Jiangsu Xinhai Copper Industry acquires the Strategic stake of Chujiang New material to build Copper conductor faucet of New Energy vehicle

SMM May 9: recently announced that the substrate leader Chujiang New material (002171) to invest 60 million yuan into Jiangsu Xinhai Copper Co., Ltd. ("Xinhai Copper Industry"), after this equity transfer and capital increase, Chujiang Xincai will own 22.22 per cent of Xinhai Copper. At the same time, a "strategic cooperation framework agreement" has been signed with Xinhai Copper Industry, which will establish a deep strategic partnership in the field of copper conductor materials for new energy and new energy vehicles, and will help Xinhai Copper Industry to realize asset securitization. When the conditions are ripe, Chujiang New material will actively promote the IPO or M & A of Xinhai Copper Industry, and listed companies have the right to give priority to capital increase and M & A.

Chujiang New Materials and Xinhai Copper Industry, which are located in the upper and lower reaches of the industrial chain, have therefore decided to cooperate strategically. Chujiang New Materials will speed up the construction of high-quality conductor base metal production capacity, while Xinhai Copper Industry will speed up the development of conductor products and the expansion of production capacity in emerging application fields. Together, we will promote the growth of product quality and production capacity and increase market share. the two sides will also jointly develop "copper conductor materials for a new generation of new energy and new energy vehicles," so as to achieve domestic leadership in products and replace imports.

Data show that Xinhai copper industry has an annual production capacity of nearly 100000 tons of conductor materials, annual revenue of nearly 5 billion yuan. According to the agreement, the two sides will make joint efforts to increase the production capacity of copper conductor materials to more than 200000 tons within three to five years, with an annual sales revenue of more than 10 billion yuan, first-class product quality and alternative imports, and firmly rank among the top three in China. Within 10 years, the scale of production and sales increased to more than 300000 tons, becoming the first in China.

Jiangsu Xinhai Copper Industry main scope: oxygen-free copper rod line production and sales, self-management and agent of all kinds of goods and technology import and export business.

Xinhai copper industry, as a research and development and manufacturing enterprise of conductor materials with a history of 30 years, has been committed to the technical research and development and scientific and technological innovation of conductor extension process. high quality and high-tech conductor materials are the key development direction. The high precision round copper wire, tinned soft round copper wire, copper parallel wire, tinned copper parallel wire, soft copper strand and tinned soft copper strand developed and produced by the company are widely used in new energy vehicles, advanced rail transit, power equipment, new generation information technology, National defense industry, national smart grid, solar photovoltaic power generation and other industries.

Chujiang New Materials Bulletin said that this foreign investment is in line with the national policy and the long-term strategic development plan of Chujiang New Materials, and aims to make full use of the resource advantages of all parties, promote industrial development and technological progress, and achieve mutual benefit and strategic win-win. After the completion of this transaction, Chujiang New Materials will share technology and management experience with Xinhai Copper Industry, complement each other in R & D, manufacturing, management, talent, capital and other aspects, and enhance industrial synergy.

It is beneficial for the company to give full play to its advantages in the research and development and manufacturing of advanced copper-based materials, to expand the field of copper conductor materials for new energy and new energy vehicles in an all-round way, and to help the development of the company's business and the enhancement of the core competitiveness of the industry. Speed up the progress of the company's industrial integration, further expand and strengthen the advanced copper-based materials business sector, consolidate and expand the leading position of the industry, for the future development of the company has a positive impact, in line with the company's development strategy and the interests of all shareholders.