downturn, Joyson Electronics still gained roughly 25.3 billion yuan ($3.7 billion) worth of orders during the first six months thanks to the incessant investment in innovative R&D businesses, the market acknowledgment over its products and the prompt strategy adjustment during the pandemic fight. Of those, 16.4 billion yuan ($2.398 billion) orders belong to the automobile safety system business unit, one of major businesses for Joyson Electronics.

Although the intelligent V2X system arm received fewer orders compared to the first half of 2019, the company attaches substantial importance to its software and data service business. According to the semi-annual report, the software and related services are expected to account for 30% to 40% of the revenue gained by the intelligent V2X system unit in the future.

The cooperation with NIO on V2X 5G-TBOX and 5G-VBOX will be a tailwind for Joyson Electronics  to expand its intelligent V2X system business. NIO delivered 3,533 vehicles in July 2020, representing a robust 322.1% growth year over year. The deliveries consisted of 2,610 ES6s and 923 ES8s. As of July 31, 2020, cumulative deliveries of the ES8 and the ES6 reached 49,615 vehicles, of which 17,702 were delivered in 2020.