Events:

1. Buddha plastic Technology issued an announcement that the company plans to resume trading on February 22. During the suspension period, the company will conduct project research on the plan to prepare non-public offerings for the layout of new energy vehicle power batteries, and discuss the project with relevant partners. According to the disclosure of information in accordance with the company announcement, the company intends to raise 1.3 billion of the capital.

two。 On December 18, 2015, the company disclosed the framework of the cooperation agreement signed by the company and signed a framework cooperation agreement with partners on power battery-related equity transfer and capacity construction.

3. The two sides made an agreement on the performance commitment of Shanghai Delang and your construction project.

Comments:

1. Shanghai Delang is the main technology importer and production management participant in this cooperation.

Delaneng was founded in 2001 and has been engaged in the research and manufacture of lithium batteries for 15 years. The company has rich experience in the production of 18650 cylindrical batteries. at the same time, it is also the main supplier of space-time electric cylindrical power batteries in Zhejiang. According to Delong can disclose information, the company currently has a variety of battery production capacity.

two。 Space-time electric and its related parties are the main downstream demand side of this cooperation.

As an innovative company in the field of new energy vehicles, Spatio-temporal Electric effectively integrates upstream domestic power battery production resources with downstream vehicle production resources by virtue of its technology in the field of battery packaging. develop cost-effective new energy vehicle products targeted to specific markets. When we investigate the space-time electric, we know that the market popularity of the company's pure electric small passenger cars, pure electric light passengers and the coming pure electric logistics vehicles is very high.

3. The significance of this cooperation

Buddha Plastics previously had a small presence in the field of new energy vehicles (Jinhui Tech, a subsidiary of Jinhui Tech, mainly manufactures lithium diaphragms), which accounts for a relatively small share of the company's revenue. Through the cooperation with Space-time Electric and Shanghai Delaneng, the company can quickly cut into the more valuable power battery production link, while the stable downstream demand can provide a stable sales market for the company's power battery production capacity. In addition, the space-time electric in the new energy vehicle manufacturing and operation and other related projects, is also expected to gradually introduce the future development layout of Buddha plastic technology through this cooperation.

In short, the development of power battery business is expected to continue to improve the profitability of Buddha plastic technology, at the same time, the development of new business will continue to expand the growth space of Buddha plastic technology.

Risk Tips:

This time with time and space electric and related parties, and Shanghai Delaneng signed only a framework cooperation agreement, and the company has not yet formally introduced equity financing plan, so there is some uncertainty in this cooperation.