Volkswagen China Strategic Investment Guoxuan Hi-Tech approved by the CSRC will become its largest shareholder

Volkswagen China shares in Guoxuan Hi-Tech officially passed the examination!

On the evening of April 6, Guoxuan Hi-Tech (002074) issued a notice saying that on the same day, the issuance Review Committee of China Securities Regulatory Commission examined the application of Guoxuan Hi-Tech Co., Ltd. for a non-public offering of shares. According to the results of the meeting, the company's application for a non-public offering of shares was approved.

Battery net noted that in May 2020, Zhuhai Guoxuan, the controlling shareholder of Guoxuan Hi-Tech, Li Kun, the actual controller, and Li Chen, who acted in concert, signed a "shareholder agreement" with Volkswagen China. Zhuhai Guoxuan and Li Gong signed a "share transfer agreement" with Volkswagen China, and the company signed a "share subscription agreement" with Volkswagen China. After the completion of the equity transfer and fixed increase, Volkswagen China will hold a 26.47% stake in Guoxuan Hi-Tech, making it its largest shareholder.

In October 2020, Guoxuan Hi-Tech submitted an application document for this non-public offering to the China Securities Regulatory Commission, and Volkswagen China subscribed for the non-public offering of Guoxuan Hi-Tech shares in cash. The total amount of funds raised in this non-public offering does not exceed 7.306 billion yuan (including capital), and according to the agreement between Guoxuan Hi-Tech and subscriber Volkswagen China, the total subscription amount of subscribers is not less than 6 billion yuan. The funds raised will be used for the industrialization project of Guoxuan battery 16GWh high specific energy power lithium battery, Guoxuan materials annual production of 30000 tons of high nickel ternary cathode material project and supplementary liquidity.

In addition, in response to questions from investors on March 31 this year, Guoxuan Hi-Tech said that the company will actively rely on Volkswagen's vehicle expertise to carry out in-depth cooperation with Volkswagen Group on the launch of standardized products on the MEB platform, increase research and development efforts, speed up the construction of new production lines, and ensure that power battery products can meet the needs of Volkswagen's pure electric vehicle products.

On the evening of February 23 this year, Guoxuan Hi-Tech issued an announcement in which it responded to the second feedback on the non-public offering. Volkswagen China promises to make reasonable commercial efforts to enhance the competitiveness of Guoxuan Hi-Tech through cooperation and to support Guoxuan Tech in obtaining suppliers from Volkswagen China and its related parties, as well as Volkswagen's joint ventures in China.

According to a research report released by Capital Securities, Volkswagen's MEB-based models will also begin to launch in China from 2021. According to the Volkswagen Group's plan, 1.5 million new energy vehicles will be sold in China by 2025, and the corresponding lithium battery demand will reach 100GWh. Among them, Volkswagen Anhui, which is only controlled by Volkswagen Group, expects to produce 20-250000 vehicles by 2025, corresponding to the demand for lithium batteries for 15GWh.

According to Shouchuang Securities Analysis, Volkswagen's entry will bring about the integration of systems and standards, and Guoxuan Hi-Tech will aim at international first-class power battery suppliers in the future. Volkswagen will open world-class battery testing standards to Guoxuan Tech to further improve its R & D and testing system; it is expected to make great progress in battery module design, battery PACK design, battery system thermal management, as well as process and quality control. In the future, Guoxuan Tech will aim at international first-class power battery suppliers and value its long-term development.

Li Han, chairman of Guoxuan Hi-Tech, previously said that the company plans to achieve 100 GWH power battery capacity by 2025 and will speed up its layout in the energy storage market.

In addition, according to the performance forecast issued by Guoxuan Hi-Tech, the company is expected to make a net profit of 130 million-170 million yuan in 2020, an increase of 153.64% 231.68% over the same period last year. In terms of installed capacity, from January to December 2020, the cumulative installed capacity of Guoxuan Hi-Tech was 3.32GWhh, accounting for 5.2% of the market share. From January to February this year, the cumulative installed capacity of Guoxuan Hi-Tech is 0.6 GWH, accounting for 4.2% of the market share.

It is worth noting that since the beginning of this year, Guoxuan Tech has also paid a lot of money to add battery raw materials and battery recycling layout:

On March 22nd, Guoxuan Hi-Tech and the government of Feidong County signed an investment cooperation agreement to invest 12 billion yuan in the Hefei Circular economy demonstration Park in Feidong County to build a series of projects of power battery industry chain, mainly for the upstream raw materials and battery recycling of power lithium battery. the project is planned to cover an area of 2280 mu and is expected to be completed and put into production within 24 months. After the completion of the project, it will ensure that the power battery production capacity of Guoxuan Hi-Tech will reach the raw material supply of 100GWh in 2025, and effectively solve the problems of lithium battery recycling and echelon utilization.

On February 28th, the people's Government of Yichun City and Guoxuan holding Group Co., Ltd. signed a strategic cooperation framework agreement in Yichun. Guoxuan Group invested 11.5 billion yuan in lithium new energy industry project and officially settled in Yichun Economic Development Zone. It is understood that Guoxuan Group invested 11.5 billion yuan in lithium power new energy industry project to build, including lithium carbonate production, lithium battery supporting materials and other industrialization projects, divided into two phases of construction. The construction of the first phase of the project is expected to start in mid-2021 and is scheduled to be completed within 2 years, and the total two phases of the project are scheduled to be completed within 5 years. In the later stage, according to the strategic planning for the development of the new energy industry, the two sides will work together to actively promote the integration of the upstream and downstream of the industrial chain combined with the unique advantages of lithium ore resources in Yichun.