Securities code: 300680 securities abbreviation: Wuxi Longsheng Technology Co.Ltd(300680) Announcement No.: 2022-011
Wuxi Longsheng Technology Co.Ltd(300680)
Announcement on foreign investment of wholly-owned subsidiaries
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of foreign investment
1. Wuxi Longsheng New Energy Technology Co., Ltd. (hereinafter referred to as “Longsheng new energy”), a wholly-owned subsidiary of Wuxi Longsheng Technology Co.Ltd(300680) (hereinafter referred to as “the company”), and Lihu Street office, Binhu District, Wuxi signed the investment agreement for R & D and manufacturing of core parts of new energy efficient and high-density drive motor system (hereinafter referred to as “the investment agreement”) on February 9, 2022, It is planned to invest in the R & D and manufacturing project of core parts of new energy efficient and high-density drive motor system through Longsheng new energy. The total investment of the project is about 2 billion yuan, which will be implemented by stages.
2. The fourth meeting of the Fourth Board of directors held on February 9, 2022 deliberated and adopted the proposal on foreign investment of wholly-owned subsidiaries. According to the Shenzhen Stock Exchange GEM Listing Rules, the articles of association and other relevant provisions, this foreign investment still needs to be submitted to the general meeting of shareholders of the company for deliberation.
3. This investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the administrative measures for major asset reorganization of listed companies.
2、 Introduction to counterparty
1. Name: Lihu sub district office, Binhu District, Wuxi
2. Nature: local government agency
3. Description of relationship: Longsheng new energy has no relationship with Lihu sub district office of Binhu District, Wuxi City. 3、 Basic information of investment object
(I) basic information of investors
The investor of the project is Wuxi Longsheng New Energy Technology Co., Ltd., a wholly-owned subsidiary of the company.
Company name: Wuxi Longsheng New Energy Technology Co., Ltd
Enterprise type: limited liability company (sole proprietorship of legal person invested or controlled by natural person)
Legal representative: Ni Ming
Address: No. 26, Lu Ou Road, Hudai Town, Binhu District, Wuxi City
The registered capital is 68 million yuan
Date of establishment: September 16, 2021
Licensed items: Road cargo transportation (excluding dangerous goods) (for items that must be approved according to law, business activities can be carried out only after being approved by relevant departments, and the specific business items shall be subject to the approval results)
General items: technical services, technical development, technical consultation, technical exchange, technology transfer and technology promotion; Research and development of motor and its control system; Motor manufacturing; Battery sales; Research and development of auto parts; Manufacturing of auto parts and accessories; Retail of auto parts; Machining of mechanical parts and components; Sales of mechanical parts and components; Sales of mechanical and electrical equipment; Sales of communication equipment; Sales of electronic products; Instrument sales; Wholesale of hardware products; Sales of building materials; Mold manufacturing; Mold sales; Optoelectronic device manufacturing; Sales of optoelectronic devices; Sales of plastic products; Industrial design services; Import and export of goods; Technology import and export; Import and export agency (except for the items that must be approved according to law, carry out business activities independently according to law with the business license)
(II) basic information of the investment project
1. Project Name: R & D and manufacturing project of core components of new energy efficient and high-density drive motor system;
2. Project location: the project is proposed to be located in the northeast of the intersection of Lianhe road and Qianhu Road, Hudai Town, Wuxi City, Jiangsu Province. The total planning area of the project is about 140 mu (the specific area is subject to the property right certificate handled by the property supervision office);
3. Investment scale and progress: the total investment of the project is about 2 billion yuan, which will be implemented by stages.
4、 Main contents of foreign investment contract
(I) agreement subject
Party A: Lihu sub district office, Binhu District, Wuxi City
Party B: Wuxi Longsheng New Energy Technology Co., Ltd
(II) project overview and construction content
1. Project Name: R & D and manufacturing project of core components of new energy efficient and high-density drive motor system.
2. Project location: the project is proposed to be located in the northeast of the intersection of Lianhe road and Qianhu Road, Hudai Town, Wuxi City, Jiangsu Province. The total planned area of the project land is about 140 mu (the specific area is subject to the property right certificate handled by the property supervision office);
3. Project construction and implementation subject: Wuxi Longsheng New Energy Technology Co., Ltd.
4. Project requirements: it shall comply with the industrial development policies of the state and Party A, and pass the project approval in accordance with the provisions of relevant national laws and regulations.
