Another lithium material enterprise IPO was accepted!

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Under the strong market demand, since the end of last year, the cost share of lithium battery cell materials has reached 5%. The price of copper foil has risen rapidly. For example, 8 μ m and 6 μ m copper foil rose from 72000 yuan / ton and 91000 yuan / ton in mid-2020 to 106000 yuan / ton and 122500 yuan / ton in November this year, up 47.22% and 34.62% respectively.

In this context, lithium copper foil enterprises actively expand production. In recent month, a number of companies such as Hailiang, Longdian Huaxin, Baiyin Nonferrous, Jiayuan Technology and other companies have announced new investment and production expansion plans.

Jiujiang Defu Technology Co., Ltd. (referred to as "Telford Technology") plans to raise funds for large-scale production expansion in the form of IPO.

Telford Technology growth Enterprise Market IPO accepted

Shenzhen Stock Exchange information shows that on December 10, Telford Technology growth Enterprise Board IPO was accepted, with an estimated financing of 1.2 billion yuan, with Guotai Junan as the sponsor.

Telford Technology's listing application chooses the listing criteria stipulated in Rule 2.1.2 (2) of the gem listing rules: the market capitalization is expected to be no less than 1 billion yuan, the recent year's net profit is positive and the operating income is not less than 100 million yuan.

Telford Science and Technology plans to use the net amount of the funds raised after deducting the issuance expenses for the 28000 tons / year high-grade electrolytic copper foil construction project (raising funds to invest 650 million yuan), high-performance electrolytic copper foil research and development project (raising funds to invest 150 million yuan) and supplementary liquidity (400 million yuan).

The data show that Defu Technology is mainly engaged in the research, development, production and sales of all kinds of high-performance electrolytic copper foil, and its business can be traced back to Jiujiang Electronic Materials Factory, which was established in 1985. It is one of the domestic electrolytic copper foil enterprises with the longest operating history.

Telford Technology's products can be divided into electronic circuit copper foil and lithium copper foil according to the application field, which are respectively used in the manufacture of copper clad laminate, printed circuit boards and all kinds of lithium batteries.

In terms of lithium copper foil production capacity, Defu Science and Technology has two major production bases in Jiujiang, Jiangxi and Lanzhou, Gansu, with a built production capacity of 49000 tons per year, ranking firmly in the forefront of domestic copper foil enterprises.

In terms of lithium copper foil products, Telford Technology already has the mass production capacity to cover 4.5 μ m-10 μ m lithium copper foil, the main sales products are rapidly iterated from 8 μ m and 7 μ m to 6 μ m; 6 μ m lithium copper foil has become the mainstream sales product, 4.5 μ m lithium copper foil has mass production capacity and is in the market introduction period. 4 μ m and 5 μ m high modulus lithium copper foil, 8 μ m high extension lithium copper foil and other cutting-edge products have entered the customer customized development stage.

As of September 30, 2021, the company has 13 authorized invention patents and 91 utility model patents, and 69 invention patents are being applied for, among which the technology of extremely thin, high tensile and high modulus lithium copper foil and other products has reached the industry leading level.

In terms of lithium copper foil customers, Telford Technology has established a stable cooperative relationship with downstream head lithium battery manufacturers such as Ningde Times, Guoxuan Hi-Tech, Xin Wanda, China Chuangxin Airlines and other downstream head lithium battery manufacturers, and actively layout overseas strategic customers such as LG Chemical.

It is worth noting that in terms of shareholders, LG Chemical is the fourth largest shareholder with a shareholding ratio of 5%; Ganfeng Lithium Industry is the tenth largest shareholder with a shareholding ratio of 2.80%; Ningde era, Baiyin Nonferrous and other enterprises also indirectly hold shares in Ford Technology.

The performance grew strongly, with half a year far exceeding that of the whole of last year.

According to the prospectus, from 2018 to 2020, Telford Technology achieved revenue of 670 million yuan, 750 million yuan and 1.37 billion respectively, net profit of 59 million yuan, 17 million yuan and 11 million yuan respectively, and gross profit margins of 18.92%, 10.63% and 10.75%, respectively.

From January to June in 2021, Telford Technology achieved operating income of 1.58 billion yuan, 15.33% higher than the 1.37 billion yuan in 2020 in half a year, and the half-year net profit reached 247 million yuan, an increase of 2145.45% over the 11 million yuan in 2020!

The gross profit margin of Telford Technology's main business from January to June in 2021 is as high as 25.57%, which is also much higher than the 10.75% in 2020.

Another look at a market share, 2020 and the first half of 2021 domestic Top10 shipments of electrolytic copper foil enterprises market share ranking is Jiandao Copper foil (Hong Kong), South Asia Copper foil (Taiwan), Longdian Huaxin, Changchun Chemical (Taiwan), Copper Crown Copper foil, Telford Technology, Nord shares, Jiayuan Technology, Zhongyi Technology, Jinbao shares.

Telford Technology has a higher market share than Nord shares in 2020, ranking sixth. However, Telford Technology's production capacity is 35000 tons per year, less than the 43000 tons per year of Nord shares.

From January to June in 2021, Telford Technology will have the same market share as Nord shares, but its production capacity still lags behind Nord shares. However, according to the prospectus, "as of the date of signing of this prospectus, the capacity of issuers has increased from 35000 tons / year at the end of the reporting period to 49000 tons / year, and the corresponding industry status and market share will be further enhanced."