On July 19, 2018, “GAC-CATL Battery JV Project Agreement Signing Ceremony” was held in Guangzhou. Guangzhou Automobile Group Co., Ltd. (“GAC”) and CATL New Energy Technology Co., Ltd. (“CATL”) will establish two joint ventures in Guangzhou in the field of power batteries. Zeng Qinghong, Chairman of GAC, and Zeng Yuqun, Chairman of CATL attended the ceremony and witnessed the signing. Wu Song, Executive Vice President of GAC and Tan Libin, Vice President of CATL, signed the two joint venture contracts on behalf of both Parties.

Representatives of both Parties Signed the Joint Venture Contract

Group Photo of Leaders of both Parties attending the Signing Ceremony (from Left to Right: Wu Song, Zeng Qinghong, Zeng Yuqun, Tan Libin)

　　“GAC-CATL Power Battery System Co., Ltd. (Interim)” ( “GAC-CATL”)will be established. The joint venture will be engaged in the development, production and sales of power battery systems, and power battery technology development. The registered capital of the joint venture is 100 million yuan. GAC holds the share of 51% and CATL holds 49%.

　　“CATL-GAC Power Battery Co., Ltd. (Interim)” (“CATL-GAC”) will also be established. The joint venture will be engaged in the development, production and sales of lithium-ion batteries, power batteries and ultra-large capacity energy storage batteries and provision of related after-sales and technology consultation service. The registered capital of the joint venture is 1 billion yuan. CATL holds the share of 51% and GAC holds 49%.

　　New energy vehicle is the key development direction of the future industry, and an important part of Guangzhou’s efforts to build a new industrial cluster and a modern manufacturing system. Establishment of two power battery joint ventures in Guangzhou will further promote the development of Guangzhou’s auto industry and contribute to Guangzhou’s leading role in the auto sector nationwide.

　　The cooperation between GAC and CATL can give full play to their respective R&D, technology and manufacturing advantages in the new energy field, and enhance the market and industry competitiveness of products of both Parties. For GAC, this cooperation will secure stable supply of core components of new energy vehicles, further reduce procurement cost, and enhance its market competitiveness. For CATL, combining the advantages of its battery technology with GAC’s accumulation of technical experience in the field of new energy vehicle will accelerate the development and production of lithium-ion power batteries. Besides, it will help design power battery products more suitable for new energy vehicle and meet GAC’s need of massive production of new energy vehicle.

　　GAC is the domestic first large state- holding automobile group to realize the overall listing of A+H shares (A-share code 601238, H-share code 02238). In 2017, the vehicle production and sales exceeded 2 million units for the first time, a year-on-year increase of 21.54% and 21.27% respectively. In 2017, it was No.238 in the Fortune Global 500. After more than ten years of unremitting efforts, GAC has owned a wealth of technology concerning the new energy vehicle and successively launched such models as GA3S PHEV, GS4 PHEV and pure electric intelligent connected SUV GE3. On April 27, 2017, construction of GAC’s Industrial Park for Intelligent and Connected NEVs (“the Park”) with an overall planning area of about 7500 mu(500 hectares) was officially started. The Park is scheduled to turn out 400,000 new energy vehicles per year. The first phase of the project with an annual capacity of 200,000 units will be completed by the end of this year. GAC will cooperate with partners to complement each other’s resources and seek synergistical development. By building the industrial park as a manufacturing and sharing platform for intelligent connected new energy vehicle, GAC will finally form an open and innovative ecosystem of the whole industry chain to integrate smart life.

　　CATL was established in 2011 and listed on the GEM on June 11, 2018 (stock code: 300750). CATL has owned a complete R&D and manufacturing capability in the field of power and energy storage batteries and core technology of the entire industry chain of materials, battery cells, systems and recycling. In the field of electric vehicles, CATL has established in-depth cooperation with top international automakers and many well-known domestic automakers to develop and produce power battery systems for pure electric vehicles and hybrid vehicles for global customers. In 2017, CATL’s sales of lithium battery was 11.84GWh, ranking first in the world. At present, CATL has mastered 15-minute fast charging technology. The energy density of the passenger car battery has reached 240Wh/kg, and it is expected to reach 270Wh/kg in 2020.

　　In the future, GAC and CATL will conduct deeper and more sincere cooperation, unswervingly promote the electrification, intelligence, connectivity and sharing of the automobile industry, and create a technological and efficient way of mobility mode. As a mobility service provider, GAC will continue to create new value for users’ mobility life and advance progress of industry and new energy undertakings.