Shanghai (ZXZC)- Jiangsu Zhongli Group announced that it has signed letter of intent with Shenzhen BAK Battery and a company in Tibet to acquire their stakes in Shenzhen BAK Power Battery.

As the target company’s asset has not been confirmed, the preliminary estimated transaction price is about RMB 10 billion and the final price will be determined by relevant parties after the evaluation of assessment agencies.

On February 8, Zhongli Group announced that in order to expand the development scope, the group plans to invest another RMB 300 million to Shenzhen BAK Power Battery. After the investment, the group will hold 2.93 percent stakes of the Shenzhen-based company.

Zhongli Group released its 2017 financial results on Monday. Last year, its revenue surges 67 percent to RMB 18.85 billion while its net profit skyrocketed 313 percent to RMB 307 million. The earnings per share were RMB 0.48.

Founded in 2001, Shenzhen BAK Battery has developed into a global leading new energy company, whose core business covers lithium ion battery, electric vehicles and battery recycling.

Early in 2006, BAK managed to build fully automatic 18650 cylindrical battery production line and started to produce certain products. What’s more, the battery producer has earned the praise from many automakers such as Zotye, BMW Brilliance, Geely and FAW.