Tianchen announced on November 13 that Tianchen Green Energy Technology (Wuhu) Co., Ltd., a wholly-owned subsidiary, signed the Strategic Cooperation Agreement with Ningde Times. The two sides agreed to establish strategic partnerships on new energy storage market expansion and project development, smart energy system R & D and integration, and production and sales of related products. The two sides agreed that within 12 months after the signing of the agreement, Tianchen Nengke will strive to purchase no less than 1GWh products from Ningde Times, and within 36 months, it will strive to purchase no less than 5G Wh products.
The announcement also mentioned that under the same market conditions, Ningde Times will become the main supplier of Tianchen Nengke's energy storage products. At the same time, according to the latter's needs, the two sides intend to jointly define and develop batteries with both performance and cost advantages for household storage, industrial and commercial energy storage and power generation side energy storage system applications at home and abroad, so as to help Tianchen Nengke's energy storage business develop with high quality. In terms of
technology, Ningde Times will actively cooperate with the development and production of Tianchen Nengke's energy storage system, provide technical guidance such as technical authorization, production and project site support, professional training, patent incubation, and apply the leading energy storage technology to the latter's product development under the same conditions.
Tianchen Co., Ltd. said that this cooperation will provide the company with batteries with both performance and cost advantages for the new energy project of integrated optical storage, ensure the market competitiveness of the company's delivered products, and enhance the company's technical level in project construction and product production through technical cooperation with Ningde Times; Through the introduction of joint container products, enhance the company's market awareness in the field of energy storage system integration.
It is reported that in May this year, Tianchen shares just crossed the border from the real estate industry to the new energy field. The company signed a new energy industry base project with a total investment of 11.6 billion yuan with the government of Fanchang District, Wuhu City, Anhui Province, as the company's first show in the new field. Before that, the company mainly engaged in real estate sales business, taxi business and property leasing business.
However, although generous, but from the book capital point of view, to support such a large 10 billion projects or pressure, as of April 27, the first quarterly report of 2023, the balance of cash and cash equivalents at the end of the first quarter of the formula is only 598 million yuan. This situation did not improve after the company announced cross-border new energy. By the end of the third quarter, the company's book capital was only 579 million yuan.
In addition to the financial pressure, Tianchen shares pointed out in the company that at present, the company has only more than 10 production and technical managers, and does not have the project experience of complete delivery of energy storage integrated system. The company has insufficient reserves of technology and talents or brings risks to project construction and operation.