Shanghai (ZXZC)- Bicon Pharmaceutical released announcement on October 23rd that it plans to establish Jiangsu Beidu New Energy Company in Xinyi City, Jiangsu Province with an investment of RMB 500m to expand its industrial chain in new energy segment. All registered capital funds for the new company are paid by Bicon Pharmaceutical, which holds 100% of the target company.

Bicon Pharmaceutical expresses that the investment makes full use of its own competitive strengths in new energy segment and responds with the national policy in developing new energy industry. It will consolidate its market position in new energy industry, as well as strengthen the continuous profitability and comprehensive competitive power by seizing market opportunities and taking efforts in new energy segment.

Announcement shows that the new company’s operation scope contains lithium carbonate, butyl lithium, lithium-ion batteries, and other new energy materials. It will also operate in the research, development, production, sales and related technological services of lithium-ion battery electric vehicles.

Bicon Pharmaceutical also released its 2017 Q3 report, showing that its total operating revenue reached RMB 3.23b with a year-on-year growth of 23.75% in the previous three quarters this year. Net profit attributable to shareholders reached RMB 621m with a year-on-year decrease of 9.96%. The operating revenue and net profit attributable to shareholders in Q3 alone reached RMB 1.56b and 165m, growing 89.93% and decreasing 19.53% year on year respectively.

In the meantime, Bicon Pharmaceutical also released its 2017 performance forecast, expecting that the total net profit would reach RMB 811m to 1,097m this year with a year-on-year change between decreasing 15.00% to increasing 15.00%.