NaaS Technology Establishes Strategic Partnership with SHNE to Jointly Build New Energy Market

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NaaS Technology Inc. (NASDAQ: NAAS) forms strategic partnership with Shandong Hi-Speed New Energy Group Limited (SHNE) to jointly build new energy market

Insights

Energy Industry Analyst

The collaboration between NaaS and SHNE is a strategic move to consolidate their positions in the burgeoning new energy market, particularly in the areas of photovoltaic project development and smart microgrid systems. Given the robust growth in EV production and sales reported by CAAM and the projected expansion of China's EV market and charging infrastructure, this partnership capitalizes on a significant growth opportunity.

From an industry perspective, NaaS's role as a U.S. listed EV charging service company in China positions it advantageously to leverage the increasing demand for EV charging services. The company's Q3 2023 charging volume and its substantial network of charging stations underscore its operational capabilities and market presence. Sinopower HK's market share and project portfolio further reinforce the group's competitive edge in photovoltaic solutions.

For investors and stakeholders, the strategic partnership may signal potential growth, improved market share and enhanced financial performance in the long run. However, the capital-intensive nature of the industry and potential regulatory changes remain as risks to monitor.

Financial Analyst

The financial implications of this partnership are multifaceted. NaaS's reported charging volume indicates strong operational performance and market penetration, which could translate into sustained revenue streams. The anticipated growth in China's EV market and the corresponding need for charging infrastructure investment, as estimated by CIC, suggest a favorable demand outlook for NaaS's services.

However, the significant capital requirements for infrastructure expansion and the competitive landscape of the new energy sector necessitate careful financial planning and risk assessment. The partnership's success will depend on the effective execution of joint projects and the ability to navigate market dynamics and technological advancements.

Sustainability Expert

This partnership between NaaS and SHNE aligns with global sustainability goals by focusing on low-carbon and green development. The integration of renewable energy sources like photovoltaic systems into the transport energy sector represents a positive step towards reducing carbon emissions and fostering sustainable energy practices.

However, the long-term impact on sustainability will depend on the scalability of the implemented solutions and their actual contribution to carbon emission reduction. The projected reduction of nearly 5 million tons of carbon emissions by SHNE's current assets is a testament to the potential environmental benefits of such collaborations.

HONG KONG, Dec. 20, 2023 /PRNewswire/ -- On December 20, NaaS (NASDAQ: NAAS), a global new energy asset operator and its subsidiary Sinopower Holding (Hong Kong) Co., Ltd. (Sinopower HK) formed strategic partnerships with Shandong Hi-Speed New Energy Group Limited (SHNE) (01250.HK). The signing ceremony was held in Hong Kong Science Park. The parties plan to exploit respective resources, know-how and experience and team up with all ecosystem partners, to make a foray into all segments of the national or international new energy market, which include photovoltaic project development, construction and operation of charging stations, and development of smart microgrid systems, with a view to promoting regional low-carbon and green development.

Wang Yang, Founder and CEO of NaaS, said, "In cooperation with SHNE, we take one step forward in expanding our new energy service landscape and engaging in the segment and overall cooperation in the new energy industry chain. By delivering more solutions and exemplary cases that can be widely applied, we help facilitate the green transformation in transport energy sector and bring our vision 'Empower the World with Green Energy' to a reality."

Heretofore, NaaS and Sinopower HK had participated in building a slew of new energy projects. In Anji, Zhejiang, NaaS set a paradigm of "integrated PV-storage-charging-battery swapping" heavy truck stations. The project is intended to provide charging and battery swapping services to 1,800 heavy trucks and compact EVs in Anji County, alongside smart integration of photovoltaic power generation, energy storage, charging and battery swapping. The solar power system project, engineered by Sinopower HK, helps ensure the supply of solar power generated from a clean and green source for the Hong Kong Times Square in Causeway Bay, with an installed capacity of 55.1 KW.

Statistics from the China Association of Automobile Manufacturers (CAAM) show, from January to November 2023, 8.426 million and 8.304 million EVs were made and sold, respectively, up 34.5% and 36.7% from a year earlier; EVs accounted for 30.8% of vehicles on the market; and in November alone, EV output and sales separately exceeded 1 million. The authority predicts that the sales of EVs in China will reach 11.5 million in 2024, with a penetration rate of 40%. NewLink Research Institute predicts, by 2030, the sales volume of EVs in China will reach 26 million and China will have nearly 145 million EVs.

