Guizhou Tyre plans to invest in Techking

Guizhou Tyre’s wholly-owned subsidiary Advance Investment plans to invest 25.5 million yuan (about £3 million pounds; 3.45 million euros) in Qingdao Win-Win Industry Fund.

The function of Qingdao Win-Win Industry Fund is to make equity investments in Techking. According to the official website of Techking, this company’s vision is “be the leading international tyre application solution provider for the mining and construction”, and it provides customers with “tyres for mining and construction industries, relevant value-added services, and intelligent tire management systems”.

Guizhou Tyre stated that the company hopes to withdraw from the investment through the agreed method after the development of Techking and obtain value-added income. According to people familiar with the matter, Techking completed the registration for pre-listing tutoring at the Qingdao Securities Regulatory Bureau in November 2022. The pre-listing tutoring is a mandatory procedure companies must go through before initial public offering (IPO). In other words, Techking is currently preparing for listing.

The map information shows that the location of Yuelong Rubber is Liujiahetou Village (Photo: Baidu Map)

The duration of the Qingdao Win-Win Industry Fund is seven years, and there are three partners. As well as Advance Investment, the others are Shanghai Huayu Investment and Weifang Yuelong Management Consulting. Shanghai Huayu Investment invested 300,000 yuan (about 35,000 pounds, 40,000 euros), accounting for 0.84 per cent of the total capital. After Huayu Investment joined the industry fund as a general partner, the company served as the executive partner. In other words, one of the functions of Huayu Investment is to manage and maintain the assets of industrial funds.

Weifang Yuelong Management Consulting is a limited partner. The company invested 10.2 million yuan (about £1.2 million; 1.38 million euros), with a capital contribution ratio of 28.33 per cent. It is worth noting that Weifang Yuelong Management Consulting is a newly established company in 2022, and its registered address is in the northwest of Liujiahetou Village, Taitou Town, Shouguang, Weifang. The map information shows that Yuelong Rubber, a truck and bus tyre manufacturer, is located northwest of Liujiahetou Village. However, from the perspective of equity structure, there is no clear evidence that Weifang Yuelong Management Consulting has a relationship with Yuelong Rubber.