Tunghsu Optoelectronic Technology Co., Ltd (Tunghsu Optoelectronic) announced Monday evening that it plans to acquire Shanghai Sunlong Bus Co. (Sunlong Bus) for 3 billion yuan (435.5 million U.S. dollars) via cash and share issue.

Tunghsu Optoelectronic expects the acquisition of Sunlong Bus to give the firm a quick access to the new energy vehicle (NEV) industry. And in turn Tunghsu Optoelectronic's graphene-based lithium ion battery can be applied into NEVs. A complete industrial chain of "graphene material — graphene-modified LiFePO₄ cathode for lithium ion battery — graphene-based lithium ion battery — NEVs" is to take shape.

Feng Haicheng, an analyst with SCI99.com told NBD that such industrial mode of "vehicle + power battery" is likely to become the new trend in the NEV sector.

Lin Boqiang, director of China Center for Energy Economics Research, Xiamen University, said that the only way to achieve the effect of "1+1>2" is to upgrade both the existing and the emerging businesses.

Email: gaohan@nbd.com.cn