China Insights Consultancy (CIC) estimates that by 2030, China will boast 26.3 million public charging piles and 1.32-2.6 million charging stations, with cumulative charging pile investment nudging RMB 3 trillion. So to speak, the new energy service market is a blue ocean.

NaaS is the first U.S. listed EV charging service company in China. It provides the new energy sector with a one-stop industry chain service package from charging station siting consultation, software/hardware procurement, EPC, operation & maintenance, energy storage, PV, to autonomous charging robot inclusive. In Q3 2023, NaaS' charging volume reached 1.383 billion kWh, representing 21.8% of the public charging volume in China; as of September 30, 2023, NaaS connected 767,000 chargers, covering 73,000 charging stations.

Sinopower HK, a subsidiary of NaaS, is a one-stop integrated PV-storage-charging service provider. The company now has total supremacy on local roofing and commercial/industrial BIPV project, as evidenced by market share of 35%. It has a proven track record of solar power station design and construction projects, including Hong Kong Exchanges and Clearing Limited (HKEX), expansion of Terminal 2 for the third runway of Hong Kong International Airport, the Hong Kong Jockey Club, Knowfx, Times Square Hong Kong, and COSCO Container Terminal. Sinopower HK, under the banner of NaaS HK, has launched EV "charging", "installation" and "rental" services in Hong Kong.

SHNE is a state-owned holding company co-founded by Shandong Hi-Speed Group under the administration of Shandong Provincial State-owned Assets Supervision and Administration Commission, Beijing Enterprises Water Group Limited (BEWG) under the umbrella of Beijing Municipal State-owned Assets Supervision and Administration Commission, and CITIC Private Equity Funds Management Co., Ltd (CITICPE). The company is listed on the Main Board of HKEX. The company is specialized in investment, development and operation of projects regarding power generation from clean sources, e.g., wind and PV, and using clean power in heating. The company has over HKD 50 billion assets, 54 centralized PV power stations, 18 wind power stations and around 200 distributed PV stations across 23 provinces (autonomous regions/municipalities) nationwide under its management. With an installed capacity of over 4GW, it annually generates electricity of more than 6 billion kWh while reducing nearly 5 million tons of carbon emissions and incorporating approximately 50 million square meters in clean heating service.

Media Contact:
Sabrina Wang
wangxuedong@newlink.com

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SOURCE NaaS Technology Inc.

FAQ

What is the latest strategic partnership formed by NaaS Technology Inc. (NAAS)?

NaaS Technology Inc. (NASDAQ: NAAS) has formed a strategic partnership with Shandong Hi-Speed New Energy Group Limited (SHNE) to jointly build the new energy market.

What are the segments of the national or international new energy market that NaaS Technology Inc. (NAAS) and SHNE plan to explore?

The segments include photovoltaic project development, construction and operation of charging stations, and development of smart microgrid systems.

What are the latest statistics about EVs in China and how do they impact the new energy market?

From January to November 2023, 8.426 million and 8.304 million EVs were made and sold, respectively, up 34.5% and 36.7% from a year earlier. The authority predicts that the sales of EVs in China will reach 11.5 million in 2024, with a penetration rate of 40%. This data indicates a significant increase in EV sales, which will impact the new energy market.

What are the key services provided by NaaS Technology Inc. (NAAS) in the new energy sector?

NaaS Technology Inc. provides a one-stop industry chain service package from charging station siting consultation, software/hardware procurement, EPC, operation & maintenance, energy storage, PV, to autonomous charging robot inclusive.

What are the key projects carried out by Sinopower Holding (Hong Kong) Co., Ltd. (Sinopower HK) and its parent company NaaS Technology Inc. (NAAS)?

Sinopower HK has been involved in various new energy projects such as the provision of charging and battery swapping services to heavy trucks and compact EVs in Anji County, alongside smart integration of photovoltaic power generation, energy storage, charging, and battery swapping.