Sieyuan Electric plans joint venture for power electronics in Beijing

Sieyuan Electric Co. announced plans to establish a joint venture with a third party in Beijing's Huairou District, with Sieyuan Electric's investment not exceeding 400 million yuan. The new company, tentatively named Beijing Sieyuan Hysil Energy Technology Co., Ltd., will focus on the research, development, production, and sales of power electronic products based on IGCT device platforms.

The proposed joint venture will see the technology party, represented by the Huairou Laboratory, contribute intellectual property for a tentative 30% equity, while Sieyuan Electric will contribute cash for a tentative 70% equity. This investment aligns with Sieyuan Electric's strategic goals to enhance its industrial chain and is expected to have no significant impact on its current year's financial performance.

The collaboration aims to leverage shared resources and capabilities to accelerate the industrialization of IGCT valve group technology. While final equity ratios are pending intellectual property valuation and a formal agreement, Sieyuan Electric expects the partnership to drive innovation and market expansion. The establishment of the joint venture is subject to ongoing due diligence, evaluation, and necessary regulatory approvals.