3.97 billion! Tianneng Co., Ltd. plans to build an annual 10GWh lithium battery project in Huzhou South Taihu Lake Base.

On the evening of August 27th, Tianneng (688819) issued an investment announcement to invest in the annual 10GWh lithium battery project at the South Taihu Lake base in Huzhou, with an estimated total investment of 3.97 billion yuan.

The announcement shows that the project is implemented by Tianneng New Energy (Huzhou) Co., Ltd. (hereinafter referred to as Huzhou New Energy), a wholly owned subsidiary of Tianeng Co., Ltd. Of the 3.97 billion yuan planned to be invested in the project, Tianneng shares plan to use the total fund balance of the over-raised capital account (including 1.135 billion yuan of over-raised funds, 22.03 million yuan of differential funds and interest income) to increase capital to Huzhou New Energy, which will be made up by the company with its own funds or self-raised funds.

Among them, the first phase of the project plans to acquire the relevant assets of Zhejiang Youyou Power system Co., Ltd. (hereinafter referred to as "Zhejiang Youyou") through judicial auction to carry out technical renovation and upgrading, and to build new cells and PACK production lines in the vacant plant, so as to form an annual production capacity of 3GWh iron phosphate lithium battery after reaching production. The construction period of the first phase of the project is expected to be 12 months. Huzhou New Energy has won the land use rights, housing and equipment and other related assets of Zhejiang Youyou, located at No. 588 Dongbang Road, Wuxing District, Huzhou (XSS-03-03-05A, Xifengyang Unit, South Taihu New area, Huzhou) through the Ali auction platform on August 5th. At present, the asset transfer procedures are still under processing.

The second phase of the project is a new project, and the annual production capacity of 7GWh lithium iron phosphate battery will be formed after reaching production. The construction period of the second phase of the project is expected to be 30 months. Huzhou New Energy has won the land use right of Xifengyang unit XSS-03-03-04B in Huzhou South Taihu New area for 89.17 million yuan through Zhejiang Land use right online Trading system on March 31, and is currently carrying out construction planning and other preliminary work.

Tianneng said that the investment in the construction of the annual 10GWh lithium battery project at the South Taihu Lake base in Huzhou will accelerate the implementation of the company's development strategy, speed up the company's capacity layout for lithium iron phosphate batteries, increase market share, and enhance the company's competitiveness.

On the same day, Tianneng released its interim results report for 2021. The company's operating income in the first half of the year was 16.255 billion yuan, an increase of 9.34% over the same period last year. Factors such as the rise in raw materials had an impact on profits, with a net profit of 672 million yuan in the first half, down 14.89% from the same period last year.

Among them, in the first half of the year, Tianneng achieved a lithium-ion battery business scale of 425 million yuan, up 16.07% from the same period last year. As the company's current focus on the development of business areas, the company continues to strengthen lithium team building, the introduction of a number of experienced management experts, technical experts in the field of new energy, R & D team expanded to more than 500 people. At present, a multi-material system composed of "high-energy ternary + super-energy lithium manganese iron + super-lithium iron phosphate" has been formed, which has a variety of product systems to meet the needs of different application scenarios.

In terms of automobile start and stop, Tianneng shares, on the basis of optimizing and integrating the original channel network and consolidating and deepening the secondary channel market, speed up the development of the primary market and realize the matching with Sinotruk, Kaiyi Automobile and other mainframe customers. In the first half of the year, the company's car start-stop battery achieved great growth, with sales revenue of 185 million yuan, an increase of 146.66% over the same period last year.

In terms of electric special vehicle batteries, Tianneng shares continue to develop multi-dimensional customers such as cleaning vehicles and field cars while maintaining close cooperation with leading forklift companies such as Heli and Hangzhou forklift. In the first half of the year, sales revenue of electric special vehicle batteries reached 262 million yuan, an increase of 69.53% over the same period last year.

In addition, Battery Network noted that Tianneng invested 590 million yuan in R & D in the first half of the year, an increase of 14.43% over the same period last year, and R & D expenses accounted for 3.64%, an increase of 0.17% over the same period last year.