Air conditioner manufacturer Gree announces plan to buy electric carmaker Yinlong
China surpassed the United States in electric car sales last year
Chinese air conditioner giant Gree Electric plans to enter the mainland’s fast-growing electric car market through the purchase of carmaker Yinlong New Energy, Gree announced on Monday.
The Shenzhen-listed home appliance manufacturer said in a report filed to the Shenzhen Stock Exchange that it was preparing to purchase Yinlong and financial terms of the deal would be announced within 30 days.
Zhuhai-based Yinlong was valued at 5 billion yuan (HK$5.9 billion) when investment company Fangde New Energy Investment bought 1 per cent of its shares for 50 million yuan last month.
Yinlong has purchased a series of vehicle, battery and electric motor companies since 2010, according to its website.
The Yinlong purchase would mark the entry of another heavy-hitter into the expanding electric car business, in the footsteps of high-profile investors such as television giant Skyworth’s founder Huang Hongsheng and internet company LeEco.
The government support will continue
“Gree is not late in the game at all,” said Liang Yonghuo, an analyst from China Merchant Securities (HK).