Pritt plans to restructure the 100% equity valuation of Hisida Power plus Lithium Battery at 1.63 billion.

Three days after Shen Kangjia (000016) announced the termination of the acquisition of Haisida Power's shares, Pulitt (002324) issued an announcement on the evening of March 9, and the company's board of directors examined and passed the "motion on signing the Framework Agreement". The company intends to sign a "framework agreement" with Jiangsu Haisida Group Co., Ltd. (hereinafter referred to as "Haisida Group") and Shen Tao (hereinafter referred to as "the counterparty"). In order to improve the sustainable profitability of listed companies and realize the strategic transformation and upgrading of the main business of listed companies to new materials and new energy industries, the company plans to acquire about 80% of Haishida Power with cash and has the right to increase its capital by no more than 800 million yuan. for the target company power, energy storage lithium-ion battery production expansion and technical equipment upgrading and other projects.

Specifically, after preliminary negotiations between the two sides, based on the net assets of Hisida Power supply on December 31, 2021, the estimated value of 100% equity of Hisida Power supply is 1.63 billion yuan. At the same time, before the equity transfer transaction is delivered, Haishida Power can pay dividends to its original shareholders, with a maximum dividend of 200 million yuan. If Haisida Power carries out the aforementioned dividend, its estimated value shall be correspondingly reduced to 1.43 billion yuan, and the final valuation shall be determined through consultation between the two parties on the basis of the valuation issued by the evaluation institution and made clear in the final acquisition agreement.

As of March 9, the counterparty of the transaction and the main body of its control, the concerted actors, had a total control of 52.90% of the shares of Hisida Power supply. The other party intends to first purchase the shares held by these shareholders from other shareholders of Haishida Power supply, and change it into a limited liability company (hereinafter referred to as "Hishida Power supply Internal Equity restructuring"). Then transfer about 80% of Hishida Power to Pulit, and the other party and the core team of Hishida Power supply will retain a small part of the equity. The final equity ratio shall be determined by both parties through consultation according to the results of the internal equity restructuring of Haishida Power supply.

According to the Framework Agreement, within three working days from the date of signing of the agreement, Pulit will pay 20 million yuan of intention money to the other party of the transaction, and provide an additional loan of 180 million yuan within three working days after the relevant conditions are reached to support the other party in the transaction to pay the transfer money to the equity transferor for the internal equity restructuring of Hisida Power supply, so as to complete the internal equity restructuring as soon as possible. After the completion of the transaction, Haisida Power supply will become a holding subsidiary of the company.

It is worth noting that in August 2021, Shenzhen Kangjia announced that the company was planning to acquire a 100% stake in Hisida Power and Ming Hi-Tech. On March 6, 2022, Shen Kangjia announced that the company had terminated the acquisition of its stake in Hisida Power supply because it had not agreed with its shareholders on some of the core terms of the transaction.

Favored by Pulit and Shenkangjia at the same time, what is the charm of Haishida Power supply? According to the announcement, Haisida Power supply is a new energy enterprise specializing in the research, development, production and sales of ternary and lithium iron phosphate lithium-ion batteries and their systems, and its products are widely used in power tools, smart home appliances, communications, energy storage and other fields. Haisida Power supply has independent core intellectual property rights, rich reserves of new energy technologies and continuous research and development capabilities, and has more well-known customers around the world. According to the unaudited financial data, Haishida Power supply achieved revenue of 1.853 billion yuan in 2021, and the net profit attributed to the owner of the parent company was 100 million yuan.

According to the data of "White Paper on the Development of China Lithium Ion Battery Industry (2022)" jointly released by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute, the total global lithium-ion battery shipments in 2021 were 562.4GWH, a sharp increase of 91.0% over the same period last year. In terms of structure, global shipments of automotive power battery (EV LIB) were 371.0GWH, an increase of 134.7% over the same period last year; (ESS LIB) shipments of energy storage batteries were 66.3GWh, an increase of 132.6% over the same period last year; and (SMALL LIB) shipments of small batteries were 125.1GWh, an increase of 16.1% over the same period last year.

Looking to the future, EVTank analysis with the continuous improvement of the global permeability of new energy vehicles and the gradual promotion of the double carbon goal, the demand for automobile power battery (EV LIB) and energy storage battery (ESS LIB) will continue to grow at a high speed, but before 2030, other battery systems will still be difficult to develop on a large scale, and lithium-ion battery will still be the mainstream technology route. EVTank predicts that global lithium-ion battery shipments will grow at a compound rate of 25.6% by 2030, and total shipments may be close to 5TWh by 2030.

As a leading enterprise in the modified materials industry, Pulit has continued to explore and layout the industrial transformation and upgrading in recent years. In January 2021, the company introduced Shenzhen Hengxin Huaye Equity Investment Fund Management Co., Ltd. as the company's strategic shareholder, and signed a "Strategic Cooperation Agreement" with it. Relying on its industrial resources in new materials, new energy, semiconductors, communication devices, consumer electronics and other fields, establish a deep strategic cooperation relationship, and jointly promote upstream and downstream resource sharing, technology exchange and cooperation, and industrial coordinated development. On this basis, the company also takes new materials and new energy as an important strategic development direction, and plans to carry out the layout of related industries.

For this latest transaction, Pritt said that the company intends to introduce key development factors such as capital, talent and market by reorganizing Hisida Power supply, integrating the advantageous resources of all parties and working closely with strategic partners. Based on the existing business base and years of technological precipitation of Haishida Power supply, we should seize the strategic opportunities of new energy industries such as energy storage, enhance the technical level and production capacity of products, enhance capital strength and operational efficiency, and expand industry benchmarking customers. build Haisida Power into a leading new energy battery enterprise in order to quickly realize the strategic transformation and upgrading of the company's main business to new materials and new energy industries. Promote the high-quality development of the company.