(Yicai Global) June 12 -- Broad-Ocean Motor’s stock rose after the electric motor maker said it will invest CNY1 billion (USD140 million) building a powertrain and parts factory for electric vehicles in the Chinese city of Chongqing to get closer to key customers.

After jumping by as much as 5.6 percent earlier today, Broad-Ocean [SHE: 002249] closed 4.9 percent higher at CNY5.39 (75 US cents) a share.

Chongqing, along with neighboring Chengdu, capital of Sichuan province, is a hub for carmakers in southwestern China, Broad-Ocean said late on June 9. being closer to key clients will allow the Zhongshan-based firm to respond quicker to demand and save on logistics costs, it added without disclosing further details.

A powertrain is a system of parts and components that makes an automobile move and is the core of an EV’s control system. 

Broad-Ocean had the capacity to make 700,000 powertrain units a year as of the end of 2022, while its actual output was 448,700, according to the company’s annual earnings report. The business reported sales revenue of CNY1.9 billion (USD266 million), equal to 18 percent of Broad-Ocean’s total income.

Editor: Martin Kadiev