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On May 30, Yiwei Lithium Energy announced that the company had deliberated and adopted the Bill on the Establishment of Subsidiaries for Foreign Investment at the 22nd Meeting of the Board of Directors, held on May 30, 2018. It agreed that Huizhou Yiwei Energy Collection Co., Ltd., a subsidiary of Huizhou Yiwei Energy Collection Co., Ltd., should be established by investing no more than 600 million yuan in equipment and self-owned capital (hereinafter referred to as "Yiwei Energy Collection" ) Upon completion of this investment, the company will hold 100% equity in Yiwei Jineng.

According to the announcement, Huizhou Yiwei Energy Collection Co., Ltd. is mainly engaged in the business of soft-packed battery cores for automobiles, soft-packed battery modules for automobiles and energy storage batteries.

The company said that based on the company's strategic planning and operational development needs, it will invest in the establishment of subsidiary company Yiwei Energy Collection, which will introduce advanced international technology, equipment and talents, and engage in the business related to automotive soft-packed battery cores, automotive soft-packed battery modules and energy storage batteries, facing the high-end new energy passenger car market. Soft package ternary power battery is one of the main development directions of new energy automobile battery technology. The company's investment goal is to build high-end power battery production capacity.

The investment will further improve the company's new energy automobile power battery product layout, improve the company's competitiveness in the high-end market of new energy automobile batteries, and play a positive role in the company's development.

In addition, this investment company mainly invests in equipment assets, which does not affect the company's assets and financial structure. Because of the lagging effect of sales formation, it has no significant impact on the operating performance of this year, and has a positive effect on the company's performance growth in the next 2-3 years.

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