Smarter Energy: Establish Smarter Energy Industrial Park with the Proposed Investment of RMB 5 Billi

    According to the announcement released by Far East Smarter Energy Co., Ltd. (600869) on the evening of November 29, 2016, Smarter Energy and Jiangsu Far East First New Energy Co., Ltd., a wholly-owned subsidiary of Smarter Energy, signed the Cooperation Agreement on the Establishment of Smarter Energy Industrial Park with Gaocheng Town People’s Government of Yixing City, Jiangsu Province on November 28. With the proposed investment totaling RMB 5 billion, it plans to establish the “Smarter Energy Industrial Park” and industrial chain projects such as 6 GW high-performance and energy-storage power battery in Gaocheng Town.

　　With the strong support of the government, Smarter Energy Industrial Park will introduce and construct high-end manufacturing industry, urban industrial circle and sustainable developing environment of smart industry for the local government by providing industrial development services such as industrial chain of new energy automobile.

　　It is learned from the Requirements of the Industry Standards for Automobile Power Battery (2017) (Exposure Draft) by MIIT of PRC on November 22 that the production capacity of manufacturer for the single lithium-ion power battery should be not less than 8 GW and the annual production capacity of system enterprise should be not less than 4 GWh, that is to say, at least 80,000 sets. With the approval and implementation of the draft, the industry will be reshuffled by selecting the superior and eliminating the inferior. Since the beginning of this year, Smarter Energy announced that it would invest and produce lithium battery with capacity of 3 GWh and 6 GWh in Yichun, Jiangxi and Yixing, Jiangsu respectively. Along with the previous project of “With the Quantity of Energy-storage Power Battery Increase to 65,000”, it is expected to produce lithium battery with capacity of 10 GWh by the end of 2018, among which the capacity of power lithium battery will be not less than 9 GWh, meeting the requirements of the above-mentioned policy.

　　The announcement pointed out that the signing and performance of the agreement will help Smarter Energy to strengthen the new energy industry layout based on the strategy of “World’s Leading System Service Provider of Smart Energy and Smart City” to achieve the goal of synergistic effect of new energy industry in multiple areas and the strategic layout of emerging industry, and cultivate profit growth point for Smarter Energy.

　　“Far East First”, a wholly-owned subsidiary of Smarter Energy (600869), is a leader in production of 18650 lithium battery in China. According to the public information, its annual production and sales of 18650 lithium battery ranks first in China and third around the world. So far, the main production capacity of Far East First is in Yichun, Jiangxi. In the first three quarters of 2016, the income of energy storage equipment business such as power battery of Smarter Energy reached RMB 674 million. The plan on the production of 6 GWh lithium batteries with RMB 5 billion investment in Yixing will help the company to strengthen the new energy industry layout at the Yangtze River Delta and expand the business radiation surface by taking advantage of the downstream markets in China.