General Electric Co., Ltd. to Purchase 3.38 Billion to Jointly Deploy China's West Power to Deploy Overseas Markets

China West Electronics, which previously announced major issues, has finally unveiled the mystery of this matter. The company announced that it will jointly establish a global strategic alliance with GE's energy business to jointly explore the international market.

According to the announcement, China West Power will be able to use GE's advantages in Europe and the United States to bring the company’s primary equipment products into markets such as Europe and the United States, and General Electric can also sell its secondary equipment products to the company’s dominant market. At the same time, the sales of products between China's West Electric and General Electric will be based on the target market price and will be paid for according to the commission ratio agreed by both parties.

In addition, as an important part of strategic cooperation, the two parties signed a joint venture at the same time. The total investment planned by the joint venture company is RMB 1.26 billion and the registered capital is RMB 630 million. Among them, China West Electric plans to invest RMB 377.1 million, accounting for 59% of the registered capital of the Automated Joint Venture, and GE Singapore plans to invest RMB 258.3 million, accounting for 41% of the registered capital of the Automated Joint Venture. The term of the automated joint venture company is 30 years. The main business premises and R&D center are in Xi’an.

Zhang Yalin, Chairman of China Xidian Electric, stated: “The complementary advantages of China West Energy and GE Energy in terms of technology and products are in line with Xidian’s trend in the overall solution of transmission and distribution equipment, and it has become China’s leading global and first-tier equipment supplier. It is of great significance; and the complementary advantages of the two sides in the global marketing channel are conducive to the realization of the internationalization strategy of West Electric, which will significantly increase the sales scale of a single device in the overseas market."

“Besides the product line, GE Energy and China Xidian have similarly obvious geographical complementarity in their respective advantages markets. This alliance will open strategic cooperation between the two companies with complementary advantages, further strengthen the GE product line, and expand our The world's fastest-growing region - China's influence," said Bob, president and CEO of GE's digital energy business. Gurgen said, "With joint cooperation, China Xidian and GE Energy will become more competitive suppliers worldwide."

In order to improve the financial situation, China Xidian Electric also announced that it will raise funds from GE to increase its shareholdings. The total amount of funds raised and raised this time is approximately RMB3.383 billion, and the number of shares and prices will be increased. The announcement has not been disclosed.

China Xidian said that the increase in raised funds will be invested in a joint venture company established with General Electric and follow-up investment, supplementing the company's liquidity. Among them, the establishment of a joint venture company intends to invest 744 million yuan to raise funds; to explore the overseas market to invest 1.5 billion yuan to raise funds; for supplementary business growth, the required capital to invest is 1.139 billion yuan.