(Yicai Global) Sept. 4 -- Gree Group, the controlling shareholder of Chinese home appliance maker Gree Electric Appliances, inked cooperation agreements with Chinese consumer electronics maker Xiaomi and China CITIC Bank, it announced yesterday.

Gree will invest about CNY3.5 billion (USD518.1 million) in an industry fund started by Beijing-based Xiaomi and have a say in its management, Gree stated on its official WeChat account. The trio also agreed to collaborate extensively in the industry fund and in financial services, industrial investment, projects and resource-sharing.

The Zhuhai, Guangdong province-based state-owned group will focus on Xiaomi’s ecological chains in the integrated circuit, artificial intelligence, Industrial Internet, core equipment and edge-cutting technology sectors. It will seek high-quality suppliers to entrench its position and introduce top-caliber companies that meet the needs of Zhuhai’s development strategies into the coastal city by investing in construction of smart manufacturing industry clusters, per the agreements.

Gree values Xiaomi’s brand advantages, investment strategies and teamwork experience and CITIC Bank’s superb services and great strength in financial investment, said Gree Chairman Zhou Lewei, adding the trio will extend their partnership in future and focus mostly on investment and smart manufacturing of new technologies and applications and manufacturing upgrades.

Gree has been a key Xiaomi partner and the pair share the same industrial investment aims, noted Xiaomi President Wang Xiang, adding the company will achieve breakthroughs in industrial investment with Gree’s aid.

CITIC Bank’s deal with Gree will strongly support Zhuhai’s building of modern industrial systems through the capital market, said CITIC Bank Vice President Yang Yu.

Founded in 1985, Gree was the first state-owned platform for investment and operation in Zhuhai. Its invested companies have forged close bonds with over 40 institutions and the group has also helped set up and manage 18 industry funds worth more than CNY50.8 billion (USD7.4 billion).

Xiaomi mainly makes handsets and smart hardware and platforms related to Internet of Things. It is the world’s fourth biggest smartphone producer.

Formed in 1987, Beijing-headquartered China CITIC Bank holds assets worth over CNY6 trillion (USD877.1 billion).

Editor: Ben Armour