Seres Intends to Acquire Aito Trademark and Other Assets from Huawei

Huawei’s partner, Seres, announced on the evening of July 3 that its subsidiary, Seres Automobile Co., Ltd., intends to use self-raised funds of 2.5 billion yuan(35Mn $) to acquire 919 registered or applied-for text and graphic trademarks including Aito, AITO, AITOAUTO, AITO SELECT, etc., and 44 automotive design patents held by Huawei Technology Co., Ltd. and its affiliated parties.

The announcement stated that the company has engaged Zhongjing Minxin (Beijing) Asset Appraisal Co., Ltd. (referred to as “Zhongjing Minxin”) with securities practice qualifications to evaluate the target assets. Zhongjing Minxin used the income approach and replacement cost method, following necessary evaluation procedures, to evaluate the target assets, with the conclusion of the value type being market value. According to the evaluation, the market value of the target assets as of the evaluation base date of May 31, 2024, is 10.233 billion yuan(140Mn $).

This means that the transaction price between Seres and Huawei is at a 25% discount to the market price.

Huawei has also previously commented on this matter, stating that “it will continue to support Seres in building and selling Aito. Huawei consistently adheres to the principle of not manufacturing cars, but instead utilizes its leading intelligent connected vehicle technology to continuously assist carmakers in building and selling cars. Huawei will continue to collaborate with carmakers to create outstanding smart car products for users and provide an ultimate smart travel experience.”