Tuobang intends to acquire 33.4 million of Ninghui Lithium Power to supplement cylindrical battery production capacity.

Recently, Topang issued an announcement that the fifth meeting of the Seventh Board of Directors of the company examined and passed the "motion on the subsidiary's acquisition of 83.5% equity interest in Taixing Ninghui Lithium Battery Co., Ltd." by means of equity transfer and capital increase. It is agreed that the company's wholly-owned subsidiary Tuobang Lithium Power will use its own or self-raised funds to acquire 15.4 million yuan of the equity of Taixing Ninghui Lithium Battery Co., Ltd. (referred to as "Ninghui Lithium Power"). In addition, the capital of the target company will be increased by 18 million yuan, and the registered capital of the target company will be increased from 22 million yuan to 40 million yuan.

After the completion of this transaction, Topang Lithium will hold an 83.5% stake in Ninghui Lithium.

According to the announcement, Ninghui Lithium Power is mainly engaged in the research and development, production and sales of cylindrical lithium-ion batteries; R & D, assembly and sales of energy storage power supplies and power batteries; and sales of batteries, battery materials and battery accessories. The company specializes in producing related products used in electric bicycles, electric motorcycles, electric tricycles, electric vehicles, car starting power supplies, hybrid electric vehicles, electric forklifts, low-speed logistics vehicles, golf carts, sightseeing cars, solar street lamps, UPS storage equipment and energy storage.

After years of development, Tuobang Lithium Application Business has rich industry experience and product technology reserve, and provides solutions from cell and battery management system to Internet of things system for dedicated market. with safe and innovative technologies and products, it has achieved sustained and rapid growth in energy storage, light power and other sub-sectors.

Tuobang said that with the rapid development of low-speed car lithium electrification, power exchange mode, shared battery and other businesses, lithium electrification accelerated stock replacement, sharing low-speed vehicles, real-time distribution to build new business growth points. This acquisition of Ninghui lithium will help accelerate the expansion of lithium application market, supplement the company's cylindrical battery capacity, share technical resources and customer resources, develop the Yangtze River Delta business market, and expand market share. Accelerate the achievement of the company's strategic goals.

With the implementation of the new national standard and the rapid decline in the cost of lithium-ion batteries, the penetration rate of lithium-ion batteries in electric two-wheelers will increase rapidly with the implementation of the new national standard and the rapid decline in the cost of lithium-ion batteries, according to the White Paper on the Development of China Electric two-wheelers (2020) released by EVTank and China Battery Industry Research Institute. In 2019, lithium electric two-wheelers produced 6.15 million vehicles, with an overall permeability of 16.2 per cent, an increase of 4.2 percentage points over 2018 and is expected to rise to 56.4 per cent by 2025. As a result, the demand for lithium-ion batteries will reach 40.5GWh. China's production of electric two-wheelers is expected to reach 65.58 million in 2025, with the industry growing at an average annual rate of nearly 10 per cent, according to the white paper.