(Yicai Global) Dec. 17 -- Vantone Real Estate has pulled out of a CNY3.2 billion (USD460 million) deal to buy a majority stake in lithium battery maker Phylion Battery, stalling its shift into the new energy vehicle sector.

All parties decided to abandon the plan after Vantone failed to agree with others involved on optimizing the transaction, while major changes in the market brought uncertainties to the deal, the Beijing-based company said in a statement yesterday. Vantone revealed its intention to take a 78.3 percent stake in Phylion on July 30.

Chinese property developers such as Vantone are looking for ways to transform their businesses because of intensive government regulation of the real estate market. Many have invested in the booming NEV industry, including Baoneng Group, Evergrande Group, and Huaxia Happiness. Vantone has diversified into property financial services and regarded Suzhou-based Phylion as a way into the battery sector.

Founded in 2003, Phylion researches, develops, produces and sells power lithium-ion batteries, mainly for new energy and light vehicles.

Vantone has three major projects under construction worth an estimated CNY3.7 billion. One is due to complete this month. The other two are scheduled to wrap up in December 2019 and September 2020.