5. Project content: self raised funds for the purchase of land, self built plants, etc. and the purchase of machinery, equipment and facilities. The total investment of the project is about 2 billion yuan, which will be implemented by stages.
6. Conditions for the effectiveness of the contract: it shall come into force from the date when it is deliberated and approved by the general meeting of shareholders of Party A and Party B and sealed.
5、 Purpose of foreign investment, impact on the company and existing risks
(I) purpose of foreign investment and its impact on the company
At present, the new energy vehicle industry has ushered in unprecedented development opportunities. In 2020, the general office of the State Council issued the new energy vehicle industry development plan (2021-2035), which pointed out that by 2025, the sales of new energy vehicles will reach about 20% of the total sales of new vehicles, and by 2035, pure electric vehicles will become the mainstream of new vehicles; In 2021, the 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term objectives for 2035 pointed out the need to enhance the core competitiveness of the manufacturing industry and break through key technologies such as high-safety power batteries, high-efficiency drive motors and high-performance power systems of new energy vehicles. High performance motor will be the key development direction of the industry. As the core component of the driving motor of new energy vehicles, with the rapid development of new energy vehicles, the demand will increase significantly. Due to the performance requirements and design differences of new energy vehicles, different customers have different requirements for the design and model of driving motor iron core, The annual production capacity of 1.2 million sets planned by the “new energy vehicle drive motor iron core project” launched by the company in 2019 has been unable to meet the growing customer demand.
Seizing the development opportunity of new energy vehicles, the company implemented the R & D and manufacturing project of core components of new energy efficient and high-density drive motor system through Longsheng new energy, a wholly-owned subsidiary, to quickly improve the production capacity of iron core and meet the requirements of customers and the market, so as to enhance the competitiveness of the company in relevant business fields and provide guarantee for the growth of the company’s performance, Promote the long-term sustainable development of the company.
(II) capital source of this foreign investment
The investment of Longsheng new energy will be implemented by stages. The source of funds for the project is its own funds or self raised funds, which shall be subject to the actual investment progress. The company will arrange the project implementation progress by stages without affecting the health of cash flow, so as to maximize the operating benefits and ensure the smooth implementation of the project.
Among them, the total investment amount of the first phase expansion project invested by Longsheng new energy is 888389600 yuan, of which 716211000 yuan is planned to be raised by issuing A-share shares to specific objects, and the rest of the investment will be invested through its own funds. Before the funds raised by issuing A-Shares to specific objects are in place, the company will invest its own funds first according to the actual situation of the project progress, and replace them after the raised funds are in place. If the net amount of funds raised this time is less than the total amount of funds to be invested in the above projects, the insufficient part of the funds raised shall be raised by the company itself. For details, please refer to cninfo.com.cn published by the company on the same day Plan for issuing A-Shares to specific objects in 2021 (Revised Version).
(III) risk warning
1. This matter needs to be approved by the general meeting of shareholders of the company, and there is uncertainty. Please pay attention to the investment risk.
2. The project land involved in the investment agreement signed this time shall be handled in accordance with the land use procedures specified in the current national laws and regulations and obtained through bidding, auction or listing. There are uncertainties about whether the land use right can be won, the final transaction price and acquisition time of the land use right.
3. The implementation of the project involved in this agreement still needs to go through the pre-approval work such as environmental assessment approval, construction planning permit and construction permit with the relevant competent authorities of the government. Whether it can pass the approval and the time of passing the approval are uncertain; If the implementation conditions change due to the adjustment of relevant national or local policies, the implementation of the project may have the risk of change, extension, suspension or termination.
4. The project investment amount, construction period and other values involved in this investment agreement are estimated, and the project construction, production and operation will take a certain time; Investment amount and other indicators do not represent the company’s prediction of future performance, nor do they constitute the company’s substantive commitment to investors. There are uncertainties in the actual implementation and implementation progress, and the company will timely perform the obligation of information disclosure according to the progress of the investment. Please invest carefully and pay attention to investment risks.
It is hereby announced.
Wuxi Longsheng Technology Co.Ltd(300680)
Board of directors
February 10, 2022
