Wanshun new material plans to raise no more than 1.7 billion yuan to expand production of 100000 tons of power and energy storage battery foil

On the evening of January 7, Wanshun Xincai (300057) disclosed a plan to issue shares to no more than 35 specific targets, with a total amount of no more than 1.7 billion yuan and no more than 198.7 million shares (including capital). It is proposed to be used for the annual production of 100000 tons of power and energy storage battery foil project and supplementary current funds, among which the construction period of battery aluminum foil project is 24 months. It is estimated that the investment amount is 2.08 billion yuan, and it is planned to use this fund-raising fund of 1.2 billion yuan.

It is understood that aluminum processing business, especially aluminum foil processing business, has become the main source of income and profits of Wanshun new materials. The existing aluminum foil production line of Jiangsu Zhongji, a wholly-owned subsidiary of the company, has a production capacity of 83000 tons per year, basically reaching full capacity. The company issued convertible bonds "Wanshun Zhuan 2" to raise funds investment project "annual output of 72000 tons of high-precision electronic aluminum foil production project" implemented by Anhui Zhongji, the first phase of the annual production of 40, 000 tons of high-precision electronic aluminum foil production project has been put into production at the end of 2021, and is speeding up the construction of the second phase of 32000 tons of high-precision electronic aluminum foil production project. However, with the development of the downstream market, customer demand is increasing, even if the company's "annual production of 72000 tons of high-precision electronic aluminum foil production project" is fully put into production, it will still be difficult to meet the rapidly growing market demand and will become a bottleneck restricting the company's development.

Therefore, through the construction of this project, Wanshun New material can introduce domestic and foreign advanced technology level of aluminum foil mill, coiler, roll grinder and other high-end equipment, add 100000 tons of battery aluminum foil production capacity, and rely on the company's existing sales channels and technical advantages, seize the opportunity of battery aluminum foil development, further enhance the added value and competitiveness of the company's products, and lay the foundation for the long-term development of the company's business.

Data show that Wanshun New Materials has also made a breakthrough in the market development of strategic products represented by battery aluminum foil, with sales of 1199 tons by the third quarter of 2021, an increase of 742% over the same period last year. Through the implementation of the "annual production project of 72000 tons of high-precision electronic aluminum foil", the company has accumulated the production technology and capacity of battery aluminum foil, as well as excellent customer resources in the battery aluminum foil market.

Wanshun Xincai said that with the vigorous development of the new energy industry around the world, it has driven the explosive growth of power batteries and brought historic development opportunities for the battery aluminum foil industry. Through this investment project to raise funds by issuing shares to specific targets, the company will further optimize and upgrade its aluminum processing business and gain a firm foothold in new energy-related market segments with high development potential. in order to support the long-term sustainable growth of the company's business.

Battery network learned that not only Wanshun new materials, with the vigorous development of the battery new energy industry chain, the relevant aluminum foil industry chain enterprises have also issued production expansion announcements.

On the evening of December 21, 2021, Changaluminum Co., Ltd. (002160) also announced that the company plans to invest in a new 30, 000-ton special aluminum foil project for power batteries by Jiangsu Changaluminum New Energy Materials Technology Co., Ltd. the total construction period of the project is 24 months, and the total investment is expected to be about 350 million.

In November 2021, Dongyang (600673) low-carbon high-end battery aluminum foil project is also located in Yidu, Hubei Province. the project is expected to start construction in January 2022, with an investment of 6 billion yuan, covering an area of 1200 mu, and an annual output of 200000 tons of low-carbon high-end battery aluminum foil project. it is expected to achieve an output value of 8 billion yuan and tax revenue of 500 million yuan.