(Yicai Global) March 23 -- Niu Technologies has refuted a media report that claimed that the Chinese scooter maker has bought a plant of Beijing Automotive Group's new energy vehicle unit to produce cars.

The report is misinformation and Niu has nothing to do with it, the Paper reported, citing Chief Executive Li Yan. The two-wheeler maker dose not plan to manufacture cars, he added.

Car news website iAutoDaily reported, citing part suppliers, that Niu is intending to acquire BAIC BJEV's factory in Jiangsu province's Changzhou. The plant, which can make 50,000 NEVs per year, is later scheduled to raise the capacity to 300,000 units. The total investment is nearly CNY10 billion (USD1.5 billion).

BAIC BJEV has been struggling financially. Its loss tallied between CNY6 billion and CNY6.5 billion last year, according to its parent's estimate.

But the Changzhou-based scooter firm has predicted its revenue to as much as double to CNY480 million (USD73.7 million) in the first quarter from a year ago. In the 12 months of 2020, Niu made CNY169 million in net profit, declining by 11 percent amid the Covid-19 pandemic.

However, Niu's founder Li Yinan may be thinking about NEVs. Li has set up his NEV business headquarters in Beijing, the Paper reported last September, citing a person close to him. Li used to work for Huawei Technologies and Baidu before setting up Niu in 2014.

Editor: Emmi Laine, Xiao Yi