Qianli Tech Soars as Mercedes-Benz to Acquire 3% in Geely-Backed EV Tech for $182M

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Shares of Qianli Technology climbed after the Chinese autonomous driving system developer announced that Mercedes-Benz Group, the German automobile giant, will invest approximately CNY1.3 billion (around USD182.2 million) to purchase a 3 percent stake in the company backed by Geely Automobiles.

As of mid-day in Shanghai, Qianli Tech’s stock increased by 3 percent to CNY13.38 (roughly USD1.88) per share, having earlier gained as much as 5.1 percent.

The company revealed that Lifan Holdings will transfer 135.6 million shares of Qianli Tech, valued at CNY9.87 (about USD1.38) each, to Mercedes-Benz Shanghai Digital Technology, the automaker’s local R&D subsidiary, as a way to settle debts. This announcement was made yesterday after the company received notice of the transaction from its shareholder on the same day.

The transfer, pending regulatory approval, will make Mercedes-Benz the fifth-largest shareholder of Qianli Tech. The German automaker has committed to hold its stake for at least 12 months from the registration of the shares. Following the sale, Lifan’s ownership stake will decrease to roughly 10.7 percent.

Qianli Tech’s origins trace back to Lifan Group, China’s first private passenger car manufacturer to go public. After undergoing multiple restructuring efforts and rebranding, the company shifted focus towards automotive artificial intelligence solutions, including autonomous driving and smart cockpit systems.

The company has been fast-tracking its autonomous driving capabilities from Level 2+ to Level 4 by utilizing AI algorithms from software firm Megvii, its own vehicle manufacturing foundation, and financial backing from Geely.

In June, Qianli Tech teamed up with Geely, Megvii, and others to establish Chongqing Qianli Smart Driving Technology.

In its latest earnings report released on August 22, Qianli Tech announced that its net profit for the first half of the year increased 19 percent year-over-year to CNY31.2 million (approximately USD4.4 million), while revenue surged by 40 percent to CNY4.2 billion.