China developer Agile Group expands into new energy vehicles with We Solutions

Hong Kong

GUANGZHOU-BASED property developer Agile Group has made a foray into new energy vehicles (NEVs), teaming up with electric vehicle technology provider We Solutions to develop cars and build towns set up for NEVs.

As part of the partnership, We Solutions said it sold HK$203 million (S$35.5 million) worth of new shares to Agile, giving the property developer a 5.89 per cent stake in the electric vehicle (EV) technology company's enlarged share base.

We Solutions, 7.65 per cent-owned by one of Asia's richest men, Li Ka Shing, issued 400 million new shares to Agile at HK$0.51 per share, a 5.2 per cent premium to Wednesday's closing price, it said in a filing late on Wednesday.

The two companies plan to research, develop and produce NEV-related technology in China and jointly develop industry platforms, featured towns, property and facilities for the projects, We Solutions said.

Most of the money it raised from Agile would be used for the projects, the company said.

Agile joins its larger peer China Evergrande Group in betting on growth in the NEV market.

Evergrande said in March it aimed to be a big player in the EV industry potentially worth trillions of yuan. It has invested around 10 billion yuan (S$2 billion) in the industry this year. REUTERS