On March 25th
, the "Project Investment Agreement" was signed by Sunwoda Electronics
Co., Ltd. and the Municipal People's Government of Lanxi, Zhejiang
Province. This project is planned to invest 5.2 billion CNY to build a
Lithium-ion battery plant in Lanxi.
Company founder Wang Mingwang and top management team attended the signing ceremony together.
The agreement shows that Sunwoda and Municipal People's Government of Lanxi will jointly establish Zhejiang Sunwoda New Energy Technology Co., Ltd. (tentative name, hereinafter referred as "Zhejiang Sunwoda New Energy"), the registered capital is 1 billion CNY, of which Sunwoda contribute 600 million CNY with its own funds and own 60% shares to become the major shareholder of Zhejiang Sunwoda New Energy.
Company founder Wang Mingwang made speech at the signing ceremony
According to the agreement, these two parties will jointly construct the Zhejiang Sunwoda Lithium-ion battery project，the plan of this project is to invest 5.2 billion CNY, with 800K daily output capacity.。The project will be conducted in three phases. Among them, the first phase plans to invest 1.6 billion CNY, and build the production line and related supporting facilities with 200K Lithium-ion batteries daily output capacity；the second phase plans to invest 1.8 billion CNY, and build the production line and related supporting facilities with 300K Lithium-ion batteries daily output capacity; the third phase plans to invest 1.8 billion CNY, and build the production line and related supporting facilities with 300K Lithium-ion batteries daily output capacity.
It is worth mentioning that Sunwoda announced on March 27, 2019 that it would invest 12 billion CNY to build a Lithium battery project in Nanjing, Jiangsu. Suwnoda Nanjing project is also planned as three phases. First phase plans to invest 3.5 billion CNY to build an 8GWh battery cell and 8GWh battery system production line; the second phase plans to invest 4 billion CNY, to build additional 10GWh batteries and 10GWh battery system production line; The third Phase plans to invest 4.5 billion CNY to build additional 12GWh battery cells and 12GWh battery system production line; total 30GWh capacity.
Nanjing Project Phase II Project Launch Ceremony
As one of the traditional consumer battery company, Sunwoda has continued to make efforts in new energy vehicle power batteries field in recent years. Power battery application branch data shows that the installed capacity of Sunwoda's new energy vehicle power batteries in 2019 is 645.01MWh, ranking 10th in domestic installed capacity, With an increase of 580.02% YOY, and the growth rate is significantly higher than other companies.
Otherwise, It’s related products have also entered the supply chain of international mainstream car companies. For example, Sunwoda successfully entered into supply chain of the joint venture established by Renault, Nissan and Dongfeng - eGT New Energy Automobile Co., Ltd. In 2019, and the Renault-Nissan Alliance power battery supplier designated purchase list, and will provide power batteries for more than 1.5 million electric vehicles of the abovementioned car companies in next 6 years.
According to Sunwoda announcement of 2019 annual financial report, Sunwoda achieved operating income 25.269 billion CNY in 2019, with 24.24% period over period increasing rate. Achieve a net profit of 786 million CNY attributable to shareholders of the listed company, with 12.12% period over period increasing rate.
This investment is for fulfilling company's strategic demand, which is conducive to improving the company's lithium-ion battery production capacity and regional production capacity layout, ensure customers’ needs and strengthen Sunwoda's comprehensive competitiveness. It has played an important role in the implementation of the Sunwoda's lithium-ion battery business development and related strategy.
