China Zhongji Investment participates in a new round of financing for "New Energy Power", laying out in the hydrogen energy field
Recently, China Zhongji Investment completed an investment in Xinyuan Power Co., Ltd. (hereinafter referred to as "Xinyuan Power" or "the Company"). As the lead investor in this round, this marks China Zhongji Investment's gradually expanding investment layout in the hydrogen energy field.
Xinyuan Power Co., Ltd., established in April 2001, is China's first joint-stock enterprise dedicated to the industrialization of fuel cells. The company integrates scientific research and development, engineering transformation, product production, and talent cultivation. It mainly engages in the design, development, production, manufacturing, and technical services of hydrogen fuel cell membrane electrodes, stack modules, systems, and related testing equipment. Xinyuan Power is one of the leading fuel cell companies in China with the earliest start, the deepest accumulation of independent technology, and a comprehensive range of products (covering power systems, electric propulsion, and core components). Since its establishment, the company has undertaken numerous major projects of the National Science and Technology Ministry's "863" Program. In 2006, it was authorized by the National Development and Reform Commission to build the "National Engineering Research Center for Fuel Cells and Hydrogen Source Technology". In the same year, it was authorized by the Ministry of Personnel of China to establish a "Postdoctoral Research Workstation". In 2018, it passed the IATF16949 automotive industry quality management system certification. It is a national high-tech enterprise and a national intellectual property pilot unit.
The company's products have a wide range of downstream applications. It is the first in the industry to apply to various vehicle types, including passenger cars, buses, heavy-duty trucks, and car carriers. Its new products are iterating at an accelerated pace, and production will achieve standardization and scale, with strong market competitiveness. In terms of passenger cars, in 2017, Xinyuan Power provided the stacks for China's first fuel cell passenger car to enter the Ministry of Industry and Information Technology's "Announcement of Road Motor Vehicle Manufacturers and Products" and be sold and operated externally. In 2020, GAC's first fuel cell passenger car used Xinyuan Power's third-generation metal plate stack. In terms of buses, Xinyuan Power provides stacks for SAIC Maxus V80 fuel cell light commercial vehicles and has cooperated with major bus manufacturers such as FAW Bus, Yutong Bus, King Long Bus, and BAIC Foton. In terms of trucks, in 2020, Xinyuan Power signed a strategic cooperation agreement with Ordos to build a hydrogen energy industrial park around hydrogen fuel heavy trucks. In the same year, it signed a framework agreement and initial system orders with Weichi Teng (Fujian) Automobile to provide fuel stacks and systems for its hydrogen-powered heavy trucks exported overseas.
In 2020, the listed company Tenglong Shares became the company's largest shareholder. The company's governance mechanism was improved, and employee incentive mechanisms were implemented, pushing Xinyuan Power onto a path of rapid development. Tenglong Shares makes full use of its own customer resources, manufacturing capabilities, and management experience to provide support for Xinyuan Power in terms of industrial resources and product R&D, helping Xinyuan Power expand new customers. Currently, Xinyuan Power has reached cooperation with FAW, Dongfeng, GAC, and Changan. At the same time, Xinyuan Power has strengthened cooperation with local governments. In 2020, it reached a strategic cooperation with the Ordos government to build a leading domestic hydrogen energy industrial cluster park.
Tan Runzhan, Partner and Managing Director of China Zhongji Investment, said that hydrogen energy is a core component of the new energy system, and hydrogen fuel cells are an important application scenario for hydrogen energy. Against the backdrop of the global consensus on "double carbon" goals and the establishment of specific targets and encouraging policies, the hydrogen energy and fuel cell industry has entered a period of rapid development opportunities. Hydrogen energy will promote the transformation of China's energy structure from traditional fossil fuels to clean and low-carbon fuels. By 2050, the proportion of hydrogen energy in terminal energy consumption may increase to 10%. Under the framework of global carbon neutrality, the environmental friendliness and renewability of hydrogen energy give it a crucial role. In the new energy system, hydrogen energy is considered a high-quality secondary energy source that complements electric energy. As one of the leading fuel cell companies in China with the earliest start, the deepest accumulation of independent technology, and a comprehensive range of products, Xinyuan Power will surely ride the wind of the hydrogen energy industry's development and embark on a path of rapid development.
