Cornerstone Technologies to expand EV charging businesses

Cornerstone Technology Holdings (08391.HK) is currently one of the leading service providers in the electric vehicle charging market in Hong Kong. The company has launched electric vehicle charging business since 2020, and the market share of charging stations has reached 30%; products and solutions include supply and installation of electric vehicle charging devices, design and layout of electric vehicle charging infrastructure, central management systems, electronic payment integration systems, power load management systems and license plate recognition systems.

The Group has an R&D team capable of developing electric vehicle charging, parking lot management and related 360 solutions. For example, the Electric Vehicle Charger Smart System (EVCSS) developed for the Environmental Protection Agency is the first system developed by the government for electric vehicle chargers and includes parking lots of all government-run EV charging stations; in addition, this system can be replicated in Government programs in other cities or countries.

Benefit from the Hong Kong Government’s 3.5 billion “Easy Charge Subsidy Scheme for EV Housing”
In fact, a surge in global electric vehicle sales is driving demand for charging facilities. Major car manufacturers have stated their schedules for the production of electric vehicles; in addition, the Hong Kong government announced the “Hong Kong Clean Air Blueprint 2035” and “Hong Kong Electric Vehicle Popularization Roadmap”, and launched the 3.5 billion-scale “EV housing” “Easy Charge Subsidy Scheme” beneficial to the development of the Group.

The Group’s developments during the year included: working with various brands, including Hyundai Motor and Nissan Motor, to promote electric vehicle charging devices; won the tender for the Kowloon DC Bus charging facility project; won a tender to install filling in 19 LCSD onsite facilities; installed Hong Kong’s first large-scale power load management system in Kwai Fong and Kennedy Town parking lots, equipped with more than 150 charging devices; installing number plate recognition systems for 20 places under the Hong Kong Housing Society; parking lot) signed various exclusive electric vehicle charging agreements, and executed the first large-scale smart electric vehicle charging zone project for Admiralty Parking Lot under Wilson Parking, Hong Kong’s largest car park management group.

Going forward, the Group’s business has been successfully replicated or aligned locally. For example, having formed a strategic alliance with Gaw Capital, “Minfang” Gaw Capital manages 29 public residential facilities and properties.

Enter into Cambodia’s filling business
In addition, the Group has also expanded its electric vehicle charging business overseas. On April 1 this year, Cornerstone Technology (08391.HK) announced that it has signed a non-binding memorandum of understanding with Golden Cambodia Century Limited for potential cooperation in developing the electric vehicle charging business in Cambodia. The company and Golden Cambodia Century will hold 51% and 49% of the equity of the joint venture, respectively, and the joint venture will be involved in developing the electric vehicle business in Cambodia.

The first phase of the project will include the establishment and operation of filling stations at ten locations in major shopping malls and gas stations in Cambodia. The Group will bear the investment costs of electric vehicle chargers and is responsible for providing the technology and maintenance of electric vehicle charging solutions to the joint venture. Golden Cambodia Century will provide JV Companies with sites owned, controlled or managed exclusively by them to develop the electric vehicle business, and will cover the costs of infrastructure work for electric vehicle charging solutions and be responsible for site deployment management.

It is seen that Cornerstone Technology (08391.HK) can replicate Hong Kong’s successful business model to other Southeast Asian countries, which is beneficial for expanding its business area. In terms of the company’s share price, the group’s share price has recently reached a new high in half a year, and trading volume has increased, you can watch whether it will break through.