(Yicai Global) Dec. 27 -- Baoneng Investment Group Ltd. started work yesterday on building an industrial park for new-energy vehicles in China's southern province of Guangdong as its chairman spelled out the property and financial conglomerate's automotive goals.
Located in the Guangzhou Development District, the project has attracted CNY30 billion (USD4.6 billion) in backing. Its first phase is set for production capacity of 500,000 NEVs. When the facility operates at capacity, it will have an output value of more than CNY100 billion.
Shenzhen-based Baoneng plans to build a "strong competitive and internationally influential automotive group" in 10 to 15 years, billionaire Chairman Yao Zhenhua said at the construction site.
The group aims to drive development with technological innovations; pool talent; focus on new energy, new materials, and intelligence; develop an NEV business; optimize and upgrade the fuel-powered vehicle business; and create a complete industrial chain covering "research and development, manufacturing and aftermarket operations," Yao said.
Last week, Baoneng agreed to jointly invest CNY6.5 billion in Qoros Auto Ltd. along with the carmaker's partners Chery Automobile Co. and Quantum 2007 LLC. "Qoros develops vehicles that are differentiated in their design, safety, and connected services and those exhibit international standards of quality," the Shanghai-based automaker's website says.
Baoneng has already expanded into vehicle-related sectors such as auto parts and auto finance, as well as car insurance, rental and support services.
Baoneng has net assets of CNY120 billion and a market value of more than CNY500 billion. Its automotive company is registered in Guangzhou, the capital of Guangdong province.