XPeng Inc. ("XPeng" or the "Company", NYSE: XPEV), a leading Chinese smart electric vehicle ("Smart EV") company, has announced that its wholly owned subsidiary in China, Guangdong Xiaopeng Motors Technology Co., Ltd. ("Guangdong Xiaopeng"), entered into a cooperation agreement ("Cooperation Agreement") with Guangzhou GET Investment Holdings Co., Ltd. ("Guangzhou GET Investment"), a wholly owned investment company of Guangzhou Economic and Technological Development Zone.
According to the terms of the Cooperation Agreement, Guangzhou GET Investment agrees to provide RMB4 billion in financing to help fuel XPeng's growth as well as support the construction of a new Smart EV manufacturing base ("Smart EV Manufacturing Base") for XPeng in the Guangzhou Economic and Technological Development Zone.
In addition to its wholly owned plant in Zhaoqing, Guangdong province, which has an annual production capacity of 100,000 units, XPeng's new Smart EV Manufacturing Base in Guangzhou will significantly expand the Company's production capacity and accelerate XPeng's momentum to achieve its goals in innovation, technological advancement and growth.
"We are very excited to be selected as a key player in the Guangzhou Economic and Technological Development Zone," said He Xiaopeng, Chairman and Chief Executive Officer of XPeng. "With the strong support from the Guangzhou government, we are confident we will execute on our strategic growth initiatives and deliver the highest quality products and services to meet our customers' needs."
The Smart EV Manufacturing Base is expected to commence production by December 2022, upon which Guangzhou GET Investment will lease it to an operating subsidiary of Guangdong Xiaopeng (the "Operating Subsidiary") for a tenure of seven years. Upon the expiry of the lease, the Operating Subsidiary will acquire the Smart EV Manufacturing Base from Guangzhou GET Investment at costs incurred by Guangzhou GET Investment.
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