Ningde Times Lithium Copper foil supplier gem IPO approved registration last year pre-profit exceeded 360 million

The gem IPO of Hubei Zhongyi Science and Technology Co., Ltd. has been approved for registration, according to information updated by the Shenzhen Stock Exchange on March 5. The IPO, No.1 Science and Technology plans to raise about 716 million yuan, which will be used for the production and construction of 10000 tons of high-performance electronic copper foil, the construction of technology research and development center, supplementary liquidity and other projects.

Data show that Zhongyi Science and Technology was founded in 2007, mainly engaged in all kinds of single-sided and double-sided light high-performance electrolytic copper foil series product research and development, production and sales, under the jurisdiction of Yunmeng, ANLU two major electrolytic copper foil production bases.

In terms of products, with the mass production of double-sided light 6 μ m very thin lithium copper foil in 2019, the company's sales share of double-sided light 6 μ m very thin lithium copper foil has gradually increased, and double-sided light 6 μ m extremely thin lithium copper foil has become the company's main product in 2020. At the same time, the company is actively expanding the technological frontier and has mastered the production technology of 4.5 μ m extremely thin lithium copper foil, which is expected to become one of the company's main core products in the future.

In terms of customers, the registration draft shows that from 2019 to 2020 and from January to June 2021, the proportion of sales of products to the Ningde era was 7.10%, 35.46% and 46.93%, respectively. The gross profit of products sold to the Ningde era accounted for 14.77%, 50.31% and 47.80% of the company's total gross profit, respectively. The company's sales revenue to the Ningde era increased significantly in 2020. The proportion of sales income in the company's operating income in the Ningde era has also been greatly improved, and the company has a high degree of customer concentration. The company has successively signed frame procurement contracts with Ningde era, Jiangsu era, Qinghai era, time SAIC, time FAW, Sichuan era and other main bodies, and the agreement is valid for three years.

In terms of performance, Zhongyi Science and Technology is expected to achieve an operating income of 21.3-2.3 billion yuan in 2021, an increase of 82.10%-96.64% over the same period last year; and an estimated net profit of 3.6-410 million yuan, an increase of 190.38%-230.71% over the same period last year.

Zhongyi Science and Technology said that the pre-increase in performance is mainly due to the new energy vehicle industry-driven and downstream copper foil market demand continues to rise, the company is expected to achieve year-on-year increase in sales and processing fees in 2021, and a substantial increase in revenue is expected to drive net profit higher than the same period last year.