(2020.02.25) Ningbo, China Recently, the National Development and Reform Commission, in conjunction with 11 ministries and commissions, issued the "Smart Car Innovation and Development Strategy" to encourage the development of smart cars.

Joyson Electronics (600699.SHA), as the leading supplier of intelligent cockpit electronics in China, will benefit from the accelerated penetration of smart cars.

Joyson Electronics is a domestic leading supplier of In-Vehicle Infotainment systems (IVI) and has the inherent advantage of developing C-V2X business.

In 2018, Joyson Car Connect (JCC) successfully achieved the orders as the CNS 3.0 system for all models of the Volkswagen MQB platform in China, with a project life cycle of 5 years and a total amount of RMB 10 billion. This project has begun mass production at the end of 2019, and the first supporting model is Magotan.

Actually, IVI System is one of the important carriers of C-V2X. Joyson Electronics has the first-mover advantage to develop car connectivity business.

Joyson Electronics has thefirst-mover advantage of C-V2X business. The company's advantages in the car connectivity area are reflected as follow. Firstly, JCC has in-depth cooperation with global car companies and technology companies. As one of the few car information technology suppliers, JCC works with many carmanufacturers, chip suppliers and upper-level companies. Applicants participated in the "four-span" test activity together and they are also the members of multiple rule-making organizations such as the Automotive Standards Commission, the Ministry of Industry and Information Technology, the China Industrial Innovation Alliance for the Intelligent and Connected Vehicles (CAICV), and so on.

Second, experience in actual projects is absolutely essential in this industrial. JCC participated in the construction of smart cities in Planning Demonstration Zone of Dirksen Germany and Ningbo China.

Moreover, the first 5G-V2X products are in mass production soon. JCC is going to launch the first V2X mass production project. This project integrates sub-meter high-precision positioning, high-precision maps, and high-precision camera information. The integrated information is directly output to L3 or higher autonomous vehicles. According to the production plan, the time for mass production of the project is expected to be 2021 Q1.

With the platform advantages of Joyson Electronics, in the medium and long term, the car connectivity business is expected to further integrate with the intelligent driving control systems and automotive safety business.