① The “cross-border new energy” housing company Tianchen Co., Ltd. announced that Tianchen Energy Technology, a wholly-owned subsidiary, signed a “strategic cooperation agreement” with Ningde Times. ② The parties agree that within 12 months after this agreement is signed, Tianchen Energy will strive to purchase no less than 1 GWh products from Ningde Era; within 36 months, Tianchen Energy will strive to purchase no less than 5 GWh products from Ningde Era.
Financial News Agency, November 14 (Reporter Zeng Chuchu)“Cross-border new energy” housing enterprise Tianchen Co., Ltd. (600620.SH) “binds” the Ningde Era (300750.SZ) with orders.
Tianchen Co., Ltd. announced yesterday that Tianchen Energy Technology, a wholly-owned subsidiary, and Ningde Times have signed a “Strategic Cooperation Agreement”. The two sides have agreed to establish a strategic partnership on new energy energy storage market expansion and project development, smart energy system R&D integration, and production and sales of related products. Both parties agree that within 12 months after this agreement is signed, Tianchen Energy will strive to purchase no less than 1 GWh products from Ningde Era; within 36 months, Tianchen Energy will strive to purchase no less than 5 GWh products from Ningde Era.
The announcement mentioned that Tianchen Energy Technology lists Ningde Era as its main supplier of energy storage products (batteries, DC side, energy storage systems) under the same market conditions. At the same time, Ningde Era is willing to give priority to meeting Tianchen Energy Technology's needs in business operations and ensure that Tianchen Energy Technology is provided with the most advanced technology equipment and the best quality services at competitive prices under the same conditions. According to Tianchen Energy's needs, the two sides plan to jointly define and develop batteries with both performance and cost advantages for domestic and commercial storage, industrial and commercial energy storage and power generation side energy storage systems applications at home and abroad.
In terms of technical cooperation, according to market demand and technological development, Ningde Era cooperates with Tianchen Energy Technology in the development and production of energy storage systems; on the premise of meeting the technical management requirements of the Ningde Era, it provides technical guidance such as technical licensing, production and project site support, professional training, and patent incubation for Tianchen Energy Technology; under the same conditions, Tianchen Energy prioritizes cooperation with Ningde Era to develop battery products under the same conditions.
Tianchen Co., Ltd. stated in the announcement that the signing of a cooperation agreement with Ningde Times is in line with the company's overall development strategy and business development needs, and that the company has previously signed a project investment contract with the People's Government of Fanchang District of Wuhu City. According to reports, the project plans to invest a total of 11.6 billion yuan. The project construction includes the construction of a new 20 GW high-efficiency solar cell and an integrated manufacturing project for 20 GW energy storage converters and energy storage systems.
The first phase plans to invest 3.6 billion yuan to build a 5GW high-efficiency solar cell+6GW energy storage converter and energy storage system integrated manufacturing production line. The company has now completed the bidding for the first phase of the energy storage workshop. Construction of the base officially began in September, and it currently does not have the capacity to produce integrated energy storage systems. Before the production base is put into production, energy storage products are to be produced and delivered by OEM (OEM contract processing and production), and orders for self-produced products can be delivered after the production line is completed. Subsequent projects may have uncertain risks, such as the construction progress of the Wuhu plant falling short of expectations and OEM production and delivery not meeting expectations.
In the first half of this year, Tianchen Co., Ltd. announced that it will spend 10 billion dollars to “cross borders” from real estate to the photovoltaic and energy storage industries. Previously, its main business included Tianchen Health City project development, Tianchen rehabilitation hospital construction, taxi passenger transportation, and property leasing. This year's semi-annual report shows that 94% of the company's revenue comes from real estate sales.
As of the third quarter of this year, the company's account capital was 579 million yuan. Tianchen Co., Ltd. stated in its announcement that the subsequent investment will be resolved through its own capital and external financing, and there is uncertainty. According to the project investment agreement, the project plant was built on behalf of the government. Up to now, the company has not invested in the project; the production equipment, etc. required for subsequent projects will be invested by the company with its own capital, and the company has promised to make a one-time repurchase of the contracted plant with its own funds in the 6th year after the plant and supporting facilities have been delivered for inspection.
The announcement suggests that the company has insufficient technical and talent reserves, which poses risks to project construction and operation. Tianchen Energy Technology currently has more than 10 production technology managers, mainly responsible for order management and technical control. As a single entity, it does not yet have project experience in fully delivering integrated energy storage systems.