Techna X Proceeds With RTO Of Energy Storage Biz, Unlocks RM1 Billion In Value

Techna-X Berhad is moving ahead with SGX listed Chaswood Resources Holdings Ltd to inject 100% of the energy storage business,HK Aerospace Beidou New Energy Technology Co., Ltd for S$678,570,000 (equivalent to approximately USD500,000,000), following a binding term sheet signed in November.

Under the agreement, Chaswood will allot and issue a number of new fully-paid up ordinary shares in its capital at a pre-consolidation issue price of 3.8 cents, of which 50% is to Techna-X Berhad and the other 50% to the remaining owners of HKAB; Dr. Wan Muhamad Hasni Bin Wan Sulaiman, Nong You Hua, and Satriya Bin Suetoh. Completion of the exercise will potentially unlock RM1 Billion in value for Techna-X and result in a “reverse takeover” where Techna-X will now own 48% of SGX listed CRHL with the balance being owned by the other vendors of HKAB and existing shareholders of CRHL.

Accordingly, the company will also undergo a name change where it will now be renamed toTechna Energy Storage Systems to better reflect its business operations under the Group. HKAB currently has an existing order book of approximately US$300m from customers comprising of some notable MNC’s including KONE, Daikin Electronics, Tuatara Machinery, and others. The Group delivers its products to selected markets and mainly to customers in China.

It currently provides Grid-scale energy storage to a China central government initiative and Agriculture machinery to a China central government initiative. The Group will now look into expanding its market reach to ASEAN, Europe, and the Middle East. “Amongst the market segments that we will serve well are the EV makers, energy storage and E-machineries in agriculture e.g. forklifts, harvesters, transporters, public transport e.g. rail & buses, Electrification of rail transport and Military Applications. Our UC batteries have a clear advantage in applications dealing with high pulse width modulation problems.”, said Datuk Jared Lim, Executive Director of Techna-X. 

Jared adds that HKAB has delivered proof of concept battery storage systems to large power companies, auto companies, and also the military and expects more contracts in the coming year. It will focus expansion on its existing factory in Wuzhou, China to increase capacity and specialized equipment, set up a new battery production factory in Qinzhou, China, and for overall R&D expansion.

As for 2022, the Group is looking to convert a section of the factory into research labs for developing and testing various products and technologies and installing large-scale computing and data facilities. Over the next 3 years, the newco will focus on core research work specializing in industrial applications such as e-train and e-boats and the development of material science for energy storage. 

“Our capital requirement for the immediate term over the next 2 years will be about USD50 million. This RTO exercise will enable the Group to tap into the capital markets via SGX and allow it to raise its own capital which is needed to accelerate expansion and R&D plans.”, added Datuk Jared. According to HKAB, it is the only company in the world to use rare metal Ruthenium base in its ultracapacitors and super batteries and currently enjoys the highest capacitance potential in the market. It owns 27 patents – 8 in the US, 15 in Taiwan, and 4 in China.

The technology originated from an R&D spearheaded by Pinnacle Research Institute in USA and is able to produce energy storage systems that exhibit superior load management, power smoothing, low voltage harvesting, and range improvements.     

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