(Yicai) June 14 -- Xinzhi Group will become a designated supplier of car parts for new models of Seres Group, a Chinese electric vehicle partner of Huawei Technologies, expecting to earn CNY500 million (USD69 million) in revenue in three years.

Xinzhi will provide Aito-branded vehicles with motor stators and rotors, the Zhejiang province-based supplier announced yesterday. Aito is an EV brand produced in partnership between Seres and telecoms giant Huawei.

This marks the second major deal that Xinzhi has made this week as the firm announced on June 11 that it will supply stators and rotors to Volkswagen Group’s EVs. That was the Chinese firm's first direct order from a car brand, it said at the time, without disclosing the expected earnings. Consequently, the Seres deal marks a second for Xinzhi in this regard. Teaming up with Huawei has made Seres, which used to be a small player in gasoline cars, into an influential manufacturer of EVs. Its Aito M7 sport utility vehicle, released last September, quickly became a hot-selling model.

Xinzhi mainly makes motor components used in cars, electric bicycles, as well as home appliances. Some of its renowned overseas clients of auto parts include France's Valeo, Germany's Bosch, and American automotive supplier BorgWarner.

The fresh revenue source failed to boost Xinzhi's stock price as the shares [SHE: 002664] closed down 0.8 percent at CNY12.69 (USD1.80) in Shenzhen today.

Editor: Emmi Laine