Chinese smart car solutions developer JOYNEXT secures $107m

JOYNEXT, the smart vehicle solutions arm of Chinese automotive component supplier Joyson Electronics, has secured about 720 million yuan ($107 million) in a new funding round.

A private equity fund manager co-launched by Chinese state-owned investment firm SDIC and Shenzhen-based China Merchants Capital Investment (CMC) led the investment. Ningbo Gaofa Automotive, an automotive control systems developer; Shanghai-based IT and high-tech investor F&G Venture; and Cathay Capital’s 1.5-billion-yuan ($223 million) CarTech Fund, and other investors participated.

The completion of the financing came after Joyson Electronics disclosed in a filing to the Shanghai Stock Exchange (SSE) on July 3 that it had entered into an agreement with strategic investors to give JOYNEXT a pre-money valuation of 2.5 billion yuan ($372 million).

The filing showed that the SDIC-CMC fund agreed to inject 300 million yuan ($45 million) into the deal. Concurrently with the financing, Joyson Electronics had also invested 192 million euros ($226 million) in JOYNEXT.

Driven by the government’s regulatory support and heightened investment in R&D, the penetration rate of intelligent connected vehicles (ICVs) in China is poised to reach 43.8 per cent in 2020, compared with 35.3 per cent in 2019, according to a report released by London-based information provider IHS Markit in September 2020.

ICVs are said to be the next-generation of vehicles, which are equipped with in-car sensors, controllers, actuators, and other devices, as well as modern communication and network technologies to achieve effective and sustainable mobility, with capabilities of environment sensing, information exchange, intelligent planning, and automated control.

JOYNEXT was created in December 2019 between Joyson Electronics’ former smart vehicle unit, Joyson Preh Car Connect (JPCC), and the automotive division of TechniSat Digital GmbH. The Daun, Germany-based manufacturer of broadcast satellite receivers, TVs, and car navigation systems had sold its automotive division to Joyson Electronics in April 2016 for 180 million euros ($212 million).

JOYNEXT, which serves automakers like Volkswagen and Ford, provides connected infotainment solutions, advanced driver-assistance systems (ADAS), a smart connectivity gateway that offers real-time traffic, weather, navigation, real-time positioning, and other functions, as well as cloud services to support the aforementioned largely connected-vehicle-to-everything communication (V2X) and 5G-based offerings.

It is expected to mass-produce its first 5G-V2X intelligent connected vehicle product by 2021.

Dual-headquartered in Ningbo, China, and Dresden, Germany, the firm has a total of four R&D centres, one production base, and three offices around the world. The firm employs over 1,300 staff worldwide.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.