Adrian Cheng, Third Generation Scion of Cheng Yu-Tung Family, Invests in EV Charging Services

June 01 23:03 2023

Wealthy Hong Kong clans always have sharp business acumen.

Burgeoning domestic EV industry gives investors every reason to cast eyes on upstream and downstream industry chain. On May 31, NaaS(NASDAQ: NAAS), one of the fastest-growing electric vehicle charging service providers in China announced to have completed the SPO transaction of 3.5 million American Depository Shares (ADS). The transaction involved notable investors such as Dr. Adrian Cheng and CST Group (0985.HK), a well-established HK-listed company.

It’s not Adrian’s first foray into new energy industry. Earlier, he engaged in series D financing for NIO and series B financing for XPENG, both of which are now worth over CNY 50 billion.

Investing in NaaS is special for entering a new sector of the new energy industry. Public data shows that NaaS is a famed third-party charging service provider in China that aims to provide EV owners with accessible charging services.

It’s an argument evidenced by facts in the latest research report by Macquarie, an Australian investment bank,shows that by 2030, China’s public charging volume will grow at CAGR of 49%. NaaS belongs to a booming sector, which may explain in part why established investors rush to invest in the company.

The new energy industry is now outperforming real estate , even the Internet, in China.

Dr. Adrian Cheng, the eldest grandson of Mr. Cheng Yu Tung and the head of the family business, currently serves as the executive vice-chairman of New World Development Company Limited, leads portfolio of multi hundred billion consortiums that includes NWS Holdings Limited (0659.HK), Chow Tai Fook Jewellery Group (1929.HK), CTF Education Group, and K11 Corporate. This personal investment by Dr. Adrian Cheng is a rare move, indicating his preference for the new energy sector and the company.

Said Adrian Cheng, who depicted the investment blueprint of New World Development in earlier interview, with the index term–“new energy”. In concrete action–investing in NIO and XPENG, he’s been bringing the blueprint to a reality step by step.

NaaS, target of investment, falls into the category of “new infrastructure in the energy industry”, and is now one of the fastest-growing EV charging service providers in China. Relevant data show that in 2023Q1, NaaS represented 21% of the public charging capacity in China.

Currently, the charging market pattern remains uncertain. Nevertheless, industry leaders with first-mover advantage definitely stand a better chance of grabbing greater market share. The first-mover advantage of NaaS in the sector is precisely valued by Adrian Cheng and other Hong Kong investors.

Although all the four financially influential families of Hong Kong built up their fortune in the real estate industry, as the third-generation descendants rise and take over the family business, the focus of family investment is unwittingly shifting towards new energy assets featuring long cycle, certainty and enormous room. Apparently, new energy industry is now coveted by investors.

Investing in NaaS, Adrian Cheng declares a positive attitude towards the new energy industry and faith in the prospects of domestic new energy market. Perhaps, this is only the beginning.

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