(Yicai Global) Sept. 3 -- Aima Technology Group, one of China’s biggest e-bike makers, has announced plans to invest CNY1 billion (USD155 million) to build a smart electric scooter and high-speed e-motorcycle project in Taizhou, Zhejiang province, to meet demand. 

Aima will sign an investment deal with the local government, the Tianjin-based firm said in a statement released after the market closed yesterday. Of the CNY1 billion, it will spend about CNY700 million (USD108.5 million) on a 50-year land lease and fixed assets. The money will come from Aima's own funds and indirect and direct financing.

The project covers an area of about 16.3 hectares and is set to be finished in two years. Aima will set up a new independent entity in Taizhou to take charge of the project's construction, operation and management, it said. 

Aima’s shares [SHA:603529] closed up 0.5 percent at CNY40.86 (USD6.30) apiece, giving the firm a market capitalization of CNY16.5 billion (USD2.6 billion). 

Aima had net profit of CNY599 million (USD92.8 million) last year, with revenue increasing 23.8 percent to CNY12.9 billion from the previous year. The company also raised CNY1.7 billion (USD265.4 million) and became China’s fourth listed e-bike maker when it floated on the Nasdaq-like Star Market in Shanghai on June 15 this year. 

There are more than 700 e-bike makers in China, which sell over 30 million products a year. According to statistics from the Chinese Academy of Industry Economy Research, Yadea is the biggest brand, with a market share of 9.4 percent, followed by Giant at 8.96 percent and Aima at 8.29 percent. 

Editor: Tom Litting