Chinese smartphone maker Coolpad has entered into a non-legally binding term sheet with China Baoli Technologies, in relation to the proposed formation of a joint venture in China. Coolpad and China Baoli plan to jointly develop dual screen (e-ink screen and colour screen) mobile handsets in China by way of formation of the proposed joint venture. Coolpad will own 49 percent in the JV company, while China Baoli will hold 51 percent of the resulting entity.
The proposed joint venture will have a registered capital of CNY 200 million, which will be contributed in cash by Coolpad in the amount of CNY 98 million. China Baoli will contribute CNY 102 million.
China Baoli has the right to the exclusive use of the intellectual property as necessary to market and sell Yotaphone, the only dual screen mobile handset brand in mass production, in the Greater China (mainland China, Hong Kong, Macau and Taiwan) for the period of seven years. The cooperation with China Baoli under the planned JV can help Coolpad Group expand its mobile businesses with diversified products and access the dual screen mobile handsets market.