SMM: on July 1, Guoxuan Hi-Tech announced that based on the needs of strategic planning and business development, the company's wholly-owned subsidiary Hefei Guoxuan Hi-Tech Power Energy Co., Ltd. (hereinafter referred to as "Hefei Guoxuan") signed a "Cooperation Agreement" with Guangxi Liuzhou Dongcheng Investment and Development Group Co., Ltd. (hereinafter referred to as "Liuzhou Investment") in June 2020. The two sides jointly contributed 150 million yuan to set up a joint venture Liuzhou Guoxuan Battery Co., Ltd. (hereinafter referred to as "Liuzhou Guoxuan"). Among them, Hefei Guoxuan contributed 100 million yuan with its own funds, accounting for 66.67% of the registered capital of Liuzhou Guoxuan, while Liuzhou Investment contributed 50 million yuan, accounting for 33.33% of the registered capital of Liuzhou Guoxuan. After the completion of this investment, Liuzhou Guoxuan became a holding subsidiary of the company.
Liuzhou Guoxuan is mainly engaged in the research and development, production, sales and after-sales service of lithium-ion power battery materials, batteries and battery systems; R & D, application and sales of power and energy storage systems; and R & D and application of graphene materials.
Liuzhou City, as an important automobile city in the country, its new energy vehicle industry is developing rapidly. The Liuzhou government strives to create a "Liuzhou model" for the promotion and application of new energy vehicles, vigorously promotes a series of measures such as car purchase subsidies, charging concessions, parking concessions, charging pile construction, and so on, to build a consumer ecology for convenient use of new energy vehicles, and to lead the new energy vehicle industry to become bigger and stronger. The signing of the cooperation agreement and the establishment of the joint venture company is aimed at implementing the "Guoxuan Liuzhou annual 10GWh power battery production base project investment agreement" signed between the company and the people's Government of Liuzhou City, while expanding the company's industrial scale and expanding market space, which is conducive to enhancing the company's core competitiveness and influence, and in line with the company's long-term development strategy and interests.
Guoxuan Hi-Tech said that the investment to set up a holding subsidiary is based on the actual interests of the company and based on strategic planning and business development needs to make a decision. All the funds of the company's foreign investment come from the company's own funds, and this investment will not have a significant impact on the company's financial situation and operating results this year. This investment does not harm the interests of listed companies and shareholders.
It is worth noting that a few days ago, Volkswagen (China) Investment Co., Ltd. (hereinafter referred to as "Volkswagen China") will, as a strategic investor, make a strategic investment in Guoxuan Hi-Tech in two ways. first, it will subscribe for the shares that Guoxuan Hi-Tech has issued to it in accordance with the terms and conditions agreed in the shareholders' Agreement, which is equivalent to 30% of the total number of shares issued by Guoxuan Tech before this issue. Second, in accordance with the terms and conditions agreed in the share transfer Agreement, a total of 56.4676 million shares of Guoxuan Hi-Tech will be transferred from Zhuhai Guoxuan and Li Mei.
At the same time, Guoxuan Hi-Tech also disclosed a pre-plan for a non-public offering of A-shares, 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.
A series of operations will further improve the industrial layout of Guoxuan Hi-Tech in the lithium battery industry and enhance the company's core competitiveness and sustainable management ability.
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