On July 28, China's new energy vehicle sensor leader - HGTECH's (stock code 000988) subsidiary-Huagong Gaoli, and South Korea's largest auto parts manufacturer - South Korea Woory(stock code 072470), founding the joint venture officially by formally signing the contract, to develop the global new energy automotive market together.

    It happens to be the 17th anniversary of the establishment of HGTECH. Ma Xinqiang, Chairman of HGTECH and Huagong Gaoli, and Kim Jung Woo, President of South Korea Woory, signed the joint venture agreement representing both sides.

    Chairman Ma Xinqiang, said that the new energy vehicles is the strategic direction of the development of HGTECH. Forming the joint venture company whose focus on new energy automotive industry, and further developing China and global new energy vehicle market, is an important stategic depoyment of HGTECH to occupy the industry high point.

    South Korea Woory Chairman Kim Jung Woo, expressed deep hope and good wishes for the cooperation between both sides.

    Huagong Gaoli is the world's leading multi-function sensor manufacturer, China's new energy automotive sensor leader, mastery of core technology from chip to device. PTC heating chips are used in all vehicle models of Tesla. Woory is South Korea's largest auto parts manufacturer, Tesla core supplier, has leading electronic control technology, and ranks No.1 in actuator market shares and top 3 in heater market shares in the world. The cooperation of two sides and the founding of joint ventures, will further integrate technology, markets, personnel and other resources for the comprehensive introduction into Tesla new series models. Through continuous deepening strategic cooperation with Tesla, BYD and other major customers, HGTECH is committed to building the world's first-class new energy auto parts manufacturer, leading the golden age of development of new energy vehicles.

       New energy vehicles are the main direction of future car development with huge growth potential. In 2015, the global sales of new energy vehicles is 549,000, increasing 72.8%, while accounting less than 1% of total car sales. The next two decades, new energy vehicle sales are expected up to 35% of the total car sales. China's sales in 2008 accounted for 64% of global sales, China has become the world's largest new energy automotive market.

       Vigorously develop new energy vehicles is China's basic national policy. It's also an important step for China to transform and upgrade auto industry to achieve the corner overtaking. China's new energy vehicles in 2015 growed explosively, production increased 3.5 times. In the first half of 2016, production is 177k and sales is 170k, annual sales are expected to reach 700,000. According to the "auto industry development road map in the next decade", by 2025, China's new energy vehicle sales will reach 20% of the total automotive market demand.