Jiuyi Lithium Energy Signs a Lithium Battery Purchase Order for 1.445 billion Yuan

by:CTECHi     2021-08-18

At this time, Jiuyi Energy signed a five-year long-term order with BMZ, aiming at the power tool market or will become the best window for this part of production capacity.

A few days ago, Times Wanheng (600241) announced that its holding subsidiaries, Liaoning Jiuyi Lithium Energy Co., Ltd. (hereinafter referred to as 'Jiuyi Lithium Energy') and German BMZ The group signed a five-year long-term agreement for daily operations.

According to the signed agreement, BMZ will purchase a total of 164 million lithium batteries from Jiuyi Lithium Energy from January 1, 2019 to December 31, 2023, of which: From 2019 to 2023, the annual purchase quantity will be 5 million, 28 million, 35.75 million, 42.5 million, and 52.8 million respectively. The unit price of the product is negotiated every 6 months based on the benchmark price agreed by both parties.

According to the product benchmark price agreed by both parties, considering the impact of exchange rate changes, raw material cost changes and other price adjustment factors, it is expected that the implementation of this agreement will be completed and the purchase amount of 164 million batteries can be Reached 215 million US dollars, equivalent to 1.445 billion yuan, and the average annual purchase amount is 289 million yuan.

BMZ is a group company established in 1994 in Bavaria, Germany, and is mainly engaged in battery-related businesses. Headquartered in Germany, with branches in the United States, France, Poland, Japan, and China, its power tool business occupies a 60% market share in Europe. BMZ Group achieved sales revenue of approximately US$600 million in 2018.

Time Wanheng was established in 1999, mainly engaged in textile and garment manufacturing and import and export trade. Beginning in 2006, the company began to seek to transform real estate, finance, forestry and other fields, but it has not been effective. In 2015, Times Wanheng began to deploy the secondary battery industry through the acquisition of Jiuyi Energy and adjusted the company's business strategy. In 2017, the company's core and focus was adjusted to new energy battery manufacturing.

Jiuyi Energy is mainly engaged in nickel-metal hydride batteries and cylindrical lithium-ion batteries. After the acquisition of Time Wanheng, it has strengthened its lithium battery business capabilities, mostly foreign trade. On October 12, 2018, Times Wanheng stated to the public that the two high-energy lithium-ion power battery production lines raised by Jiuyi Energy have been put into trial production, with a total designed capacity of 144 million cylindrical lithium-ion power batteries per year.

Time Wanheng’s 2018 annual performance forecast shows that the company’s two power battery production lines for trial production did not achieve profitability, and the application of forestry projects did not meet expectations and goodwill was reduced. Value and other risks, the company's 2018 performance will show a loss of 156 million yuan.

It can be predicted that Jiuyi Energy has signed a five-year long-term order with BMZ at this time, aiming at the power tool market or will become the best window of consumption for this part of the production capacity.

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