Changhong Energy acquires Shenzhen Juheyuan to complete its business footprint and quickly enter the

According to a news report from Wabei Network on April 11, Changhong Energy (836239) announced that it plans to acquire 61.6981% of Shenzhen Juheyuan's equity for a cash amount of 98.7169 million yuan. Shenzhen Juheyuan is a consumer lithium-ion battery manufacturer, with products primarily used in the e-cigarette sector as well as in the Internet of Things and smart terminals.

Regarding the reason for this acquisition, Changhong Energy stated that the company has long defined its strategic direction in its medium to long-term planning as "expanding lithium batteries, strengthening alkaline batteries, and innovating small micro batteries," intending to quickly enter the small lithium battery sector through industrial mergers and acquisitions to achieve rapid and precise strategic positioning.

Currently, Changhong Energy has a strong accumulation in the lithium and alkaline battery fields. After acquiring Shenzhen Juheyuan, it completes the business footprint of Changhong Energy. The company indicated that through the acquisition of Shenzhen Juheyuan, it can quickly enhance its IoT battery categories and product lines, increase customer stickiness, leverage synergistic advantages, and enhance overall competitiveness, rapidly scaling up its business.

Changhong Energy expects that from 2023 to 2027, Shenzhen Juheyuan's revenue growth rates will be 33%, 23%, 10%, 10%, and 5%, respectively. The projected product revenue during this period will mainly come from e-cigarette batteries, IoT, and smart terminal batteries. It is reported that Shenzhen is one of the main cities for e-cigarette exports in China. According to data from Shenzhen Customs, in the first two months of 2023, Shenzhen exported e-cigarettes worth 7.1 billion yuan, a year-on-year increase of 38.9%.