The matter that the acquisition of AutoChips Inc. by NavInfo involved major assets reorganization, finally, had the newest and most important progress after two-time opinion asked by China Securities Regulatory Commission.
NavInfo announced publicly that the matter that the company issues shares and pays cash to purchase assets and raise counterpart funds and related party transaction passed unconditionally through the audit of the 77th working conference in 2016 convoked by Audit Committee of China Securities Regulatory Commission for listed company acquisition and reorganization on Oct. 24. It means that the acquisition of AutoChips Inc. by NavInfo with RMB 3,875,000,000 in the forms of issuing shares and paying cash fully meets national relevant policies and regulations, so the follow-up matters can be boosted, such as change of industry and commerce, change of shareholders, fund raising, etc.
The wholly-owned acquisition of AutoChips Inc. has very important significance to the current NavInfo, which will lay strategic foundation of new-stage development. This measure shall be beneficial to strengthen industrial chain layout of NavInfo and boost vertical integration strategy of business to realize complementary advantages in product, market, customers and other fields and help NavInfo get users of internet of vehicles fast and establish more perfect big data collection and analysis ability to provide complete solutions facing to automatic driving from the business level; and this transaction shall be beneficial to promote operational scale of listed company, improve financial situation of listed company and raise asset quality and profitability from the financial level.
NavInfo will add automobile electronic chip business to make the main business mode of company change into software and hardware integration from software centered based on the current navigation electronic map business and composite geographic information service business after the wholly-owned acquisition of AutoChips Inc. according to the previous disclosed information, of which the very high synergy among three businesses makes the company get continuing competitive advantages in the future development. The unaudited operation revenue of AutoChips Inc. of the first three quarters of 2016 is RMB 352,259,100 occupied 70.87% of annual forecast operation revenue of 2016. Because the fourth quarter is the traditional peak season of industry each year and the customer order shall increase gradually along with the arrival of peak season, the forecast operation revenue of AutoChips Inc. of RMB 497,034,200 in 2016 has a high possibility to realize.
The most important one for the acquisition of AutoChips Inc. is that NavInfo shall get chip-level computing power to uncover “chip” chapter of development. Both parties cooperate to research, develop and produce low-power cost-effective chip that is used for correlation operation of map and sensor in the automatic driving process, including processing perception data from car sensor, conducting high-precision matching and decision, extracting road attribute and ground information, etc.
Meanwhile, NavInfo is also displaying the image of “platform service provider based on location information big data + algorithm + computing power” to the outside world, of which the change of role means that NavInfo is now striving for building complete platform system, covering from map data to intelligent driving and environmental perception algorithm, and to chip-level computing power, which shall make NavInfo have opportunity to stand on the wave of development trend of intelligent automobile.