Sunwoda will build a new battery plant -Lithium - Ion Battery Equipment

Sunwoda will build a new battery plant -Lithium - Ion Battery Equipment

Xinwangda (300207.SZ) once again increased its power and energy storage battery business generously.

At noon on December 14th, Sunwangda announced that it agreed to its subsidiary Sunwangda Electric Vehicle Battery Co., Ltd. (hereinafter referred to as Sunwangda Auto Battery) to set up a project company in the National High-tech Industrial Development Zone of Zaozhuang, Shandong to build an annual output. The 30GWh power lithium-ion battery and energy storage battery Zaozhuang project has a total investment of about 20 billion yuan.(Lithium - Ion Battery Equipment)

Sunwoda's main business is lithium-ion batteries for mobile phones, notebook computers and automotive power. In the first three quarters of this year, Xinwangda’s revenue was 25.5 billion yuan, a year-on-year increase of 25%; its net profit was 660 million yuan, a 42% increase from the same period last year.

Sunwoda holds about 82.9% of the shares of Sunwoda Auto Battery, which is the core subsidiary of Sunwoda operating the power lithium-ion battery business.

The company is still in the red. Last year, Sunwoda's car battery revenue was 470 million yuan, with a loss of 320 million yuan. In the first half of this year, the company's revenue was 560 million yuan, and it still lost 160 million yuan.

Sunwoda mentioned in the prospectus for additional shares issued in October that if the power lithium-ion battery sector fails to achieve mass production as scheduled, the company will face the risk of continued business losses and declining growth, thereby affecting overall profitability. .

Statistics from my country's Automotive Power Li-ion Battery Industry Innovation Alliance show that in the first 11 months of this year, Sunwoda's domestic power lithium-ion battery installed capacity was 1.6GWh, with a market share of 1.3%, ranking tenth in the industry.

Sunwoda previously disclosed that it is conducting business cooperation with car companies such as the Renault-Nissan Alliance, Geely, and Dongfeng Liuzhou Automobile, and has obtained orders for power lithium-ion batteries for many new models such as SAIC-GM-Wuling and Dongfeng Liuzhou Automobile.

In August this year, Sunwoda announced that Sunwoda Auto Battery will build a new production base for power lithium-ion batteries in Nanchang, Jiangxi. The Nanchang plant has a total investment of about 20 billion yuan and a total output of 50GWh, which will be invested in four phases.

The first phase, with an investment of about 1.6 billion yuan, is scheduled to start this year and will build a 4GWh battery cell and 4GWh battery system production line. A cell is the smallest unit that constitutes a battery system.

The Nanchang base will be operated by Sunwoda Automotive Battery and the Nanchang Economic and Technological Development Zone Management Committee and joint venture. Xinwangda Auto Battery holds 99.01% of the equity of the joint venture, and the remaining equity is held by the Nanchang Economic and Technological Development Zone Management Committee.

In September of this year, Sunwoda Auto Battery completed a capital increase of 750 million yuan, and four new shareholders invested in it. The investors include Wang Mingwang, the actual controller of Xinwangda, and a limited partnership company owned by Wang Wei. Wang Mingwang and Wang Wei are brothers and co-founded Xinwangda in 1997.

As of December 10, Wang Mingwang and Wang Wei together held about 30% of Sunwangda's shares. Together, the two have reduced their holdings in the company by about 3 percent since August of this year.

Since the beginning of this year, Sunwoda's share price has risen by about 50%. As of 14:00 this afternoon, the company's share price was 45.46 yuan, down 1.9%.



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