Baoneng Group plows RMB3 billion to deepen EV power battery deployment

Shanghai (Gasgoo)- A company dubbed Shenzhen Hongpeng New Energy Technology Co.,Ltd (Shenzhen Hongpeng) was registered on November 19 with a registered capital of RMB3 billion, according to Market Supervision Administration of Shenzhen Municipality. It is noteworthy that the amounts of capital subscribed by Baoneng Group, a China-based property and financial services conglomerate, reach RMB2.97 billion, accounting for 99% of the new company's registered capital.

Meanwhile, the remaining RMB30 million registered capital is subscribed by Baoneng Group's logistics subsidiary.

The business scope of Shenzhen Hongpeng extends to cover the technology R&D of lithium ion battery, battery material, lithium polymer battery, fuel cell, power battery and used battery as well as the technology services, performance tests and technical consultation related to lithium battery and other product concerned.

Baoneng Group started to deploy its NEV (new energy vehicle) businesses last year. In October 2017, the group inked a cooperation framework agreement with Hangzhou Xintiandi Group and Fuyang District government of Hangzhou in terms of a NEV program with an annual capacity of 300,000 units and other programs. Under the agreement, Baoneng Group should be responsible for the building of the NEV base which covers an area of around 3,000mu (around 2,000,000 square meters) and involves an investment totaling RMB14 billion.

In December last year, Baoneng Group plowed an RMB6.63 billion worth of strategic investment into Qoros Auto, controlling 51% stake in the latter. During the same month, the group held the groundbreaking ceremony for its NEV industrial park in Guangzhou with a RMB30 billion investment. It is reported that the annual capacity for the first phase reach 500,000 NEVs and other supporting facilities.

Then, the group established two subsidiaries that specialize in vehicle sale and vehicle import and export respectively in August this year. In the middle of October, Baoneng Group and Kunshan municipal government, Jiangsu province, signed a range of investment cooperation agreements, which includes the program to build a NEV (new energy vehicle) base in Kunshan. Meanwhile, they also formed a partnership to jointly develop automotive e-commerce business.