(Yicai) Dec. 20 -- Shares of Gree Electric Appliances plunged to a new low this year after the Chinese home appliance giant said it will spend CNY1 billion (USD140.2 million) to increase its shareholding in a loss-making new energy vehicle subsidiary.

Gree's stock price [SHE: 000651] closed down 7.1 percent at CNY30.80 (USD4.30) today, or over 5 percent lower than the starting point of this year.

The white goods manufacturer will pay 12 shareholders to hike its stake in Gree Altairnano New Energy by 24.5 percent to 72.5 percent, the Zhuhai-based company announced yesterday. Moreover, it aims to buy the remaining shares within the next 12 months, it added.

Gree Altairnano, formerly known as Yinlong New Energy, specializes in making lithium-titanate batteries and electric buses. Gree became its largest shareholder in 2021 after Chairwoman Dong Mingzhu bought a stake in the company as early as in 2016.

The deal will help Gree increase its control over Gree Altairnano, strengthening synergies, while cutting Gree's internal management costs, the buyer said, adding that it is very confident about the unit's development.

China’s electric bus market is crowded with competition and Gree Altairnano is not making a profit. In the first half, the firm reported a net loss of CNY171 million (USD24 million) with a 23 percent increase in revenue to CNY1.4 billion (USD196 million) from a year ago. Last year, net loss tallied CNY1.9 billion on revenue of CNY2.6 billion.

Editor: Emmi Laine