On September 20, Celes Group Co., Ltd. (hereinafter referred to as "Celes") released an announcement announcing that it had signed a partnership agreement with its controlling shareholder, Xiaokang Holding, etc., to jointly invest in "Chongqing Yuxin Chuanneng Private Equity Investment Fund Partnership (Limited Partnership)" (hereinafter referred to as "Chongqing Yuxin Chuanneng"). The company invested 20 million yuan, with a subscription ratio of 3.62%.

According to Tianyancha App, Chongqing Xinchuangnang, a member of Chongqing Yufu Holding Group, was established in July this year and is an enterprise mainly engaged in business services.

The announcement shows that a total of eight companies, including Celis, Xiaokang Holding, Chongqing Yufu Holding Group Co., Ltd. and Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership), participated in the investment, with a total subscribed capital contribution of 553 million yuan. The latter two have the highest proportion of subscribed capital contribution, accounting for 36.2% with a subscribed capital contribution of 200 million yuan. Xiaokang Holding subscribed 10 million yuan, accounting for 1.81%.

Source: official announcement

According to the official statement, the investment focus is on the high-quality target enterprises in the upstream and downstream of the new energy industry chain, and equity investment is made in the growing and mature enterprises, especially in the key fields of new energy (intelligent networking) vehicles, hydrogen energy, energy storage, etc.

In 2019, the Liangjiang Smart Factory of Celestis in Chongqing will be put into operation and become the production base of Interworld M5. In the first half of 2022, the total revenue of Celes Group exceeded 12.4 billion yuan, with a year-on-year growth of 68.14%. The Group said that the sharp increase in revenue was due to the growth of M5 sales; At the same time, the company's new energy business revenue in the first half of the year has exceeded 60% of the total revenue, surpassing the traditional fuel vehicle business revenue for the first time.

On September 17 this year, Celis signed a strategic cooperation agreement with Chongqing Liangjiang New Area Management Committee. According to the agreement, the new energy vehicle upgrading project of Celes will be settled in Longxing Intelligent Network Connected New Energy Vehicle Industrial Park in Liangjiang New Area, Chongqing, and Celes needs to invest 1.5 billion yuan to purchase related equipment and lease related facilities.

Celes said that this strategic cooperation is also another layout of the company's strategic development, which can provide resource support for the company's R&D and production of electric vehicles.

According to the agreement, Chongqing Liangjiang New Area Management Committee is responsible for the investment and construction of plants, infrastructure, related equipment, etc. in the automobile industry park, and also needs to lease the land, plants, facilities and equipment in the automobile industry park related to the new energy automobile upgrading project to Celis or the subject designated by Celis for use, with the lease term of 10 years. According to the plan, the upgrading project will be completed in the fourth quarter of 2023.

It is worth mentioning that the new energy business has become the core growth engine of the company, as Celis Group pointed out in its semi annual report.