Nearly 330 million! Duofuozi company plans to purchase Jiaozuo Hexin equipment to speed up the construction of lithium hexafluorophosphate

On January 1, 2022, Dofudo (002407) issued a notice saying that the company had examined and passed the "motion on equipment procurement and related party transactions from related parties by subsidiaries". The company's subsidiaries Duofu Duoyangfu New Materials Co., Ltd. (hereinafter referred to as "Yangfu New Materials") and Duofu Duohaina New Materials Co., Ltd. (hereinafter referred to as "Haina New Materials") respectively signed an "equipment purchase and sales contract" with Jiaozuo Hexin Machinery Co., Ltd. (hereinafter referred to as "Jiaozuo Hexin"). Yangfu New Materials plans to purchase crystallizer and other equipment from Jiaozuo Hexin, with a total transaction amount of 161 million (including tax). Hainer new material plans to purchase crystallizer and other equipment from Jiaozuo Hexin, with a total transaction amount of 168 million (including tax).

It is reported that as chairman Li Shijiang is the actual controller of the company and Jiaozuo Duofudou Industrial Group Co., Ltd., Jiaozuo Duofudou Industrial Group Co., Ltd. holds a 51.61% stake in Jiaozuo Hexin, so Jiaozuo Hexin constitutes a related party with the company. this transaction constitutes a related transaction.

Duofudo said that the funding source of this related party transaction is mainly from the subsidiaries' own funds, and this transaction is to meet the actual needs of the construction of Yangfu New Materials and Hainer New Materials projects, and belongs to normal business dealings. In line with the actual business and development needs of the company. The related party transactions between the company and related parties follow the market pricing principle, the transaction price is fair and reasonable, there is no harm to the interests of the company, will not affect the independence of the company.

The battery network learned that among the four main materials of lithium battery, the electrolyte link is the most scarce at present. Since the second half of 2020, thanks to the resonant growth of global new energy vehicles, the demand for lithium hexafluorophosphate has increased rapidly. With the rapid increase in demand, the effective production capacity of lithium hexafluorophosphate is not enough to meet the demand.

With the substantial increase in market demand, polyfluoroduo, as a leading enterprise in the field of lithium hexafluorophosphate, is also expanding its production. At present, the company has a production capacity of 15000 tons of lithium hexafluorophosphate. The production capacity of 15000 tons of Jiaozuo plant and the 5000 tons of capacity built in cooperation with Yuntianhua are expected to be put into production in 2022; the construction of Yangquan 20, 000-ton project will start in October 2021, and the first phase of construction is expected to be completed by the end of 2022. It is estimated that the company's lithium hexafluorophosphate production capacity will reach 45000 tons by the end of 2022.