(Yicai Global) Dec. 10 -- A subsidiary of Wanfeng Auto Wheel, which counts Tesla, Nio, and Xpeng Motors as some of its clients, has secured a CNY42 million (USD6.4 million) order from a unit of China Evergrande New Energy Vehicle Group to deepen their partnership.

Wanfeng MLTH Holdings will provide Evergrande Hengchi New Energy Vehicle Shanghai with instrumentation stands, one of China’s largest aluminum alloy wheel manufacturers said in a statement yesterday.

The contract proves the recognized quality of Wanfeng's lightweight metal components, but is unlikely to majorly affect its sales performance, the Zhejiang province-based parent added. 

Wanfeng's net profit fell 41 percent to CNY410 million (USD62.6 million) in the first three quarters of 2020 from a year ago due to the impacts of the Covid-19 pandemic, according to its earnings report. Its revenue slid 18 percent to CNY7.4 billion (USD1.1 billion).

China Evergrande Group has been diversifying its business from real estate to NEVs. Its listed affiliate China Evergrande New Energy Vehicle Group's stock price has skyrocketed due to the new plans even though no cars have been sold yet.

Evergrande NEV has begun trial production in Shanghai and Guangzhou and the annual capacity should rise to one million units by 2025, and to five million by 2035, much more than Tesla's output, according to the Chinese firm's plans. 

Wanfeng's stock price [SHE:002085] opened up 0.14 percent at CNY7.11 (USD1.10) today.

Editor: Emmi Laine