(Yicai) Feb. 26 -- Shares in Jing-Jin Electric Technology advanced as much as 5.1 percent today after the Chinese electric motor system manufacturer said it will supply key components for new energy vehicles to the European plant of a leading global automaker.

Jing-Jin’s share price [SHA:688280] closed up 2.5 percent at CNY5.22 (USD0.73). Earlier in the day it hit CNY5.35.

Jing-Jin has won the bidding to develop electric drive assembly equipment for a client, who was not named due to confidentiality reasons, which it will supply to the customer’s NEV factories in Europe, the Beijing-based company said on Feb. 23. The customer was one of the top five auto manufacturers last year, it added.

The equipment is expected to take three years to develop, after which some 100,000 sets of the machinery will start to be delivered annually from 2027, Jing-Jin said. The life-cycle of the project will be around six years. No mention was made of pricing.

The tie-up is another major inroad into an overseas market that Jing-Jin has achieved in recent years, after linking arms with a North American company in 2019 to deliver similar products there, it said. 

The deal will be a much needed boost to the company's performance which has been battered by sluggish sales and an increase in asset impairment losses.

Jing-Jin's losses widened 42.2 percent in 2023 from a year earlier to CNY552 million (USD76.6 million), according to its annual results released on Feb. 23. Revenue tumbled 17.6 percent to CNY841 million (USD116.8 million). These drops are within the range forecasted by the firm last month.

Editor: Kim Taylor