On the evening of March 7, China Tianying Inc(000035) ( China Tianying Inc(000035) , SZ) announced that the wholly-owned subsidiary Jiangsu nengying New Energy Technology Development Co., Ltd. (hereinafter referred to as Jiangsu nengying) planned to cooperate with Jiangsu tianqin Investment Co., Ltd. (hereinafter referred to as tianqin investment) Sky Tower (Beijing) energy storage technology Co., Ltd. (hereinafter referred to as sky tower) and Atlas renewable Inc. (hereinafter referred to as Atlas) jointly invested and established a joint venture Atlas (Jiangsu) New Energy Technology Co., Ltd. (tentative name, hereinafter referred to as Atlas).
Atlas’s business scope covers the development and application of energy storage technology, energy storage technology services, etc. The reporter of “daily economic news” noted that China Tianying Inc(000035) has been laying out the field of gravity energy storage since this year, including equity acquisition, investment company, purchase of technology license… Can the business of gravity energy storage be completed?
plans to establish a new company jointly with the actual controller
According to the announcement, Jiangsu nengying, tianqin investment, sky tower and Atlas subscribed 100 million yuan, 20 million yuan, 60 million yuan and 20 million yuan respectively, holding 50%, 10%, 30% and 10% shares of atlas respectively. Among them, tianqin investment is a company 100% owned by Yan Shengjun, the actual controller of China Tianying Inc(000035) and Mao Hongju, so this investment constitutes a related party transaction.
China Tianying Inc(000035) said that the main purpose of this foreign investment is to exclusively implement the gravity energy storage system (hereinafter referred to as GESS) technology from energy vault, Inc. (hereinafter referred to as EV), develop the market of gravity energy storage projects, use GESS technology to build and operate gravity energy storage facilities and projects in China. It is the need for the company to implement the scientific and technological innovation strategy in the field of zero carbon, promote the company to systematically build the development ecology of new energy industry, and seize the commanding height of global zero carbon industry competition in the future.
At the same time, the capital source of this investment is its own funds or self raised funds, which will not have an adverse impact on the financial and operating conditions of the listed company, nor will it damage the interests of the listed company and all shareholders.
In addition, China Tianying Inc(000035) said that this foreign investment may be affected by factors such as macroeconomic policies, industry competition and changes in market demand. There is some uncertainty about whether the joint venture can achieve its development goals after its establishment.
Listed companies said that in the later stage, they will continue to improve the corporate governance structure of the proposed company, establish and improve internal control processes and effective supervision mechanisms, optimize the overall resource allocation of the company, and prevent and reduce the risk of foreign investment.
construction of 100mwh gravity energy storage demonstration project
On February 7, China Tianying Inc(000035) once announced that in order to introduce international advanced energy storage technology and speed up the layout of the company’s new energy industry, Atlas renewable LLC (hereinafter referred to as Atlas LLC), the holding subsidiary of the listed company, signed the technology license agreement with EV, the developer of gravity energy storage technology, on January 30 (Beijing time).
The exclusive license fee is US $50 million, and Atlas LLC will complete the payment in three times before August 15, 2022 according to the agreement. In addition, EV will advance US $25 million to build a 100mwh gravity energy storage demonstration project in Rudong, Jiangsu Province, which will be completed and put into commercial operation within 2022.
China Tianying Inc(000035) said that EV’s proprietary energy management system software and gravity energy storage technology are designed to help power stations, independent power producers and large industrial energy users reduce levelized energy costs and improve the reliability of power systems, especially renewable power. Compared with other energy storage methods, gravity energy storage has the characteristics of high efficiency, long service life, more safety and environmental protection. The signing of this agreement greatly facilitates the company to introduce and promote EV’s advanced energy storage technology, promote the rapid implementation of gravity energy storage projects in China, help the company build a regional zero carbon energy demonstration center, build a new business form of renewable energy development, and effectively empower the China Tianying Inc(000035) “environmental protection + new energy” dual engine development strategy.
According to China Securities Network, China Tianying Inc(000035) invested $50 million in Novus Capital Corporation II (hereinafter referred to as Novus) through its holding subsidiary atlas LLC before EV was listed and traded. EV completed the merger with Novus on February 14, US Eastern time, and was successfully listed on the New York Stock Exchange.
According to the China Securities Co.Ltd(601066) Research Report, recently, the implementation plan for the development of new energy storage in the 14th five year plan was officially issued. The plan attaches great importance to promoting the technological development and large-scale application of new energy storage industry, emphasizes clarifying the transmission mechanism of energy storage price, accelerating the large-scale development of energy storage on the power supply side, power grid side and user side, and supporting the construction of new power system.
The scheme also introduces that by 2025, the new energy storage will enter the stage of large-scale development from the initial stage of commercialization and have the conditions for large-scale commercial application. By 2030, new energy storage will be fully market-oriented, basically meeting the needs of building a new power system, and comprehensively supporting the realization of the goal of carbon peak in the energy field as scheduled.
Under the tuyere, will gravity energy storage be a hot spot for future investment?
