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Senmiao Technology Signs Strategic Cooperation Agreement with Large Auto Dealer Group to Expand Auto Business and Increase Access to Electric Vehicles
Collaboration with Sichuan Hongyu Enterprise forges three-year roadmap for cooperation on procurement of electric vehicles and cross promotion of brands,
About this update from Senmiao Technology Limited
[{"type":"text","content":"Collaboration with Sichuan Hongyu Enterprise forges three-year roadmap for cooperation on procurement of electric vehicles and cross promotion of brands, products and services to accelerate expansion of Senmiao's Auto Transaction and Related Services\n\n\nCHENGDU, China, Aug. 3, 2020 /PRNewswire/ -- Senmiao Technology Limited (\"Senmiao\") (NASDAQ: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China, today announced that it has signed a strategic cooperation agreement with Sichuan Hongyu Enterprise Management Co., Ltd. (\"Hongyu Auto\") to facilitate the purchase of electric vehicles (\"EVs\") and cross-promote their brands, products and services for a term of three years, with a goal to further expand its automobile transaction and related services business (\"Auto Business\"). Based in Chengdu, Hongyu Auto is one of the largest auto dealer groups in southwest China.\nUnder the cooperation agreement, Hongyu Auto will promote Senmiao's Auto Business to EV manufacturers. Senmiao in turn plans to utilize the auto financing affiliates of the EV manufacturers with the goal of facilitating Senmiao's purchase of over 2,000 EVs at favorable costs for ride-hailing drivers and for other commercial use over a three-year period. Senmiao's EV procurement process will also be partially funded by the recently announced RMB50 million (approximately US$7.0 million) capital contribution from Hongyi Industrial Group Co., Ltd. (\"Hongyi\") expected to be received by Senmiao's variable interest entity engaged in its Auto Business. While the strategic cooperation agreement does not mandate actual automobile purchases or other financial commitments between the parties, it solidifies an important three-year collaboration for Senmiao and Hongyu Auto on numerous sales channels, including automobile finance and insurance services, automotive spare parts procurement and supply chain, automobile after-sales maintenance and rescue services. Senmiao also intends to open additional retail stores or maintain its brand presence at Hongyu Auto's dealerships to provide transaction facilitation services to ride-hailing drivers in Chengdu, while cross-promoting products, brands and services with Hongyu Auto. \nMr. Xi Wen, Chief Executive Officer of Senmiao, commented: \"Today's agreement solidifies an...