On October 30, Guangdong Kexiang Electronic Technology Co., Ltd. (Kexiang, 300903) announced that its 13th meeting of the third board of directors, held on October 29, approved the termination of the "Kexiang 8GWh sodium-ion energy storage battery and related products project" along with the return of the land use right. The company cited changes in government industrial policy, a proactive adjustment of district planning, its current operating conditions, and considerations covering future strategic positioning, long-term development, industrial supporting facilities, synergies and overall costs. The project was first approved by the board on September 22, 2023 and by the first extraordinary general meeting of 2023 on October 12; the investment agreement was signed on October 13, 2023 with the business environment and investment promotion bureau of the Huizhou Daya Bay Economic and Technological Development Zone Administrative Committee. The plan called for an 8GWh sodium-ion energy storage battery and related products line with total investment of RMB 2 billion including land transfer fees, of which RMB 1.7 billion was fixed-asset investment.
To implement the project, the company signed a state-owned construction land use right transfer contract with the Huizhou Natural Resources Bureau on January 18, 2024, acquiring a 117,903 square metre industrial plot in the Tangheng area of western Daya Bay with a 50-year term; the RMB 100.21755 million transfer price was paid in full. Under a simultaneous termination agreement, the government will recover the land use right and the Huizhou Natural Resources Bureau will refund the RMB 100.21755 million already paid plus related taxes in full, while the investment promotion bureau said it would provide no other form of compensation for prior spending or losses. Both agreements were signed on October 30 and take effect once the company's third extraordinary general meeting of 2026 approves them.
On accounting treatment, the company determined under Accounting Standard for Business Enterprises No. 8 — Asset Impairment and its own policies that the construction in progress has no feasible path to completion or external transfer and therefore no practical use or realisable value. It booked a full impairment against the RMB 51.3047 million balance of construction in progress, which will reduce 2026 total profit by RMB 51.3047 million, subject to final figures in the 2026 annual report and audit. Kexiang said the termination will not affect normal operations, reflects a prudent approach to dynamically optimising its investment portfolio, and helps concentrate resources on its printed circuit board core business.
This is not the company's first exit from a sodium-ion project. In March 2023 it signed a letter of intent with the Xinfeng county government in Ganzhou, Jiangxi, for a sodium-ion battery and materials industrial park; in March 2024 it announced the formal termination of that plan, with no formal investment agreement concluded and no capital spent. On the same day as the sodium-ion termination, Kexiang announced two new investments in AI computing: roughly RMB 2 billion for a high-end AI computing PCB substrate project in the Xiangshuihe industrial park of Huizhou Daya Bay, with a two-year build, targeting annual capacity of 46,000 square metres of mSAP substrates and 1.2 million square metres of AI server PCB substrates; and RMB 3 billion for an AI computing server project in Jiujiang, Jiangxi, building high-order HDI and high-layer-count circuit board lines with designed annual capacity of 200,000 square metres.