CATL, BAIC, Dongfang Precision seek cooperation in power battery area

Shanghai (Gasgoo)- Guangdong Dongfang Precision Science & Technology Co., Ltd. (hereinafter referred to as Dongfang Precision) announced on Jan. 6 that its wholly-owned subsidiary Beijing Pride Power Battery Science & Technology Co., Ltd. (hereinafter referred to as Pride Power) signed a strategic cooperation agreement with BAIC Group, Contemporary Amperex Technology Limited (CATL) and Pulead Technology Industry Co., Ltd. (hereinafter referred to as Pulead). 

All parties aim to establish strategic partnership in NEV power battery area, make full use of their advantages to create synergies, and cooperate strategically in battery R&D, manufacturing, recycling and cascade utilization of batteries. 

In accordance with the announcement, all parties will collaboratively optimize costs, improve the quality and comprehensive market competitiveness of the products in all kinds of industrial chains, including parts design, manufacturing, packing, logistics, storage, processing and distribution, etc. At the same time, BAIC Group will give the priority to Pride Power in terms of choosing a battery provider when Pride Power's technology, quality and supply capacity meet the requirements of BAIC Group.

According to the announcement, all parties will cooperate to develop new-type batteries and special battery supportive facilities, as well as the charging and swapping service for NEV's power batteries. They will also carry out collaborative development and experiment in NEV batteries.

What's more, in the process of formulating the industry standard for NEVs, each party should communicate actively. In terms of recycling and cascade utilization of batteries, both parties will jointly discuss and explore relevant cooperative modes to realize the value-added profits of NEVs power battery chain.

Dongfang Precision stated that its wholly-owned subsidiary Pride Power's strategic cooperation between CATL and Pulead will promote technological development for Pride Power, positively influence Pride Power's development in the future, and provide significant strategic chances for sustainable development of the company in the middle and long term.

Statistics showed that revenue of Dongfang Precision in first three quarters in 2017 reached RMB 2.337 billion, soaring 115.46% year on year. Net profit attributable to shareholders of listed companies surged 186.62% over the previous year to RMB 205 million. Since Dongfang Precision finished the merger and acquisition of Foster Group in 2014, it had completed 6 mergers and acquisitions during the following three years, covering a variety of fields, such as intelligent packaging, intelligent logistics, intelligent storage and NEVs.