CBAK Energy Announces Framework Agreement to Acquire Majority Stake in Zhejiang Meidu Hitrans

CBAK Energy Technology, a leading lithium-ion battery manufacturer and electric energy solution provider in China, announced that its wholly-owned subsidiary Dalian CBAK Power Battery Co Ltd (CBAK Power) has entered into a framework agreement to acquire a majority stake in Zhejiang Meidu Hitrans Lithium Battery Technology Co (Hitrans), a leading lithium-ion battery material supplier in China.

CBAK Power will acquire 81.56% of the equity interests of Hitrans currently held by Zhejiang Meidu Graphene Technology Co and Hitrans's management shareholders for an aggregate consideration of approximately RMB158.74 million (approximately $24.50 million). The transaction is subject to certain closing conditions, and CBAK Power aims to complete the acquisition in the third quarter of 2021.

Hitrans was established in December 2015 to engage in the research and development, production, as well as sales of ternary precursors and anode materials. Additionally, Hitrans was one of the key suppliers of the Company in fiscal 2020. Through the acquisition, the Company expects to further strengthen its supply chain and competitiveness in the high-power lithium battery market.