Zhenhua shares: 51% stake in Shouneng Technology, an electrolyte company for lithium-ion batteries.

Zhenhua Co., Ltd. announced that the company signed the "Equity acquisition Agreement" with Lin Mingzhu on March 4, 2022, according to the agreement, the company will buy 51% of Xiamen Shouneng Technology Co., Ltd. ("target company", "target company" or "Shoneng Technology") held by Lin Mingzhu for 31.2 million yuan.

The target of the transaction is a new energy high-tech enterprise located in Xiamen Torch High-tech Zone (Xiang'an), which specializes in the production and sales of electrolyte for high-performance lithium-ion battery. the products are mainly used in new energy vehicles, energy storage systems, electronic equipment and other related fields. The target company was awarded the title of specialized and special new small and medium-sized enterprises by Xiamen in 2020, and was awarded the title of Fujian Science and Technology Little Giant Enterprise in 2021, and was selected as Xiamen Gazelle Enterprise in the same year.

Up to now, the company does not have the production capacity of electrolyte for lithium-ion battery. The company is mainly engaged in the research and development, manufacture and sales of chromium salt products, vitamin K3 and ultra-fine aluminum hydroxide, as well as the comprehensive utilization of chromium salt by-products and other solid waste resources.

As a high-tech enterprise with certain influence in its province and city, many core members of its management team have worked in the leading enterprises in the lithium battery industry for many years. It has a deep industry background and technology accumulation in the field of lithium battery electrolyte and its upstream functional additives, and it has mature and rich experience and strong development and expansion ability in the industrial application of new energy battery materials and new technology.

Through the acquisition of controlling shares in the target company, listed companies will take new energy-related materials as a breakthrough in the future to fully explore the application scenarios of chromium new materials in the new energy industry, based on the target company and its core management team, set up and further improve relevant R & D and market development teams, carry out various work in related fields, accelerate industrial application, and seize new opportunities for the development of the industry. The R & D team of the target company already has certain technical reserves and test results in the field of forward-looking functional materials for new energy batteries, such as new gel electrolytes, liquid flow battery electrolytes, high-efficiency flame retardant additives, etc. This investment has a certain degree of coordination with the product planning and market layout of listed companies in emerging industries, which is conducive to promoting the company's business upgrading and improving the company's overall value.