Shanghai (ZXZC)- China Geely Holding recently set up a new digital technology subsidiary that engages in the development of AI-enabled application software and blockchain technology.

The new company, dubbed Guangyu Mingdao Digital Technology Co.,Ltd., was founded on Dec. 18 and is located in Chongqing, according to the corporate data platform Tianyancha. Involving a registered capital of 100 million yuan ($15.31 million), it is held as to 55% of Ningbo Geely Automobile Research and Development Co.,Ltd. and 45% by Hangzhou Puzhao Technology Co.,Ltd., a wholly-owned subsidiary of Geely Technology Group.

Photo credit: Geely Holding

The newborn subsidiary will primarily work on the development of blockchain tech-related software, AI-enabled application and basic software as well as AI theory and algorithm software.

Geely Holding's R&D expense in the recent decade totaled roughly 100 billion yuan ($15.31 billion), according to the speech extended by the group's chairman Li Shufu on September 20, 2019 at the 3rd Western China International Fair Import and Export Expo & Western China (Sichuan) International Investment Conference.

“Geely will transform into a global innovative technology company,” said the Chinese billionaire, “Scientific and technological innovation is a must-go approach for enterprises’ progress and development, and enterprise’s progress and development cannot be divorced from science and technology innovation.”

On Oct. 26, Geely Holding entered into an agreement with China Mobile, a Chinese state-owned telecommunications operator, to carry out strategic cooperation in a number of fields including auto-related intelligent connectivity and autonomous driving.

Under the agreement, both parties would conduct in-depth collaboration in such areas as 5G-enabled auto-related intelligent connectivity, autonomous driving, mobility service, low-orbit satellite communications, smart city, Industrial Internet, Home Internet, big data, AI, resource sharing as well as basic telecom services.