Sany International expanded its business territory and acquired Sany Technology Equipment to enter the lithium battery equipment industry

After the market on the last trading day of 2022, Sany International (00631. HK) announced that Sany Heavy Equipment Co., Ltd. (hereinafter referred to as "Sany Heavy Equipment"), a wholly-owned subsidiary of the company, signed a purchase agreement with Sany Group to purchase part of the equity of Sany Technical Equipment, Changsha Wright and Changsha Feiling from Sany Group for RMB 0.95 in cash, thereby indirectly obtaining about 95% of the equity of Sany Technical Equipment. This move marks that Sany International will acquire Sany Group's lithium battery equipment assets, expand its business territory, and officially enter new energyLithium battery equipmentThe industry not only adds new performance growth points to the company, but also an important step for Sany International to implement the electrification strategy.

According to the announcement, before the acquisition, Sany Technology Equipment was 70% owned by Sany Group, 15% owned by Changsha Wright and 15% owned by Changsha Feiling. Changsha Laite is 99.90% owned by Sany Group, and Changsha Feiling is owned by Sany Group about 66.7533%. After the completion of the acquisition, Sany Technical Equipment will be 70%, 15% and 15% owned by Sany Heavy Equipment, Changsha Wright and Changsha Feiling respectively. Changsha Wright will be 99.9% owned by Sany Heavy Equipment, while Changsha Feiling will be 66.7533% owned by Sany Heavy Equipment. The financial results of the three companies will be incorporated into Sany International's financial statements.

According to the announcement, Sany Technology Equipment was established in 2021 and is mainly engaged in the research and development, manufacturing and sales of new energy battery equipment. At present, the first 3GwH power lithium battery production line has been completed, and the core technology of manufacturing 3GwH battery production line has been possessed and mastered, and all 34 equipment in the production line are independently developed and produced, and have the ability to provide comprehensive solutions for lithium battery production lines. At present, Sany Technology Equipment has applied for 359 patents for new energy battery equipment, with a R&D team of more than 300 people, of which about 38% hold a master's degree or above in related fields, and 40% have rich experience in the lithium battery industry. As of November 30, 2022, Sany Technology Equipment has achieved revenue of about 5.5 million yuan for the sale of lithium battery module PACK line.

In recent years, the global demand for power batteries has increased significantly, and power batteries will continue to be in short supply in the next three years, and the expansion of battery production capacity will continue to drive the lithium battery equipment industry. Therefore, the board of directors of the company believes that Sany Technology Equipment will have a broader market space on the basis of being widely recognized by the market. More importantly, Sany International has rich experience in electrification products and continues to conduct research and development to upgrade product electrification, such as the development of swappable wide-body vehicles and a full range of electrified logistics equipment products. The company focuses on core requirements such as efficiency and reliability, and has developed a number of key technologies such as energy saving, battery charging and battery swapping. Therefore, the board of directors of the company believes that Sany Technology Equipment has a high degree of consistency and compatibility with the company's existing business, which is conducive to the company's acceleration of the implementation of the electrification strategy and the development of new energy equipment business.