Sokon aims to be global provider of battery, electric motor, electric control systems

Shanghai(Gasgoo)- On Dec. 11, Chongqing Sokon Industry Group, parent company of SF Motors, released an announcement that its board of directors passed eight projects, including investing and setting up high-performance battery project, building up subsidiary companies, setting up NEV industrial fund and NEV equity investment funds, etc.

According to the announcement, Sokon will invest RMB 300million (about $45.3 million) to set up a subsidiary company named Chongqing Jinkang Power New Energy Co., Ltd. The company is positioned as an international provider of battery, electric motor and electric control systems for high-end electric vehicles. Moreover, the wholly-owned subsidiary will invest RMB 100 million (about $15 million) to establish its own subsidiary, Chongqing Jinkang Electric Vehicle Sales Company, to accelerate the channel building for NEV sales. 

Sokon plans to authorize Chongqing Jinkang Power New Energy Co., Ltd. to invest and build up a power battery project of high-performance vehicles at the Science and Technology Industrial Park of Chongqing College Town. The project is planned to cover an area of 600mu (about 400,000 square meters) with a total investment of RMB 2.02575 billion (about $306million). Once completed construction and put into production, it will achieve an annual production capacity of 5.2GWh.

Sokon, Chongqing Junyue Sharing Equity Investment Funds Management Co., Ltd. and Chongqing Share Industry Investment Co., Ltd. will co-initiate and establish an industrial investment fund for battery, electric motor and electric control systems. The three parties will jointly set up Chongqing Junyue Sharing New Energy Equity Investment Funds Partner Company and also sign a framework agreement. The total equity of the company is planned to reach RMB 3 billion (about $453 million). Sokon will subscribe 15% of the shares.

Sokon will buy the total equity of SF Motors, Inc. from Chongqing Sokon New Energy Vehicle Design Institute Co., Ltd for RMB 188 million (about $28 million). After the equity transfer, Sokon will add an investment of RMB 32.74 million (about $ 5 million) to SF Motors, Inc., whose capital will be totalled $ 60 million. 

Sokon and China Innovative Capital Management Co., Ltd. will jointly invest and found Jinkang NEV Industry Investment Funds with a total investment of RMB 2 billion (about $302million). Specifically, Sokon will subscribe 25% limited partnership shares, which equal to RMB 500 million (about 75.5 million), and China Innovative Capital Management will subscribe the rest.