Securities code: Shenzhen Kedali Industry Co.Ltd(002850) securities abbreviation: Shenzhen Kedali Industry Co.Ltd(002850) Announcement No.: 2022011 Shenzhen Kedali Industry Co.Ltd(002850)
Announcement on the establishment of Jiangxi wholly owned subsidiary and foreign investment
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
(I) basic information
With the rapid development of new energy vehicle market outside China, Shenzhen Kedali Industry Co.Ltd(002850) (hereinafter referred to as “the company” or ” Shenzhen Kedali Industry Co.Ltd(002850) “) the demand for capacity expansion of precision structural parts of new energy vehicle power battery has further accelerated. In order to further improve the company’s capacity layout and meet customers’ capacity supporting needs, combined with the industry development trend and the company’s strategic planning, the company plans to invest and establish a wholly-owned subsidiary in Jiangxi Nanchang Economic and Technological Development Zone, and invest in the construction of Shenzhen Kedali Industry Co.Ltd(002850) Jiangxi Nanchang New energy vehicle power battery and other precision structural parts phase I projects with self raised funds of no more than 1 billion yuan.
(II) review
At the 23rd (Interim) meeting of the Fourth Board of directors held on March 9, 2022, the company deliberated and adopted the proposal on the establishment of Jiangxi wholly-owned subsidiary and foreign investment. According to the Listing Rules of Shenzhen Stock Exchange and other laws and regulations, normative documents, the articles of association, the measures for the administration of foreign investment of the company and other relevant provisions, this matter does not need to be submitted to the general meeting of shareholders for deliberation and approval.
The board of directors authorizes the chairman of the board of directors and his designated staff to handle the relevant procedures such as industrial and commercial registration of the subsidiary and the investment and construction of Shenzhen Kedali Industry Co.Ltd(002850) Jiangxi Nanchang new energy vehicle power battery and other precision structural parts phase I project.
(III) the establishment of a wholly-owned subsidiary of Jiangxi and its foreign investment do not constitute related party transactions, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
2、 Proposed wholly-owned subsidiaries
(I) Company Name: Jiangxi Shenzhen Kedali Industry Co.Ltd(002850) Precision Industry Co., Ltd
(II) registered address: Nanchang Economic and Technological Development Zone, Jiangxi Province
(III) enterprise type: limited liability company
(IV) registered capital: RMB 100 million, with 100% of the company’s contribution
(V) business scope: manufacturing and sales of precision structural parts of power batteries, auto parts, molds, hardware products and plastic products; Self operated and acting as an agent for the import and export of various commodities and technologies, except for the commodities and technologies that the state restricts or prohibits the import and export of companies (for the projects that must be approved according to law, the business activities can be carried out only with the approval of relevant departments).
(VI) the form of capital contribution and the source of the company’s capital contribution in foreign currency.
The above information shall be subject to the registration approved by the administrative department for Industry and commerce.
3、 Basic information of foreign investment
The company plans to use no more than RMB 1 billion (the final total project investment shall be subject to the actual investment) for the construction of Jiangxi Nanchang production base project through Jiangxi subsidiary. The specific conditions are as follows:
(I) project name: phase I project of precision structural parts such as new energy vehicle power battery
(II) total project investment and capital source: the total investment of the project shall not exceed 1 billion yuan (the final total project investment shall be subject to the actual investment), and all the capital sources are self raised funds of the company.
(III) project construction period: about 24 months (subject to the actual construction).
(IV) project construction content: purchase of land; Construction and decoration of workshops for production processes; Purchase advanced equipment required for the production of precision structural parts of power batteries for new energy vehicles; Plant decoration and production equipment installation.
(V) economic benefits of the project: the total investment of the project is expected to be no more than 1 billion yuan, and the annual output value of the project will be about 2 billion yuan after the project is completed (based on the judgment of the current market, there is a risk that the expected output value target can not be achieved due to changes in the market environment).
4、 Purpose, existing risks and impact on the company of foreign investment
(I) purpose of this foreign investment
The company set up a subsidiary in Nanchang, Jiangxi Province and invested in the construction of Jiangxi Nanchang new energy vehicle power battery and other precision structural parts phase I project through the subsidiary, in order to further expand the new energy vehicle power battery precision structural parts market, improve the company’s capacity layout, better meet the customer’s capacity supporting needs and enhance the company’s overall strength. The implementation of this project will further expand the effective production capacity of the company’s new energy vehicle power battery precision structural parts, the scale advantage will reduce the company’s product unit R & D and production costs, and the company’s overall profitability will be improved accordingly, which is conducive to improving the company’s economic benefits, improving the company’s core competitiveness, and having a positive impact on the company’s financial situation and operating results.
(II) possible risks of this foreign investment
1. Market risk
As an important part of new energy vehicle power battery, the market demand of precision structural parts of new energy vehicle power battery is affected by the promotion of downstream new energy electric vehicles, the actual demand of power battery enterprises and relevant industrial policies, and the market competition is becoming increasingly fierce. If the market situation changes significantly, it will have an impact on the economic benefits of the project.
2. Project construction risk
During the preparation and production of the project, the company has a large demand for early construction and working capital investment, and due to the formation of large-scale fixed assets and intangible assets such as land use right, plant and equipment, the subsequent depreciation and amortization expenses will also have a certain impact on the overall performance of the company. If the expected income of the project cannot be realized, It may affect the overall operating performance and financial status of the company.
(III) impact of this foreign investment on the company’s future financial situation and operating results
The capital source of this investment is the company’s self raised funds, which will not have an adverse impact on the company’s financial and operating conditions, and there is no situation damaging the interests of the company and all shareholders. This investment is conducive to the company’s further expansion of the new energy vehicle power battery precision structure market and the implementation of strategic planning, which is of positive significance and promotion to the company’s future development.
5、 Documents for future reference
(I) resolution of the 23rd (Interim) meeting of the Fourth Board of directors of the company;
(II) other documents.
It is hereby announced.
Shenzhen Kedali Industry Co.Ltd(002850) board of directors March 10, 2022
