On July 20,We announced that the company plans to raise no more than 4.5 Billion yuan,which will be used for energy storage battery projects with an annual output of 10GWh,smart energy storage and power battery manufacturing base projects,and to supplement working capital after deducting issuance costs.

　　At the same time,it is planned to build an energy storage battery project with an annual output of 20GWh in Quzhou City,Zhejiang Province,with a total investment plan of about 6 Billion yuan.The raised funds will be mainly used to expand production capacity.Among them,2.4 billion yuan will be invested in the"annual output of 10GWh energy storage battery project(phase one and two)".The total investment of the project is 3 billion yuan,which will be implemented through the establishment of a new subsidiary.

　　The first phase of the project has a 5GWh energy storage lithium-ion battery capacity,and the construction period is 16 months;the second phase of the project has a 5GWh energy storage lithium-ion battery capacity,and the construction period is 18 months.The project mainly produces lithium-ion batteries and lithium-ion battery systems,which are used in the energy storage market,and can form an annual production capacity of 10GWh of energy storage lithium-ion batteries.

　　Another 800 million yuan is planned to be invested in the"smart energy storage and power battery manufacturing base project".The project is implemented by the Liuzhou production base,a wholly-owned subsidiary of the company,with a total investment of 1.2 billion yuan and a construction period of 15 months.It mainly produces lithium-ion batteries and lithium battery systems for energy storage and new energy vehicle markets.It can form an annual production capacity of 5.5GWh lithium-ion batteries.

　　In addition,the 1.3 Billion yuan raised will be used to supplement the company's working capital.According to the project planning and construction cycle,the first phase of the project will build an energy storage battery project with an annual output of 5GWh.It is planned to start construction before the end of November 2022,and it will be completed and put into operation before the end of March 2024;Construction will start before the end of September this year,and it will be completed and put into operation before the end of March 2026;the third phase of the project will build an energy storage battery project with an annual output of 10GWh.

　　The smooth implementation of this fixed increase and fundraising project can effectively expand the production and sales scale of the company's lithium-ion battery products,improve the technical level and performance indicators of the company's core products,further improve the company's ability to meet market demand,and improve the company's market position.At the same time,we will continue to follow up the development direction of the future market and technology,improve the company's product structure,and then improve the company's overall competitiveness and anti-risk capabilities,and drive the company's profitability and sustainable development capabilities.