Multi-fluorine subsidiary companies introduce 276 million war investment to increase capital in the main system Korean electrolyte listed companies

In order to further optimize the asset structure and strengthen strategic cooperation with important customers, the company's holding subsidiary Duofu Yangfu New Materials Co., Ltd. (hereinafter referred to as: Yangfu New Materials) has introduced strategic investors in order to further optimize the asset structure and strengthen strategic cooperation with important customers. EnchemCo.,Ltd., a listed company in Korea It is agreed to subscribe for Yangfu New Materials with RMB 276 million in accordance with the agreement to increase the registered capital by 44.3963 million yuan, acquire 15% equity of Yangfu New Materials after the capital increase, and the remaining 231 million yuan will be included in the capital reserve.

According to the announcement, the original shareholder of Yangfu New material, Duofuo, Wutongshu Jiasheng Equity Investment Partnership (Limited Partnership), and Yangquan Wutongshu Jiayu Yangmei Intelligent Manufacturing Equity Investment Partnership (Limited Partnership) all give up the priority of this capital increase.

Ownership structure of Yangfu New Materials before and after Capital increase (Unit: yuan)

After the completion of the capital increase, the proportion of shares held in Yangfu new materials will be reduced from 79.50% to 67.573%, and Yangfu new materials will still be included in the company's consolidated statement.

It is reported that Polyfluorodo, Wutong Tree Jiasheng and Wutong Tree Jiayu invested in Yangfu New Materials in September 2021, mainly for the construction of a project with an annual output of 20, 000 tons of lithium hexafluorophosphate and additives, with a total investment of 1 billion yuan.

EnchemCo.,Ltd. Department of South Korea lithium battery electrolyte research and development, production and sales enterprises, in the field of new energy electrolyte related products with advanced technology and rich experience.

The battery net noticed that EnchemCo.,Ltd. Is one of the major customers of polyfluorodo. In November 2021, Dofuoduo issued an announcement on signing a major contract for daily operation. Henan Nonferrous Metals Industry Co., Ltd., a subsidiary of the company, recently worked with EnchemCo.,Ltd. Signed the purchase Agreement, EnchemCo.,Ltd. It is planned to purchase lithium hexafluorophosphate products with a total amount of not less than 1 billion yuan from Henan Nonferrous in the next three years. In July of the same year, polyfluorodo also announced that EnchemCo.,Ltd. 1800 tons of lithium hexafluorophosphate will be purchased from Henan Nonferrous.

Duofudo said that the introduction of strategic investors to increase capital and shares of the subsidiary will help to enhance the financial strength of the subsidiary, further enhance the ability of competition and anti-risk, promote the business development of the subsidiary, strengthen the market business of new material products, and enhance the company's market share, which is of positive significance for the company to maintain its market leading position.

In addition, polyfluorodo has a capacity of 20, 000 tons in 2021, and most of the expansion projects are progressing smoothly, ahead of the expected construction period. according to the company's production expansion progress, it is expected to have a production capacity of 55000 tons / year by the end of this year. Shipments are in the range of 35-40, 000 tons, and it is planned to exceed 100000 tons / year from 2023 to 2024.

Due to the strong market demand for new material products based on lithium hexafluorophosphate, the new production capacity of related products has been gradually released, capacity utilization has reached a high level, and profitability has been greatly improved. a few days ago, polyfluorodo issued a performance forecast, and the net profit belonging to shareholders of listed companies is expected to be 1.23 billion-1.33 billion in 2021, an increase of 2429.7% 2635.37% over the same period last year.

According to the analysis of the research report released by Everbright Securities, Polyfluoroduo has worked with BYD, Funeng Technology and EnchemCo.,Ltd. Such as customers have signed a long-term sales contract, the sustainability of high performance is expected to be fully guaranteed. At the same time, the company's forward-looking layout of new lithium salt, technical level and production capacity are in the forefront of the industry, now has 1600 tons / year LiFSI capacity, planned annual production capacity of 40, 000 tons of LiFSI, 10, 000 tons of lithium difluorophosphate capacity, is expected to take the lead in opening up the growth space.