Century Energy Announces Cooperation Framework Agreement with Shendianneng Technology, Plans to Expand Business into Electrochemical Energy Storage Power Plants
Century Energy International Holdings Limited (Century Energy, or the “Company”, together with its subsidiaries the “Group”, HKSE Stock Code: 8132) announced a cooperation framework agreement with Shendianneng Technology Group Co., Ltd. (”Shendianneng Technology”) for a possible business cooperation in relation to energy storage power plants (the ”Cooperation Framework Agreement”). This framework agreement with Shendianneng Technology is the third business development of the Group following a new management team on board in early October 2021.
Pursuant to agreement, Shendianneng Technology may refer projects related to electrochemical energy storage power plants to Century Energy for consideration of investment, and if the investment in the projects related to electrochemical energy storage power plants are approved by Century Energy, the Group may invest in such projects and be entitled to the title and the revenue generated by such projects. The Company may also give priority consideration in engaging Shendianneng Technology for the design and construction of the electrochemical energy storage power plants on same terms offered by other parties. Upon the completion of construction of the electrochemical energy storage power plants, Century Energy may engage Shendianneng Technology in managing the operations of such plants.
Shendianneng Technology is principally engaged in electricity retailing, electricity distribution, electric vehicle charging business, software development and photovoltaic power generation business. It is held as to 50% by Shenzhen National Electricity Investment Partnership (Limited Partnership) , 40% by BYD Company Limited (HKSE Stock Code: 1211) and 10% by Shenzhen Canyou Group Co., Ltd.
Commenting on the latest business development, Mr. Cheung Yip-sang, CEO of Century Energy, said, “We are pleased to enter into the cooperation with Shendianneng Technology to jointly develop the user-side energy storage business in response to the national power reform and new energy development policies. The Chinese government implemented a new policy last month, allowing a widened electricity price fluctuation range to reflect supply-and-demand situations. The energy storage business we plan to develop will allow industrial and commercial users to store and use energy as needed, thereby helping users stabilize electricity supply and reduce electricity costs. Shendianneng Technology, backed by its strong shareholding background, has an extensive industry network and a strong pool of talents in the electrochemical energy storage sector and electricity retailing. Through this framework agreement, Century Energy will be able to further develop and expand its business in electrochemical energy storage power plants. It also complements the business strategy of the Group in establishing our core competitiveness in the fields of new energy materials, energy saving and environmental protection and digital technologies for energy safety.”
The Group announced last month two other strategic cooperation agreements in relation to business development and financing arrangement. It entered into a non-legally binding strategic cooperation framework agreement with Yantai Yindu Industry Co., Ltd. and Shandong Pan-Asia International Energy Distribution Center Co., Ltd. (“Shandong Pan-Asia”) which will result in the acquisition of a 51% equity interest in Shandong Pan-Asia. Through this agreement, the Group will be able to invest in Yantai Xigang liquefied natural gas (“LNG”) receiving terminal and gas pipelines projects. Subsequently on 11 October 2021, the Group entered into a non-legally binding strategic cooperation agreement with Beijing Qinglu Zhongbing Asset Management Co., Ltd., under which the two parties may establish funds or joint venture companies to provide funding, if needed, to support the Group’s future business development needs.
About Century Energy International Holdings Limited (SEHK stock code: 8132)
Century Energy International Holdings Limited, formerly known as China Oil Gangran Energy Group, is an emerging energy company with a corporate mission to “Benefit People’s Livelihood with Clean Energy and Technology and Innovation”. The Company focuses on the development of the clean energy industry chain and adeptly utilises the R&D results of frontier technology in order to explore and advance industrialisation in energy technology and to connect and integrate with quality projects and resources in China and overseas. The Company aims to create substantial synergy between capital, technology, business and operational management and strives to establish its core competitiveness in the fields of new energy materials, energy saving and environmental protection and digital technologies for energy safety, developing into a respected technological energy corporation with influence across the industry.