www.chinabuses.org: On June 20, Gotion Hi-tech announced that its wholly owned subsidiary Hefei Gotion Hi-tech Power Co., Ltd. secured a 1.5-billion-worth deal with Nanjing King Long Bus Co., Ltd. (hereafter referred to as Nanjing King Long) the day before. According to the two parties contract, Gotion Hi-tech will provide battery systems for Nanjing King Long in 2017.

The deal is expected to further solidify Gotion Hi-tech’s position in the lithium battery industry. It will also help the company to optimize its customer structure, improve its market shares and realize its strategic goals in the coming years. According to staff from Gotion Hi-tech, the deal accounts for 26.78% of the audited business revenue of the company in 2016. As the delivery period occurs in 2017, it will have a positive impact on the company’s business performance in this year.

In 2016 and the first quarter of this year, the shipments of power batteries made by Gotion Hi-tech ranked among the top five in China. Apart from Nanjing King Long, Gotion Hi-tech has already established long-term cooperative ties with some top-tier bus makers such as Zhongtong and Ankai. Currently, it is in negotiation of power battery provision with Yutong.

Some analysts believe that China’s power battery industry has already shown signs of a surplus of production capacity. The newly promulgated subsidizing policy on new energy vehicles which was rolled out at the end of last year will gradually phase out the backward production capacities.

Source : www.chinabuses.org

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