CBAK Energy Completes Majority Stake Acquisition in Hitrans

Upon closing of the transaction, CBAK Power is now the largest shareholder of Hitrans owning 81.56% of its equity. Hitrans, the Zhejiang-based company, focusing on manufacture and sales of NCM precursors and cathode materials including NCM811, has been selected as one of small and medium-sized enterprises that dominate major markets in niche sectors with a wide spectrum of government support like financial and tax incentives to propel them to further grow into small giants. 

Additionally, Hitrans was awarded several times as one of Chinese Top Ten Brands of Cathode Materials for Power Lithium Batteries and won the 2020 Technology Innovation Award from the China Industrial Association of Power Sources.

These achievements exemplify strong industry recognition to the quality of Hitrans's solid performance and advanced technologies. Hitrans has an annual production capacity of 12,000 tons of NCM precursors and 8,000 tons of cathode materials, with both planned to expand to 50,000 tons by 2023.

Through the acquisition of a key supplier to CBAK Energy, the Company expects to further enhance its supply chain and competitive advantages in the high-power lithium battery market and bring more value to customers and shareholders.

Mr. Yunfei Li, Chief Executive Officer of CBAK Energy commented," The closing of this deal heralds an exhilarating time of renewed opportunity for us. By building a tighter relationship with Hitrans, which has also been a critical supply chain partner of our Company, we believe this offers CBAK Energy a unique vantage point to cope with rising challenges from supply chain constraints in the short run. In the longer run, we hope this deal will unlock incredible potential for both companies to seize and tap into growing opportunities available in the burgeoning electric vehicle industry."