Pengxin Resources was quickly asked by the Shanghai Stock Exchange!

How optimistic is the market on lithium materials? Recently, a listed company added capital to an insolvent lithium material company.

However, this operation was quickly questioned by the Shanghai Stock Exchange about the reason and necessity.

On August 11, Pengxin Resources issued an announcement on the foreign investment of wholly-owned subsidiaries. Pengjia Fund, a wholly-owned subsidiary of Pengxin Resources, recently signed a "Capital increase and share expansion Agreement" with Dongfang, a stock of Jiangsu Litai LiNeng Technology Co., Ltd., to increase its own capital of 75 million yuan to Litai LiNeng Co., Ltd.

After the completion of the capital increase, the Pengga Fund will hold a 23% stake in Li Li Neng and become the largest shareholder of Li Tai Li Neng. The shares of Litai LiNeng before and after capital increase are shown in the following figure:

According to the announcement, Litai Lithium Energy is a company mainly engaged in the research, development, production and sales of cathode materials, anode materials, electrolytes and high-purity lithium compounds for lithium-ion battery. at present, the main product lithium ferromanganese phosphate material is used to manufacture lithium battery cathode. Litai Lithium Neng currently has a number of registered proprietary technology intellectual property patents, including lithium ferromanganese phosphate, lithium hydroxide, high purity lithium carbonate, high nickel ternary and other preparation methods.

At present, Litai Lithium can have 2000 tons of lithium ferromanganese phosphate production line and 2000 tons of high purity lithium carbonate production line. In 2020, we sold 5.66 tons of lithium ferromanganese phosphate and 10.88 tons of lithium carbonate. In the first half of 2021, we sold 27.99 tons of lithium ferromanganese phosphate and 5.93 tons of lithium carbonate.

Financially, Li Tai Li can be insolvent. As of June 30, 2021, Litai LiNeng has total assets of 171 million yuan, total liabilities of 215 million yuan, net assets of-43.21 million yuan, operating income of 1.92 million yuan and net profit of-11.935 million yuan in the first half of 2021.

Pengxin Resources said that the company's capital increase for Litai Lithium Energy is based on Litai Lithium Energy's long-term research in lithium-related materials, has formed a strong R & D capability in this field, and obtained relevant patented technology. The commercial application of this kind of patented technology will help the company to develop in the new energy field and related resources industry, and further improve the company's industrial layout.

How quickly did the Shanghai Stock Exchange react to the investment of Pengxin Resources? According to the "inquiry letter about Pengxin Global Resources Co., Ltd." issued by Pengxin Resources, the registration date of "Shanghai official letter [2021] No. 2654" is also August 11, and the Shanghai Stock Exchange asked Pengxin Resources to reply to the letter before August 17.

The Shanghai Stock Exchange asked Pengxin Resources to give answers in four aspects:

1. The announcement reveals that Litai Lithium has strong R & D capability in the field of lithium-related materials. Please further disclose: (1) the patented technology of the target company, R & D personnel, R & D investment over the years, etc.; (2) the competitive position of the target company in the industry and the stage of commercial application of the relevant patented technology, whether there is the possibility of mass production, and fully reveal the risks and uncertainties that may exist in the prospect of commercialization.

2. The announcement reveals that Litai Lithium can mainly specialize in the R & D, production and sales of lithium-ion battery cathode materials, anode materials, electrolytes and high-purity lithium compounds, focusing on lithium ferromanganese phosphate materials. Please further disclose: (1) the specific types of lithium ferromanganese phosphate materials, and explain the level of technology and preparation process combined with the relevant technical parameters; (2) the proportion of operating income, gross profit margin and net profit rate of the business of lithium ferromanganese phosphate materials; (3) the top five customers and suppliers of the target company, whether the transaction amount is related party transactions, and whether it has formed a relatively stable customer and market.

3. The announcement reveals that as of June 30, 2021, the total assets of Litai LiNeng are 171 million yuan, the net assets are-43 million yuan, the operating income in the first half of 2021 is 1.92 million yuan, and the net profit is-11.935 million yuan. The net assets and net profits of the underlying company are negative, and the scale of operating income is small. Please add: (1) the reasons for the continued losses of the target company, and fully reveal the risk of fluctuations in the future operating capacity of the target company; (2) explain the reasons and necessity for the company to acquire loss-making companies.

4. The announcement reveals that Litai LiNeng has an existing asset value of RMB 251.09 million, and the company has acquired 23% of the shares through capital increase. Please provide additional disclosure: (1) the historical evolution of the target company, combined with the price of previous capital increases or equity transfers, explain the rationality of the pricing of this transaction; (2) combined with the stationing of the board of directors of the target company, explain whether it can have a significant impact on the target company, as well as the accounting treatment of this investment.

We will wait and see about the reply from Pengxin Resources.

In the secondary market, Pengxin Resources has seen a big rise since July, with its share price rising from the lowest 3.69 yuan to the highest 6.59 yuan, with the biggest increase of 78.59 percent in more than a month.