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The fixed additional offering of Zhongwei shares is accepted. It is proposed to raise no more than 5 billion to expand the production of ternary precursors.
Jul 22,2021 16:48CST
Translation
The content below was translated by Tencent automatically for reference.

On July 22nd, Zhongwei shares (300919) issued an announcement that the company's application for issuing shares to specific targets has been accepted by the Shenzhen Stock Exchange.

According to the prospectus disclosed by Zhongwei shares on the same day, the number of shares issued by the company to a specific target is determined according to the total amount of funds raised divided by the issue price, and the number of shares issued this time does not exceed 10% of the total share capital of the company before the issue, that is, no more than 56.965 million shares (including capital), and the total amount of funds raised is expected to not exceed 5 billion yuan, after deducting the issuance fee. Will be used for Guangxi Zhongwei New Energy Technology Co., Ltd. Beibu Gulf Industrial Base Sanyuan Project Phase I and supplementary liquidity.

According to the announcement, the first phase of the Beibu Gulf Industrial Base of Guangxi Zhongwei New Energy Technology Co., Ltd. plans to invest 5.99 billion yuan and intends to raise 3.5 billion yuan. The construction site is located in the east of Luhai Avenue, Qinzhou Port Economic and technological Development Zone, Qinzhou City, Guangxi Province, north of Fanshui Bay Street, the main implementation body is the company's wholly-owned subsidiary Guangxi Zhongwei New Energy Technology Co., Ltd.

Specifically, the project plans to build six workshop modules for the production of ternary precursors, three nickel sulfate (MSP) production lines, two nickel sulfate (nickel dissolution) production lines, one cobalt sulfate (cobalt hydroxide) production line and public supporting buildings. The design capacity of the project includes: 180000 tons / year production capacity of ternary precursors, 110000 gold tons / year of nickel sulfate solution (including nickel dissolution and MSP production line), and 10 million gold tons / year of cobalt sulfate solution. After the project reaches production, the average annual operating income is expected to be 16.209 billion yuan, and the average annual after-tax profit is 1.625 billion yuan; the after-tax internal rate of return of the project is 21.85%, the payback period of investment is 7.36 years, and the expected benefit of the project is good.

Zhongwei said that the company is mainly engaged in the research and development, production, processing and sales of lithium battery cathode material precursors. This offering and investment project of the company belongs to the capacity expansion and industrial chain extension project of the ternary precursor of the company's core products, which is an important layout made by the company in order to comply with the industrial development trend and respond to the expanding product needs of downstream customers. it is conducive to expanding the scale of business, consolidating the company's market position and promoting the sustainable development of the company.

Everbright Securities latest research report analysis, in the stage of rapid development of the industry, Zhongwei shares actively expand production to seize market share. By the end of 2020, the company has a pre-body production capacity of 110000 tons, which is expected to reach 200000 tons by the end of 21 years and exceed 500000 tons by 2025.

In addition, according to the 2021 half-year performance forecast disclosed by Zhongwei shares a few days ago, the company expects that the net profit attributable to shareholders of listed companies in the first half of the year is 463 million yuan to 509 million yuan, an increase of 200.18% to 230.08% over the same period last year.

Zhongwei said that based on the explosive increase in production and sales of new energy vehicles at home and abroad, the surge in sales of electric vehicles has led to the rapid development of the power lithium-ion battery industry and the strong demand for ternary precursors. At the same time, the company's existing ternary precursors and cobalt tetroxide production capacity are in a state of full load production. In the first half of this year, Zhongwei Co., Ltd. sold a total of about 80,000 tons of ternary precursors and cobalt tetroxide. The company continues to accelerate the release of production capacity, rapid improvement of production efficiency, superimposed product structure optimization, customer structure optimization, and jointly promote the rapid growth of the company's performance.

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