Gree boosts tech, buys NEV maker Zhuhai Yin­long

China Daily (USA) - - BUSINESS - By QIU QUANLIN in Zhuhai, Guang­dong qi­uquan­lin@chi­

Ma­jor Chi­nese home ap­pli­ances and air con­di­tioner maker Gree Elec­tric Ap­pli­ances Inc an­nounced on Tues­day it will buy all the shares of a new-en­ergy ve­hi­cle man­u­fac­turer, in a strate­gic move aimed at di­ver­si­fy­ing its busi­ness base.

Un­der the terms of the deal, Gree, based in Zhuhai in Guang­dong prov­ince, will is­sue new shares worth of 13 bil­lion yuan ($1.96 bil­lion) to buy Zhuhai Yin­long En­ergy Co, which fo­cuses on re­search and de­vel­op­ment of lithium-ion bat­ter­ies and new-en­ergy ve­hi­cles.

Gree Pres­i­dent Dong Mingzhu said the ac­qui­si­tion will help boost the com­pany’s com­pet­i­tive­ness in core tech­nol­ogy, es­pe­cially in the emerg­ing new-en­ergy in­dus­try.

“Yin­long’s ad­vanced tech­nol­ogy in en­ergy stor­age and new-en­ergy ve­hi­cles were taken into serious con­sid­er­a­tion be­fore we launched the plan to buy the com­pany,” Dong said at a news con­fer­ence at Gree’s Zhuhai head­quar­ters.

Yin­long raised 3.2 bil­lion yuan through two rounds of eq­uity fi­nanc­ing in 2015, help­ing greatly ex­pand its pro­duc­tion ca­pac­ity to 10,000 new-en­ergy buses an­nu­ally, ac­cord­ing to the com­pany.

Yin­long has built three pro­duc­tion sites in Zhuhai, and Han­dan and Shi­ji­azhuang in He­bei prov­ince, and has a new-en­ergy bus ser­vice, which al­ready cov­ers more than 20 ci­ties.

“Yin­long’s core tech­nol­ogy in bat­ter­ies, es­pe­cially in en­ergy stor­age, is of great im­por­tance to boost­ing de­vel­op­ment of Gree’s tra­di­tional elec­tric prod­ucts,” Dong said.

She added that with Gree’s years of mar­ket de­vel­op­ment in home ap­pli­ances, sales of Yin­long’s new-en­ergy ve­hi­cles were ex­pected to in­crease dra­mat­i­cally.

The ac­qui­si­tion is yet to be ap­proved by au­thor­i­ties, with no timetable set for the fi­nal ac­qui­si­tion, the Gree chief said.

Ac­cord­ing to sources within Gree, Yin­long’s net prof­its should be no less than 1.4 bil­lion yuan by 2018.

In ad­di­tion to bus pro­duc­tion, Yin­long also plans to launch new-en­ergy cars in the near fu­ture, said its Chair­man Wei Yin­cang.

“Pro­duc­tion of elec­tric SUVs and other va­ri­eties are al­ready on the agenda. We have made break­throughs in core tech­nol­ogy of newen­ergy ve­hi­cles,” Wei said.

Yin­long owns the core tech­nol­ogy of lithium-ti­tanate or LTO bat­ter­ies ma­te­rial man­u­fac­tur­ing, which im­proves the ma­te­rial ca­pa­bil­ity for fast-charg­ing, short­en­ing the full-charge time to 6 min­utes.

“The LTO bat­tery is no doubt the new so­lu­tion, also the new and up­graded gen­er­a­tion among all Lithi­u­mion bat­ter­ies for elec­tric ve­hi­cles and en­ergy stor­age,” said Wei.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.