FAST NEWS: NaaS establishes strategic partnership with state-owned SHNE

The latest:

NaaS Technology Inc. (NAAS.US), operator of China’s largest independent electric vehicle (EV) charging network, on Wednesday the company and its subsidiary Sinopower Hong Kong formed strategic partnerships with Shandong Hi-Speed New Energy Group (SHNE, 1250.HK), a state-owned new energy company.

Looking up:

The parties plan to exploit respective resources, know-how and experience, 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.

Take Note:

Strategic partnerships are usually not partnerships in the legal sense of the word, and the parties have not announced any formal details of their specific cooperation.

NaaS Technology took over the listed shell that was formerly Rise Education. Rise became a victim of China’s education crackdown two years ago, which banned private companies from offering after-school tutoring services for K-12 students. NaaS listed in New York last year using Rise’s shell as its listing vehicle, in a deal engineered by U.S. private equity giant Bain, which is a major investor in both companies. After listing, its revenue has risen rapidly, benefiting from the design of charging stations for corporate customers and the growth of its energy solutions business. In the third quarter of this year, its revenue jumped 546% year-on-year to 171 million yuan ($23.9 million).

Market Reaction:

NaaS Technology’s shares fell 8% to close at $1.72 on Wednesday, near the lower end of its 52-week range.