South power supply transferee Jun Hongyuan 9% stake into the largest shareholder

- Feb 20, 2017-

(Hereinafter referred to as "Zhijie Hongyuan") shareholders Mr. Zhang Junhong signed the "equity transfer agreement", the company intends to use its own funds (the company) and the company's shares, RMB 88.88 million The shares held by Mr. Zhang Junhong are 9% equity interest (ie, 1306.5621 million shares).

The Company has held a 26% stake in Zhixuan Hongyuan before the transfer of the equity. After the completion of the transfer, the Company will hold a 35% stake in Zhixuan Hongyuan and become the largest shareholder of Zhijie Hongyuan.

It is mainly engaged in R & D, production and power system integration of core components of new energy vehicles. The main products are electric vehicle power system battery pack, vehicle controller VCU, battery Management system BMS, car network terminal RMU and so on.

South Power Power said that the new energy vehicle power battery system is the company's strategic focus of the development of the company following the previous capital increase after the Hongxingyuan continue to acquire its shares, become Zhixing Hongyuan's largest shareholder, will further strengthen the company and Chile Hongyuan tightness, so that the company's new energy vehicle power battery business have a stronger power. R & D and manufacturing advantages, to achieve team, technology and industry integration, the rapid promotion of the company in the new energy automotive industry, the core of the new energy automotive industry, Powertrain system integration and related areas of the comprehensive ability to achieve coordinated development.

Zhixing Hongyuan commitment to the next three years will be accumulated non-net profit of 43 million yuan in the performance of the commitment period and the future business process is expected to a certain extent, improve the company's profitability.