- FAW will acquire a 35.80 percent stake in ZYT, becoming its largest single shareholder, a regulatory filing shows.
- ZYT, established in 2016 and formerly known as DJI Automotive, is DJI's unit focused on smart driving technology.
FAW Group will become the largest shareholder of DJI's smart driving unit ZYT, or Zhuoyu (卓驭), as the automaker intensifies its focus on intelligent technologies.
FAW signed an agreement with New Territory Technology Company Limited and ZYT to acquire a portion of New Territory's stake in ZYT, according to a filing yesterday on China's State Administration for Market Regulation (SAMR) website.
Prior to the transaction, New Territory held a 70.65 percent stake in ZYT, exercising sole control over the unit.
Following the deal, FAW will hold a 35.80 percent stake in ZYT, while New Territory will retain a 34.85 percent stake, with both parties jointly controlling ZYT.
New Territory was incorporated in Hong Kong on October 3, 2022, with its primary business being the holding of ZYT equity.
ZYT, established in 2016 and formerly known as DJI Automotive, is DJI's division specializing in smart driving technology.
In 2023, DJI Automotive spun off from DJI and officially adopted ZYT as its new brand in June 2024.
ZYT's current clients include Volkswagen, SAIC-GM-Wuling, Chery, FAW Group, Dongfeng Motor, and GWM (HKG: 2333), with over 20 mass-produced models developed in collaboration with them.
Becoming ZYT's largest shareholder represents FAW's latest move to intensify its commitment to the EV market. In January last year, a local media report mentioned that FAW had expressed interest in investing in ZYT.
In March, FAW signed a strategic cooperation memorandum of understanding with Leapmotor (HKG: 9863) in Changchun, Jilin -- FAW's headquarters city -- to jointly develop passenger new energy vehicles (NEVs) and collaborate on components.
Last month, local media outlet Cailian reported that FAW was planning to acquire a stake in Leapmotor as a strategic shareholder.
FAW plans an initial offer to acquire around 10 percent of Leapmotor's shares, with the proposal currently advancing internally, the report cited a source as saying.
