Kolyuan Increases Investment by 500 Million Yuan in Energy Storage Industry Fund Expansion

On May 23, Kolyuan (600478) announced its intention to collaborate with Zhongchuang Xinhang Technology Group Co., Ltd. in expanding the energy storage industry fund. The total committed capital for the fund will increase from 402 million yuan to 1.402 billion yuan, with Kolyuan adding 500 million yuan to its investment, raising its total commitment to 700 million yuan.

Kolyuan primarily focuses on battery and material production, building a comprehensive supply chain based on nickel-metal hydride batteries. The company ensures a steady supply of materials for power batteries while maintaining sales of consumer batteries and materials. Additionally, Kolyuan is extending its reach into the upstream lithium battery industry, establishing an integrated process that includes mining, ore selection, and lithium carbonate processing, thus securing raw material support for the downstream lithium battery and energy storage markets.

In January 2024, to meet strategic development needs and create an industrial ecosystem, Kolyuan, along with Zhongchuang Xinhang, Kaibo (Hubei) Private Equity Fund Management Co., Ltd. (referred to as “Kaibo Capital”), and Shenzhen Yuankehui Storage Investment Co., Ltd. (referred to as “Yuankehui Storage”), jointly invested in the establishment of the energy storage industry fund.

As disclosed, on May 22, this energy storage industry fund had already made external investments totaling 163 million yuan, successfully investing in Jingxing Kairui New Energy Technology Co., Ltd. and Wangdu Kairui Intelligent New Energy Technology Co., Ltd. for the construction of independent energy storage station projects. The 200MW/400MWh independent station project in Jingxing, Hebei, is a key project in the province, expected to be operational by December 2024, with commercial operation completed by February 2025. Similarly, the 100MW/200MWh independent station project in Wangdu has also successfully connected to the grid by March 2025, with commercial operation completed by May 2025.

Moreover, the Boye Kairui Intelligent New Energy Technology Co., Ltd. is set to develop a 100MW/200MWh independent station project, and Zhucheng Haoyu New Energy Technology Co., Ltd. is also preparing for a 100MW/200MWh independent station project, having received the necessary approvals for construction.

Kolyuan stated that it will contribute to the energy storage industry fund in phases, depending on the actual progress of the projects. Zhongchuang Xinhang will also provide funding in a similar proportion and timeframe.

The company aims to leverage its upstream lithium mine and lithium carbonate resources to extend its presence in the energy storage ecosystem. Kolyuan envisions collaborating with high-quality upstream and downstream companies in the energy storage industry to form an innovative industrial alliance, thereby expanding the energy storage market and fostering mutually beneficial development with partners.

This participation in the fund expansion is based on the successful business model from previous investments, which will further enlarge the fund size, accelerate company integration and development, and cultivate new economic growth points. It is expected to strengthen the company, enhance its core competitiveness, diversify its business model, optimize its profit structure, and improve its capital operation capabilities.

According to financial reports, Kolyuan achieved an operating revenue of 3.938 billion yuan in 2024, reflecting a year-on-year growth of 6.3%, with a net profit of 78.14 million yuan, reversing previous losses. In the first quarter of this year, Kolyuan continued its growth trend, with an operating revenue of 886 million yuan, a year-on-year increase of 39.2%, and a net profit of 36.94 million yuan, up 9.5% from the previous year.

As per prior announcements, Kolyuan is actively expanding its energy storage project operations in provinces and autonomous regions, including Hebei, Shandong, Guangdong, Jiangsu, Zhejiang, and Inner Mongolia, in collaboration with partners from the large energy storage ecological innovation alliance. According to an announcement on April 28, Kolyuan is expected to secure a 100MW/200MWh independent energy storage station in Baoding, Hebei, and Zhucheng, Shandong.

Kolyuan emphasized that the independent energy storage stations will serve as a starting point to promote further application scenarios and expand its influence in the energy storage sector, which, in turn, will positively impact its core business. The year 2025 is anticipated to be a breakout year for Kolyuan’s energy storage business.