Shanghai (ZXZC)- Chinese electronics giant Xiaomi recently established a subsidiary whose business scope covers sale of new energy vehicles (NEVs).

Photo credit: Xiaomi

Founded on August 2, 2021 and located in Zhuhai, Guangdong province, the new company, dubbed Guangdong Hengqin Xiaomi Technology Development Co.,Ltd. (called “Zhuhai Xiaomi” for short), involves a registered capital of 1 million yuan ($154.7 million) and is wholly owned by Xiaomi Technology Co.,Ltd. It has a line of business covering sale of NEVs, import & export of technologies and goods, information system integration service, software development, and manufacturing of communications facilities.

Xiaomi announced its foray into electric vehicle (EV) sphere on March 30, 2021, planning to invest about $10 billion over the next decade in manufacturing EVs. Lei Jun, Xiaomi's founder, chairman, and CEO, revealed on Tuesday the company's automobile business is at a very early stage and will let the public know if any important progress was made.

It was reported in late July that the Anhui Provincial State-owned Assets Supervision and Administration Commission (SASAC) was in contact with Xiaomi and intended to introduce Xiaomi's EV business to Hefei, according to multiple independent sources.

The rumor was afterwards denied by official sources from the SASAC, who said there was no contact with Xiaomi.