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Volkswagen Group invested heavily in Guoxuan Hi-Tech Lithium sector showed positive performance in early trading.
May 29,2020 11:50CST
The content below was translated by Tencent automatically for reference.

SMM5 March 29: lithium battery plate strengthened in early trading, Guoxuan Hi-Tech bid to seal the board, Tianqi lithium industry rose by the daily limit, Hangke Science and Technology rose more than 8%, Shanshan shares, China Baoan, Ya Hua Group, Ganfeng Lithium Industry rose.

On the evening of the 28th, Guoxuan Hi-Tech announced that it had signed a "share subscription and Strategic Cooperation Agreement with effective conditions for the non-public offering of A-shares of Guoxuan Hi-Tech Co., Ltd." according to the agreement, Volkswagen China will hold 440802578 shares of Guoxuan Hi-Tech, accounting for 26.47% of the total share capital, making it the largest shareholder of Guoxuan Hi-Tech. And has 13.20% of the right to vote. In spite of this, according to the agreement, Li Gong and his co-actors are still the shareholders who hold the largest voting right of the company. Volkswagen China has promised to irrevocably waive the voting rights of some of its company shares within a certain period of time, so that Volkswagen China's voting rights will be at least 5% lower than that of founder Oriental.

According to the non-public offering A-share plan disclosed by Guoxuan Hi-Tech on the same day, the total amount of funds raised this time does not exceed 7.306 billion yuan, and according to the agreement between the company and the subscriber Volkswagen China, the total subscription amount of the subscriber is not less than 6 billion yuan, that is, the total amount of funds raised is not less than 6 billion yuan. After deducting the issuing expenses, the net funds raised will be used for the industrialization project of Guoxuan battery with annual production of 16GWh high specific energy lithium battery, 30000 tons of high nickel ternary cathode material with annual output of Guoxuan materials and supplementary liquidity.

According to statistics, in 2019, the installed capacity of domestic power battery is about 62.38GWh. the installed capacity of Guoxuan Hi-Tech Power Battery is about 3.2GWh.It ranks third in the industry, of which the installed capacity of lithium iron phosphate battery is 2.9GWh.It ranks second in the country.

Volkswagen had previously said it would produce 75 electric vehicles by 2030, up from 70 previously planned, and that it would produce 26 million electric vehicles worldwide over the next decade, up from the initial estimate of 22 million. At the same time, Volkswagen Group said Guoxuan Tech will provide batteries for its electric car models made in China. The goal of the joint venture with Jianghuai Motor is to launch five more electric vehicles by 2025 and to establish a production base for electric vehicles. This move will also promote the production and operation of listed companies in the Guoxuan high-tech industrial chain.

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