On the evening of May 12, EVE Lithium announced that its wholly-owned subsidiary EVE Malaysia signed a memorandum of understanding with PKL on the same day. EVE Malaysia intends to purchase land from PKL and establish a lithium battery manufacturing plant in Malaysia.

Regarding this investment plan, Yiwei Lithium Energy previously disclosed an announcement in October 2022. Both the company's board of directors and the general meeting of shareholders reviewed and approved the company's grandson company's proposal to invest in the construction of a cylindrical lithium battery manufacturing project in Malaysia. The investment amount does not exceed 4.22. One hundred million U.S. dollars.

The announcement shows that the partner PEMAJUKELANGLAMASDN.BHD. is a company registered in Kedah, Malaysia (Kedah State), and has no relationship with the company. PKL wishes to sell and EVE Malaysia wishes to purchase from PKL the land agreed in this MOU, which measures approximately 66.58083 acres. The purpose of this Memorandum of Understanding is to document the understanding between the parties and to establish mutual agreement with respect to the purchase of the subject land by EVE Malaysia. The purchase price of the land is RM164 million.

The date of this memorandum of understanding shall be the effective date and shall continue to be effective until both parties effectively sign the final agreement, or until one party legally issues a notice of termination of this memorandum of understanding to the other party in accordance with the provisions of this memorandum of understanding. According to the agreement in the MOU, EVE Malaysia shall deposit and pay RM2 million to the bank escrow account as a refundable good faith deposit, and at the same time, it shall be part of the payment for EVE Malaysia to purchase the target land.

The investment announcement disclosed by Yiwei Lithium Energy in October 2022 shows that the cylindrical lithium battery manufacturing project mainly produces cylindrical lithium-ion power tools, two-wheeled vehicles and cleaning tool battery products. It will be constructed in phases, and the construction period will not exceed three years. The project will rely on domestic manufacturing advantages and operating experience, build a production base in Malaysia, and build a new 21700-type ternary cylindrical battery production capacity to support electric two-wheeler and electric tool manufacturers in Malaysia and Southeast Asia.

Regarding the signing of this memorandum of understanding, Yiwei Lithium Energy stated that it marks the effective advancement of the cylindrical lithium battery manufacturing project, which is conducive to both parties giving full play to their respective resources and advantages, and further meeting the company's needs to expand the production capacity of cylindrical batteries to support supporting facilities. The company is an electric two-wheeler and electric tool manufacturing enterprise in Malaysia and Southeast Asia, and continues to consolidate and enhance the company's influence, comprehensive competitiveness and internationalization level in the electric two-wheeler and electric tool market. move.

However, Yiwei Lithium Energy also reminded the risk that this memorandum of understanding is to record the understanding between the two parties, and the specific matters will be stipulated in the final sale and purchase agreement signed by the two parties, which is still uncertain; the impact on the company's financial status this year is still uncertain.

Coincidentally, just two days ago, Yiwei Lithium Energy disclosed another announcement on the progress of overseas investment and construction of factories.

According to the announcement, the company's wholly-owned subsidiary Yiwei Hungary signed a land purchase agreement with a subsidiary of the Debrecen City Government in Hungary to purchase land in the Northwest Industrial Zone of Debrecen for the production of cylindrical power batteries. The parties declare that the land is registered in the Land Registry and has an area of 45 hectares as indicated in this agreement. The land purchase price agreed by both parties is 22.5 euros per square meter + value-added tax. Based on the total land area, the purchase price is 12.8588 million euros.

This matter is a further implementation of the investment intention disclosed by Yiwei Lithium Energy in March 2022. According to the company, this transaction will effectively meet the company's future development needs for production land, and will help all parties to give full play to their respective resources and advantages, further expand the production capacity of power storage batteries, and continue to consolidate and enhance the company's new energy industry. The company's influence, comprehensive competitiveness and internationalization level are important measures for the company to improve its global industrial layout.

In addition to developing overseas production capacity, Yiwei Lithium Energy has also increased its layout in overseas resources (cobalt, nickel, etc.). On April 25, Yiwei Lithium Energy announced that it plans to use its own funds of no more than 228 million US dollars to increase the capital of its subsidiary Yiwei Asia Co., Ltd., which will be used in Yiwei Asia in accordance with the "Indonesia Huayu Nickel Cobalt Laterite Nickel Ore Hydrometallurgy Project" Joint Venture Agreement" to contribute capital to its joint venture Huafei Nickel Cobalt (Indonesia) Co., Ltd. After the capital increase is completed, the registered capital of EVE Asia will be changed from US$500,000 to US$228.3 million, and the company will still hold 100% of its shares.

At the recently held 2022 annual performance presentation meeting, Yiwei Lithium Energy responded to investors’ questions about overseas layout and said that after years of development, the company’s battery products have already possessed strong international competitiveness, and they have now become top-notch companies overseas. Customers supply in bulk. The company will rationally arrange and plan production capacity construction according to customer needs and in combination with relevant domestic and foreign policies.