Desai Battery plans to increase the capital of Sun Company by 12 million US dollars for the construction of the base in Vietnam.

On the evening of February 22nd, Desai Battery (000049) announced that in order to promote the implementation of the company's strategic plan, improve the company's overseas layout, and better meet the needs of its customers, the company's wholly-owned subsidiary Huizhou Desai Battery Co., Ltd. (hereinafter referred to as "Huizhou Battery") set up a wholly-owned subsidiary Desai Battery (Hong Kong) Investment Co., Ltd. (hereinafter referred to as "Hong Kong Battery") in Hong Kong on November 4, 2020. The total investment and registered capital are US $3 million, and through Hong Kong, we have set up a new manufacturing base in Beijiang, Vietnam, engaged in the packaging and integration of small and medium-sized lithium batteries, and carried out R & D, production and sales of batteries such as wearables and mobile phones. Now the board of directors of the company agrees that Huizhou Battery will increase the capital of its wholly-owned subsidiary Hong Kong Battery by US $12 million, and the registered capital of Hong Kong Battery will be increased from US $3 million to US $15 million to be used to build and operate a new manufacturing base in Vietnam.

Desai Battery is planning a major asset restructuring for Huizhou Battery to introduce strategic investors through capital increase. On December 22, 2020, the company signed a "letter of intent for reorganization" with Hong Kong Xinnengda Technology Co., Ltd. (hereinafter referred to as "Hong Kong Xinnengde"). It is proposed that Hong Kong Xineng Tech Co., Ltd. (hereinafter referred to as "Dongguan Xinnengde") will increase the capital of Huizhou Battery at the price of its entire equity stake in Dongguan Xinnengde Technology Co., Ltd. After the capital increase is completed, Hong Kong Sunengda holds a stake of no more than 49 per cent of Huizhou Battery, Desai Battery will hold the rest of Huizhou Battery, while Huizhou Battery will hold all the shares of Dongguan Xineng de.

It is understood that Hong Kong Xinnengda is a wholly owned subsidiary of New Energy Technology Co., Ltd. (ATL). ATL is the leading 3C lithium battery company in the world, and its output value in China accounts for more than 40%.

According to public data, Desai Battery is an enterprise under Desai Group, which mainly focuses on the business layout of the lithium battery industry chain, in which Huizhou Battery mainly engages in small and medium-sized lithium battery packaging and integration business, Huizhou Lanwei mainly engages in small and medium-sized mobile power management system business, and second-level subsidiary Huizhou Lanwei Xinyuan Technology Co., Ltd. is mainly engaged in large-scale power battery, energy storage battery and other power management system and packaging integration business.

According to the performance forecast issued by Desai Battery, the company is expected to achieve revenue of about 19.389 billion yuan in 2020, compared with 18.443 billion yuan in the same period last year. The net profit belonging to shareholders of listed companies is 630 million yuan to 690 million yuan, an increase of 25.45% and 37.40% over the same period last year.