Ningbo Fangzheng Automobile Mould Co.Ltd(300998) : Announcement on signing strategic cooperation and long-term supply agreement with Shenzhen BIC Battery Co., Ltd

Securities code: Ningbo Fangzheng Automobile Mould Co.Ltd(300998) securities abbreviation: Ningbo Fangzheng Automobile Mould Co.Ltd(300998) Announcement No.: 2022008 Ningbo Fangzheng Automobile Mould Co.Ltd(300998)

About signing strategic cooperation with Shenzhen BIC Battery Co., Ltd

And announcement of long-term supply agreement

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.

Special tips:

1. Major risks and uncertainties of performance: this agreement belongs to the cooperation principle reached by both parties for follow-up cooperation. There is still uncertainty about whether the cooperation is finally reached and the follow-up progress. The purchase quantity agreed in the agreement is the predicted value, and the actual situation is subject to the specific purchase and sales order contract or relevant written documents signed in the future. In case of macroeconomic fluctuations, changes in industrial policies, adjustment of demand forecast and other factors during the performance of the agreement, there may be a risk that the agreement can not be performed on schedule or in full. The performance of the company’s production line construction and commissioning agreements is still affected by factors such as the company’s capacity audit. Please make careful decisions and pay attention to investment risks.

2. The signing and performance of this agreement has no significant impact on the operating performance of the company this year. Please invest carefully and pay attention to investment risks.

3. Conditions for effectiveness of the agreement: this Agreement shall come into force after being signed by the legal representatives or authorized agents of both parties and stamped with the official seal of the unit.

4. The company does not have the situation that the framework agreement disclosed in the last three years has made no progress or the progress has not reached the expectation.

1、 Overview of signing strategic cooperation agreement

1. Ningbo Fangzheng Automobile Mould Co.Ltd(300998) (hereinafter referred to as “company” or “Party B”) and Shenzhen BIC Battery Co., Ltd. (hereinafter referred to as “BIC battery” or “party a”) signed a strategic cooperation and long-term supply agreement (hereinafter referred to as “agreement”) on April 8, 2022. The two sides will carry out comprehensive and in-depth cooperation in strategy, market, business, technology, product development and supply chain in the field of lithium battery precision structural parts, reach a strategic partnership and jointly promote industrial development. The two sides have established an irregular high-level exchange mechanism to gain market share in the future strategic power vehicles, energy storage and small power electric tools and other end markets.

2. The signing of the strategic cooperation framework agreement between the company and BIC battery does not constitute a related party transaction, nor does it constitute a major asset reorganization specified in the administrative measures for major asset reorganization of listed companies. According to the relevant provisions of the Shenzhen Stock Exchange gem stock listing rules and the company’s Charter, the signing of the framework agreement does not need to be submitted to the board of directors and the general meeting of shareholders for deliberation and approval.

3. The subsequent agreement will be signed and fulfilled by the holding subsidiary Anhui founder New Energy Technology Co., Ltd. (hereinafter referred to as “Anhui founder”). Authorized by the board of directors and the general meeting of shareholders in November 2021, the company jointly invested and established a joint venture Anhui founder New Energy Technology Co., Ltd. in Anhui Chaohu Economic Development Zone. The company currently holds 70.03% of the equity of Anhui founder. For details of the above matters, the company posted on cninfo (www.cn. Info. Com. CN.) on November 10, 2021 and January 14, 2022 respectively Announcement on joint investment and establishment of joint ventures and related party transactions (Announcement No.: 2021033) and announcement on transfer of equity of holding subsidiaries and related party transactions (Announcement No.: 2022001) disclosed.

4. For the cooperation matters involved in this strategic cooperation agreement, after both parties negotiate and determine the specific contents according to the actual situation and sign the formal contract, the company will perform the corresponding review procedures and disclose them in time in accordance with the requirements of the Shenzhen Stock Exchange gem stock listing rules, the articles of Association and other relevant provisions.

2、 Introduction to counterparty 1 Basic information

Name: Shenzhen Bike Battery Co., Ltd

Legal representative: Li Qianxiang

Registered capital: 138635261 yuan

General business items are: investment, R & D and sales of new energy vehicles. The licensed business items are: production and operation of lithium ion batteries; The main business of the new battery is technology development, import and export of goods and technologies (excluding distribution and goods exclusively controlled by the state), general freight transportation and self owned property leasing (bick science and technology building, plant 3 and plant 6 of bick Industrial Park (phase I)).

Registered address: Bike Industrial Park, Kuiyong street, Dapeng New District, Shenzhen

No relationship with listed companies 2 Similar transactions: the company has no similar transactions with its counterparties in the last three years. 3. Analysis of performance capability: the cooperative customer exists according to law, operates normally and has good performance capability.

3、 Main contents of the agreement

(I) overview of cooperation

Party A and Party B will carry out comprehensive and in-depth cooperation in strategy, market, business, technology, product development and supply chain in the field of lithium battery precision structural parts, reach a strategic partnership and jointly promote industrial development. The two sides have established an irregular high-level mutual visit mechanism to discuss and share future strategic development objectives and strategic plans, guide business cooperation between the two sides, and enable their products to obtain market share in terminal markets such as lithium electric vehicles, energy storage and small power electric tools.

