On February 8th, Jiayuan Technology (688388.SH) issued a number of announcements. Among them, according to the announcement on Foreign Investment and the Establishment of holding subsidiaries, Jiayuan Science and Technology plans to jointly invest with Ningde Times to set up Guangdong Jiayuan Times New Energy Materials Co., Ltd. (referred to as "Jiayuan Times") in Meixian District, Meizhou City.
The announcement pointed out that the registered capital of the Jiayuan era will reach 500 million yuan, of which: Jiayuan Science and Technology plans to use its own funds to contribute 400 million yuan in currency, accounting for 80% of the registered capital of the Jiayuan era; Ningde era plans to contribute 100 million yuan in monetary form, accounting for 20%.
Jiayuan era to invest in the construction of projects: an annual output of 100000 tons of high-performance electrolytic copper foil construction project. The project is divided into two phases: the first phase plans to build a high-performance electrolytic copper foil project with an annual output of 50,000 tons, and the second phase plans to build a high-performance electrolytic copper foil project with an annual output of 50,000 tons. The completion time of the project will be confirmed when the second phase of the project starts.
The announcement also mentioned that the two sides plan to increase the capital of the joint venture company to 2 billion yuan in registered capital according to the construction of the first phase of the project. It is not known whether other investors will be introduced after the capital increase and the proportion of shareholdings.
With regard to the investment in the high-performance electrolytic copper foil construction project with an annual output of 100000 tons, the announcement mentioned in the risk analysis of foreign investment that "the investment amount of the project construction is relatively large", but the specific investment amount has not been announced.
Vike Lithium noted that in July 2021, Jiangxi Copper (600362.SH) announced plans to build 100000 tons of lithium copper foil project in Shangrao, Jiangxi, with fixed asset investment of 7.8 billion yuan; Jiayuan Science and Technology also put forward a fixed increase plan in November 2021, which intends to raise 4.9 billion yuan for the construction of four projects involving copper foil, with a total production capacity of 81000 tons.
From this point of view, it is possible for the joint venture between Jiayuan Technology and Ningde Times to build a high-performance electrolytic copper foil project with an annual output of 100000 tons, with a total investment of not less than several billion yuan, or nearly 10 billion yuan.
Jiayuan Technology is the three masters of lithium electricity and copper foil.
The market demand for lithium copper foil is becoming larger and larger: the domestic market for power batteries and energy storage batteries is booming in 2021, driving the market demand for lithium copper foil and keeping most lithium copper foil enterprises at full production. Especially the head enterprises, in the case of insufficient production capacity of lithium foil, the phenomenon of standard foil to lithium foil is obvious; in addition, the output of second-and third-tier enterprises has also been greatly improved.
From the perspective of enterprises, there is no significant change in the domestic lithium copper foil market pattern in 2021, and the market concentration is relatively high. The output of TOP3 enterprises accounts for about 48%, and that of TOP5 enterprises accounts for nearly 70%.
For example, Longdian Huaxin Lithium Copper foil has broken through the 40, 000 tons, Nord shares more than 30, 000 tons, Jiayuan Technology and Defu Technology are more than 20, 000 tons.
Lithium copper foil TOP7 enterprises are: Longdian Huaxin, Nord shares, Jiayuan Technology, Defu Technology, Changchun Chemical Industry, Copper Guan Copper foil, No.1 Technology.
Jiayuan Technology ranks third, and Ningde era is one of the top five customers of Jiayuan Technology in the past three years.
The market predicts that by 2025, the domestic demand for lithium copper foil will be about 920000 tons.
Lithium copper foil enterprises expand production one after another
As early as February 2021, Jiayuan Technology successfully issued 1.24 billion yuan of convertible bonds to invest in high-performance copper foil projects with an annual output of 15000 tons, research and development of new high-strength and ultra-thin lithium copper foil and other key technology research and development projects.
In November 2021, Jiayuan Science and Technology put forward a fixed increase plan of 4.9 billion yuan for the construction of four copper foil projects with a total production capacity of 81000 tons.
Not only is Jiayuan Technology expanding production, but other enterprises are not willing to lag behind:
In November 2021, Longdian Huaxin subsidiary Hesheng Copper Phase II project was put into production and the signing ceremony of the third phase of 20, 000 tons of high-performance lithium copper foil was held in Dongying, Shandong Province. The project, with a total investment of 3.5 billion yuan, mainly produces copper foil for high-performance lithium batteries.
In November 2021, Hailiang (002203.SZ) announced that it plans to build a project with an annual production capacity of 150000 tons of high-performance copper foil, including 120000 tons of lithium copper foil and 30, 000 tons of standard copper foil. The investment of the project is 8.9 billion yuan, including 6.9 billion yuan in fixed assets investment and 2 billion yuan in working capital.
In December 2021, Telford Technology's application for gem IPO was accepted. The IPO plans to raise 1.2 billion yuan for 28000 tons / year high-grade electrolytic copper foil construction project, high-performance electrolytic copper foil research and development project and supplementary liquidity;
On January 17, 2022, 600110.SH announced that it intends to invest in the construction of a new production base of 100000 tons of copper foil materials in Huangshi Economic Development Zone, Hubei Province, with a registered capital of 3.5 billion yuan, with Norde shares as the only investor.
On January 20, 2022, Huayou Group Hua Innovation Materials Co., Ltd. signed a contract with Nanchang Economic Development District for an annual production project of 100000 tons of lithium copper foil. It is reported that the project, with a total investment of 10 billion yuan, will start in April this year, and is scheduled to be completed and put into trial production in April 2023.
It is worth noting that due to the high technical barriers to copper foil production and the long production expansion cycle, full production is generally achieved in about two to three years, large-scale production capacity is difficult to release in the short term, and industries such as superimposed downstream new energy vehicles are developing rapidly. the orders of copper foil enterprises have increased, and the supply of high-end lithium copper foil is still tight.
Under such circumstances, whoever can take the lead in releasing new production capacity and ensuring stable product quality will be able to benefit from this new wave of market demand.
Outstanding performance of Lithium Electric Copper foil Enterprises
As the key raw material of lithium battery, lithium copper foil accounts for about 13% and 8% of the total quality and cost of lithium battery, respectively. According to statistics, 4.5 micron extremely thin copper foil gross profit margin is close to 50% 6 microns is about 30% 8 microns is about 20%. In the case of high gross profit, lithium copper foil enterprises generally hand over good results in 2021.
The company leads the industry with year-on-year growth of 7142% to 76.99%, and expects to return to its mother with a net profit of 390 million yuan to 420 million yuan in 2021, according to a forecast of results disclosed by Nord shares.
Chaohua Technology, which specializes in copper foil in electronic circuits, has also delivered brilliant results: it is expected to make a profit of 118 million yuan to 130 million yuan in 2021, an increase of 449.63% to 505.53% over the same period last year.
Copper crown copper foil is expected to achieve a net profit of 349 million yuan in 2021, an increase of 387.26% over the same period last year.
Jiayuan Technology expects its net profit to grow by 184.25% to 224% in 2021 to 530 million to 600 million yuan.
Summary
As one of the upstream materials of lithium battery, the demand for lithium copper foil is huge, at the same time, the market competition is also quite fierce. For example, in terms of technological progress, some enterprises are currently exploring the mass production path of thinner 3.5 micron high-performance lithium copper foil on the basis of the research and development of 4.5 micron extremely thin copper foil.
Whoever can take the lead in mastering the R & D and mass production capacity of thinner copper foil is expected to be favored by head power battery enterprises, and then seize the opportunity in the new round of market competition and gain first-mover advantage in the high-end market!
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