(Yicai) Dec. 31 -- Share of IAT Automobile Technology dropped despite the Chinese vehicle design and services provider saying it has secured a five-year contract to develop and manufacture a small electric vehicle for Japanese motorsport engineering firm AIM.

IAT [SHE: 300825] closed 4.1 percent lower at CNY11.30 (USD1.55) a share in Shenzhen today. The broader Shenzhen Component Index fell 2.4 percent. The firm's stock ended up 2.4 percent this year.

IAT will receive around CNY470 million (USD64.4 million) to develop and produce the AIM EVM, the Beijing-based firm announced late yesterday. The expected income from the new deal equals about 56 percent of the company's total last year, it added, without disclosing further details.

The agreement highlights the closed loop of IAT's EV business, from design and development and supply chain support to vehicle production and export, according to the company.

IAT focuses on research and development of vehicles and related platforms, intelligent platform development, and core components R&D and manufacturing. It cooperates with several Japanese firms, including allying with the Chinese subsidiary of Yazaki on core technologies of high-voltage systems for EVs to develop parts with good versatility and cost performance in February.

IAT's overseas revenue soared 349 percent to CNY75.4 million (USD10.3 million) in the first half of this year from a year earlier, accounting for 19 percent of its total income, according to its financial report.

Editor: Maritn Kadiev