Exclusive | EV charging provider StarCharge to focus on markets outside China for bigger profits
- StarCharge to derive at least half of its gross profits from overseas markets this year on the back of higher selling prices
- Parent company Wanbang Digital is reported to be seeking US$500 million via a Hong Kong stock offering
The group expects to derive at least half of its gross profits from overseas this year, driven by higher prices of EV charging facilities, chief strategy officer Evan Feng said. The local market currently contributes almost 80 per cent of the revenue from EV charging facilities at StarCharge.
“The company has reached an inflection point where our overseas business will see faster development,” Feng told the Post at the BNP Paribas Global Electric Vehicle and Mobility Conference in Hong Kong on Monday. “It’s time to say goodbye” to meaningless competition on the mainland market, he added.
StarCharge operated 450,000 EV charging piles at the end of 2023, while market leader TELD had 520,000 piles, according to data published by China Electric Vehicle Charging Infrastructure Promotion Alliance.
StarCharge’s parent Wanbang Digital Energy Co, based in eastern Jiangsu province, could raise US$500 million (HK$3.91 billion) from a first-time stock offering in Hong Kong, Bloomberg reported in January. Hong Kong makes an ideal base for the company’s development overseas, Feng said.
StarCharge’s US production base in Columbus, Ohio, will start operations in July, while its factory in Vietnam, now under construction, is expected to supply to markets in Southeast Asia and Europe when completed, Feng said. The company will allocate more resources and talents to grow its business in 60-odd markets outside China, he added.
China’s red-hot EV market has a problem: no profit for charging-network operators
China, the world’s largest EV market, is experiencing a brutal price war as EV makers like BYD and Tesla lowered their prices to win new customers. The EV charging providers have not been spared, as players poured millions in highly populated areas for thin profits.
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StarCharge is working with foreign oil and gas companies such as BP and Shell to transform parts of their petrol stations into EV charging facilities. It has also partnered with carmakers including Mercedes-Benz and BMW to produce higher-end charging facilities for their premium EV models.
Sales of EV charging facilities contribute to a “vast majority” of Wanbang’s revenue, said Feng, without disclosing more details. The company is also seeking growth in its home and commercial energy storage business, given the higher demand for it in overseas markets, he added.
