Kudan Inc. announced that it has concluded a memorandum of understanding for a capital and business alliance with Whale Dynamic Co. Ltd., Kudan's business partner which develops autonomous driving solutions in China. Purpose and reasons for the Agreement.

Whale Dynamic began providing robots (autonomous delivery vehicle) and associated HD map toolchain products that integrate Kudan's 3D-Lidar SLAM technology in June 2022, and has been promoting market sales mainly in Chinese market where demonstration of advanced autonomous driving technology led by a public-private system has been rapidly growing. Amid these circumstances, demand for Whale Dynamic's solutions is increasing in global regions such as Europe and the Middle East along with the expansion of track record in the Chinese market, and with that comes better prospects for opportunities to provide Kudan's technology in a wider range of Whale Dynamic's products, such as autonomous driving for passenger cars. As the expansion of sales of Whale Dynamic's products that integrate Kudan' technology is expected due to business progress, have concluded the Agreement with Whale Dynamic regarding the sales of corresponding product licenses worth JPY 300 million to JPY 400 million in total.

In addition, Kudan has concluded the Agreement regarding the investment of JPY 500 million in growth capital into Whale Dynamic to accelerate their regional expansion to global and product expansion to autonomous driving, and to strengthen collaborative structure and joint promotion of the sales of Whale Dynamic's products and the spread of Kudan's technology. Details of the Transactions agreed to by Kudan and Whale Dynamic are as follows. Business alliance.

Kudan will sell product licenses to Whale Dynamic worth JPY 300 million to JPY 400 million in total in this fiscal year and the next fiscal year (FYE March 2024 and March 2025). At the same time, both companies will strengthen joint product development and promote business development and marketing in China and other global regions. Capital alliance.

Kudan will invest a total of JPY 500 million (anticipated to be approximately 10% of the total number of issued shares) in Whale Dynamic (including Whale Dynamic's group companies) in this fiscal year and the Next fiscal year (FYE March 2022 and March 2025). Furthermore, the Agreement is not legally binding, and plan to proceed from now with detailed considerations for the execution of a final agreement pertaining to the Transactions, which expect to be executed in stages depending on the progress of the business and collaboration structure of both parties. As a technology that complements artificial intelligence (AI), AP advances machines toward autonomous functioning.

Currently, Kudan is using its high-level technical innovation to drive business development based on its own milestone models specializing in deep tech which will impact a wide range of industries.