Ningde Dongheng New Energy Battery Precision Structural Parts Project Settled in Fuzhou, Fujian

According to Fuzhou Daily, on June 18, Ningde Dongheng Machinery Co., Ltd. invested 3 billion yuan in the new energy battery precision structural parts project officially settled in the Songshan area of Fuzhou Taiwanese Investment Zone. After the project is put into operation, the annual output value is expected to be about 3.5 billion yuan.

According to the data, Ningde Dongheng's main business is the research and development, design, production and sales of precision metal structural parts for power batteries. Its products are widely used in the shell structure of power battery modules, such as side plates, end plates and special structural requirements.

In order to further expand the production scale, Ningde Dongheng plans to move its headquarters to the Songshan B area of Fuzhou Taiwanese Investment Zone, covering an area of about 200 mu. It is planned to complete the project construction and put it into production in two years.

It is worth noting that on the evening of May 22, Xianhui Technology (688155) announced that it planned to pay cash to purchase a 51% stake in Ningde Dongheng, with a total transaction amount of 816 million yuan. After the completion of this transaction, Xianhui Technology will hold 51% of the equity of Ningde Dongheng and become its controlling shareholder. The company's business will expand from the field of new energy battery production lines to the field of new energy battery parts.

The announcement shows that since its establishment in 2014, Ningde Dongheng has been providing related battery structural parts services around its main customer, Ningde Times (300750). In recent years, Dongheng has mainly met the business expansion needs of the CATL era by expanding production and increasing efficiency. Although Ningde Dongheng has conducted in-depth exchanges with other power battery manufacturers, it is unable to actually supply large-scale supply to other power battery customers. In CATL, a single customer accounts for a relatively high proportion of operating income, with an average of more than 90% in 2020 and 2021.