(Yicai Global) Oct. 9 -- Zhaoqing Hua Feng Electronic Aluminium Foil Co. [SHE:002806], an electronic components manufacturer headquartered in China's southeastern Guangdong province, plans to purchase a Beijing-based electric vehicle parts maker for USD124.3 million (CNY827 million) to expand the company's main business.

The firm will purchase 100 percent of the stock rights in BIT HuaChuang Electric Vehicle Technology Co., Hua Feng announced Oct. 9. The transaction price is USD124.3 million, and the issue price is USD3.19 per share.

Hua Feng will also finance up to USD100 million via a private placement. The funds will go toward research and development of electric vehicle components and their industrialization and payment of intermediary fees.

BIT HuaChuang is a high-tech company affiliated with Beijing Institute of Technology. Its main businesses are the research and development of new energy vehicle (NEV) key technology and production of core parts and its products are crucial to electric vehicle power, security, stability and comfort, as the announcement indicates.

China's NEVs have undergone an explosive growth phase since 2015 and the development of their core parts has also entered a high-growth stage, Hua Feng said. Thus, purchasing BIT HuaChuang of this time is an important strategy for the company to break into the new energy field, and the at same time, expand its main business and profitability.