[Hong Kong, 17 October 2022] — Apollo Future Mobility Group Limited (“AFMG”, the “Company”, HKEX stock code: 860, together with subsidiaries, the “Group”) is pleased to announce that Lucky Ample Limited (“Lucky Ample”), a wholly-owned subsidiary of the Company, Shanghai Alliance Investment Ltd. (“SAIL”), a private equity and venture capital arm of the Shanghai Municipal Government, and WESail New Energy Automotive Co. Ltd. (上海聯和力世紀新能源汽車有限公司) (the “Joint Venture”) entered into a Capital Injection Agreement, pursuant to which Lucky Ample and SAIL shall inject capital in the amount of US$43 million (equivalent to approximately HK$335.4 million) and US$27 million (equivalent to approximately HK$210.6 million) respectively in cash (collectively “Capital Injection”) into the Joint Venture, which is principally engaged in the new energy vehicles related technology development, transfer, consulting and services. The Joint Venture aims to carry out EV-related research and development activities and establish a production line with a capacity of not less than 10,000 EVs per annum.
As at the date of the announcement, the Joint Venture is owned 50% by Lucky Ample and 50% by SAIL. Upon completion of the Capital Injection, the registered capital of the Joint Venture shall increase from US$10 million (equivalent to approximately HK$78 million) to US$80 million (equivalent to approximately HK$624 million) and the Joint Venture will be owned 60% by Lucky Ample and 40% by SAIL.
Leveraging on the Group’s expertise in EVs and engineering solutions, and contributions by the Group and SAIL since the establishment of the Joint Venture in 2018, the Joint Venture has commenced development of its first luxury EV model with the first prototype production targeted for launch towards the end of 2022. Proceeds from the Capital Injection will be applied mainly to the design, modeling, engineering, validation & testing and production of the luxury EV model, followed by marketing activities, including the establishment of experience center for the luxury EV, and future operation and business activities of the Joint Venture.
Mr. Ho King Fung Eric, Chairman of AFMG, said, “The Group is very pleased to further enhance collaboration with SAIL as a strategic partner for this investment. As one of the world’s leading smart mobility services providers vying to leverage research output and engineering excellence from our hypercar development unit, while persistently developing proprietary future mobility technologies, the Group is confident this Capital Injection will be able to further optimize its commercial production capacities, enable the Group to enjoy the benefit of greater flexibility in managing and utilizing revenue and cash flows generated by the Joint Venture, and continue its deep drive into automobile manufacturing and technology development. The Group is excited about the future prospects of moving forward, together with SAIL, as the Capital Injection enables us to penetrate further into this promising and lucrative market for luxury EVs.”