en.Wedoany.com Reported - On the evening of June 24, Shunfa Hengneng issued an external investment announcement, planning to invest approximately 205 million yuan in the construction of a large-scale independent energy storage station project in Xinxiang City, Henan Province. All preliminary approval procedures for the project have been completed, and construction preparations have officially commenced, further improving the company's energy storage industry layout in the Central China region.

Core Project Parameters Finalized, Containerized LFP Solution Accelerates Construction

According to the announcement, the Henan Xinxiang energy storage project plans a construction scale of 100MW/200MWh. The entire station will uniformly adopt lithium iron phosphate (LFP) energy storage batteries. Both the battery system and power conversion equipment will utilize standardized outdoor containerized integrated layout solutions, suitable for rapid large-scale deployment. The overall construction period for the project is approximately five months, ensuring an efficient and controllable construction pace.

In terms of funding, the entire 205 million yuan investment comes from the company's own funds, requiring no external financing. From a corporate governance perspective, this investment falls within the scope of management's autonomous decision-making, does not meet the criteria for a major asset restructuring of the listed company, and does not require review by the board of directors or shareholders' meeting, resulting in higher decision-making efficiency.

Schematic of Containerized Energy Storage Station

Targeting Grid Peak Shaving Services, Supporting Central China's New Energy Consumption

Xinxiang is located in a key area for new energy development in northern Henan. Local wind and solar photovoltaic (PV) installed capacity continues to expand, but the intermittency and volatility of wind and solar output create consumption pressure. Once completed and operational, this energy storage station will be integrated into the regional power grid for unified dispatch, primarily participating in power auxiliary services such as grid peak shaving and frequency regulation. It will smooth out fluctuations in new energy generation, significantly enhance local renewable energy consumption capacity, and align with the industrial direction of Henan Province and Xinxiang City in vigorously developing new energy storage and improving the new power system.

According to the company's estimates, the post-tax financial internal rate of return for the project is expected to reach 8.06% (this is a forecast only and does not constitute a performance commitment), offering stable market-based returns. Leveraging supporting policies in Henan Province, such as province-wide leasing of independent energy storage capacity and preferential spot electricity prices, the station can fully participate in electricity market trading, broadening its profit channels.

Deepening Focus on Energy Storage Core Business, Wanxiang Group's Energy Footprint Continues to Expand

Shunfa Hengneng is the listed platform under Wanxiang Group. After completing its strategic transformation away from real estate, the company established a "One Body, Two Wings" development roadmap, with energy technology at its core, comprehensively deploying clean energy assets in solar PV, wind power, and energy storage. The energy storage business has become one of the core tracks for the company's performance growth.

Xinxiang, as a key hub in Henan Province for the new energy battery and energy storage industry cluster, boasts a complete lithium battery industry chain and specific industrial support policies. The implementation of this energy storage project in Xinxiang is a crucial step for Shunfa Hengneng to deepen its presence in the Central China market. By leveraging local industrial support, grid resources, and policy dividends, the company aims to continuously expand its independent energy storage installed capacity, increase the scale of its clean energy operating assets, and enhance long-term profitability.

Concurrent Reminder of Potential Project Operational Risks

The company also noted that the operation of energy storage projects involves multiple uncertainties: the construction progress may be delayed due to construction environment and supply chain cycles; adjustments to industry policies such as electricity market trading rules, energy storage subsidies, and ancillary service prices could potentially compress project returns; additionally, factors like equipment maintenance and electricity price fluctuations may lead to actual returns falling short of expectations. The company will mitigate related risks through refined project management and diversified trading models.

Industry analysts stated that against the backdrop of accelerating large-scale new energy storage deployment nationwide, independent energy storage stations possess dual attributes of grid necessity and market-based returns. Shunfa Hengneng's continued investment in regional energy storage projects will help it seize the development window for rapid new energy growth in Central China and continuously solidify its core competitiveness in clean energy operations.

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