Hybrid Kinetic Group to buy battery firm for 180M yuan

Shanghai, May 6 (Gasgoo.com) According to a public notice submitted by Hybrid Kinetic Group Ltd. (located in Wanchai, Hong Kong), a Hong Kong Listed Co. of Yang Rong (former chairman of Brilliance China)’s Hybrid Kinetic Motors (a new start-up carmaker in the U.S.), to the HKEx (Hong Kong Stock Exchange) on May 4 2010, Hybrid Kinetic Group will buy 100% stake in Zhejiang Jia Beisi Green Energy Co., Ltd., a manufacturer of lithium electronics- powered battery, in east China’s Zhejiang province.

The notice shows that after Hybrid Kinetic Group’s acquisition of Jia Beisi Co., the former’s vehicle business can benefit from the synergy effects brought by the latter in battery production cost, production and quality control and battery technology innovation, which will also play a key role in Hybrid Kinetic Group’s production of hybrid electric vehicles starting 2010.

Meanwhile, the notice also says that after the acquisition, Hybrid Kinetic Group will start expanding the capacity of Jia Beisi Co., and it is also planning to use the Jia Beisi base as the high-power lithium-ion battery production base for its development of the hybrid electric vehicles.

Data shows that Zhejiang Jia Beisi Green Energy Co., Ltd. was established in July 4th, 2007, specializing in developing and manufacturing lithium electronics-powered battery packs. Its markets are mainly mainland China, European countries and the U.S., and its major customers are the vehicle manufacturers, auto parts makers as well as dealers in the above markets.

By December 31, 2009, the company's net assets value had reached 17.91 million yuan ($2.6 million), gaining 1.58 million yuan.

Industry insiders say that Yang Rong’s buying Jia Beisi Co. looks like making preparation for the Hybrid Power technology, but is more likely for its later capital operation.