Core Viewpoint - The company has decided to change the use of unutilized fundraising of 366 million yuan from the "Energy Storage Lithium Battery System R&D and Industrialization Project" to the "Green Low-Carbon Technology Transformation Project for Data Centers," pending approval from the shareholders' meeting [1][4]. Group 1: Project Details - The original plan for the "Energy Storage Lithium Battery System R&D and Industrialization Project" included purchasing production and R&D equipment to expand the production capacity of energy storage lithium batteries, aiming to enhance the company's competitiveness in the electrochemical energy storage industry [3]. - The total investment for the project is 540 million yuan, with a construction period of 24 months. The company plans to use 440 million yuan of the raised funds, with the adjusted total investment amounting to 361 million yuan [3]. - The project is expected to add 2 GWh of energy storage lithium battery cell and system assembly production lines upon completion, with the expected operational date set for January 8, 2026 [3]. Group 2: Reasons for Change - The company cited significant changes in the market environment and increased competition in the energy storage industry as reasons for the change in the original fundraising project, leading to increased investment uncertainty [4]. - The company has conducted detailed research and decided to redirect the funds to the "Green Low-Carbon Technology Transformation Project for Data Centers," which has already undergone pilot testing and market validation [4]. - The company is gradually adjusting its product strategy in the energy storage business, focusing on high-integration and high-value-added system-level energy storage products, while opting for a more cost-effective external procurement model for basic cells and modules [4].

Core Viewpoint - The company has decided to change the use of unutilized fundraising of 366 million yuan from the "Energy Storage Lithium Battery System R&D and Industrialization Project" to the "Green Low-Carbon Technology Transformation Project for Data Centers," pending approval from the shareholders' meeting [1][4]. Summary by Sections Project Overview - The original plan for the "Energy Storage Lithium Battery System R&D and Industrialization Project" included purchasing production and R&D equipment to expand the production capacity of energy storage lithium battery systems, aiming to enhance the company's competitiveness in the electrochemical energy storage industry. The project is expected to add 2 GWh of energy storage lithium battery cell and system assembly production lines upon completion, with a total investment of 540 million yuan and a construction period of 24 months [3]. Financial Details - The total investment amount for the project is 540 million yuan, with the company planning to use 440 million yuan of the raised funds. After the adjustment, the total amount of raised funds for investment will be 361 million yuan. The implementation will be carried out by the company's subsidiary, Guangdong Kexin Juli New Energy Co., Ltd., with the expected operational date set for January 8, 2026. As of July 31, 2025, the unutilized balance of the raised funds is 365.87 million yuan [3][4]. Reason for Change - The company cited significant changes in the market environment and increased competition in the energy storage industry as reasons for changing the fundraising project. After thorough research and analysis, the company decided to redirect the funds to the "Green Low-Carbon Technology Transformation Project for Data Centers," which has already undergone pilot testing and market validation. The company will also adjust its product strategy in the energy storage business to focus on high-integration, high-value-added system-level energy storage products, while sourcing basic cells and modules from external suppliers for better cost-effectiveness [4].

Core Viewpoint - The company is shifting its strategic focus from energy storage lithium battery systems to a data center green low-carbon technology renovation project due to market challenges and the need for better capital efficiency [3][5][10]. Group 1: Strategic Adjustments - The company plans to change the use of 366 million yuan of unutilized fundraising from the "energy storage lithium battery system R&D and industrialization project" to the "data center green low-carbon technology renovation project," pending shareholder approval [3][4]. - The original investment plan for the energy storage lithium battery project was 540 million yuan, with 440 million yuan intended for fundraising, but the adjusted total investment is now 361 million yuan for a new 2GWh energy storage lithium battery cell and system assembly production line [4][5]. Group 2: Financial Performance - As of July 31, 2025, the company has 366 million yuan of unutilized fundraising for the energy storage project, which has been delayed due to market volatility and increased competition [5][6]. - The company reported total revenue of 557 million yuan in 2024, an increase of 8.72%, while gross profit was approximately 99.68 million yuan, up 41.21%. However, the net profit attributable to shareholders was a loss of 206 million yuan, a reduction in loss of 8% year-on-year [6][8]. Group 3: Market Conditions - The energy storage sector is currently facing challenges such as price fluctuations in raw materials and increased competition, leading to overall losses in the business [8][10]. - The company acknowledges that the previous market conditions assumed healthy competition, but the current oversupply has significantly altered sales prices and costs, prompting the need for a strategic pivot [10].

Group 1 - The company held its fifth board meeting of 2025, where all members ensured the accuracy and completeness of the disclosed information [1] - The board approved a proposal to change the use of part of the raised funds from the 2022 stock issuance, reallocating 365.8654 million yuan to a new project focused on green low-carbon technology for data centers [1][2] - The total investment for the new project is 413.9781 million yuan, with the company planning to use 365.8654 million yuan from the raised funds [2] Group 2 - The board agreed to amend certain provisions of the company's articles of association to comply with legal regulations and improve business operations [3][4] - The board also approved revisions to the rules governing shareholder meetings to enhance order and efficiency [3] - The board's decisions, including the amendments to governance structures, will be submitted for approval at the upcoming second extraordinary general meeting of shareholders in 2025 [5]