JOYNEXT Attracts ¥300 Million (Approx. 38 million Euro) Investment from SDIC, Capital Promoting the Implementation of Automotive Connectivity Technology

DRESDEN, July 29, 2020 —— JOYNEXT attracts ¥300 million (approx. 38 million Euro) investment from SDIC, capital promoting the implementation of automotive connectivity technology

The SDIC has announced that it is to become a lead investor in JOYNEXT, the automotive connectivity business unit of Joyson Electronics (600699.SH), with a sum of 300 million RMB (approx. 38 million Euro). This investment will help JOYNEXT take a giant leap forward in R&D and market exploration, which will also accelerate the development of a sustainable ecosystem for the automotive connectivity industry and finally lead to a future with safer and more efficient smart transportation.

Long-term strategic partnership with Joyson Electronics, 5G-V2X is the trend

This investment opens up a new form of cooperation between Joyson Electronics and the SDIC in the field of automotive connectivity. Today, accidents are frequently caused by vulnerable road users crossing the street at random. To solve this pain points on modern roads, JOYNEXT’s 5G-V2X technology can be used as an effective supplement to avoid such accidents to a great extent, while greatly improving traffic efficiency. With this investment, JOYNEXT will further open up its industrial market. At the same time, the cooperation is also expected to drive more capital into the automotive connectivity industry where it can continue to enhance the international influence of Chinese brands like JOYNEXT.

Faced with the continuous transformation of the automotive connectivity industry, JOYNEXT seeks solutions to root problems on the road

In the context of the automobile industry’s electrification and increasing artificial intelligence, in-vehicle connectivity is evolving from a single central control system to an integrated intelligent cockpit. With the increasingly complex functions of cockpit systems, the barriers to competition in the sector continue to increase, meaning that the market share is gradually concentrating on high-quality enterprises with stronger R&D and large-scale capabilities for front-loading support. JOYNEXT has product and service delivery capabilities both in China and overseas and is one of the few domestic connectivity suppliers that can undertake global platform orders from top international auto companies. It is the key supplier of the IVI system for MQB platform, serving the European market. JOYNEXT is developing a V2X onboard unit, which integrates high-precision positioning maps and high-precision camera functions. Through collaborative communication and a combination of information via radar, cameras and other sources, vehicles are driven in a more efficient and safer way. JOYNEXT is expected to realize the world's first 5G-V2X mass production project in 2021.

While maintaining existing customers, JOYNEXT has also gained new customers on the Chinese market with solid services and a clear development plan. Mr. Yuan (Kevin) Liu, Vice President of Joyson Electronics and CEO of JOYNEXT, stated: "During this unique period of the epidemic in 2020, we have witnessed lots of international brand shut-downs. In this economic environment, I am delighted to see that JOYNEXT is still gaining the continuous support and recognition of investors and professionals in the industry. At the same time, we are developing an ever firmer belief in JOYNEXT and greater confidence to redouble our efforts and tackle this issue with continuous high-tech development in the industry."

About SDIC

The SDIC (State Development & Investment Corp., Ltd.) is a professional private equity management organization with over 100 billion RMB (approx. 12 billion Euro) in assets. Investors include financial institutions, social security funds, and providers of state-owned and private capital. The management team has a long history of focusing on investment in the advanced manufacturing industry, attaches importance to technological innovation and the value of outstanding entrepreneurs and teams, focuses on intelligent manufacturing, intelligent and alternative fuel vehicles, the life sciences, information and communication technology and other fields, and is also committed to making the manufacturing industry greener, more digital and increasingly service-oriented.