Perfecting the electrolyte Chemicals Industry chain New Zebang to increase the Investment of Bo Fluorine Science and Technology New Lithium Salt Project

On the evening of June 1, New Zebang (300037) announced that due to the financial requirements of the company's holding subsidiary Hunan Bo Fluorine New material Technology Co., Ltd. (hereinafter referred to as "Bofu Technology") to invest in the construction of 2400 tons of bis (fluorosulfonyl) imine lithium (LiFSI) project, it was agreed by all shareholders of Bofu Technology. It is proposed that Xin Zebang, Hengyang Alifu New Energy Partnership (limited partnership) (hereinafter referred to as "Arifu") and Changsha Xinlian Huayuan New Energy Partnership (hereinafter referred to as "Xinlian Huayuan") will increase the capital of Bofu Technology by 75 million yuan in cash, of which 30 million yuan will be used for new registered capital and 45 million yuan will be included in the capital reserve. After the completion of the capital increase, the registered capital of Bofu Technology increased from 70 million yuan to 100 million yuan.

Before this capital increase, the proportion of shares held by New Zebang in Bofu Technology was 59%, that of Arif was 27.57%, and that of Xin Lian Huayuan in Bofu Technology was 13.43%.

According to the announcement, Xinzubang, Arifu and Xinlian Huayuan plan to increase capital to Bofu Technology with their own funds in proportion to their shareholdings, of which New Zebang cash contribution of 44.25 million yuan; Alifu cash contribution of 20.68 million yuan; Xinlian Huayuan cash contribution of 10.07 million yuan. After the completion of this capital increase, Bofu Technology is still a controlling subsidiary of the company, and the shareholding proportion of Bofu Technology shareholders remains unchanged.

New Zebang said that this capital increase is conducive to the long-term development of Bofu science and technology. after the industrialization project is put into production, it will further improve the new Zebang lithium-ion battery electrolyte chemical industry chain and enhance the comprehensive competitiveness and profitability of the company's products. in line with the company's strategic development direction.

Guoxin Securities Research News shows that New Zebang speeds up the process of integrated layout of the industrial chain through endogenous and outsourced lines: in terms of lithium salts and raw materials, participate in Yongjing technology layout of lithium hexafluorophosphate upstream, set up a new type of lithium salt of Bo fluorine science and technology layout; in terms of solvents, invest 480 million yuan to build Huizhou Zebang Phase III layout to produce 100000 tons of electrolyte solvents per year; Acquire Hankang Chemical to enter the field of additives, and invest 490 million yuan to build a Hunan Fubang project with an annual output of 2400 tons of LiFSI. With the orderly progress of the integration process and the improvement of the self-supply ratio of each composition of the electrolyte, the supply guarantee capacity and resistance to the price fluctuation of the raw materials of the electrolyte of the company will be fully improved, and the manufacturing cost of the electrolyte will be further reduced. the gross profit margin is expected to remain high.

In 2020, the net profit of New Zebang was 518 million, an increase of 59.29% over the same period last year, and its operating income was 2.961 billion, an increase of 27.37% over the same period last year. Among them, the business income of battery chemicals, organic fluorine chemicals, capacitive chemicals and semiconductor chemicals accounted for 56.03%, 18.97%, 18.14% and 5.31% of the revenue, respectively. With the increase of orders in the electrolyte market and the increase in business orders for organic fluorine chemicals at home and abroad, in the first quarter of this year, the company achieved a total revenue of 1.14 billion, an increase of 118.6% over the same period last year, and a net profit of 160 million, an increase of 57.5%.

It is understood that at present, New Zebang has a total of 15 subsidiary companies, including 4 wholly-owned subsidiaries, 11 controlling companies and 2 associated companies. The company has established related industrial layout in South China, East China, Central China and Fujian, and established a number of production bases for battery chemicals, capacitive chemicals, semiconductor chemicals, organic fluorine chemicals and so on.

In order to ensure the safety of the supply of key raw materials for lithium power and to fill the gap in the company's layout in North China, on April 21, Xinzhoubang proposed to take Jiangsu Hankang Electronic Materials Co., Ltd. (tentative name, subject to industrial and commercial registration, hereinafter referred to as "Hankang Electronic Materials"), a joint venture company set up by Jiangsu Hankang New Materials Co., Ltd. (hereinafter referred to as Jiangsu Hankang Electronic Materials Co., Ltd.). The project of lithium electricity additive with an annual output of 59000 tons is invested in Huai'an Industrial Park, Huai'an City, Jiangsu Province. The total investment of the project is expected to be about 1.2 billion yuan, which is divided into two phases, with an investment of about 660 million yuan in the first phase and a construction period of 2 years. The investment of the second phase is about 540 million yuan, and the second phase of the project will be launched in time according to the market demand.

The main body of the project, Hankang Electronic Materials, was set up by Jiangsu Hankang and Huaian Hanbang New Materials Partnership (Co., Ltd.) of New Zebang holding Company. It is used to implement the investment and construction project with an annual output of 59000 tons of lithium electricity additives. After all the projects are completed and reach production, the average annual operating income is about 2 billion yuan, and the profit and tax is about 320 million yuan. After the completion of the first phase, it is estimated that the annual business income will be about 800 million yuan, and the profits and taxes will be about 140 million yuan.

In addition, New Zebang plans to take Tianjin New Zebang New Materials Co., Ltd. (tentative name, subject to industrial and commercial registration, hereinafter referred to as "Tianjin New Zebang") as the main body of the project to invest in the construction of Tianjin New Zebang Semiconductor Chemicals and Lithium Battery Materials Project in Tianjin Nangang Industrial Park. The construction content of the project is to produce 50, 000 tons of lithium battery materials and 90, 000 tons of semiconductor chemicals and its supporting public works and auxiliary facilities. The total investment is expected to be about 650 million yuan, which is divided into two phases. The investment in the first phase is about 450 million yuan, and the construction period is 2.5 years. The investment of the second phase is about 200 million yuan, and the second phase of the project will be launched in time according to the market demand.

After the project is completed and put into operation, the average annual operating income is about 3 billion yuan, and the profit and tax is about 360 million yuan. After the completion of the first phase, it is estimated that the annual business income will be about 2.5 billion yuan, and the profits and taxes will be about 270 million yuan.

In terms of global layout, New Zebang has set up an American company, a production base in Poland, offices in South Korea and Japan, and plans to set up an European company.

In order to implement the sustainable development strategy of international layout and meet the growing needs of customers, on March 25 this year, New Zhou Bang plans to set up a wholly-owned subsidiary "Capchem Europe B.V." in the Netherlands with a cash contribution of 10 million euros (about 77.78 million yuan) (provisional name, the final name is subject to the approval of the relevant registration authority).

In addition, in order to meet the strategic development needs of the company, on April 12th, New Zhou Bang proposed to introduce LG Energy Solution,Ltd. (hereinafter referred to as "LG New Energy"), a wholly owned subsidiary of LG Chemical (LG Chem,Ltd.) Co., Ltd., to jointly increase the capital of Poland's New Zeus, with a total capital increase of 80276989 zlotys (equivalent to about 137 million yuan). After the completion of this capital increase, the share capital of the Polish new Zeus will increase from 11284000 zloty to 28153250 zloty, of which the new Zeus holds 68% of the Polish new Zeus, the Hong Kong new Zeus holds 17% of the Polish new Zeus, and LG New Energy holds 15% of the Polish new Zeus.