Integration and Optimization of Lead Acid Battery Business in Xiongtao Stock

Xiongyi SHARES announced on the evening of May 13 that due to the strategic planning and environmental protection requirements of Shenzhen Dapeng New Area, coupled with the company's development strategy and product line layout, it is planned to further integrate and optimize the lead-acid battery business. It decided to relocate the lead-acid battery business in Shenzhen production base to Hubei subsidiary and Vietnam subsidiary.

In the process of relocation, the existing key production equipment and core personnel will be absorbed into the manufacturing and production system of the company and other subsidiaries, and will meet customers 'orders by expanding the production capacity of the subsidiary Hubei Xiongtan Power Technology Co., Ltd. and Xiongyu Power Technology(Vietnam) Co., Ltd.. Demand, To ensure adequate production capacity, quality stability and timely delivery.

It is understood that this relocation will help the company integrate and optimize the existing resource allocation and improve operational efficiency.

In the short term, the transfer of Shenzhen lead-acid battery business to Hubei and Vietnam production bases requires higher staff placement and processing costs, which will be reflected in the 2018 financial statements; In the long term, business transfer can reduce labor costs, especially relocation to Vietnam's production base, and save 4 billion consumption tax.

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