Friday 29 Mar 2024
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SINGAPORE (April 20): Ziwo Holdings says its associate company, Beijing E-Star Electric Technology, will be forming a joint venture (JV) with partners Haboat Investment and Chengdu Yaneng to invest a combined RMB10 million (S$2 million) in building electric-vehicle chargers for sale in Sichuan and other provinces in southern China.

A production and marketing centre in Sichuan’s capital, Chengdu, will be established as part of the project.

The deal takes place a month after Beijing E-Star entered into a strategic agreement with property developer Tai Yu Realty to build 160 electric-vehicle charging stations in Huizhou city.

Beijing E-Star, which builds charging systems for electric vehicles, will own 18% of the joint venture, which will have access to its intellectual property and technology. The company will receive a licensing fee for five years for every charger produced, in addition to its share of profits from the joint venture.

Haboat Investment, a major shareholder of Sichuan Haboat Electric, will own 40% of the joint venture. The remaining 42% will be held by Chengdu Yaneng, an investment firm owned by two Chinese nationals.

“This joint venture will enable us to sell our charging equipment to a wide audience in China, where demand for electric cars is expected to keep growing as the authorities endeavour to keep air pollution in check,” says Tay Wee Kwang, co-founder of Beijing E-Star.

“Working with like-minded parties that already have networks and contacts in place will enable us to expand fairly quickly. At the same time, having a joint-venture partner to handle the production of the electric-vehicle chargers will free up Beijing E-Star to focus on sales and business development,” he adds.

Shares of Ziwo closed flat at 3 Singapore cents on Wednesday. 

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