Tengyuan cobalt gem IPO application accepted to raise 2.198 billion of the main business

SMM News: recently, Ganzhou Tengyuan Cobalt Industry New Materials Co., Ltd. (referred to as: Tengyuan Cobalt) gem IPO application was accepted by the Shenzhen Stock Exchange. The IPO, Tengyuan Cobalt Company intends to raise 2.198 billion yuan for the "annual production of 20,000 tons of cobalt and 10,000 tons of nickel metal series products of remote intelligent technological transformation and upgrading and supporting production of raw and auxiliary materials (Phase II)" (the proposed use of the raised funds investment of 1.698 billion yuan) and supplementary liquidity (the proposed use of raised funds of 500 million yuan).

Data show that Tengyuan Cobalt Industry is mainly engaged in the research and development, production and sales of cobalt and copper products, and is one of the most competitive cobalt salt manufacturers in China. The company's core products are cobalt chloride, cobalt sulfate and other cobalt salts and copper electrowinning. From 2017 to 2019 and the first quarter of 2020, the company's sales of cobalt products equivalent to metal tons were 6682.97 tons, 4862.04 tons, 6202.61 tons and 1030.69 tons respectively, and copper products sales were 3097.31 tons, 5378.70 tons, 14329.48 tons and 4899.16 tons respectively, maintaining a high sales level. However, due to the fluctuations in the prices of products and raw materials, profits have fluctuated to a large extent. From 2017 to 2019 and the first quarter of 2020, the net profit of shareholders belonging to the parent company after deduction is 423 million yuan, 182 million yuan, 114 million yuan and 59.1188 million yuan respectively, which fluctuates greatly.

The company has established long-term and close cooperative relations with Zhongwei shares, Mercuria, Wanbao Minerals, Hezhong Technology (Hunan Yacheng), Xiamen Tungsten Industry, Jinchuan Science and Technology, Shanshan shares and other well-known enterprises in the industry represented by the world's top 500 enterprises.

According to the quarterly data of China Cobalt Industry, battery materials accounted for 62.4% of the consumption demand of the world cobalt industry in 2019, and battery materials accounted for 81.6% of the consumption demand of China's cobalt industry. 3C lithium battery and power lithium battery materials are the main consumption areas of the cobalt industry. According to the statistics of Shanghai Nonferrous Metals Network, the total domestic output of cobalt sulfate in 2019 is 43900 metal tons, and the total output of cobalt chloride is 35200 tons, totaling 79100 metal tons. Among them, the output of cobalt salt in Tengyuan cobalt industry is 6470.58 metal tons, accounting for 8.18%; the output of cobalt sulfate accounts for 7%, ranking third in the country; and the output of cobalt chloride accounts for 13%, ranking fourth in the country.