China TransInfo announced the cooperation framework agreement with Alibaba Cloud, jointly developing intelligent transportation and edge computing.
On May 28 2019, China TransInfo (千方科技), listed on SZSE as 002373, announced the cooperation framework agreement with Alibaba Cloud (阿里云), a subsidiary of Alibaba Group.
A day earlier, Alibaba Group, listed on NYSE as BABA, acquired 15% equity in China TransInfo at CNY 16.12 (USD 2.34) per share for a total of CNY 3.59 billion (USD 552 million), becoming the second largest stakeholder of China TransInfo.
The cooperation focuses on the development, marketing and project launching of smart transportation and edge computing. According to the agreement, the two parties will collaborate in providing smart solutions in transportation area and providing full solutions of "cloud computing+ edge computing+ terminal device" ("云+边+端").
SUN Yafu, chairman of the research lab of China TransInfo, spoke at GIIS that with autonomous cars entering the market, transportation system would change from monitor to service. Intelligent vehicle infrastructure cooperation is the new trend.
Alibaba AI Lab chef scientist shared the same opinion back to 2018 when introducing Alibaba' s autonomous driving technology.
Alibaba Cloud has ranked first in the Chinese market and third in the global market with a strong technical background. As the algorithms are steadily improved, cloud computing could be adopted in multiple cases driving industrial innovation.
The advantage of application, system integration, and hardware product of China TransInfo make a good supplement to Alibaba Cloud’s computing capacity.
In 2018, China TransInfo demonstrated its strategy after its acquisition of Uniview (宇视科技): enhancing its capability of R&D, system integration and operational services with a focus on intelligent transportation and intelligent security, tapping the smart city market.
So far, China TransInfo has offered transportation system solutions to multiple local governments. By developing transportation and security collectively, China TransInfo achieved CNY 7.25 billion (USD 1.05 billion) revenue in 2018.