Fineng Technology plans to sign the "Investment Cooperation Intent Agreement"

On August 1, 2022, the Science and Technology Board Company Fineng Technology (688567.SH) issued an announcement on voluntary disclosure and signing the "Investment Cooperation Intent Agreement".

Fineng Technology (Ganzhou) Co., Ltd. (hereinafter referred to as "Fenng Technology" or "Company") is intended to sign the "Investment Cooperation Intent Agreement" (hereinafter referred to as "two parties") Management Committee (hereinafter referred to as "two parties") (hereinafter referred to as "Agreement" or "this agreement"). The two sides reached an agreement on the relevant terms of Funan Technology Ganzhou's annual output 30GWH new energy battery project (hereinafter referred to as "project" or "this project").

The project is divided into two periods. Among them, the first phase of the 18GWH new energy battery project. The first phase of the project company is planned to produce ternary soft -pack power battery products; the second phase of the 12GWH new energy battery project. The company will be determined according to market conditions and customer orders. This time, the company first launched the 18GWH new energy battery project, which will launch the second phase 12GWH new energy battery project in a timely manner based on the construction of the first phase of the project, the customer order situation, and the fund arrangement.

Party A: Management Committee of Ganzhou Economic and Technological Development Zone

Party B: Fineng Technology (Ganzhou) Co., Ltd.

The main content of the agreement signed by the company and the Ganzhou Economic and Technological Development Zone Management Committee is as follows:

Project name: Funng Technology Ganzhou annual output 30GWH new energy battery project.

Project construction content: The annual production capacity of the project 30GWH new energy battery production line and related supporting facilities. Project capacity planning: two phases in total. Among them, the first phase of the 18GWH new energy battery project. The first phase of the project company is planned to produce ternary soft -pack power battery products; the second phase of the 12GWH new energy battery project. The company will be determined according to market conditions and customer orders. This time, the company intends to start the first phase of the 18GWH new energy battery project, and then start the two -phase 12GWH new energy battery project in a timely manner based on the construction of the first phase of the project, the customer order situation, and the fund arrangement.

The Management Committee of the Ganzhou Economic and Technological Development Zone agreed to coordinate the relevant departments of Ganzhou City to give priority to the energy storage projects within its jurisdiction to the company; coordinate the procurement of relevant departments and use new energy vehicles with the company's new energy batteries. The Management Committee of the Ganzhou Economic and Technological Development Zone agreed to actively assist the company to promote the acquisition of other companies' power battery projects in its jurisdiction.

The company has established a project company with independent legal person qualifications in the Ganzhou Economic and Technological Development Zone within 30 days from the date of signing the formal project investment cooperation agreement; The operating site moved out of the Ganzhou Economic and Technological Development Zone.

The signing of this agreement is an important step in the company's production capacity construction, which is conducive to the company's scale economy. It exists with the company's existing production bases to play business collaboration and strategic synergy effects, which will play a positive role in the release of power battery production capacity and meet the needs of downstream customers.

The Management Committee of the Ganzhou Economic and Technological Development Zone agreed to coordinate the relevant departments of Ganzhou City to give priority to the energy storage projects within its jurisdiction to the company; coordinate the procurement of relevant departments and use new energy vehicles with the company's new energy batteries. It is conducive to the company's further development of new businesses and new customers, thereby consolidating market position, enhancing the company's comprehensive competitiveness, and in line with the interests of all the company's shareholders.

This agreement will increase the company's capital expenditure and cash expenditure in the short term, but in the long run, it will have a positive impact on the company's business layout and operating performance.

The company's expected investment of this project is large, and the source of funds includes but not limited to its own funds, bank borrowings, equity financing, etc. The determination of specific financing methods and whether it can finally raise funds in full. The plan to raise funds will have risks such as delay, interruption, and termination of projects. Before the implementation of the investment projects planned, it is necessary to perform the internal approval procedures of the company in accordance with the investment amount, and whether there is still uncertainty through review.

This time, the company first launched the 18GWH new energy battery project, which will launch the second phase 12GWH new energy battery project in a timely manner based on the construction of the first phase of the project, the customer order situation, and the fund arrangement. At the same time, after the project investment construction, affected by many factors such as macroeconomics, industry policies, and market environment changes, there may be risks that the contract cannot fully perform or terminate, fails to build on schedule, or fails to reach the expected return during operations. risks of.

The company will pay close attention to the follow -up progress of the project, control risks in a timely manner, and ensure the company's investment security and returns. Investors are requested to invest rationally and pay attention to investment risks.

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