Xianhui Technology plans to invest 700 million yuan in new energy vehicle related projects

Recently, Xianhui Technology issued an announcement that its holding subsidiary Fujian Dongheng intends to sign the "New Energy Vehicle Battery Precision Structural Parts Project Investment Agreement" and its supplementary agreements and ancillary agreements with the Luoyuan County Government and the Fuzhou Taiwan Investment Zone Management Committee, and plans to build a new energy vehicle battery precision structural parts project in Luoyuan County with an investment amount of 700 million yuan .

The specific content of the project is that Fujian Dongheng plans to invest in the construction of new energy battery module end and side plate project, flexible protection plate CCS project laser welding assembly project, and automobile module riveting insulation spraying project in Luoyuan County with a total investment of approximately RMB 700 million. After the completion of the project, the output value will be approximately RMB 3.5 billion per year. The project will be constructed in two phases, with the first phase covering an area of ​​50 mu, and the second phase is expected to start construction within 1 year after the entry into force of this agreement.

Xianhui Technology said that this investment will enable the company to fully grasp market opportunities and accelerate its layout in the new energy market. The construction of the project will help further expand Fujian Dongheng's production capacity and industrial layout, while further consolidating and enhancing Fujian Dongheng's core competitiveness and expanding its market share.

It is understood that Fujian Dongheng was originally named Ningde Dongheng Machinery Co. , Ltd. On May 22 this year, Xianhui Technology planned to purchase 51% of Ningde Dongheng's equity in cash and become its controlling shareholder. At present, the company has completed the industrial and commercial registration procedures for equity change and successfully entered the field of lithium battery module structural parts. (For more details, please refer to previous reports)

Public information shows that Fujian Dongheng's main business is the research and development, design, production and sales of precision metal structural parts for power batteries. Its main products are module side panels, module end plates, module crimping assemblies, etc., which are mainly used in the field of precision structural parts for power lithium batteries of new energy vehicles. It has served automobile brands such as Mercedes-Benz, BMW, Tesla, and Volkswagen.

From acquisition to investment in factory construction, Xianhui Technology's offensive in the field of new energy is pressing forward step by step.

The reason behind this is related to the "sweetness" that Xianhui Technology has reaped in the field of new energy in recent years.

Benefiting from the prosperity of the new energy vehicle industry, from 2018 to 2021, the new energy business of Xianhui Technology increased by 3.95%, 80.19%, 31.96% and 178.75% year-on-year respectively, and its operating capacity continued to increase, gradually becoming the company's main business . In 2021, the revenue share of Xianhui Technology's new energy vehicle intelligent automatic equipment, fuel vehicle intelligent automatic equipment, and industrial manufacturing CNC system was 93.52%, 4.20% and 1.45% respectively.

At present, Xianhui Technology mainly provides intelligent automated production lines for domestic and foreign mid-to-high-end automobile manufacturers and auto parts manufacturers. The company's main automobile customers include BMW Brilliance, SAIC Volkswagen, and Volkswagen, and auto parts customers include CATL , Farasis Energy, SAIC Group , FAW Group, and ZF.

It is worth mentioning that in addition to its deep ties with leading domestic customers such as CATL, Xianhui Technology has also continued to make breakthroughs in its overseas business. After its German subsidiary received a new energy order from a European luxury car brand in May, Xianhui Technology recently received another large new energy battery order from a European auto giant.