Great wall holdings and fosun high-tech joint venture power battery company to produce ternary soft-pack batteries

On March 11, Baoding Great Wall Holdings Group Co., Ltd. (hereinafter referred to as "Great Wall Holdings") and Shanghai Fosun Hi-Tech (Group) Co., Ltd. (hereinafter referred to as "Fosun Hi-Tech") signed a strategic cooperation agreement in Baoding City, Hebei Province, to deepen strategic cooperation in the power battery industry. Wei Jianjun, Chairman of Great Wall Holding Group, and Guo Guangchang, Chairman of Fosun International Co., Ltd. (Fosun Hi-Tech Parent Company, hereinafter referred to as "Fosun International") attended the signing ceremony. At the signing ceremony, Great Wall Holdings and Fosun Technologies announced that their subsidiaries will jointly invest in a joint venture to produce ternary lithium-ion soft-pack power batteries and work together to unlock key sectors in the power battery industry. In the future, Great Wall Holdings and Fosun Technology will strengthen cooperation with their respective advantages of resources, and build innovative cooperation model and stable and sustainable strategic partnership. "After a series of adjustments, Great Wall Holdings has become more open and welcomes investment in its businesses from brands like Fosun," said Wei Jianjun, chairman of the Great Wall Holdings Group, which has signed a strategic co-operation agreement with Fosun. Guo Guangchang, chairman of Fosun International, said: "Fosun and Great Wall have always been committed to carving boutiques for the vast number of customers to provide a happy and happy life, I believe that this strong cooperation between Great Wall Holdings and Fosun Technology can bring excellent independent brand new energy vehicles to Chinese consumers." Establishment of Joint Venture to Build New Power Battery Forces At the signing ceremony, Honeycomb Energy Technology Co., Ltd. (hereinafter referred to as "Honeycomb Energy"), a wholly-owned subsidiary of Great Wall Holdings, and Fu Tianjin Jiewei Power Industry Co., Ltd. (hereinafter referred to as "Jiewei Power"), a subsidiary of Star High-Tech, has signed a joint venture agreement, under which both parties will jointly invest and establish a joint venture company to produce ternary lithium-ion soft-pack power batteries. The newly-established joint venture company will aggregate the core competitiveness of both parties, give full play to the advantages of honeycomb energy in terms of research and development resources and vehicle platform, as well as the leading technology and industry accumulation of jetway power in soft power batteries, and become a new industry-leading power battery force. Chairman Wei Jianjun of Great Wall Holdings and Chairman Guo Guangchang of Fosun International intend to establish Jiangsu Weifeng Power Industry Co., Ltd. With 51% stake in Jiewei Power and 49% stake in Honeycomb Energy according to the joint venture agreement signed by the two sides. The joint venture project plans to invest 1.5 billion yuan in Yancheng, Jiangsu Province, to build four ternary soft-pack power battery production lines, with the first-phase production capacity of 2.5 GWh. The project is scheduled to be completed and put into operation in the first half of 2020. Founded in 2009, Jiewei Power has been focusing on passenger vehicles for ten years, cultivating the soft-pack power battery field with deep technology accumulation. Its product line has realized the full coverage of various power battery products such as pure electric vehicles (BEV), plug-in hybrid vehicles (PHEV), hybrid vehicles (HEV, 48V) and so on. As one of the earliest companies to enter the ternary battery industry of new energy passenger vehicles in China, the company has established a sound technology and quality system, and has a leading position in the field of pure electric passenger vehicles, ranking fourth nationwide in shipments of soft-pack batteries for passenger vehicles in 2018. Honeycomb energy is focused on the development and production of aluminium shell rectangular batteries The rising star, born out of the background of car companies, has a unique understanding of what kind of power battery electric vehicles need, and its innovative ideas of planning power battery products according to the different application scenarios of electric vehicles are unique in the industry. The cooperation between Honeycomb Energy and Jiewei Power will further enrich the product line of Honeycomb Energy, which can provide square or soft package products according to the needs of different customers. Through this cooperation, the two sides can share supply chain resources and reinforce each other. In the product layout, honeycomb energy can be quickly distributed to the soft-pack power battery market segmentation, while Jetway Power can further improve the product quality through the high standard process control capability of honeycomb energy. In the aspect of supply chain, Jiewei Power and Honeycomb Energy will cooperate in the supply chain, purchase jointly and integrate the upstream resources. At the R&D level, GW Power and Honeycomb Energy will deepen their cooperation in battery R&D, jointly develop next-generation battery technology and other forward-looking technologies, and realize the sharing of R&D and test resources between the two sides; In marketing, the two sides of the sales channels and customer resources can be integrated development, product positioning will also be closer to user needs. The new joint venture will further expand the scale, optimize and integrate the supply capacity of both sides, and significantly enhance the competitiveness of both sides in the power battery market. In the future, Honeycomb Energy and Gateway Power will work together to unlock key segments of the power battery industry, including precursors, positive and negative electrode materials, separators, electrolytes, equipment, battery recycling and upstream and downstream resources. Creating "Full Production of New Energy" by Cooperating with Many Powers In the era of "industry chain cooperation", Great Wall Holdings, as a diversified enterprise group based on the automotive industry, has been cultivating the whole automotive industry chain for a long time, focusing on increasing development in the field of new energy automobiles, carrying out extensive and in-depth strong cooperation with the leading enterprises, constantly expanding the "circle of friends", and opening up the era of "new energy full industrial chain cooperation". In July 2018, Great Wall Motor, a subsidiary of Great Wall Holdings, signed a joint venture and cooperation agreement with BMW, each holding 50% of the shares to establish Light Beam Automotive Co., Ltd. The two sides will jointly develop a new generation of pure electric vehicle platforms, which will produce not only BMW MINI electric vehicles, but also its own brand of electric vehicles. After the two sides signed the agreement, the cooperation project progressed rapidly. A month later, Great Wall Motor and Zhangjiagang Municipal People's Government signed a joint venture investment agreement, the light beam car officially settled in Zhangjiagang City. The cooperation will not only provide a strong boost for Great Wall Holdings to cultivate the new energy market, thus establishing Great Wall Holdings' leading position in the field of new energy. Headquartered upstream of the new energy vehicle industry, Great Wall Motor Corp., Great Wall Holdings' Great Wall Motor Corp. acquired a stake in Australian lithium miner Pilbara Minerals in 2017 and was granted exclusive rights to some of the products from the Pilgangoora lithium mine project. This is an important step of the Great Wall Holdings' layout in the upstream of the new energy automotive industry chain, which is of great significance to the rapid development of Great Wall Holdings in the field of new energy vehicles. In the hydrogen energy sector, in August 2018, Great Wall Holdings acquired 77% of Shanghai Fuel Cell Vehicle Powertrain Co., Ltd. Ownership, successful holding on combustion power, so that Great Wall Holdings has the ability to deploy fuel cell-driven, while being cost-competitive. As the first joint venture between Great Wall Holdings and Fosun Technology, the joint venture between Honeycomb Energy and Jiewei Power opened the prelude to comprehensive strategic cooperation between the two sides. At the same time, Great Wall Holdings and Fosun Technology will play their respective group platform resources, industrial ecology and product power advantages, to achieve resource integration, industrial linkage, complementary advantages, mutual benefit and win-win, and jointly build innovative cooperation model and stable and sustainable strategic partnership to promote the realization of the strategic vision and strategic objectives of the two sides.