Recently, Wu Wei, Director of Machinery Equipment Division of Department of Industry of National Development and Reform Commission, unveiled that the policy makers will release the new Three-Year Action Plan of 2018-2020 to grant sustaining support to new energy automobile in 2017 (Third) Guangzhou International Electric Automobile Industry Summit. He also indicated that the development of new energy automobile not only marks the strategic direction of Chinese automobile industry to transform and upgrade, but also the inevitable option to alleviate energy and environmental constraint and break through the development barriers posed by economy and society. It is the development course which suits for our national conditions and is capable for solving Chinese issues. With the speedy development of new energy power car, the demand for lithium battery market will show the tendency of rapid growth. At the global level, China has become the most energetic area for developing lithium battery.

　　The wholly-owned subsidiary of Far East Smarter Energy Co., Ltd. (hereinafter referred to as "Smarter Energy", stock code: 600869), Far East Forster New Energy Co., Ltd. (hereinafter referred to as “Far East Forster”) is the product and service provider of 18650 battery (model adopted by Tesla). With 8-year technology experience in power system of new energy automobile and field of energy storage equipment, the company manufactures products of various models including 18650-2400mAh, 2600mAh, 2800mAh and 3100mAh, which are extensively applied to new energy automobile and digital domains. Insisting on the orientation of cutting edge technology driving development, the company expands the monomer cell capacity by improving the performance of anode and cathode materials, applying lightweight materials, optimizing structure and adopting other measures. The monomer capacity of power battery in volume production can reach 220Wh/Kg, and the capacity density after bunching will achieve 140Wh/Kg. In addition, the BMS system can achieve 5-level protection, continuously providing customers with the superior solution of power battery. At present, Far East Forster has formed cooperation with such domestic major new energy automobile enterprises as Jiangling Motors Co., Ltd., Chery Automobile Co., Ltd., Brilliance Auto Group, Dongfeng Motor Corporation, Zotye Auto and Shaanxi Automobile Group Co., Ltd., with the cumulative manufacturing of battery pack (unit) for over 50,000 sets, accounting for an increasing greater market share.

　　In scientific research field, Far East Forster annually invested approximately 5% of sales volume to research in recent three years. Nowadays, 42 independent intellectual properties have been obtained, among which, 13 are patents for invention, 22 for utility models, 1 for appearance design, and 6 software copyrights. Meanwhile, the company has established wide industry-university-research cooperation relations with various universities and academic institutions involving Chinese Academy of Sciences, Beijing Institute of Technology, Tsinghua University, Fudan University and Nanchang University. Furthermore, the company has undertaken the construction of National Joint Engineering Research Center on Composite Lithium Battery Manufacturing Technology, Jiangxi Provincial Lithium Battery Engineering Research Center, and Jiangxi Provincial Engineering Technical Research Center on Lithium-ion Battery, as well as being approved to establish the academician workstation and national scientific research station for postdoctoral students. Recently, in the activity of “2016-2017 Selection in Power Battery Industry”, Far East Forster was granted the “Award of Most Valuable for Investment”, which fully demonstrates the recognition and compliment delivered by industrial authorities in its value and development prospect.

　　In order to enhance its voice in industrial competition and expand the market shares, Far East Forster is accelerating to promote the upgrading of technology, improvement of product performance and expansion of capacity, so as to march forward high-energy battery market, adapting to the development tendency of prolonged endurance mileage and improved capacity density of power battery of new energy automobile (particularly pure electric passenger vehicle). The newly established Research and Industrialization Project on Power Storage Lithium Battery with High Capacity Density for Annual Output of 3GWh of Far East Forster has been launched this year, with its key layout on 21700 batteries that can reach a capacity density of 265wh/kg. In this project, 6 new 21700-5Ah production lines of 200PPM will be established. As the overall project is being completed, the general capacity will achieve 10GWh annually by adding the original 18650 production line. Benefiting from this, the capacity of Far East Forster will stride into the first echelon of the country, laying solid foundation for entering the Tesla Supplier System.

　　Under the overall context of consistent rise in price of raw material and “Cost Reduction” development, power battery enterprises will encounter with great pressure. Therewith, Far East Forster indicates that it will constantly improve the levels of automation, informatization, networking and intellectualization by transforming and upgrading the production line, and introduce new and advanced equipment to improve the production process and procedure testing, and increase the production efficiency, qualification rate and consistency of products, thereby, to raise the operation rate of battery product, and reduce the manufacturing cost of product.

　　The statistics have shown that in 2016, the output of lithium battery in China was 64GWh, compared with that of 2012 - 17.2GWh, the compound annual growth rate reaching 38.94% in the 4 years. It is estimated by GGII that, in the imminent 4 years, the domestic output value of lithium battery will achieve the accelerating growth with compound annual growth rate of over 20%. By 2020, the domestic output value of lithium battery will exceed RMB 250 billion. The capacity releasing cycle of high-end lithium battery of Smarter Energy (stock code: 600869) coincides with that of industry requirement, which fully benefits from the development of new energy automobile. If the energy storage market explodes in mid-term, the demand for lithium battery will be further boosted. With the gradual implementation of high-end capacity construction, Smarter Energy (stock code: 600869) will witness its performance prosperity and enter the acceleration phase.