On December 20, Tianchen Co., Ltd. issued an announcement stating that its wholly-owned great-grandson company, Tianchen Energy Storage Technology (Wuhu) Co., Ltd., has signed an agreement with Yancheng Daxiang New Energy Co., Ltd., planning to jointly invest in establishing a new company to jointly develop the full industrial chain of the energy storage market.

According to the announcement, Tianchen Energy Storage and Daxiang New Energy have signed the Joint Venture Contract and Cooperation Memorandum. The joint venture to be established by the two parties will be named Tianchen Daxiang Energy Technology Co., Ltd., with a registered capital of RMB 50 million. Among this amount, Tianchen Energy Storage Technology will subscribe for RMB 25.5 million worth of capital contributions, holding a 51% stake; while Daxiang New Energy will subscribe for RMB 24.5 million worth of capital contributions, holding a 49% stake.

In addition, after the establishment of the joint venture, it is planned to allocate 20% of the joint venture's equity held by Daxiang New Energy for the equity incentive plan in the form of an employee stock ownership platform. The incentive targets will be the senior management and core technical personnel assigned to the joint venture by both parties. The specific plan and list of personnel shall be implemented upon approval by the shareholders' meeting of the joint venture.

As of the date of the announcement's disclosure, the joint venture has not yet been established. The final details such as its name, registered address and business scope are subject to the approval of the local administrative department for industry and commerce.

Source：EnergyTrend