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According to the company's strategic layout in the field of new energy, Fujian Mengshi New Energy Technology Co., Ltd. (hereinafter referred to as "Fujian Mengshi New Energy"), a wholly-owned subsidiary of the company, plans to establish Hubei Mengshi New Energy Technology Co., Ltd. (tentative name, based on the name approved and registered by the industrial and commercial department, hereinafter referred to as "Hubei Mengshi New Energy") in Yicheng, Xiangyang, Hubei with self raised funds of 100 million yuan.

Hubei Mengshi New Energy will carry out research and development, production, and sales of lithium batteries, battery management systems, lithium battery raw materials and components, lithium battery production equipment, and power electrical products; Automobile sales and other businesses.

At present, Hubei has built two automobile industry clusters along the Han River in Shiyan, Xiangyang, and Wuhan, as well as along the Yangtze River in Jingzhou and Huangshi. Xiangyang has been included in the national pilot city for energy-saving and new energy vehicle demonstration and promotion in the public service field, and it is expected that Xiangyang will have a huge market demand for lithium batteries.

Mengshi Technology stated that the establishment of Hubei Mengshi New Energy in Yicheng, Xiangyang, Hubei is beneficial for the company's products to enter the new energy vehicle supporting industry chain, promote the implementation of projects in the lithium battery field, accelerate the company's business expansion in the new energy field, and is a specific measure to improve the company's strategic layout in the new energy industry.

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