Nuode shares will increase the production capacity of Qinghai / Huizhou lithium copper foil by 2.288 billion.

On the evening of March 9, Nord shares (600110) issued an announcement on the result of the increase. The company issued a total of 340 million shares and raised 2.288 billion yuan, with a net fund of 2.272 billion yuan after deducting the issuance expenses.

According to the announcement, the funds raised by Nord shares will be used for the Qinghai electrolytic copper foil project for high-performance extremely thin lithium-ion batteries, the third phase expansion project of Huizhou United Copper foil Electronic Materials Co., Ltd., as well as supplementary working capital and repayment of bank loans. The company invests in advance with self-raised funds according to the actual situation of the progress of the project, and plans to replace the self-raised funds invested in advance by the company after the funds raised by the non-public offering are in place.

According to the statistics of Ping an Securities Research report a few days ago, Nord shares has a copper foil production capacity of 43000 tons, which is rich in projects under construction and preparation. Among them, Qinghai Norde is under construction of 15000 tons of copper foil project is expected to be put into production in 2022, 2021 fixed increase plan to build 15000 tons of copper foil project is expected to be put into production in 2023; Huizhou United copper foil third phase of 12000 tons of copper foil project is expected to be put into production in 2022; in addition, the company plans to invest 100000 tons of copper foil material production base in Hubei Huangshi, the first phase of 50, 000 tons of copper foil is scheduled to be put into production in 2023. Ping an Securities expects the company's copper foil production capacity to increase to 135000 tons in 2023, an increase of 214% over 2021.

At the same time, Ping an Securities expects that thanks to the rapid development of new energy vehicles and energy storage, China's demand for lithium copper foil will grow rapidly. The compound growth rate of China's lithium copper foil demand will be 31% from 2020 to 2025, and will reach about 470000 tons by 2025.

In addition, in terms of performance and market development, Nord said that in 2021, the company seized the market development opportunity of the new energy industry, increased the development of the copper foil market, and its profitability continued to increase. At the same time, the demand for new energy power battery orders from downstream enterprises increased significantly compared with the same period last year, and the demand for lithium copper foil increased significantly. In 2021, the company realized operating income of 4.479 billion yuan, an increase of 107.88% over the same period last year, and the net profit attributed to the owner of the parent company was 404 million yuan, an increase of 7409.93% over the same period last year.

In 2022, Nord shares won the long order of overseas lithium copper foil. According to the company announcement, Huizhou Electronics, a wholly owned grandson company, signed a pricing contract with a large overseas car company for the production of lithium and copper foil products, agreeing that from January 1, 2022, the company and its grandson company will supply copper foil products to the cooperative customers and their licensees. In 2022, the Company and the wholly-owned Sun Company guaranteed to the partner customers that the total supply of products would not be less than 6930 tons; after January 1, 2023, the Company and Sun Company guaranteed to the partner customers that the supply of products would not be less than 1515 tons in a single month. The actual purchase quantity and sales amount shall be subject to the purchase order issued by the cooperative customer.