FDG Electric Vehicles Limited ("FDG" or the "Group"; stock code: 00729.HK) is an integrated electric vehicle manufacturer listed on the Main Board of the Hong Kong Stock Exchange. The Group principally engaged in (i) vehicle design and the design, manufacture and sale of electric vehicles; (ii) research and development, production and sale of lithium-ion batteries and related products; (iii) research and development, manufacture and sale of cathode materials for lithium-ion batteries; and (iv) direct investments.
In the electric vehicle ("EV") business segment, the Group currently has two advanced pure EV production bases, which are Hangzhou Changjiang EV production base and Yunnan FDG electric buses production base. The Hangzhou Changing EV production base, located in Hangzhou Yuhang Economic and Technological Development Zone, has officially commenced mass production in April 2016, with a designed annual production capacity of 20,000 units of mid-size buses and 80,000 units of passenger vehicles. The production base in Hangzhou is well equipped with international standard production facilities including stamping, welding, painting, assembly and electric control. The Group’s electric buses production base in Yunnan has started operation, which will effectively promote the EV developments in Yunnan as well as the surrounding area. To further expand the Group’s business landscape, the Group is going to build a pure EV production base with a designed annual production capacity of 150,000 units EV in Guian New Area, other than the production base in Zhangzhou and Yunnan. In addition, the Group is committed in the design and R&D of EV through its subsidiary "Jasmin International Auto R&D (Beijing) Co., Ltd", a R&D center of EV. The Group is dedicated in the production of EV with Independent-Forward-Engineering and intellectual property rights.
In the batteries business segment, Sinopoly Battery Limited ("Sinopoly Battery"), a subsidiary of the Group, is an integrated high-tech group which specializes in production, sales and R&D of high capacity lithium-ion batteries and related products. Its products are mainly used in EVs and renewable energy storage systems. Sinopoly Battery has manufacturing factories in both Jilin and Tianjin. The total annual design capacity is 120 million AH and 130 million AH for Jilin and Tianjin base, respectively. In addition, Sinopoly Battery has the R&D support from the Shanghai R&D center.
In the battery material business segment, the Group focused on developing the cathode material business through various investments as well as strategic cooperations. The Group acquired "SK (Chongqing) Lithium Ion Battery Materials Co., Ltd" in October 2015 and renamed it as "FDG Kinetic (Chongqing) Lithium Ion Battery Materials Co., Ltd". It principally engaged in the manufacturing of the cathode materials for NCM lithium-ion battery which can be used in EVs, energy storage system and telecommunication devices, with a current annual production capacity of 2,400 tons. The production capacity is expected to increase to 9,600 tons per year through further expansion. In August 2016, through its subsidiary, FDG Kinetic Limited, the Group entered into a long-term strategic cooperation with ALEEES (listed on the Taipei Exchange, stock code: 5227), which is the primary supplier of Sinopoly Battery, and one of the world’s largest suppliers of LFP battery cathode materials. The completion in equity restructuring and the long-term strategic cooperation will ensure a stable LFP cathode material supply; provide the Group a competitive edge through cost efficient on raw material. Recently, the Group planned to build a LFP cathode material production base in Guizhou province, to further stabilize the supply and to increase the market share.
To conclude, the Group is expanding continuously, improving the technology of Independent-Forward-Engineering, enhancing production capacity, increasing the market share, and establishing a nationwide strategic layout. In the future, the Group will strive to develop a completed integrated business chain with scale, to become a world-class integrated EV enterprise.