(II) main contents of cooperation

1. Party A expects to purchase about 30 million precision structural parts of power battery from Party B from 2022 to 2023; From 2023 to the end of 2025, Party A will take Party B as the first supplier of lithium battery precision structural parts, and purchase lithium battery precision structural parts with an annual value of no less than RMB 400 million from Party B.

2. Party B shall guarantee the supply of production capacity and meet the supply demand of Party A within the order and order forecast. In view of the rapid development and changes of the industry, the two sides will strengthen exchanges during investment and construction, and jointly study and judge the industry policies, customer needs and product development trends.

3. Both parties will work together to promote and realize the maximum cost optimization under large-scale production based on large-scale orders, so as to enhance the market competitiveness of both parties.

4. Both parties will discuss product development plans and actively carry out technical cooperation with each other on new products, including but not limited to precision structural parts of lithium battery products such as 4680 and large square. Party B shall ensure the input of personnel and equipment and cooperate with Party A in the research and development of corresponding products.

(III) effectiveness of the agreement and others

1. This Agreement shall come into force from the date when both parties affix their official seals and signed by their legal representatives or authorized representatives.

The validity period is from the effective date of the agreement to December 31, 2025.

2. Once the agreement is signed, Party A and Party B shall fully and properly perform all obligations under the agreement. If the performance of this agreement is not in accordance with the conditions of this agreement, either party shall bear the corresponding responsibility.

3. All disputes and disputes arising from or in connection with the performance of this Agreement shall be settled by both parties through negotiation. If the negotiation fails, both parties may directly bring a lawsuit to the people’s court with jurisdiction according to law.

4. The agreement is made in duplicate, one for each party, with the same legal effect.

4、 Impact on Listed Companies

1. The signing of this agreement has no significant impact on the current performance of the company. If this agreement is fully performed, it will have a positive impact on the company’s business performance in the coming years. However, there are certain uncertainties in the relevant performance and subsequent specific procurement. The company will recognize the revenue in the relevant years according to the performance of the agreement.

2. The signing of this agreement marks BIC battery’s recognition of the company’s product development and quality management ability, engineering equipment and technical ability, product supply ability and other aspects, and indicates that the company’s lithium battery precision structural parts have certain application requirements in the new energy vehicle terminal market.

3. The performance of the agreement will not affect the business independence of the company, and the main business of the company will not rely on the parties due to the performance of the contract.

4. The subsequent purchase and sale contract shall be signed and performed by the holding subsidiary Anhui Fangzheng. Anhui founder is currently building four production lines for precision structural parts of automatic lithium batteries, and is undergoing production line commissioning and trial production. If the project is progressing smoothly, it is expected to be officially put into operation from May to June. Precision structural parts of lithium battery are expected to be the main products of Anhui founder. If the agreement is fully implemented, Anhui founder will realize the growth of sales volume and promote the transformation of the company’s overall business. 5、 Risk tips

1. The signing of this agreement has no significant impact on the current performance of the company. Please make careful decisions and pay attention to investment risks.

2. This agreement belongs to the cooperation principle reached by both parties to carry out follow-up cooperation. There is still uncertainty about whether the final cooperation is reached and the follow-up progress. The subsequent contract shall be signed and performed by the holding subsidiary Anhui Fangzheng. The purchase quantity agreed in the agreement is the predicted value. The actual situation shall be subject to the specific purchase and sales order contract or relevant written documents signed in the future. There is a risk of significant uncertainty in the signing time, contract amount and actual execution amount of the formal contract. Please make careful decisions and pay attention to investment risks.

3. Anhui Fangzheng lithium battery precision structure project has not been officially put into operation, and the execution of the contract and its impact on the company’s performance have great uncertainty risks. Please make careful decisions and pay attention to investment risks. 4. In case of macroeconomic fluctuations, changes in industrial policies, adjustment of demand forecast and other factors during the performance of the agreement, there may be a risk that the agreement can not be performed on schedule or in full. The performance of the company’s production line construction and commissioning agreements is still affected by factors such as the company’s capacity audit. Please make careful decisions and pay attention to investment risks. 6、 Other relevant instructions

1. As of the disclosure date of this announcement, except for the strategic cooperation framework agreement between the company and BIC battery, the company has not disclosed other framework agreements in the past three years.

2. As of the disclosure date of this announcement, the shareholding of the company’s controlling shareholders, shareholders holding more than 5% and directors, supervisors and senior managers has not changed within three months before the signing of this strategic cooperation framework agreement. The company’s initial public offering of strategic placement shares and some restricted shares before the initial public offering are planned to be lifted on June 2, 2022. The shareholding ratio of shareholders of restricted shares before the initial public offering is less than 5%. In addition, in the next three months, there is no situation that the restricted shares held by the controlling shareholders, shareholders holding more than 5% and directors, supervisors and Gao will be lifted soon. As of the disclosure date of this announcement, the company has not received the plan of controlling shareholders, shareholders holding more than 5% shares and directors, supervisors and senior managers to reduce the shares of the company. If the share reduction plan is to be implemented in the future, the company will timely fulfill the obligation of information disclosure in accordance with relevant regulations.

7、 Documents for future reference

1. Shenzhen BIC Battery Co., Ltd. and Ningbo Fangzheng Automobile Mould Co.Ltd(300998) strategic cooperation and long-term supply agreement

It is hereby announced.

Ningbo Fangzheng Automobile Mould Co.Ltd(300998) board of directors April 10, 2022

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