Xinwanda's subsidiary plans to invest in a 30GWh power battery project in Zhuhai, with a total investment of about 12 billion yuan

On March 1, Xinwangda issued an announcement stating that its subsidiary Xinwangda Automotive Battery plans to invest in the construction of the "Xinwangda 30GWh Power Battery Production Base Project (tentative)" within the jurisdiction of the Zhuhai Municipal People's Government. The total planned investment in the project is approximately 12 billion yuan.

According to the announcement, as of the date of this announcement, Xinwanda Automotive Battery plans to sign the "Zhuhai Municipal People's Government Xinwanda Electric Vehicle Battery Co., Ltd. Project Investment Agreement" (hereinafter referred to as the "Project Investment Agreement") with the Zhuhai Municipal Government. The project plans to invest a total of approximately RMB 12 billion, of which the total fixed asset investment is approximately RMB 10 billion. It plans to build a power battery project with a total capacity of 30GWh, and engage in the research and development, design, production and sales of power cells, battery modules and battery systems.

It is understood that the main content of the "Project Investment Agreement" to be signed is that the Zhuhai Municipal People's Government will make the power battery industry a key local development industry and provide relevant policy support and comprehensive supporting services for the establishment of the Xinwangda 30Gwh power battery production base project.

Xinwanda Electric Vehicle Battery is a holding subsidiary of Xinwanda Electronics Co., Ltd. (a GEM listed company), with the main business being the research and development, design, production and sales of lithium-ion batteries. Located in the Zhuhai Municipal People's Government Park, it is mainly engaged in the research and development, design, production and sales of power battery cells, battery modules and battery systems, and is responsible for organizing the investment, construction and operation of power battery projects.

Xinwanda said that this time Xinwanda Automotive Battery plans to carry out the "Zhuhai 30GWh Power Battery Project" in the jurisdiction of the Zhuhai Municipal Government in order to invest in the production of power battery cells, battery modules, and battery system products, which will be conducive to further expanding the company's power battery production capacity, optimizing the company's industrial structure, improving the industrial layout, and further enhancing the comprehensive competitiveness of the company and Xinwanda Automotive Battery to meet the company's new energy business development and market expansion needs. The source of funds for this transaction is the company's self-raised funds. This transaction will not have an adverse impact on the company's normal operations, and there is no situation that damages the interests of the company and its shareholders.