Conch Entrepreneurship plans to set up a joint venture with Shangwei Co., Ltd. to carry out an energy storage battery anode material project with an annual capacity of 200000 tons.

Conch Entrepreneurship (00586.HK) announced that in January 2022, in order to realize the rapid development of the group's new energy industry, the company signed an investment agreement with Leshan Municipal people's Government, Leshan High-tech Industrial Development Zone Management Committee ("Leshan High-tech Zone Management Committee") and Shangwei Co., Ltd. ("Shangwei Co., Ltd.").

Shangwei Co., Ltd., located in Leshan City, Sichuan Province, is a national high-tech enterprise and a leading provider of comprehensive solutions for high-end special cables in the industry. In order to implement the project, the company plans to set up a joint venture with Shangwei shares, and plans to carry out the R & D, production and sales of energy storage battery anode materials with an annual capacity of 200000 tons, of which the first phase of the project is planned to have an annual output of 40, 000 tons. Leshan High-tech Zone Management Committee will provide policy support.

The company and Shangwei shares will set up a joint venture company and prepare for the construction of the production base. The registered capital of the joint venture company is 500 million yuan, of which 51% is contributed by the company or its wholly-owned or controlling subsidiaries. Shangwei shares or its wholly-owned or controlling subsidiaries account for 49%. The two parties will speed up the landing of the project, promote the construction of the project, and realize the project profit as soon as possible.

As an important industry under the background of the national "double carbon strategy", new energy will usher in the opportunity of rapid development in the future. As an important part of the new energy industry, the power storage battery industry, with its rich application scenarios and broad market prospects, is expected to promote a new round of energy industry development and contribute to the adjustment of the national energy structure and the upgrading of industrial institutions.

The implementation of the project will further promote the development of the Group's new energy business plate, combined with the Group's lithium iron phosphate cathode material project in the Economic and technological Development Zone of Wuhu City, Anhui Province, will enrich and improve the upstream and downstream industrial chain of the new energy business plate. The Group will also strive to build a benchmark enterprise in the negative materials and energy storage battery industry to help the Group achieve high-quality development.