According to EnergyTrend, Duofuduo issued an announcement on September 19, proposing to raise funds via policy based loans and make a RMB 210 million capital increase to its holding subsidiary Guangxi Ningfu New Energy Technology Co., Ltd.
Per the announcement, to support the construction of its holding subsidiary Guangxi Ningfu’s “20GWh Lithium ion Battery Project at Ningfu New Energy No.3 Plant”, Duofuduo plans to apply for a new type policy based financial instrument loan from Jinyin New Type Policy Based Financial Instrument Co., Ltd., with a total ceiling of RMB 210 million and a loan term of no more than three years.
The funds will be used to subscribe RMB 175 million of newly added registered capital of Ningfu New Energy, with the remaining RMB 35 million credited to capital surplus. Other shareholders waive their pre emptive subscription rights for the newly added registered capital under this capital increase.
Upon completion of this capital increase, Duofuduo’s shareholding in Ningfu New Energy will rise from 77.4494% to 78.5355%.
As stated in the announcement, all proceeds from this capital increase will be invested in the 20GWh Lithium ion Battery Project at Ningfu New Energy No.3 Plant. As the operating entity for Duofuduo’s lithium ion battery business, Ningfu New Energy focuses on Fuxin large format cylindrical cells, whose products cover multiple application scenarios including energy storage, passenger vehicle power batteries and light duty vehicles.
This transaction constitutes a related party transaction. Relevant proposals have been reviewed and approved by the company’s Board of Directors and do not require submission to the shareholders’ meeting for deliberation. After the capital increase, Ningfu New Energy will remain a consolidated holding subsidiary of Duofuduo.
Duofuduo commented that this capital increase will facilitate the construction of Ningfu New Energy’s lithium ion battery project and further improve the company’s lithium ion battery business layout.
Source：EnergyTrend