With the implementation of the Belt and Road Initiative, overseas investment and expansion by Chinese companies have become more and more common, particularly in the field of high-tech transfer and mergers and acquisitions. However, due to inexperience of the international technology transfer system, the laws and regulations etc, many companies have encountered a problem in which they are not able to successfully commercialize the technology even if the technology was imported. This led to a waste of time and money with few real economic benefits from the technology import.
On December 28, 2018, Shanxi Donghui New Energy Automobile Research Institute Co., Ltd. signed a project cooperation agreement on Hub motor technology with the Japanese company e-Gle, which was founded by Hiroshi Shimizu, a professor at Keio University in Japan. As one of the leading scholars in the new energy vehicle field, Professor Shimizu made a great number of academic achievements. The project was invested with significant amount of money and time. It was estimated that the annual revenue will reach 1.5 billion RMB and the total profit will be over 300 million RMB once the project is completed.
Hub motor is leading the direction of future new energy vehicles driving system with an optimistic market prospect. The Chinese Association of Automobile Manufacturers reported that the new energy sector in China achieved a sale of 1.03 million units in 2018, breaking its 1 million sales target ahead of schedule. Nowadays, more and more Chinese domestic companies are working with foreign automotive enterprises to put their strategic layout in this field. The cooperation of Donghui and e-Gle would not only boost the innovation of Donghui Group in technology, product supplys, enhancing Donghui's competence and reputation in the field, but also stimulate the transformation and development of high-tech companies in Shanxi Province.
This technology transfer deal was handled by Chofn’s Technology Transfer Institute. As one of the leading full-service IP firms in China, Chofn IP is always at the forefront of many industries in the field of intellectual property services. The Institute of Technology Transfer, backed by more than 200 PhDs, masters and professional technicians in different technical fields, strives to create IP asset assessment services that help clients to evaluate patents in all types of technologies, to ensure the efficient evaluation of the technology and the transfer or licensing deals. Currently, there is no hub motor system that can be mass-produced in the world. However, it is typical that the more advanced is the technology, the more risks there would be for the industrialization. In order to promote the deal, Chofn organized a team of 19 experts in the automotive field, by not only providing the technology and patent-related evaluation but also providing a series of complicated and comprehensive solutions concerning business, marketing, finance, legal, IP risk management, technology transfer development, negotiations (business & law) and others, which ultimately helped our client to keep the cost down by RMB136 million, which is truly equal to the value of the technologies, and minimized the risk of the technology transfer deal.