(Yicai Global) March 9 -- Shares in Chongqing Sokon Industrial Group plunged by the exchange-imposed daily limit today even after the Chinese new energy vehicle maker signed an agreement with telecoms equipment giant Huawei Technologies to advance their partnership in the NEV sector, online news portal Caijing reported.

Sokon Industrial’s share price [SHA:601127] plummeted 10 percent to close at CNY19.41 (USD2.98). In the last two days its stock has lost 16.5 percent of its value after hitting an all-time high of CNY23.25 on March 5.

Sokon and Shenzhen-based Huawei have already joined forces to develop the Hump range extender system which has turbo boosted the carmaker’s latest Seres S5 model to give it a battery range of over 1,000 kilometers. This model also features Huawei’s all-in-one DriveOne electric drive system, which integrates seven of the vehicles’ mechanical and power components such as the DC converter, battery control unit and power distribution unit.

Hopefully the increased collaboration with Huawei will improve Chongqing-based Sokon’s balance sheet. Set up in 2007, Sokon is expecting losses of up to CNY1.78 billion (USD272.8 million last year. The firm is owned by Chongqing Sokon Holdings and carmaker Dongfeng Motor Corp is its second largest shareholder.

Editor: Kim Taylor