Seres to Acquire Huawei's Trademarks and Patents with 2.5 Billion Dollars

TapTechNews July 3rd news, on the evening of July 3rd, Seres issued an announcement. Its controlled subsidiary, Seres Automobile Co., Ltd., plans to use self-raised funds of 2.5 billion US dollars to acquire the 919 registered or applied series of text and graphic trademarks such as Wenjie, AIITO, AITOAUTO, AITOSELECT, etc., and 44 automotive exterior design patents held by Huawei Technologies Co., Ltd. and its affiliates.

The announcement stated that the company has hired Zhongjing Minxin (Beijing) Asset Appraisal Co., Ltd. (referred to as Zhongjing Minxin) with securities practice qualifications to assess the underlying assets. Zhongjing Minxin used the income approach and the replacement cost method, and carried out the assessment in accordance with the necessary assessment procedures. The value type of the assessment conclusion is the market value. After assessment, the market value represented by the underlying assets as of the assessment base date of May 31, 2024 is 10.233 billion US dollars.

This means that the transaction price between Seres and Huawei is a 2.5-fold discount compared to the market price.

Huawei also spoke on this matter earlier, stating that it will continue to support Seres in making and selling Wenjie well. Huawei has always adhered to not manufacturing cars but using leading intelligent connected vehicle technologies to continuously help automakers make good cars and sell good cars. Huawei will continue to work with automakers to create excellent intelligent automotive products for users and provide an ultimate intelligent travel experience.

TapTechNews noted that the first-quarter report shows that at the end of the period, Seres' available monetary funds on hand were 21.483 billion US dollars, but there were accounts payable and notes payable of 42.849 billion US dollars, short-term borrowings of 445 million US dollars, and non-current liabilities due within one year of 1.671 billion US dollars. The company's asset-liability ratio is as high as 88.27%, compared to 79.93% in the same period last year.