The acquisition positions NaaS Technology for further growth in the new energy sector, tapping into the potential of solar energy and charging services, and solidifying its presence in the evolving Hong Kong market.
Chinese first listed EV charging sevice company NaaS Technology (NASDAQ: NAAS), announced on June 12 that its wholly owned subsidiary, Dada Auto, has entered into a definitive agreement to acquire 89.99% of the issued and outstanding shares of Sinopower Holdings International Co. Limited ("Sinopower") from an existing shareholder of Sinopower. The acquisition is set at an aggregate purchase price of approximately USD 6.1 million, payable in cash.
The share purchase is subject to customary closing conditions and is expected to be finalized in June 2023.
Sinopower HK is primarily engaged in the development of estates and commercial/industrial rooftop solar PV projects. Alongside a 25MW distributed solar energy project, the company has an impressive track record of successfully developing and constructing over 600 solar energy projects in Hong Kong. In the local market for distributed solar energy within estates and commercial/industrial rooftops, Sinopower HK holds a dominant position, boasting a significant number of rooftop solar energy projects across various industrial and commercial blocks in Hong Kong. Examples include the design and construction of solar energy power station of the HKEX building and the terminal building for the third runway of Hong Kong International Airport.
According to the Electrical and Mechanical Services Department report, the estates and commercial/industrial rooftop solar energy market in Hong Kong is expected to witness substantial growth, reaching a capacity of 875MW by 2024. Additionally, the engineering, procurement, and construction (EPC) market in this sector is projected to reach a value of HKD 8.75 billion by 2026, with an estimated annual electricity revenue of around HKD 3.4 billion.
Meanwhile, Hong Kong’s EV industry is flourishing. In 2022, 53% of all newly registered vehicles were EVs, resulting in a surge in demand for charging charger operation services.
The deal will engage the parties in all-rounded and deep integration in technology, product, capital and market. By venturing into Hong Kong's distributed solar energy sector, NaaS takes a significant stride in its go-global business and continues to deliver new energy products and service solutions worldwide.
Sinopower HK, on the other hand, will leverage NaaS' expertise in charging services and platform advantage as a listed company to bring its existing rooftop solar PV business to a new level. Furthermore, the company plans to leverage the community resources it has accumulated through its rooftop solar energy business development to establish a presence in Hong Kong's charging pile operation market, with the aim of gaining greater room for development through a transformation towards an integrated new energy service provider.
Wang Yang, the founder and CEO of NaaS, commented, "I am thrilled to include Sinopower within the NaaS platform. Benson has built an outstanding company with a leading market position and a profitable business model. I believe that together with NaaS, Sinopower will be able to deliver even more solar projects, leveraging NaaS's capabilities to expand into areas such as EV charging. I look forward to working with Benson and his team."
"Becoming part of the NaaS platform will give us a unique and significant edge in this exciting market," said Benson Ng, the founder and CEO of Sinopower. "We have development plans, a pipeline of projects, and a clear strategy to venture into this new domain. With NaaS, we will be able to deliver more projects and better leverage our capabilities."
NaaS provides one-stop EV charging solutions to charging stations comprising siting consulting, EPC, operation & maintenance, energy storage, PV, virtual power plant and autonomous charging robot, supporting every stage of the station lifecycle. In 2022, NaaS' charging volume reached 2.75 billion kWh, representing 20% of the national total. As of March 31, 2023, NaaS had connected 55,000 charging stations and 575,000 chargers.
Previously in May, NaaS wound up a new round of SPO, with Dr. Adrian Cheng, the third scion of the Cheng Yu-Tung Family, one of the four families of Hong Kong, and CST Group, an established HK-listed company (0985:HK), as its new strategic investors.