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The official announced that Honda invested 3.7 billion yuan to invest in Ningde era.
Jul 20,2020 08:30CST
The content below was translated by Tencent automatically for reference.

SMM: recently, Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as "Ningde Times") announced the non-public offering of shares. According to the announcement, the number of shares issued by Ningde City is about 122 million shares (A shares), the issue price is 161.00 yuan per share, and the total amount of funds raised is about 19.7 billion yuan. In the final allocation, Hillhouse Capital subscribed for about 10 billion yuan and Honda subscribed for about 3.7 billion yuan. Honda has previously said that it intends to subscribe for Ningde era non-public offering shares through its domestic subsidiary Honda Technology Research Industry (China) Investment Co., Ltd., this announcement is an official announcement.

As early as February 27th this year, Ningde Times announced that the company intends to issue non-public shares to no more than 35 specific objects, raising about 20 billion yuan for the construction, research and development of power battery and energy storage battery projects, as well as supplementary liquidity, in order to enhance the profit space and stabilize the market position. Specifically, the proposed expansion of the "Ningde Times Lake West Lithium Ion Battery Project" will increase the annual lithium-ion battery production capacity of about 16GWh, and so on.

The announcement also mentioned the impact on the company's business structure: the funds raised in this issue are invested in the company's main business, and the implementation of the project will help the company consolidate its existing competitive advantage, further enhance its position in the industry, and ensure the sustainable development of the company. This issue will not have a significant impact on the company's main business structure, and there is no plan to integrate the company's business and assets.

In recent years, with the rapid development of China's new energy vehicle industry and the rapid growth of power battery demand, the global competitiveness of China's leading enterprises with core advantages continues to enhance, including the Chinese power battery giant Ningde era. Ningde Times already has a broad customer base in the industry, and the domestic market includes brands such as SAIC, Geely, BAIC, Guangzhou Automobile, Changan, Dongfeng, Yutong, Jinlong and Jiangling, as well as emerging car companies such as Xilai, Weimar and Xiaopeng. In overseas markets, it has further deepened cooperation with Tesla, BMW, Daimler, Hyundai, Jaguar Land Rover, Peugeot Citroen, Volkswagen and Volvo. It is worth mentioning that in addition to subscribing to Ningde Times shares, Honda and the two sides also plan to deepen cooperation around the research and development, supply, recycling and other areas of power batteries.

According to the annual results report released by Ningde Times in 2019, the total operating income of Ningde Times was 45.546 billion yuan in 2019, an increase of 53.81% over the same period last year, and the net profit was 4.356 billion yuan, an increase of 28.61% over the same period last year.

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