CATL Invests 4.1 Billion Yuan in Zhongheng Investment Technology, Whose Controller Was Sentenced

Hangzhou Zhongheng Electric Co., Ltd. (stock code: 002364) announced that its shareholders Zhu Guoding and Bao Xiaoru plan to introduce Contemporary Amperex Technology Co., Ltd. (CATL) as an investor in Zhongheng Technology Investment.

The parties aim to leverage their respective core competencies and resource advantages in related fields to promote business and strategic cooperation between CATL and Zhongheng Electric. This collaboration will focus on green ICT infrastructure, transportation electrification, and the new power system (computing-electricity coordination), integrating resources to empower the company's development.

CATL intends to subscribe for newly added registered capital of Zhongheng Technology Investment amounting to 14,411,764.71 yuan, with a total investment of 4.1 billion yuan. The contribution will be made in the form of cash and equity.

Prior to the proposed capital increase, the registered capital of Zhongheng Technology Investment was 15 million yuan, with Zhu Guoding and Bao Xiaoru holding 70% and 30% equity, respectively. After the capital injection, the registered capital will increase to 29,411,764.71 yuan. Zhu Guoding's stake will be diluted to 35.70%, Bao Xiaoru's to 15.30%, and CATL will hold 49.00%.

Before the capital increase, Zhu Guoding was the controlling shareholder and actual controller of Zhongheng Technology Investment. Following the transaction, he will remain in both roles.

As of the announcement date, Zhongheng Technology Investment holds 200,389,724 shares of Hangzhou Zhongheng Electric, representing 35.56% of the total share capital. Zhu Guoding is the controlling shareholder of Zhongheng Technology Investment.

Zhu Guoding directly holds 4.56% of the company's shares, and his spouse, Bao Xiaoru, directly holds 1.28%, acting as his concert party. Through direct and indirect control, Zhu Guoding controls 40.12% of the company's shares, making him the actual controller. Together with Bao Xiaoru, they control 41.40% of the shares.

After the capital increase and changes in equity structure, the company's controlling shareholder and actual controller remain unchanged.

Zhu Guoding was sentenced for stock price manipulation. On August 20, 2020, Hangzhou Zhongheng Electric disclosed that Zhu Guoding was under investigation by the China Securities Regulatory Commission for alleged stock price manipulation. Subsequent announcements detailed periods of residential surveillance and bail.

On December 31, 2025, the company announced that the Hangzhou Intermediate People's Court had issued a criminal judgment, convicting Zhu Guoding of manipulating the securities market. He was sentenced to three years in prison, suspended for four years, and fined 1 million yuan.

Hangzhou Zhongheng Electric stated that Zhu Guoding does not hold any position as a director or senior manager in the company. The verdict does not affect his shareholder rights and is not expected to significantly impact the company's production and operations.

The company's daily operations remain normal, with all work proceeding in an orderly manner.

As of the market close, Hangzhou Zhongheng Electric's stock price was 29.03 yuan, with a market capitalization of 16.4 billion yuan.