2.227 billion yuan! New Zebang plans to acquire 74.24% stake in Jiujiu Technology, a producer of lithium hexafluorophosphate

SMM News: after nearly two years of deep reshuffle, lithium battery electrolyte market concentration has been further enhanced, at the same time, the head enterprises are also constantly laying out the upstream raw material production capacity to achieve cost optimization.

On the evening of November 3, the new Zeus announced that the company intends to pay 2.227 billion yuan in cash to buy 74.24% of Jiangsu Jiujiujiu Technology Co., Ltd. (hereinafter referred to as: Jiujiu Technology) held by Yan'an Bikang Pharmaceutical Co., Ltd. (hereinafter referred to as: Yan'an Bikang). According to preliminary research and estimation, this transaction constitutes a major asset restructuring.

Data show that Jiujiujiu Technology is a leading manufacturer of lithium materials and pharmaceutical intermediates in China, and a specialized production factory of ultra-high molecular weight polyethylene fiber. The company has more than 80 authorized patents, and the main products are high-strength high-modulus polyethylene fiber, lithium hexafluorophosphate, 5-dimethyl hydantoin, dimethylol hydantoin, benzaldehyde and so on. Benzaldehyde has been identified as a national key new product, and lithium hexafluorophosphate has been identified as an excellent new product in Jiangsu Province.

In the future, while Jiujiujiu Technology continues to consolidate the dominant position of traditional industries such as pharmaceutical intermediates and disinfectants, it will further expand the market for new energy and new materials. efforts will be made to build specialized production plants for ultra-high molecular weight polyethylene fibers and benchmark enterprises for the production of lithium materials, so as to promote the leapfrog development of enterprises.

It is worth noting that on the evening of March 25, Yan'an Bikang issued an announcement that it planned to spin off its holding subsidiary, Jiujiu Technology, to be listed on the gem of the Shenzhen Stock Exchange. however, only one day later (the afternoon of March 26), it announced that the listing of the spin-off subsidiary would be suspended.

Founded in 2002, New Zebang has built a complete industrial chain of "Additives-New Lithium Salts-solvents-electrolytes": the existing production capacity of electrolytes is about 65000 tons, including 17400 tons in Huizhou, 30, 000 tons in Nantong and 28000 tons in Suzhou. The capacity under construction also includes 20, 000 tons in Jingmen and 40, 000 tons in Poland. In terms of electrolyte additives, the company has 2000 tons of Huaian Hankang and 1000 tons of VC and FEC production capacity in Nantong. In terms of new lithium salts, the new Zebang Hunan base has a production capacity of 2400 tons, and Fujian Sanming base plans to add 10, 000 tons. The company's main customers include Samsung, LG, Panasonic, Yiwei LiNeng, Sony, Lishen Battery, BYD, Bic Battery, Zhuhai Guanyu, CATL and so on. In 2019, New Zebang electrolyte achieved business income of 1.16 billion yuan and shipment volume of about 28000 tons. In the first half of 2020, New Zebang electrolyte achieved business income of 590 million yuan, shipment volume of about 14000 tons, and gross profit margin of about 29%.

According to the latest performance report released by New Zebang, the company's operating income in the first three quarters was about 2.006 billion yuan, an increase of 18.19% over the same period last year, and the net profit belonging to shareholders of listed companies was 374 million yuan, an increase of 56.21% over the same period last year.

New Zebang has previously said that enterprises that master core additives and formulation technology, layout upstream core raw material resources and have high-quality customers will have the opportunity to make great progress. On October 29th, New Zebang announced that the company intends to take Heisford, a wholly-owned subsidiary, as the main body of the project to invest in the construction of a high-end fluorine fine chemicals project (Phase II) in Zone D, Economic Development Zone, Mingxi County, Fujian Province. the project investment is expected to be 525.4158 million yuan, with a construction period of 3.5 years, and is expected to be gradually put into production in 2024. The construction content of the project is: annual output of 15900 tons of high-end fluorine fine chemicals and 30000 tons of lithium-ion battery electrolyte.

The acquisition of lithium hexafluorophosphate manufacturer Jiujiujiu Technology, while ensuring the supply of raw materials, may further increase the gross profit margin of the new Zebang electrolyte plate.