China’s 13th Five-Year Plan for the Development of Strategic Emerging Industries clearly put forward that, by 2020, the production and sales of new energy automobile reach over 2 million the same year, while the cumulative production and sales reach more than 5 million. As the energy storage device, power battery is the core of electric vehicle. Its performance directly influences the market application of electric vehicle and acceptance of ordinary consumer. Measured from the output volume of new energy automobile, the lithium-ion power battery market will maintain a compound growth rate of 40% from 2017 to 2019. In addition, in the Made in China 2025, the development planning of power battery is clearly confirmed: by 2020, the energy density will reach 300Wh/kg; by 2025, 400Wh/kg; by 2030, 500Wh/kg. The industry professionals indicated that, with the policy perfection and industry optimization, the demand of power battery will maintain a rapid growth in the future. The superiority of Far East Smarter Energy Co., Ltd. (hereinafter referred to as "Smarter Energy", stock code: 600869) in the sectors of technology R & D and production scale is advantageous to the company to seize the initiative in this large-scale production expansion and benefit from the prosperity of the lithium-ion battery industry.

    With 9 years of technology accumulation and anticipative advantage in the new energy battery market, Smarter Energy (stock code: 600869), the product and solution provider of the ternary material 18650 lithium-ion battery (Tesla model) ranks the first domestically and the third worldwide. The energy density of a single power battery which is produced in bulk can reach 220Wh/Kg, while that of the power battery pack can reach 140Wh/Kg. Meanwhile, the BMS system can protect power batteries to the 5th level. The battery pack, which adopts the lightweight material and is optimized the structure, consistently provides the best solution of power battery for customers. Until now, Smarter Energy has supplied more than 30,000 sets of power battery packs for new energy automobile enterprises such as Jiangling Motors, Zotye Auto, Dongfeng Motor, Chery Automobile and Shaanxi Tongjia Automobile. For the further improvement of the market competitiveness, Smarter Energy (stock code: 600869) is speeding up to promote the product performance and capacity expansion.

    The R&D and industrialization project to newly establish 3Gwh high energy density energy storage lithium-ion power battery has been launched this year. The project focuses on the 21700 batteries, aiming to enter the market of high capacity battery to respond to the development trend of prolonging the endurance and improving the energy density in the industry of new energy automobile (particularly the pure electric passenger car). Furthermore, this project is scheduled to newly establish 6 production lines to manufacture 21700-5Ah battery of 200PPM. With the completion of this goal, and complemented the former production lines of 18650 battery, Smarter Energy would achieve the target of 10Gwh production capacity annually. Thus, Smarter Energy will enter the first echelon of production capacity in China which lays a solid foundation for the company to access the Supplier System of Tesla.

    At the same time, the Yixing Base, Jiangsu Province of Smarter Energy (stock code: 600869) still accelerates to launch the 12Gwh project which is scheduled to conduct gradual operation in 2018. On the occasion, the total planning production capacity will achieve 22Gwh. It is reported that this project aiming to manufacture soft package and square power batteries (the production capacities of these two sorts of batteries are equal) is the crucial layout that is beneficial to the company to enter multiple market on the basis of the long developed field of cylindrical battery. Moreover, the project is also favorable for Smarter Energy to consolidate and expand the advantageous status in the emerging sectors of strategic importance - new energy power battery industry to lead the world.

    The representative of Essence Securities said that the country has clearly put forward the standpoint to promote the development of new energy industry. With the relatively strong force of point redemption scheme, the sales volume of new energy automobile is expected to sustain a rapid growth to drive the demand of lithium-ion battery and manufacturing facilities keeping a high rate. As the demand of energy storage system is increasing speedily, the competition pattern that the top enterprise would hold advantages may appeared. Smarter Energy (stock code: 600869), with its high battery production capacity and performance, is worthy of expectation in the marke