Shanghai (ZXZC)- Baoneng Group, a China-based property and financial services conglomerate, and Kunshan municipal government, Jiangsu province, signed a range of investment cooperation agreements on October 16, which includes the program of building a NEV (new energy vehicle) base in Kunshan. Meanwhile, they also formed a partnership to jointly develop automotive e-commerce businesses.

The NEV program under the agreement will be Kunshan's first complete vehicle program, including such projects as Baoneng Auto Research Institute, vehicle assembly line, auto parts manufacturing base and automobile industry development fund, etc.

Established in 1992, Baoneng Group has formulated its nationwide development pattern so as to make further efforts to promote its “4+X” industrial fields: urban comprehensive real estate development, modern logistic industry, cultural tourism and financial industry as its core businesses, and green agriculture, health care, education and elderly care as the strategic industry for people's livelihood.

The group has steered into vehicle building businesses in recent years. Last year, Baoneng Group registered an automobile subsidiary and signed agreements with local governments of Hangzhou, Kunming and Guangzhou for NEV programs. In last December, the group gained the qualification to manufacture vehicles by acquiring 51% stake in Qoros Auto.  

Meanwhile, Baoneng Group is recruiting talents for its automobile cause. In February this year, Li Feng, former president of new technology research institute of BAIC Group, was hired as CEO of Qoros Auto and executive vice president of Baoneng Auto. After that, Cai Jianjun, BAIC Motor's former vice president and BAIC Motor sales company's former party secretary, executive director and general manager, officially joined Baoneng Auto as vice president and Qoros Auto's executive vice president.

Additionally, the group's NEV production base in Xixian New Area, Shaanxi Province (hereinafter Xixian base) officially started construction on March 23. The Xixian base, involving a total investment of around RMB 40 billion, possesses a planned annual production capacity of 1 million NEVs and other supporting facilities. Besides, it is expected that the output value of vehicles and auto parts will exceed RMB 100 billion per year.

The early planned NEV capacities for Baoneng Group's NEV plants in Kunming, Hangzhou, Xi'an and Guangzhou have by far aggregated over 2.3 million units on an annual basis, according to relevant reports.