Hangzhou Zhonhen Electric Co.,Ltd. Announces CATL's Strategic Investment of 4.1 Billion Yuan in Its Controlling Shareholder

Stock News04-08 16:05

Hangzhou Zhonhen Electric Co.,Ltd. (002364.SZ) has announced that to facilitate strategic cooperation between the company and Contemporary Amperex Technology Co.,Ltd. (CATL), its controlling shareholder, Hangzhou Zhongheng Technology Investment Co., Ltd., has agreed to accept a capital increase from CATL. This move will enable business collaboration between the two companies. CATL plans to subscribe to newly issued registered capital of 14.4118 million yuan in Zhongheng Technology Investment for a total consideration of 4.1 billion yuan, with payment to be made through a combination of cash and equity. Specifically, CATL will contribute a 99.6970% equity stake in Times Tianyuan (Shenzhen) Technology Co., Ltd., valued at 1.196 billion yuan, with the remaining balance paid in cash. Following the proposed capital increase, the controlling shareholder and actual controller of Zhongheng Technology Investment will remain Mr. Zhu Guoding. The announcement stated that the strategic cooperation aims to leverage the respective core competencies and resource advantages of the parties involved, promoting collaboration between CATL and Hangzhou Zhonhen Electric in areas such as green ICT infrastructure, transportation electrification, and new power systems (computing-electricity synergy). Additionally, CATL will participate in the governance of the listed company through certain arrangements.

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