Gree Electric’s chairman Dong Mingzhu said that the acquisition of Yinlong is not to increase revenue and enter the automotive field, but to value Yinlong’s lithium titanate battery technology. The battery energy storage market will be a trillion blue ocean.

　　The uproar "Gree builds a car" has finally come to light. On August 23, Gree Electric held a media meeting on the acquisition of Zhuhai Yinlong New Energy Co., Ltd. and its supporting fund-raising plan. Gree Electric’s chairman Dong Mingzhu said that the acquisition of Yinlong is not to increase revenue and cross-border entry into the automotive field, but to value Yinlong’s lithium titanate battery technology. The battery energy storage market will be a trillion blue ocean. "If it is just for the purpose of building a car, for the next 100 billion, then Gree and Yinlong's cooperation is blind, and the core technology of lithium titanate battery is the most important reason for the acquisition."

　　Dong Mingzhu, Chairman of Gree Electric Appliances

　　On the evening of August 18th, Gree Electric, which had been suspended for half a year, issued 35 announcements in a row on the Shenzhen Stock Exchange, and announced the acquisition of Zhuhai Yinlong by a 13 billion yuan additional issue, a 10 billion yuan fixed increase, an employee shareholding plan and the company's semi-annual report. There are also a bunch of audit and evaluation reports, which are returned to A shares in the form of information bombardment.

　　Dong Mingzhu: The acquisition of Yinlong is not for making cars? For batteries!

　　Zhuhai Yinlong signed a three-year gambling agreement with Gree Electric Appliances. Eight issuers including Guangdong Yintong Investment Holding Group Co., Ltd. and Zhuhai Houming Investment Co., Ltd. promised: Zhuhai Yinlong in 2016, 2017 and 2018 The actual net profit in each fiscal year shall be no less than 720 million yuan, 1 billion yuan and 1.4 billion yuan respectively. This puts forward very high requirements for Zhuhai Yinlong's performance growth, with an average annual profit growth rate of 40%. Zhuhai Yinlong Wei Yincang showed full confidence in the performance prospects. He revealed that in July and August this year, he has received more than 3 billion orders, and the market has increasingly recognized Yinlong's products. In previous interviews, Wei Yincang said that Yinlong's output value and profit this year are already within the top five in the industry.

　　Dong Mingzhu: The acquisition of Yinlong is not for making cars? For batteries! Why did Gree spend 13 billion yuan to acquire Yinlong? Dong Mingzhu explained that Gree is optimistic about Yinlong’s value in power batteries and energy storage batteries. Gree’s own intelligent manufacturing, Motors, precision molds, etc. can have a huge synergistic effect with Yinlong, and will also complement each other in terms of "small three-electricity" (electric air-conditioning, electric steering, and electric brakes).

　　"I don't want to enter the automotive industry, I want new energy technology." Dong Mingzhu said quickly, "We started studying home intelligence a long time ago and found that the most indispensable thing is energy storage. So we have the New Energy Research Institute. , But after two years of research, there is no breakthrough. The biggest problem lies in battery technology. It just so happened that we saw Yinlong’s new technology, so we dig into it."

　　According to Zhuhai Yinlong's introduction, lithium titanate battery technology has overcome the five major global problems recognized in the industry: "safety", "consistency", "fast charge and discharge", "lifetime" and "industrialization". The product has 6 The advantages of fast charging and discharging in minutes, wide temperature resistance (-50℃-+60℃), 30-year cycle life, no fire and no explosion, high safety and high efficiency, have great market application prospects and promotion potential.

　　Dong Mingzhu praised Yinlong at the press conference, and even described it as "gold buried in the sand". "The market prospects of Yinlong battery technology are infinite, especially for energy storage equipment, which can replace diesel engine backup power, which can make full use of valley power to reduce costs. It will bring stability to all electrical appliances in the home and low-voltage operation. If all buildings in China are equipped with new Combined with photovoltaic power reserves, it’s a trillion-level market."

　　For Yinlong, it has successively introduced investment from 19 central enterprises, including CITIC Securities, Huarong Asset Management, Sino-Ocean Land, Beiba Media, and Three Gorges Group, and successfully completed two rounds of equity financing. Why are you willing to sell to Gree when funds are not in short supply? Wei Yincang said that Gree's accumulation of brand, electrification technology, and production capacity will bring great help. Cooperation between the two parties can quickly improve efficiency and save a lot of time and cost.　　Dong Mingzhu: The acquisition of Yinlong is not for making cars? For batteries!