Shanghai (Gasgoo)- China Evergrande Group on June 11 signed a strategic cooperation framework agreement with Guangzhou Municipal Government as part of efforts to deepen its deployment in new energy vehicle (NEV) domain.
（Photo source: China Evergrande Group)
An agreement about a series of significant investment programs in Nansha, a district of Guangzhou, was inked by both parties at the same time. Based on the newly-signed deals, Evergrande Group will launch its three major NEV-related bases there with a total of RMB160 billion to be involved.
Specifically, the base focusing on complete vehicle R&D and production targets an annual capacity of 1 million NEVs. In addition, the property giant plans to build a super power battery factory with a massive annual output of 50GWh and an electric motor & electronic control system manufacturing factory that is capable of supporting 1 million complete vehicles.
Guangzhou is one of most important vehicle and auto parts production and export bases in China. It not only has joint ventures invested by top 3 Japanese automakers—Honda, Nissan and Toyota, but also has attracted a number of startups, like Pony ai. and GAC NIO. By virtue of the city’s abundant industrial resource and cluster advantages in NEV, Evergrande Group might cement its NEV business more rapidly, said some analysts.
Evergrande Group has obtained many key NEV technical resources and the sales channel through a series of mergers, acquisitions and investments. Gasgoo hereby enumerates part of significant events in time sequence:
On May 30, 2019, Evergrande Health Industry Group Limited (hereinafter referred to as Evergrande Health), a wholly-owned subsidiary of Evergrande Group, announced that its subsidiary National Electric Vehicle Sweden AB (NEVS) has acquired Protean Holdings Corp., the world’s leading in-wheel electric motor technology for passenger cars, by effecting a merger of Protean with and into Virtue Surge Limited, a subsidiary of NEVS.
On March 15, 2019, Evergrande Health claimed that one of its subsidiaries (the purchaser) entered into an equity transfer agreement with Tianjin Tianhai Group Co.,Ltd (the seller), TeT Drive Technology Co.,Ltd. (TeT) and a guarantor. Pursuant to the agreement, the purchaser agreed to acquire and the seller agreed to sell its 70% equity interest in TeT at the consideration of RMB500 million. Upon completion of the acquisition, TeT would become a subsidiary of Evergrand Health.
It is noteworthy that TeT wholly-owns e-Traction, a Netherlands-headquartered R&D and production enterprise in in-wheel motors and electric automobile powertrain systems.
On January 29, 2019, NEVS inked a joint venture agreement with Koenigsegg Automotive AB (KAAB), a supercar company based in Sweden. According to the announcement released by Evergrande Health, KAAB owns various world-leading technologies in the fields of lightweight, engine-powered systems, electrification and AI driving etc., possessing one of the most leading NEV technologies in the world.
On January 24, 2019, Evergrande New Energy Power Technology (Shenzhen) Company Limited (the purchaser), a wholly-owned subsidiary of Evergrande Health, entered into an agreement with Shenzhen Clou Electronics Co., Ltd. (the seller) and the guarantor to acquire 58.07% equity interest of Shanghai CENAT New Energy Company Limited (the target company) for a total consideration of RMB1,059,777,500.
Founded in China, the target company focuses on ternary pouch type power battery. It was co-founded by China Automotive Technology and Research Center and ENAX, Inc. in Japan, with technology originating from Kazunori Ozawa, known as the “Father of Lithium Battery”, and his R&D team.
On January 15, 2019, Evergrande Health claimed that Solution King Investments Limited (the Purchaser), a wholly-owned subsidiary of Evergrande Health, had entered into a Sale and Purchase Agreement with Kerryman Holdings Limited (the Seller), pursuant to which the Purchaser agrees to acquire, and the Seller agrees to sell the Sales Shares for a total consideration of $930 million.
The Sales Shares refers to 300 ordinary shares in the share capital of Mini Minor Limited (the Target Company), which is also the entire share capital of the Target Company. According to the announcement, the only asset of the Target Company is its 51% shareholding in NEVS, a Sweden-headquartered electric vehicle maker.
On September 23, 2018, Evergrande Group announced the strategic cooperation agreement with Xinjiang Guanghui Industry Investment Group Co.,Ltd (Guanghui Group). Both parties agreed to jointly develop businesses in such areas as car sales, energy, real estate and logistics, etc.
Under the agreement, Evergrande would acquire 23.865% stake transferred by Guanghui Group's investors with RMB 6.68 billion. Besides, the acquirer agreed to increase capital of RMB 7.81 billion in Guanghui Group. Therefore, Evergrande would obtain a total of 40.964% stake in the target firm, involving RMB 14.49 billion in total after the whole transaction completes.
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