AutoBeta(AutoBeta.net)07/18 Report--

Honda's investment in the Ningde era, a Chinese company, has been officially confirmed. According to the latest non-public offering report released by Ningde Times, the total amount of funds raised was 19.7 billion yuan, of which 10 billion yuan was subscribed by Hillhouse Capital and 3.7 billion yuan was subscribed by Honda Technology Research Industry (China) Investment Co., Ltd.

On July 10, Honda officially announced that Honda and Ningde Times have signed an omni-directional strategic cooperation agreement on power batteries for new energy vehicles. In order to strengthen the popularization of electric vehicles and accelerate the strategic partnership, the strategic cooperation will cover the joint development, stable supply and recycling of power batteries. At the same time, Honda will also take a stake in the Ningde era, with a 1% stake in the Ningde era when the deal is completed.

Ningde Times also announced the signing of a strategic cooperation agreement with Honda. The announcement shows that during the validity of the agreement, the company will guarantee the supply of the agreed types of batteries to Honda on certain commercial preferential terms. In this cooperation, Honda, through its domestic subsidiary Honda Technology Research Industry (China) Investment Co., Ltd., subscribed for the non-public offering shares of Ningde Times, which accounted for about 1% of the total share capital after the non-public offering shares of Ningde era. Honda will continue to hold Ningde Times shares for five years after the agreement is signed.

The move also locked in the supply of power batteries from the Ningde era for Honda's China New Energy vehicles. Honda said that Chinese-made Honda new energy vehicles equipped with Ningde era power batteries are expected to first launch to the Chinese market in 2022.

According to a notice issued by Ningde Times, the funds raised from private offerings will be used for power battery research and upgrading, capacity expansion projects, replenishment of liquidity, and so on. Ningde Times said that the funds raised in this issue are invested in the company's main business, and the implementation of the project will help the company consolidate its existing competitive advantage, further enhance its industry position, and ensure sustainable development. The controlling shareholder and the actual controller of the company have not changed, which will not have a substantial impact on corporate governance, but the proportion of shares held by institutional investors has increased, and the ownership structure of the company is more reasonable. this will be conducive to the further improvement of the corporate governance structure and the healthy and stable development of the company's business.

Among the power battery installations in China in 2019, Ningde era power battery installed capacity reached 31.71GWh, accounting for 51% of the market share, making it the largest power battery supplier in China.

Prior to this, a number of foreign car companies have bought shares in Chinese battery companies, including Volkswagen's stake in Guoxuan Hi-Tech, Mercedes-Benz's stake in Funeng Technology and so on. A number of foreign car companies have taken a fancy to Chinese power battery companies and invested heavily, which will help to promote their electrification strategy in China and improve their competitiveness in the world's largest new energy vehicle market. Of course, the move also reflects China's leading position in power battery technology and market application.

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