New Progress of Xingyuan material 10 billion Lithium Battery diaphragm Project: it is proposed to set up 600 million subsidiaries to carry out business

On the morning of June 18, Xingyuan material (300568) issued an announcement on the progress of foreign investment, and recently, the company signed an "investment agreement" with the Management Committee of Nantong Economic Development District.

According to the agreement, Xingyuan material invests in the R & D and production project of lithium battery diaphragm in Economic Development District of Nantong City, with a total investment of 10 billion yuan and an annual output of 3 billion square meters of wet diaphragm and coated diaphragm, of which the first phase has a total investment of 3 billion yuan, with a land use of about 291mu; the second phase has a total investment of 2 billion yuan, with a proposed land of about 223mu; and the third phase has a total investment of 5 billion yuan, with a proposed land of about 243mu. The construction area of the factory building in the third phase is not less than 400000 square meters. With the assistance of the Economic Development District of Nantong City, the first and second phases of the project will start construction before the end of September 2021.

The agreement also makes it clear that the main body of the above project is Xingyuan material (Nantong) New material Technology Co., Ltd. (tentative name), a wholly owned subsidiary of Xingyuan material.

According to the announcement of Xingyuan material on the evening of June 17, the company plans to invest in Xingyuan material (Nantong) New material Technology Co., Ltd. (tentative name), a wholly-owned subsidiary in Nantong Economic and technological Development Zone, with a registered capital of 600 million yuan. business scope includes lithium-ion battery isolation materials, nano-materials and various functional materials research and development, production, sales and services; computer software development; road general cargo transportation; Self-supporting and acting for the import and export of all kinds of commodities and technologies.

Xingyuan material said that if this transaction can be successfully implemented, the company will further expand the production capacity of lithium battery isolation membrane business with the completion of the project and enhance the company's comprehensive competitive strength, which is in line with the company's development strategy; through the optimization and integration of resources, further improve the company's industrial layout.

According to the data of "White Paper on the Development of China's New Energy vehicle Industry (2021)" jointly issued by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute, the global sales of new energy vehicles will reach 16.4 million in 2025, with an overall penetration rate of more than 20%. In 2025, the global demand for lithium-ion batteries will officially enter the TWH era, in which the demand for automotive power batteries will reach 919.4Gwh.

The latest research report of Guohai Securities shows that Xingyuan material actively increases its production capacity to meet the global electrification tide. The company has currently established production bases in Changzhou, Shenzhen, Hefei, Sweden and other places, with a total base membrane production capacity of about 1.6 billion square meters, of which the dry production capacity is 600 million square meters, and the wet process is about 1 billion square meters. In terms of coating capacity, the company currently has 1 billion square meters of production capacity in Jiangsu base. In addition, the company plans to build 700 million flat-wet diaphragm and 420 million flat-coated membrane production capacity in Sweden to supply overseas customers such as Northvolt. By 2025, the company is expected to form a base membrane production capacity of more than 5 billion square meters, coating production capacity of more than 4 billion square meters.