Medu Energy intends to invest in lithium batteries

Medu Energy announced on the evening of August 12th that the company's subsidiary, Medumerene, intends to control 49.60 % of the equity of Shanghai Deloneng Power Battery Co., Ltd.(referred to as "Deloneng Power") through a cooperative acquisition method to enter the new energy. Battery field. After application, the company's shares will resume trading on August 15.

According to the plan, Medumene and Shuxi Investment intend to jointly invest 100 million yuan to establish the Medu Power Battery Partnership(limited partnership)(referred to as "Medu Power"), of which the U.S. and U.S. capitals have invested 51 million yuan, accounting for 51 % of the U.S. Capital Power. Equity, And as an executive partner. After the establishment of the U.S. Capital Power, it is planned to acquire a 49.6 % stake in Time and Space Power and Shanghai Xiayi, which is held in total, with no more than 396.8 million yuan in cash. After the transaction was completed, Medu Power became the single largest shareholder of Delang Power.

Delang Power is mainly engaged in the development, production and sales of lithium-ion power batteries for new energy vehicles. According to unaudited data, as of June 30, 2016, the total assets of Deloneng Power were 785.66 million yuan and the net assets were 21.207 million yuan. In addition, it achieved operating income of 597 million yuan in 2015 and 385 million yuan in January to June 2016, and net profit of 1.3 million yuan and 8.54 million yuan respectively.

Medu energy said that after the completion of the transaction, the company's subsidiary, Medumerene, will control 49.60 % of Deloneng Power, and the company will enter the field of new energy batteries, in line with the company's "energy-led(traditional energy + new energy)" strategic positioning. It is beneficial to further consolidate the company's main energy business and has a positive impact on the company's financial situation and operating results. The source of funding for this transaction is entirely owned or self-financing by the company.

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