Guoxuan Hi-Tech reported that the revenue of power battery exceeded 3 billion and planned to expand the production of 1GWh high-performance battery by 260 million.

On the evening of August 27th, Guoxuan Hi-Tech (002074) revealed that the company's operating income in the first half of the year was 3.551 billion yuan, an increase of 46.63% over the same period last year, while the net profit belonging to shareholders of listed companies was 48.1715 million yuan, up 33.3% from the same period last year. Among them, the company's power lithium battery business revenue in the first half of the year was 3.089 billion yuan, an increase of 37.82% over the same period last year, accounting for 86.99% of the operating revenue.

The main business of Guoxuan Hi-Tech is divided into two business segments: power lithium battery and power transmission and distribution equipment. The company said that the revenue growth in the first half of the year was mainly due to the increase in the scale of sales in the current period.

In terms of technological research and development, the technical level and cost performance of lithium products of Guoxuan Hi-Tech Railway have been in a leading position in the industry. In the first half of the year, the monomer energy density of lithium iron phosphate battery reached 210 Whhand kg, which is the leading level of large-scale application technology of lithium iron phosphate in the world. In the PACK group the company combined with the innovative design of battery pack structure constantly broke through the upper limit of lithium iron phosphate and gave full play to its remarkable advantages in safety performance cycle performance and economic performance to enter the field of passenger cars in an all-round way. In the ternary battery, the company has made a new leap from the precursor technology of ternary material to the mass production technology of ternary material, and then to the large-scale technology of ternary battery, and loaded the 300Wh/kg high specific energy battery into the passenger car. In addition, the ternary semi-solid battery promoted by the company's Synchronize is entering a critical stage of research and development, which adds energy to the company's "stronger three-yuan" strategy.

In terms of patented technology, by the end of June 2021, Guoxuan Hi-Tech had applied for 4820 patents, granted 2797 patents and published 247 research papers. The patent covers battery materials, cell structure design, cell processing technology and equipment, BMS, PACK, testing and evaluation, disassembly and recovery, energy storage and so on. Intellectual property rights cover the whole battery industry chain. In addition to a large number of patents registered in China, patented technology is also registered in Europe, the United States, Japan, South Korea and other countries.

In terms of customer development, Guoxuan Hi-Tech has made great efforts to develop strategic customers and cultivate high-quality customers while strengthening cooperation with Jianghuai Automobile, Chery Automobile, Geely New Energy and other full-vehicle customers. In recent years, the company has opened a new road of cooperation with SAIC GM Wuling, Changan Automobile and other passenger car enterprises. In the field of energy storage, the company continues to deepen cooperation with Huawei, China Iron Tower, National Electroweb and other enterprises to jointly develop domestic and foreign energy storage markets and innovative business models, and successively landed wind energy storage projects in Lujiang, Nanjing and Huaneng Mengcheng. With the company's technological progress and product quality improvement, the company has attracted a large number of high-quality customers at home and abroad, including Volkswagen, Tata, Formosa Plastics, Bosch and other world-class enterprises, to seek common development with the company, creating a good opportunity for the company to open up the international market.

In terms of the layout of the whole industry chain, in order to ensure the stable supply of raw materials, in recent years, Guoxuan Hi-Tech has effectively carried out extended chain, supplementary chain and strong chain, and established the vertical layout of the whole industrial chain from the end of mineral resources, the end of materials, to the end of battery products. In the first half of the year, the company invested in lithium ore, positive electrode, positive precursor, negative electrode, diaphragm and other fields.

