(Yicai Global) Sept. 28 -- The chairman of Chinese auto manufacturer Geely Holding Group has set up a company that will make smartphones, The Paper reported.

Hubei Xingji Times Technology will be based in the Wuhan Economic and Technological Development Zone in central Hubei province, the report said. With registered capital of CNY80 million (USD12.4 million), Li Shufu holds a 55 percent stake.

The mobile phone business will give full play to Geely and its Swedish partner Volvo’s years of experience in design, research and development, high-end smart manufacturing and industrial chain management, the carmaker said. It will also make full use of the Geespace low-orbit satellite network that is under construction.

Wuhan is one of Hangzhou-based Geely’s most important industrial bases. Its luxury sports car brand Lotus is building a global headquarters in the city, and the firm's internet of vehicles and in-car chipset businesses operate from there.

Editor: Kim Taylor