Ruitai new materials gem IPO submitted for registration is expected to make a net profit of more than 546 million in 2021

Battery Network learned from the official website of the Shenzhen Stock Exchange, January 24, Jiangsu Ruitai New Energy Materials Co., Ltd. (referred to as: Ruitai New Materials) gem IPO submitted for registration. According to the prospectus, IPO, Ruitai New Materials intends to raise about 1.2 billion yuan, which will be used for Poland Huarong new Prusice 40,000 tons / year lithium-ion power battery electrolyte project, Ningde Huarong annual production of 80,000 tons of new materials project, Huarong chemical new experimental building and existing environmental protection facilities upgrading project, Huarong chemical intelligent transformation project, supplementary liquidity and other projects.

According to the prospectus, Ruitai Xincai expects that in this investment project, the construction period of the Polish project is about 12 months, which takes about 36 months from the completion of the project to reaching production, while that of the Ningde project is about 24 months. It will take about 48 months from the completion of the project to the completion of the project. After the production of this investment project, the total electrolyte production capacity of the company's lithium-ion battery will reach 190000 tons. Considering the impact of projects under construction and already under construction, the total electrolyte production capacity of lithium-ion batteries is expected to reach about 300000 tons.

Data show that Jiangsu Cathay Pacific (002091) is currently a dual-main business structure, mainly engaged in consumer goods supply chain and chemical new materials business. The main business of the proposed spin-off subsidiary Ruitai New Materials is the R & D, production and sales of new chemical materials such as lithium-ion battery materials and silane coupling agents.

It is reported that Ruitai New Materials has a high degree of customer concentration. According to the prospectus, the top five customers of Ruitai New Materials accounted for 74.63%, 79.37%, 78.04% and 84.39% of revenue in the first half of 2018-2021, respectively. LG Chemistry, Ningde Times and New Energy Technology are among the top three customers of issuers and are the main downstream customers of the company's electrolyte.

In terms of performance, Ruitai Xincai is expected to achieve an operating income of 4.6 billion yuan to 5.1 billion yuan in 2021, an increase of 153.44% to 180.98% over the same period last year. The net profit attributed to the parent company is 546 million yuan to 604 million yuan, up 112.20% and 134.74% over the same period last year.

Ruitai Xincai said that the main reasons for the increase in operating revenue in 2021 include (1) under the background of the continuous introduction of relevant favorable policies and the sustained prosperity of downstream market demand, products such as lithium-ion battery electrolytes, the main products are expected to sell well, and with the improvement of the relationship between supply and demand, the prices of major raw materials in the upstream rise, and the sales unit price is in a further rising stage. (2) the newly built production capacity of the company has gradually reached production capacity, and the supply capacity has been significantly improved. At the same time, major downstream customers, such as LG Chemical, Ningde Times, etc., have renewed cooperation agreements with the company, and the company's sales to these customers in the third quarter of 2021 are good, and the good momentum is expected to continue; (3) with the overall improvement of the lithium-ion battery industry chain, the cooperation between the main customers of additives and the company is further deepened.

In terms of future planning, Ruitai New Materials will focus on the main business and vigorously enhance the scale of the business. Further promote and expand lithium-ion battery electrolyte production capacity, consolidate and develop lithium-ion battery electrolyte additive business, and form strategic cooperation with leading battery manufacturers at home and abroad, steadily develop lithium-ion battery materials and organosilicon materials related business. And will make use of the diversified financing channels of the capital market to maintain a reasonable capital structure and lay a solid foundation for sustainable development in the future.