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FESE intends to transfer 60% of FAR EAST BATTERY's equity

On November 25, 2020, Far East Smart Energy announced that the company intends to publicly transfer its 60% equity in its wholly-owned subsidiary Far East Battery and the company’s debts receivable to Far East Battery and its wholly-owned subsidiaries. The total reserve price for public listing and transfer is not less than 786 million yuan.

Far East Smart Energy stated that in recent years, the lithium battery industry has had an obvious head effect and fierce competition in the industry. At the same time, affected by changes in China’s new energy subsidy policy and rising raw material prices, the company’s battery business revenue has fallen sharply and continued to experience large losses. The company's operating performance has brought greater pressure. The company wants to focus on its main business based on its own characteristics, strip loss-making battery assets, and continue to optimize the industrial structure and asset allocation.

With the continuous development of China's EV industry and the continuous iterative update of EV battery technology, the proportion of prismatic batteries in the EV industry has increased year by year, and the early cylindrical battery market has been eroded by prismatic batteries. The Far East battery, which was the main cylindrical battery in the early days, had a more obvious impact.

FESE intends to transfer 60% of FAR EAST BATTERY's equity

While the cylindrical battery industry is under impact, Far East Battery on the one hand upgrades the cylindrical battery production line and introduces the 21700 cylindrical production line with high energy density, low internal resistance, long cycle life, good performance and high cost performance; on the other hand, it is also active in Jiangsu Layout the production line of pouch batteries to meet the matching needs of EVs.

At present, Jiangxi Far East Battery mainly produces 18650 and 21700 lithium battery cells and power battery pack products for EVs, logistics EVs, electric tricycles and electric two-wheelers, power tools, base station energy storage, mobile power and other fields; the existing production capacity is 6GWh, of which 21,700 capacity is 3GWh (400,000 pieces per day), and 18,650 is 3GWh (1.2 million pieces per day).

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