Sino-Lee Group's acquisition of Bic Power has not yet disclosed the reorganization plan

On the evening of July 27, Zhongli Group(002309) announced that the company is negotiating the introduction of a vehicle manufacturing plant as a common strategic investor to participate in the Bic Power reorganization and has signed a "confidentiality agreement" with the vehicle manufacturing plant.

The Chinese group said that due diligence and negotiations are currently in the stage, the parties have not yet reached agreement on the final plan, so there is no disclosure reorganization plan.

The history of the acquisition of Bic Power in the double market, the increase in Bic Power shares in just three months, and the introduction of the company's participation in the reorganization, shows that it is committed to Bic Power.

In February of this year, Sino-Lee Group increased its capital to Bic Power for the first time by 300 million yuan, accounting for 2.93 % of its equity; In the following April, the company acquired 1.95 % of its equity for 200 million yuan; In May, the company spent another 350 million yuan to acquire a 3.41 % stake in Bic Power. At this point, the company has accumulated 850 million yuan in investment and holds 8.29 % of Bic Power, becoming an important strategic shareholder.

In fact, in February of this year, Zhongli Group publicly disclosed that the company plans to spend 10 billion yuan to acquire BAK Power, and has signed an agreement with Shenzhen BAK Battery Co., Ltd. and Tibet Haoze Trading Co., Ltd. book".

In a recent investor research event, Sino-Lee Group stated that the company's merger and restructuring is mainly based on further expanding the company's layout in the new energy industry and using Bic Power's extensive technology development and product application experience in the field of new energy automotive power cells. At the same time, the development of energy storage business is also the company's key development direction in the future.

According to data, Zhongli Group was formerly known as Tangshi Cable Factory in Changshu City. It was established in 1988 and is mainly engaged in special cable, optical cable, photovoltaic products and power station business. The company achieved revenue of 18.85 billion yuan in 2017, a year-on-year increase of 67 %; Net profit was 307 million yuan, a year-on-year increase of 313 %. In 2018, Q1 achieved revenue of 3.244 billion yuan, an increase of 11.13 % year-on-year; The net profit was 21.86 million yuan, a year-on-year increase of 108.71 %.

In order to further expand the company's layout in the new energy industry and respond to the development of national strategic emerging industries, the company actively seeks opportunities for external mergers and acquisitions to promote corporate innovation and transformation. The company intends to acquire Bic Power to enter the new energy power battery industry and enhance the listed companies 'continuous profitability.

As a leader in the field of new energy power batteries, Bic Power has achieved stepped up its performance in recent years. According to the Changxin Technology acquisition plan, from 2014 to 2016, Bic Power achieved revenue of 148 million yuan, 530 million yuan and 2.391 billion yuan, and net profit of 18.8 million yuan, 26.32 million yuan and 451 million yuan respectively. The newly disclosed operating data, Bic Power 2017 revenue of 3.053 billion yuan, net profit of 506 million yuan.

According to data from the Institute of Lithium Power Research and Production(GGII), in 2017 Bic Power ranked fifth in China with 1.64 GWh power battery installed capacity; In the first half of 2018, Bic power battery installed 0.41 GWh ranked sixth in China.

It is worth mentioning that under the continuous trend of the new energy automotive industry, thanks to the addition of the three-way technology route and good profitability, Bic Power has also attracted a lot of attention from the capital market in recent years, but in the end due to various reasons. Failure to achieve the expected goals.

In March 2017, Changxin Technology announced that it plans to acquire 75 % of Bic Power with 6.75 billion yuan. By January this year, Changxin Technology announced that in view of the current new situation in the new energy vehicle industry and the changes in the state's subsidy policy for new energy vehicles, the company decided not to start restructuring and capital increase. At present, the company still holds a 8.34 % stake in Bic Power.

In August 2016, Zhuhai Yuying, a wholly-owned subsidiary of Lihe, plans to invest 300 million yuan to participate in the capital increase of BAK Power. After the capital increase, the company will hold a 3.33% stake in BAK Power. However, in view of the fact that the parties failed to reach an agreement on the details of the cooperation, the company terminated the investment in BAK Power three months later.

Whether or not the company can fully acquire Bic Power as expected, the company will continue to follow up on reports.

The page contains the contents of the machine translation.