TUS International Plans the Layout of Big Data Cloud Platform Business for Intelligent and Connected Vehicles by Integrating Technologies of Tsinghua University
(16th Oct 2017, Hong Kong) TUS International Limited (“TUS International” or the “Company”, stock code: 872.HK, together with its subsidiaries, the “TUS International Group” or the “Group”) announced on 16th Oct 2017 (after trading hours) that the Group entered into a cooperation agreement with the contract parties including Tianjin Qingyun Intelligent Control Technology Ltd. (天津清雲智控科技有限公司) ( “Qingyun IC”) to form a joint venture controlled by the Group (the “Joint Venture”). The Joint Venture will leverage its accumulated technology as well as Tsinghua University’s scientific research resources and long-term cultivation of personnel to form a strong team to develop intelligent and connected vehicles big data cloud platform technology and related business. Pursuant to various arrangements under the Cooperation Agreement (including the non-competition undertaking), upon establishment of the Joint Venture, all core technology of Qingyun IC will be transferred to the Joint Venture, and Qingyun IC itself will no longer carry out any substantive business operation and will become a shareholding platform of the whole core team of the Joint Venture. Through the Cooperation Agreement, the Group will own a top-notch automobile cloud technology team in the PRC from Tsinghua University.
In October 2016, under the strategy of the “Made in China 2025 （製造業2025)”, the PRC government published the route map for intelligent and connected vehicles. In September 2017, the Policy Research Center of the National Development and Reform Commission (“NDRC”) stated at the press conference that NDRC had commenced drafting the national innovation development strategy for intelligent vehicles which shall specify the strategic direction, objectives and major means of the development of intelligent vehicles in China during a period of time in the future, and making it the blueprint and guideline on the development of intelligent vehicle industry in the PRC. The advantages of the development of intelligent vehicles in China lie in its strong foundation of the automobile industry, the advanced communication network technology and the immense market demand. In order to meet the demand for the application of high-level intelligent and connected vehicles, NDRC will include in the innovation development strategy for intelligent vehicles the primary cloud platform of big data, high-precision map and high-precision location, 5G network, vehicle-carried communication technology and new generation of artificial intelligence, which will be supported with smart transport infrastructures and other relevant auxiliaries.
Leveraging Tsinghua University’s scientific research resources and personnel cultivation, TUS International will establish the Joint Venture through the Cooperation Agreement and form a strong team in respect of intelligent and connected vehicles cloud technology. The team is from Tsinghua University and is a top-notch team in the PRC. Currently, it has developed a series of basic technology results in respect of automobile cloud. The team currently comprises of approximately 20 senior technicians and will be expanding through the joint venture for further technological development. The team is expected to expand to approximately 100 persons by the end of this year. Meanwhile, Mr. Li Keqiang will act as the Chief Scientist of the Joint Venture. Mr. Li is a professor of Tsinghua University, the general director of The Society of Automotive Engineers of China（中國汽車工程學會）and the chairman of the Expert Committee of China Industry Innovation Alliance for the Intelligent and Connected Vehicles.
The Group believes that automobile cloud technology and the establishment of primary intelligent and connected vehicle cloud platform of big data and the development of relevant automobile cloud technology are essential for the development of intelligent and connected vehicles. The automobile cloud technology itself is characterised by the combination of automobile and big data, which is a typical field that integrates the automobile industry as well as big data and artificial intelligence. Planning the layout of automobile cloud technology is a core strategy of the Group. The automobile cloud technology is also characterized by the nature of fundamentality and strong cooperativity, and the relevant techniques of which include the development of algorithm software for decision-making in smart driving and collaborative solutions, high-precision maps for automobiles, integration and optimisation solutions of smart driving (L2/L3/L4) for automobile OEMs (such as autonomous emergency braking and energy-efficient driving solutions) as well as research and development on brand-new connected vehicle terminals which support various solutions and application services of intelligent and connected vehicles.
