From lead-acid battery to lithium iron phosphate! Wanli shares plan to reorganize holding Terry battery

On the evening of January 19th, Wanli shares (600847) disclosed a major asset restructuring plan. the transaction consists of a major asset exchange, issuing shares to purchase assets and supporting fund-raising: the company takes Wanli Power's 100% equity (estimated value of 680 million yuan) as purchased assets, and replaces with the other party's 48.95% stake in Terry battery (estimated valuation of 1.15 billion yuan), that is, the equivalent part of the asset.

The announcement shows that the difference between the purchase of assets and the purchase of assets (with an estimated value of 470 million yuan) will be purchased by Wanli shares from all trading parties. As the performance undertaker, all the trading parties promise that the net profit belonging to the shareholders of the parent company after deducting non-recurring profits and losses in 2022, 2023 and 2024 is not less than 150 million yuan, 200 million yuan and 250 million yuan respectively.

At the same time, Wanli shares plan to raise no more than 150 million yuan to increase the capital of Terry battery for Terry battery projects under construction. After the capital increase, the company's shareholding in Terry battery is not less than 51%.

It is reported that the target company Terry battery is mainly engaged in lithium battery cathode material lithium iron phosphate product research and development, production and sales, the main products have a large market space and rapid growth, with strong profitability.

Before this transaction, Wanli Co., Ltd. is mainly engaged in the research and development, production and sales of lead-acid battery products, which are mainly used in the field of automobile start and stop. After the completion of this transaction, Wanli's existing lead-acid battery business will be purchased, and its main business will be changed to the R & D, production and sales of lithium iron phosphate, the cathode material of lithium battery. the products are mainly used in the field of new energy vehicle power battery and energy storage battery.

It is worth noting that in June 2017, Wanli invested 255.2 million yuan to acquire 5.8 million shares of Teri battery, with a shareholding ratio of 15.61%, making it the second largest shareholder of Teri battery. However, after Wanli shares, Terry battery performance fell sharply, and there was a big loss. In December 2018, Wanli sold its stake in Terry battery at half price, and the transfer price was 128 million yuan.

Now, Wanli plans to control Terry Battery again, and the 100% stake in Terry Battery is expected to be as high as 2.35 billion yuan.

Teri battery continues to engage in the research and development, production and sales of lithium iron phosphate as the cathode material of lithium battery, and has a mature production process of lithium iron phosphate. According to the transaction plan, Terry Battery has established a cooperative relationship with mainstream lithium battery manufacturers such as Ningde era, Penghui Energy and Nandu Power supply. Among them, the sales of Terry batteries to Ningde era accounted for more than 50% of the total revenue in 2021, and the proportion of sales is expected to increase in the future.

In terms of performance, from January to November in 2019, 2020 and 2021, the operating income of Terry battery was 225 million yuan, 231 million yuan and 466 million yuan respectively, and the net profit was 23.6493 million yuan, 1.078 million yuan and 50.2243 million yuan respectively.

In recent years, under the influence of many factors, such as the decline of macroeconomic growth, the improvement of environmental protection standards, the rapid growth of car ownership and other factors, the technology and products of superimposed lithium batteries have developed rapidly, and the substitution effect on traditional lead-acid batteries has gradually appeared. the competition in the lead-acid battery industry has intensified, and the overall profitability of Wanli shares is weak. From January to September in 2019, 2020 and 2021, Wanli shares achieved operating income of 552 million yuan, 587 million yuan and 419 million yuan respectively, and realized net profits of 8.9071 million yuan, 4.0228 million yuan and 4.7812 million yuan belonging to the shareholders of the parent company.

Wanli said that through this transaction, the company will place lithium-ion battery cathode material assets with broad market prospects and strong profitability, quickly enter the lithium battery industry, and realize the industrial upgrading from lead acid to lithium electricity. enhance the core competitiveness and profitability of listed companies.