In terms of mineral resources, Guoxuan Hi-Tech has invested in the mining of raw lithium carbonate ore and the production of battery-grade lithium carbonate in Yichun. In terms of cathode materials, the company has built a joint venture plant with China Metallurgical Group and BYD in Caofeidian to produce ternary cathode material precursor products; the company has built a 50, 000-ton cathode material project in Lujiang in the first half of 2021. We will promote the project of 200000 tons of high-end cathode materials and the project with an annual output of 30,000 tons of ternary cathode materials in Lujiang. The whole industry chain supporting project of power battery is built in Feidong, focusing on lithium battery front-end raw material and back-end battery recycling and echelon utilization business. In the field of diaphragm, the second phase of Hefei Xingyuan began to expand in the first half of 2021 to further meet the needs of the battery end. In terms of electrolyte, we have acquired BASF electrolyte Laboratory and related patents to make technical reserves for high-voltage and high-energy-density batteries. In addition, the company has established long-term and stable cooperative relations with Tongling Nonferrous Group and other mainstream material suppliers. From resources, materials to terminal products, the company has realized the integration of the upstream and downstream of the industrial chain, thus realizing the strict control of all links in the whole industrial chain, and the company has gained obvious competitive advantages in quality assurance, cost control and so on.

On the same day, Guoxuan Hi-Tech also issued a capital increase announcement, in order to enhance the capital strength and core competitiveness of Liuzhou Guoxuan Battery Co., Ltd. (hereinafter referred to as "Liuzhou Guoxuan"), speed up the construction of Liuzhou Guoxuan power lithium battery capacity, and effectively implement the company's strategic development goals. Hefei Guoxuan Hi-Tech Power Energy Co., Ltd. (hereinafter referred to as "Hefei Guoxuan"), a wholly-owned subsidiary of the company, plans to partner with Guangxi Guangtou Dongcheng Lithium Industry Fund (limited partnership) (hereinafter referred to as "Lithium Fund"), Guangxi Liuzhou Dongcheng Investment and Development Group Co., Ltd. (hereinafter referred to as "Dongcheng Group") signed the Capital increase Agreement on Liuzhou Guoxuan Battery Co., Ltd. (hereinafter referred to as "Capital increase Agreement") and "performance guarantee and share acquisition Agreement", Hefei Guoxuan and Lithium electricity Fund will jointly increase the capital of Liuzhou Guoxuan through cash.

According to the announcement, Hefei Guoxuan plans to increase its capital by no more than 600 million yuan, of which 130.5246 million yuan is included in the registered capital of Liuzhou Guoxuan, and the remaining funds are included in the capital reserve; the Lithium electricity Fund plans to increase capital by no more than 1 billion yuan, of which 217.5411 million yuan is included in the registered capital of Liuzhou Guoxuan, and the remaining funds are included in the capital reserve. The above funding sources are all self-owned funds, and the capital increase will be completed in two phases, with the first phase of the Lithium electricity Fund of 500 million yuan and Hefei Guoxuan's first phase of 300 million yuan. After the completion of this capital increase, the registered capital of Liuzhou Guoxuan will increase from 300 million yuan to 648.0657 million yuan, Lithium Power Fund will hold 33.57% of Liuzhou Guoxuan, Dongcheng Group will hold 15.43% of Liuzhou Guoxuan, and Hefei Guoxuan will hold 51.00% of Liuzhou Guoxuan. Liuzhou Guoxuan is still a holding subsidiary of Hefei Guoxuan.

Guoxuan Hi-Tech said that the purpose of this capital increase to the company's holding subsidiary Liuzhou Guoxuan is to provide financial support for the construction of Liuzhou lithium battery production base, speed up the layout of Liuzhou new energy power battery market, and expand market space. help to enhance the company's core competitiveness and industry influence, in line with the company's long-term development strategy and interests.

In addition, in order to further optimize the layout of the company's high-end production capacity and achieve the healthy and sustainable development of the company, Hefei Guoxuan Battery Co., Ltd. (hereinafter referred to as "Guoxuan Battery"), a wholly-owned subsidiary of Guoxuan Hi-Tech, intends to invest no more than RMB 260 million in the construction of Guoxuan 1GWh high-performance battery project.

Guoxuan Tech said that the company's investment in the construction of 1GWh high-performance cell production line will provide valuable process verification and continuous improvement experience for subsequent production expansion and overseas factory construction.