(Yicai Global) Nov. 26 -- SAIC Motor will calve off its hydrogen power developing subsidiary for an independent listing on the Shanghai stock exchange’s Nasdaq-style Star Market to raise the funds needed to drive the Chinese auto giant’s hydrogen power goals, it said yesterday.

Shanghai Hydrogen Propulsion Technology, which specializes in developing hydrogen fuel cell stacks, systems and core components, will be SAIC’s first spin-off listing, SAIC Vice President and Chief Engineer Zu Sijie told Yicai Global, adding that more will follow.

No mention was made of the amount of funds to be raised, but SAIC said last year that it plans to take Hydrogen Propulsion public with the aim of raising the unit's market capitalization to over CNY10 billion (USD1.56 billion) by 2025.

Hydrogen Propulsion has been operating at a loss since it was set up in 2018. Last year its losses nearly doubled to CNY93 million (USD14.5 million), but revenue also doubled to CNY247 million (USD38.64 million).

The spin-off listing will help Hydrogen Propulsion enhance its core technological capabilities and improve market competitiveness in the hydrogen energy and fuel cell sectors, Shanghai-based SAIC said. It will also help SAIC, which owns a 68.3 percent stake in the unit and will remain the majority shareholder after it goes public, improve its supply chain and foster new business growth points, it added.

SAIC released its hydrogen power strategy in September last year, saying that it plans to develop at least 10 hydrogen-powered vehicle models and be selling 10,000 hydrogen fuel cell autos a year by 2025.

SAIC’s share price [SHA:600104] was trading down 1.46 percent at 1 p.m. China time today at CNY20.26 (USD3).

Editor: Kim Taylor