Mianyang High-tech Zone and Changhong Sanjie signed a new energy battery project cooperation agreement

On December 31, 2019, Mianyang High-tech Zone and Changhong Sanjie New Energy Co., Ltd. signed a new energy battery project cooperation agreement in Mianyang. This is not only the final battle of 2019 in Mianyang's investment promotion and industrial layout, but also a good start in 2020. The first shot of the new year has laid the foundation for Mianyang's confidence and determination to vigorously promote industrial development and strengthen the real economy.

According to the agreement, the project plans to invest 1.958 billion yuan, and is committed to the research and development of lithium-ion battery products widely used in electric vehicles, electric bicycles, low-speed vehicles, balance vehicles and other fields, and strives to build a high-quality lithium battery research and development and intelligent manufacturing base. Changhong Sanjie New Energy Co., Ltd. was founded in 2014 and is located at No. 8 Xingyuan Road, Huangqiao Industrial Park, Taixing City, Jiangsu Province. The registered capital is 69.81711 million yuan, and the project land area is 60 acres. The total construction area is 40,000 square meters. The total investment is 400 million yuan. All products use advanced extrusion coating production technology. In the second phase of the project, we introduced advanced fully automated production equipment at home and abroad to build an automated, information-based, modern and intelligent manufacturing workshop. The annual output reaches 250 million Ah power lithium-ion batteries.

At the end of 2017, Changhong Energy (836239), a subsidiary of Sichuan Changhong Electronic Holdings Group Co., Ltd., announced that it would acquire 31.5789% of the equity of Jiangsu Sanjie New Energy Co., Ltd. (hereinafter referred to as "Jiangsu Sanjie") for 120 million yuan, and at the same time subscribe to Jiangsu Sanjie's newly added registered capital of 19.8171 million yuan with an additional capital increase of 151 million yuan. The transaction price reached 271 million yuan, accounting for a total of 51% of the shares.

After the transaction is completed, Changhong Energy will acquire the lithium battery products and production lines of Jiangsu Sanjie, which will help Changhong Energy to improve its new energy product line layout, while giving play to the synergy between the two parties and enhancing profitability. Jiangsu Sanjie will also rely on Changhong Energy's brand, capital, management and other resource advantages to expand new markets, improve production bottlenecks, and improve resource allocation and utilization efficiency.