On the evening of December 11, Tianqi shares announced that the company intends to use its own funds of 291.84 million yuan to continue to buy 38% of Jiangxi Jintai Pavilion. After the completion of this transaction, the company will hold 99% of Jiangxi Jintai Pavilion, and Jiangxi Jintai Pavilion core team shareholding platform Gongqingcheng Public holding Investment Partnership (limited partnership) holds 1% of Jiangxi Jintai Pavilion.
According to the announcement, Jiangxi Jintai Pavilion is a high-tech enterprise specializing in the recovery, treatment and resource utilization of waste lithium-ion batteries. At present, the ability to deal with waste lithium batteries is in a leading position in the industry, and electronic-grade cobalt oxide and industrial-grade cobalt oxide products occupy obvious advantages in their respective market segments.
Tianqi shares participated in the establishment of an industrial investment fund to invest in Jiangxi Jintai Pavilion in 2017 and acquired a 61% stake in Jiangxi Jintai Pavilion in the first half of this year. With the entry of Tianqi shares, Jiangxi Jintai Pavilion has carried out large-scale technological transformation and increased investment in new product research and development in the past two years, so as to enhance the market competitiveness of Jiangxi Jintai Pavilion in an all-round way.
Financial data show that Jiangxi Jintai Pavilion's revenue from 2018, 2019 and 2020 from January to October was 522 million yuan, 425 million yuan and 348 million yuan respectively, and its net profit was 61.1404 million yuan, 33.3007 million yuan and 17.388 million yuan respectively.
Tianqi shares said that in 2020, affected by price fluctuations in the metal market, the overall profitability of the waste lithium battery recycling industry fell sharply, and the performance of Jiangxi Jintai Pavilion declined compared with the previous two years. However, in the past two years, Jiangxi Jintai Pavilion has carried out large-scale technological transformation and production expansion, and its core competitiveness and industry status have been improved. With the rapid development of the new energy vehicle industry, the centralized retirement period of power batteries has come, and the company continues to value the waste battery resource utilization business, combined with the current layout of the company's recycling industry and integrated industry resources. the company has high expectations for the future business development of Jiangxi Jintai Pavilion.
Tianqi shares also said that Jiangxi Jintai Pavilion's industry experience and technology accumulation in waste lithium-ion battery recycling and resource utilization provided assistance for Tianqi shares to extend and improve the industrial chain and expand business layout. it is helpful for Tianqi shares to implement the "one body and two wings" strategy of the circular industry and fully tap the value of the automotive aftermarket industrial chain, which is an important link for the company to build a closed loop of the automotive life cycle industrial chain.
