Center Power to raise USD147.23 million for further investment into Lithium-ion battery business 11-05-2015

Center Power released a proposal recently as to raise about USD147.23 million to construct a 1 billion Wh/a Lithium-ion (Li-ion) battery project. CCM research group considers that it is the rapidly increasing demand that attracts the company to further invest in the power Li-ion battery business. Hopefully, its knowhow on battery manufacturing and energy storage will play a role in its grasping sales during the fierce competition.


On 22 Oct., 2015, Shenzhen Center Power Tech. Co., Ltd. (Center Power, stock code: 002733) released a private placement proposal, to issue <= 70 million shares at USD2.10/share (RMB13.36) for <= USD147.23million (RMB935 million). Of this, about USD128.34million (RMB815 million) is to be used for constructing a 1 billion Wh/a Li-ion battery project, and USD18.90 million (RMB120 million) for the development projects of R&D centre (for fuel battery, etc.) and Internet-based cloud platform (for energy, etc.).  

According to the proposal, the 1 billion Wh/a Li-ion battery project will comprise:

  • 700 million Wh/a power Li-ion battery
  • 200 million Wh/a telecommunications Li-ion battery
  • 100 million Wh/a energy storage Li-ion battery

It is expected that when the project runs at full capacity, the annual sales will reach USD299.19 million (RMB1.90 billion), of which the net profit will arrive at USD39.37 million (RMB250 million).

“We have for years accumulated experience in battery manufacturing and collected industry resources”, said Center Power: “The private placement for the Li-ion battery project construction this time will enable us to quickly seize the opportunities in the alternative energy vehicle, telecommunications and energy storage industries and to strengthen the production capacity and market competitiveness for our Li-ion battery, especially power Li-ion battery business. This will help increase the sales from Li-ion battery and the proportion in the sales mix”.


According to CCM research, it is not a spur of the moment for Center Power to increase the input into power Li-ion battery business now. Early in 2007, the company began to carry out research on the power Li-ion battery at a large scale. To date it has obtained many patents for its design and manufacturing of battery and management system. Specifically, its independently developed lithium ferric phosphate (LFP) battery now is massively applied in the telecommunications base station in China and in Southeast Asia. In H1 2015, the company made the revenue of USD2.52 million (RMB16 million) from this LFP battery business.

In recent years, the power Li-ion battery market has grown well, along with supply shortage, thanks to the rapid development of the alternative energy vehicle industry. “Now our 100 million Ah/a power Li-ion battery production line works at full capacity, however still incapable to meet the market demand”, said Do-Fluoride Chemicals Co., Ltd. in its H1 2015 financial performance. Many companies have increased the input in this field in 2015. For instance:

  • On 10 Aug., China Aviation Lithium Battery Co., Ltd. made a large investment of USD1.97 billion (RMB12.50 billion) to expand the production capacity to 12 billion Wh/a. This was a shock to the industry.
  • On 16 Oct., Sichuan Western Resources Holding Co., Ltd. announced to raise <= USD294.47 million (RMB1.87 billion) to construct a 10 million unit/a power Li-ion battery project

Under such an unexpectedly explosive growth, the long-established energy storage firm Center Power (founded in 1994) cannot keep down its passion. Its further investment into power Li-ion battery business has a clear indication that the company is positive about the prospect of the alternative energy market and is eager to seize the opportunity.

For the time being, the development of China’s alternative energy vehicle industry has not yet reached the peak. The craze to invest in power Li-ion battery sector will continue. It is foreseeable that the industry competition will be very fierce in the future. Center Power, as a traditional energy storage company with long history, holds important weapons in hand - it will struggle for hegemony based on its knowhow on battery manufacturing and energy storage and its sales channels.

For more information of the Li-ion Battery industry, you can check one of CCM products China Li-ion Battery News.

About CCM:

 CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


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