CATL/BAIC NEW ENERGY/PRID Sign 5-Year Cooperation Agreement on Power Batteries

On February 25, Ningde Times announced that it had signed a "Medium-and Long-Term (2019-2023) Deepening Strategic Cooperation Agreement" with Beijing Automotive New Energy for the next five years starting from 2019. The three parties agreed to deepen cooperation on the purchase quota, price and new power battery packs for the next five years starting from 2019. The strategic cooperation agreement signed by the three parties mainly includes the following five points: 1. During the strategic cooperation period, Ningde Times and Prader offer the most sincere preferential prices for the power battery system products supplied to BAIC New Energy every year, which is reflected in the price of the power battery system products supplied directly by Prader to BAIC New Energy. 2. Based on the commercial policy conditions agreed by the three parties, and on the premise that the battery supply of Ningde Times can meet the monthly demand of BAIC New Energy, BAIC New Energy will give Ningde Times and Prade a certain proportion of the total procurement volume of the whole year no less than in 2019. 3. During the period of strategic cooperation, on the premise of certain business conditions, Under the circumstance that the battery supply of Ningde Times can meet the monthly demand of BAIC New Energy, BAIC New Energy and Prade agree to advance a certain amount of advance payment to Ningde Times during the strategic cooperation period according to the terms agreed by the three parties, and the amount will be fully offset in the payables before the end of December each year. 4. During the strategic cooperation period, based on certain business conditions, BAIC New Energy will try its best to give a certain proportion of procurement to Ningde Times and Prader. Share. 5. In order to enhance the comprehensive market competitiveness of BAIC's new energy vehicle products, Ningde Times and BAIC New Energy have established a joint research and development team to carry out in-depth cooperation on new power battery packs. Ningde Times, Beijing Automotive New Energy, The signing of the strategic cooperation agreement by Prader is a further deepening of the trilateral strategic cooperation in the next five years on the basis of high recognition of the established multi-year strategic cooperation relationship among the three parties, which is conducive to enhancing the market position and influence of the Company, providing protection for the medium-and long-term sustainable development of the Company, and in line with the interests of all shareholders of the Company. In fact, pryder was the power battery pack enterprise invested by peking university, ningde era, beijing auto futian and beijing auto co-founded in 2010. As early as in the embryonic stage of china 's new energy industry, pryder cooperated deeply with ningde era, beijing auto new energy and beijing auto co. Ltd. These three parties have also been the typical cases of power battery zero-level relationship In April 2017, Pride was acquired by Oriental Seiko for a price of 4.75 billion yuan, but this did not affect the tripartite partnership in any way. Today, Ningde era, Beijing Automotive New Energy, Prade has been domestic power battery enterprises, new energy vehicle enterprises, power battery PACK enterprise leaders. It is worth mentioning that in the battery enterprises, vehicle enterprises have new Pack production line environment, pure Pack enterprises are squeezed by two ends, survival is particularly difficult. Prade can thrive under such a "cliff", with BAIC New Energy and the Ningde era of deep cooperation inseparable. It is foreseeable that, with this cooperation, With the signing of the agreement, Ningde Times, BAIC New Energy and Prade will form a closer cooperative relationship. In the more competitive post-subsidy era, the formation of a "circle" of strong alliances will be more conducive to seizing the new energy market.