Longji Green Energy Heavy Announcement: Performance Growth, Signing Battery Projects, Chairman Takes the Lead in Premium Capital Increase

10, Longji Green Energy issued several announcements in succession, involving performance reports, signing new projects, and increasing the capital of hydrogen energy subsidiaries.

1. Net profit was RMB14.779 billion, representing a year-on-year increase of 62.

The Company achieved a total operating income of RMB128.998 billion in 2022 , representing a year-on-year increase of 60.03% ; The net profit attributable to shareholders of listed companies was 14.779 billion yuan . Year-on-year growth of 62.

2022, the total assets of the Company amounted to RMB140.348 billion, representing an increase of 43.60% as compared with the end of the previous year, and the owners' equity attributable to the shareholders of the listed company amounted to RMB62.114 billion. Up 30.2

% from the end of last year

This project is estimated to be 2024 It will be put into production in the second half of 2020 and reach the production capacity by the end of 2024. The specific implementation progress shall be subject to the progress approved by the company's internal authorities.

Longji Green Energy said that the project is conducive to further enhance the company's high-efficiency battery capacity scale, optimize the company's capacity layout, and enhance the company's profitability and market competitiveness. Since

this year, on January 17, Longji Green Energy issued an announcement on the signing of an investment agreement for the project of producing 100GW monocrystalline silicon wafers and 50GW monocrystalline batteries annually in Xixian New Area of Shaanxi Province in the

April and August is the landing of the project in Leye Base.

3.

bulletin," The capital source of the capital increase is the self-owned or self-raised funds of the relevant parties, which is the first equity financing of Longji Hydrogen Energy since its establishment. The price of the capital increase is 10 yuan/registered capital (the valuation before the capital increase is 3 billion yuan), and the pricing premium is relatively high. Part of the

capital increase comes from the core managers of the team, including Chairman Zhong Baoshen, founder Li Zhenguo, Liu Xuewen, Li Wenxue, She Haifeng and Tian Ye. The chairman and president took the lead in increasing the capital of the hydrogen energy sector at a premium, which undoubtedly demonstrates their confidence and determination in the development of the hydrogen energy sector! As Longji Hydrogen Energy is still in the initial stage, with more R & D investment in the early stage, high-performance products have been introduced to the market one after another and the delivery cycle is longer, resulting in less revenue, unprofitable operating results and tight cash flow.

Longji Green Energy said that this capital increase is based on confidence in the future development of Longji Hydrogen Energy. On the one hand, this capital increase will be conducive to meeting the daily operating needs of Longji Hydrogen Energy and the capital needs for capacity expansion in 2023, effectively reducing the asset-liability ratio, consolidating its capital reserve level, and promoting the development of Longji Hydrogen Energy. On the other hand, it will help to further optimize the governance level and ownership structure of Longji Hydrogen Energy, lay a good foundation for the introduction and incentive of Longji Hydrogen Energy talents in the later period, and maximize the interests of all shareholders.

Longji Green Energy announced that the green hydrogen industry has enough space and the industry will grow rapidly, which provides a strong support for the valuation premium.

Hydrogen energy has the advantages of clean and low carbon, high calorific value, diverse sources, flexible storage and transportation, and low loss. With the acceleration of global carbon neutralization trend and the progress of renewable energy hydrogen production technology, hydrogen energy, especially green hydrogen, as a secondary energy, will play an important role in the global deep decarbonization stage. At present, the main sources of hydrogen production in the world are coal hydrogen production and natural gas hydrogen production (hereinafter referred to as "grey hydrogen"), while the proportion of renewable energy hydrogen production (hereinafter referred to as "green hydrogen") is very low, which is constrained by the technical threshold and high cost, and has not yet achieved large-scale application, but the application is accelerating, the prospects are broad, and the industry space is accelerating. It provides a strong support for the valuation premium of this capital increase.

According to previous reports, after two years of research and development, Longji Hydrogen Energy has launched LONGi ALK Hi1 series alkaline hydrogen production equipment , which is based on the technology of reducing DC power consumption and provides hydrogen production cost optimization solutions for different application scenarios. It has high efficiency and high income. It is estimated that LONGi ALK Hi1 series products can reduce DC power consumption by more than 10% and greatly reduce the unit cost of hydrogen production.