17 May 2022, EVE Energy and Shenzhen Smoore (being a subsidiary of Smoore International Holdings Limited, HK.6969) entered into the Joint Research and Development Agreement in respect of the research and development of a new battery for e-cigarette products.
In consideration of RMB26,000,000 to be provided by Shenzhen Smoore in stages, EVE Energy agreed to develop a new battery for e-cigarette products. EVE Energy and Shenzhen Smoore agreed to jointly own any and all patent and intellectual properties resulting from the Joint Research and Development Agreement, and EVE Energy agreed to produce the battery developed under this agreement for Shenzhen Smoore at a price to be agreed. The Agreement is effective from 17 May 2022 and ends on 31 December 2024.
Within 20 days of 17 May 2022, EVE Energy shall complete and provide a sample battery to Shenzhen Smoore. Shenzhen Smoore is expected to issue a written acceptance certificate within 7 business days thereafter.
On or before 30 September 2022, EVE Energy shall have the capacity to produce the battery at the rate of 50,000 batteries per day. EVE Energy shall provide Shenzhen Smoore by that day with the trial batch of prototype batteries. Shenzhen Smoore is expected to issue a written acceptance certificate within 7 business days thereafter.
EVE Energy is listed on the Shenzhen Stock Exchange with stock code 300014, and, together with its subsidiaries, is principally engaged in the manufacture of batteries. So far as the Directors are aware, EVE Energy is a leading battery manufacturer and a supplier of battery products for vaping devices. EVE Energy is also a Controlling Shareholder of Smoore International Holdings Limited(in which EVE holds about a 31.6% share)
Shenzhen Smoore is a wholly-owned subsidiary of Smoore International Holdings Limited. Its principal activities are research and development, manufacturing and sales of vaping devices and vaping components.