The Group will, through the joint venture, develop the cloud technology for intelligent and connected vehicles with the plan to achieve efficient connection and synergy between intelligent vehicles, including communication among vehicles (V2V), and between vehicles and infrastructure/ pedestrians (V2X); to integrate vehicles, environmental and public data through the formation of big data cloud platform, and to provide access to the Intelligent and connected vehicle network in order to achieve the information exchange and collaborative awareness of V2V and V2X on the perception level, and to achieve synergetic algorithm for the decision-making level and the control level, in order to provide more comprehensive solutions to smart driving and smart mobility. There will be subsequent expansion of various business models for automobile cloud technology, the majority of which are professional applications and services for Intelligent and connected vehicles based on big data and artificial intelligence, including services of over-the-air intelligent upgrading of automobile systems (OTA), intelligent vehicle rescue (eCall), intelligent fleet management systems (FMS), intelligent transportation management and automobile industry analysis, driving forward smart mobility and in the reformation of the ecosystem of connected vehicles, all these will help the Group in becoming a giant of new services of connected vehicles. Meanwhile, the Group also intends to, through the joint venture, join forces with core enterprises in the ecosystem of Intelligent and connected vehicle in China to jointly promote the establishment of national primary cloud platform of automobile big data.
The Group believes that the development of automobile cloud technology greatly facilitates the integration of other industrial resources and creates synergy between the merger and acquisitions projects in the Intelligent and connected vehicles field, which are proactively conducted by the Group, and other relevant investment arrangements. By formation of the Joint Venture, the Group will own a top-notch team of cloud technology in the PRC and such team will continue to expand. Such arrangement fully realises the unique advantage of resources the Group with the background of Tsinghua University. Such advantage will consistently energize the Group’s development.
Mr. Shen Xiao, the president of TUS International, stated that, “following the implementation of layout for intelligent vehicles business by obtaining controlling stakes of Suzhou Zhihua, we have succeeded with the connection and achieved the initial layout of the Group in terms of core technologies for intelligent and connected vehicles. TUS International will closely follow the national development strategies on intelligent and connected vehicles and leverage on the unique advantages of the Group with the background of Tsinghua University, leading the technologies for intelligent and connected vehicles in China.”
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About TUS International Limited
TUS International Limited (“TUS International”, together with its subsidiaries, the “Group”) is principally engaged in the smart mobility business and actively expanding into the advanced driver-assistance systems (ADAS) and smart mobility solutions fields. At present, Tus-Holdings Co., Ltd. (“Tus-Holdings”), a subsidiary of Tsinghua University, is the single largest shareholder of TUS International. The two major competitive advantages owned by the Group includes: (1) The Group receives the full support from Tsinghua University and its rich resources, including the university’s technological accumulation, the long-term cooperation foundation with the core enterprises in the automotive ecology, as well as Tsinghua University’s technological and ecological services, business incubation and establishment capability. “TUS” in the name of the company is the abbreviation of “Tsinghua University Science Park”; and (2) The management team is experienced, and forging ahead with the smart-connected vehicles business. The Group has established an international M&A team, which is actively seeking M&A opportunities in the domestic automobile industry, at the same time evaluates overseas (especially the United States and Europe) automobile acquisition opportunities and strives to expand the related businesses in the China market. The Group will continue to leverage Tsinghua’s reputation, technologies and talent pool and actively implement the smart and connected automotive strategies outlined in “Manufacturing Industry 2025”in China to become a leading enterprise in the smart mobility sector and guide the construction of an industrial ecosystem. Tus-Holdings invested in TUS International in June 2015. TUS International was renamed in 2016, becoming the international investment arm of Tus-Holdings and its significant listed platform in Hong Kong.
About Tus-Holdings Co., Ltd.
Tus-Holdings is the university-owned enterprise of Tsinghua University. As a holding corporation managing assets with the value over 30 billion US dollars and a controlling shareholder/shareholder of over 800 enterprises, Tus-Holdings has established the world largest and unique global innovative ecological system with over 200 innovative business bases and has provided incubation services to over 5000 enterprises. Adhering to the “Triple Helix”, a cluster based innovative theory, Tus-Holdings created an incubation model which consists of “incubation services + financial investment + entrepreneurship training + open platform” and a whole-industry-chain financial service system, and invests in and operates leading corporations in environmental protection, new energy, healthcare, new materials and other strategic emerging industries in China. Tus-Holdings has strengths and brilliant results in technology transfer, start-up project incubation and nurturing innovation talents.