HK’s $8bn wealth fund charges into first overseas deal with EV tech
In its maiden overseas investment, the $8 billion Hong Kong Investment Corporation (HKIC) is backing a Hong Kong-based electric vehicle charging venture that will power up Thailand's green tech drive.
The wealth fund will invest in Spark EV, a joint venture between Hong Kong’s Cornerstone Technologies and Thai firms, to roll out a network of 1,000 EV charging stations across Thailand within five years.
Spark has inked a long-term agreement with Thai state-owned energy conglomerate Bangchak Corporation Public (BCP) to install and operate the EV charging infrastructure in its petrol stations.
“With [this] collaboration, Spark aspires to become one of the top three major EV charging brands in Thailand by 2026,” said Clara Chan, HKIC’s chief executive officer at the partnership’s launch ceremony on August 22.
HKIC
“Starting between Hong Kong and Thailand, and on the basis of the example set by the BCP-Spark project, we look forward to other collaborations in Southeast Asia and internationally,” she said, noting that HKIC is also exploring other markets and investment opportunities in Southeast Asia for green tech development.
HKIC did not disclose the size and terms of the investment in Spark.
EV TAILWINDS
Chan highlighted Thailand’s accelerating EV adoption – with new registrations soaring from 1.4% in 2020 to 14% last year - and Thai government’s policy support as key tailwinds and catalysts for the deal.
Thailand has a 19-to-1 EV-to-charger ratio versus the 10-to-1 global average, indicating plenty of room for growth.
Chan said HKIC is sourcing deals and partners across the world - including Europe and the US – in both private and public markets and will announce more investments in new energy and green technology.
The Spark investment marks HKIC’s fourth announced deal since inception and the first in new energy and green technology – a key focus alongside hard and core technology, and biotech.
Its three other investments are in local and mainland Chinese artificial intelligence startups Galbot, BioMap, and SmartMore.
As HKIC grows its investment portfolio, she expects more synergies will be created among investee companies.
“Taking the BCP-Spark partnership as an example, as EV infrastructure technology evolves, the amount and types of data generated will increase. Subject to proper privacy protection, how we could better use the data to further facilitate green transition and green finance would be a good topic to work on,” she added.
SEA EXPANSION
Cornerstone Technologies, a pre-profit GEM-listed company that went public in Hong Kong in 2018, provides EV charging solutions across the city.
Its market capitalisation was $HK752 million ($96 million) as of August 23.
Cornerstone formed Spark EV, a joint venture, as the majority owner and operating manager in March. Meanwhile, it established a partnership with BCP to build a network of EV charging stations across Thailand.
At least three EV charging stations in Thailand have begun operations, according to Vincent Yip, CEO of Spark and Cornerstone Technologies.
Spark EV
Spark is also collaborating with Guangzhou Automobile Group (GAC Group) in Thailand to explore technologies and construct supercharging stations in transportation hubs, gas stations, and major intercity travel routes.
Currently, four out of Thailand’s top five EV brands in terms of sales are Chinese brands, including BYD, Neta, and MG.
“Looking ahead, HKIC and Spark will join hands to foster the overseas expansion of Hong Kong’s technological strengths and innovative capabilities, enhancing in-depth collaboration in green tech with other economies in the Southeast Asia region,” Yip said.
HKIC was launched in late 2022 with a dual mandate: to seek reasonable financial return over the medium to long term, and to invest for the future of Hong Kong by enhancing the long-term competitiveness and economic vitality.
Initial assets allocated to the government fund totalled HK$62 billion ($7.9 billion), consisting of the HK$22 billion Hong Kong Growth Portfolio, the HK$5 billion Greater Bay Area Investment Fund, the HK$5 billion Strategic Tech Fund; and the HK$30 billion Co-Investment Fund.