(Yicai) Aug. 13 -- Hangke Technology’s shares rose after the Chinese maker of battery production equipment said it has signed supply deals with two of Volkswagen’s battery plants that should bring in revenue of at least CNY1.8 billion (USD251 million).

Hangke [SHA: 688006] ended 2.6 percent higher at CNY16.78 (USD2.34) a share in Shanghai today, after earlier surging by as much as 7.6 percent.

PowerCo Battery Spain and PowerCo Canada have placed battery production equipment orders, Hangke said late yesterday. Worth at least CNY1.8 billion, the deals equal more than 45 percent of the Hangzhou-based company’s audited revenue last year, it added.

Hangke had revenue of CNY3.9 billion (USD543 million) for 2023. Overseas income totaled CNY768 million (USD107 million), accounting for about 20 percent of the total.

The new orders, which will help to promote Hangke’s products in Europe and North America, show the firm’s clientele expanding to include carmakers from battery producers, it noted, adding that they will have a positive impact on its financial performance this year and in the future.

Volkswagen-backed Gotion High-Tech is among Hangke’s battery-making clients, together with South Korea’s SK On, China’s Envision AESC’s plants in the United Kingdom and France, and Ford Motor’s factories in Kentucky and Tennessee.

Editor: Futura Costaglione