DATE: JUL 11 2022/ SOURCE: YICAI
(Yicai Global) July 11 -- Shares of Hisense Home Appliances Group climbed after a unit of the Chinese home appliances giant that makes compressors signed a five-year deal with Tesla reportedly worth USD100 million a year.
Hisense’s Shenzhen-listed stock ended today 7 percent higher at CNY14.09 (USD2.10), while in Hong Kong its shares gained nearly 10 percent to HKD9.42 (USD1.20) apiece.
The US unit of Japan’s Sanden Holdings, which Hisense acquired just over a year ago, has received orders for two kinds of US-made electric compressors from Tesla. The deal is worth USD100 million a year, The Paper reported today, citing people familiar with the matter. The parties signed a non-disclosure agreement.
“Since the acquisition [of Sanden] in June last year, Hisense has sent a special project team with funds and manpower to Sanden to carry out a series of integrations,” China Times quoted a person close to the firm as saying. “At the same time, it has rebuilt relationships with many of Sanden’s former customers overseas, and the results are obvious.”
Hisense paid JPY21.4 billion (USD156 million) for about 75 percent of Sanden, the world’s leading tier-one producer of air-conditioning compressors and systems for autos. Sanden’s compressor sales ranked second globally in 2019.
Sanden had a net loss of about CNY100 million (USD14.9 million) on revenue of CNY5.1 billion (USD760.5 million) last year, according to Hisense’s earnings report.