Highly Marelli Global Headquarters Starts Operation

Highly Group Expands New Energy Vehicle Thermal Management Business

On April 18, 2021, the global headquarters of Highly Marelli Holdings Co., Ltd., a subsidiary of Highly Group, started operations and a new energy vehicle thermal management system launch conference was held in Pudong, Shanghai.

Highly, a subsidiary of Shanghai Electric Group, issued A and B shares on the Shanghai Stock Exchange of China in 1992 and 1993, respectively. It is the world’s leading R&D and manufacturer of core components for white goods and new energy vehicles, and cooling and heating related products. There are three major industry sectors: "compressors and core components, auto parts, and cooling and heating products", with products covering hundreds of millions of households in 165 countries and regions around the world.

As the world's largest manufacturer of non-self-supporting household air-conditioning compressors, Highly has been seeking breakthroughs in industrial development in recent years, and has successively entered businesses such as electric air-conditioning compressors for new energy vehicles and auto parts castings. Based on the four-core competitiveness that Highly has formed over the years: technology research and development capabilities in the electromechanical field, large-scale lean manufacturing management capabilities, large-scale operating cost control capabilities, B2B marketing capabilities. The company has strategically put the auto parts business as a key development industry sector and has been actively seeking entry opportunities.

On August 29, 2019, Highly and Marelli signed the "Memorandum of Intent for Cooperation". Marelli is one of the world's leading global independent suppliers in the automotive industry, with approximately 60,000 employees worldwide, 170 institutions and R&D centers in Asia, America, Europe and Africa, and sales revenue of 13.6 billion euros in 2019. On September 4, 2020, Highly and Marelli formally signed an auto parts joint venture project. This project includes Marelli's divestiture and reorganization of its automotive air-conditioning compressors and air-conditioning system assets and businesses, and established Marelli Hong Kong as the main body to integrate the target assets and business. Highly acquired 60% of Marelli Hong Kong. After the completion of the project, the joint venture company was renamed Highly Marelli Holdings Co., Ltd. On January 28, 2021, Highly and Marelli completed the delivery of the business.

The Highly Marelli joint venture project is not the first cooperation between the two companies. In August 2019, Marelli also acquired a 25% stake in Shanghai Highly New Energy Technology Co., Ltd., a subsidiary of Highly, and reached a cooperation between the two parties in the electric air-conditioning compressor business of new energy vehicles.

After its establishment, Highly Marelli's operating headquarters are located in Shanghai, China and Saitama, Japan. At present, the company has 28 factories and 5 R&D centers and technical service institutions in 9 countries including China, Japan, the United States, Thailand, Malaysia, India, South Korea, the United Kingdom, and Spain. Highly Marelli will devote itself to the research and development, manufacturing and sales of world-class automotive air conditioning systems and new energy vehicle thermal management systems, making full use of the advantages of both parent companies in the field of auto parts, exerting synergies, and expanding the global market. In the process of becoming a world-class Cabin Comfort system solution provider, it has transformed into the world's leading supplier of automotive thermal management systems.

At the launching ceremony of the global headquarters, Highly Marelli also released the latest thermal management system products for new energy vehicles. The system uses heat pump technology as the core and integrates Highly’s ultra-high efficiency scroll electric compressor and Marelli air-conditioning system technology to greatly improve the energy efficiency ratio of air-conditioning and greatly increase the mileage of new energy vehicles in winter. The system has a Multi-Function Receiver with unique control functions, which enables the heat pump system to have cooling, heating, dehumidification, and defrosting functions, and achieves a high degree of integration, which improves the vehicle's loadability. The scope of the system's working environment is expanded and can be used in the global market environment, while the system security is greatly improved. Relying on the excellent performance of this system product, Highly Marelli has already contacted several leading auto OEMs in Europe, America and Japan and major new Chinese automakers to promote system matching projects.

China is the world's largest automobile market, and new energy vehicles account for the world's leading share, which contains huge market opportunities. In the next phase, Highly Marelli will integrate global resources, invest more resources in the Chinese market, establish a global R&D center and build factories for key components in China, and use the world’s first-class product quality and leading technology to better serve China's new energy vehicle thermal management system market.

Through the joint venture with Marelli, Highly will have a global layout of automotive air-conditioning compressors and air-conditioning systems, as well as world-class R&D capabilities and customer resources, and become the world's leading supplier of automotive air-conditioning compressors and air-conditioning systems. Highly’s electric vehicle air-conditioning compressor business will also have a synergistic effect with Marelli heat pump systems and other businesses to provide complete environmental system solutions for new energy vehicles, and promote Highly's rapid expansion and strength in the field of new energy auto parts, build Highly’s "second main business", and realize Highly’s three major transformation strategies: development from the white goods to the auto parts , from the core components to system integration , and from domestic market-oriented to international layout.