On the morning of March 17th, Tengyuan Cobalt successfully landed on the gem of Shenzhen Stock Exchange in the form of online live broadcast with the stock code "301219" and the issue price of 173.98 yuan per share. By the morning's close, the company's shares were up 12.89%, with a total market capitalization of 24.737 billion.
Data show that Tengyuan Cobalt Industry is mainly engaged in the research and development, production and sales of cobalt and copper products, and is one of the leading cobalt salt manufacturers in China. The company's core products are cobalt chloride, cobalt sulfate and other cobalt salts and copper electrowinning. With good reputation and excellent product quality, the company has established long-term and close cooperative relations with Zhongwei shares, Mercuria, Wanbao Minerals, Hezhong Technology (Hunan Yacheng), Xiamen Tungsten Industry, Jinchuan Science and Technology, Cunninghamia lanceolata shares, Dangsheng Technology and other well-known enterprises in the industry represented by the world's top 500 enterprises.
According to the analysis of Tengyuan Cobalt Industry, at present, China has become the largest producer, consumer and exporter of lithium-ion batteries. At present, there is a strong demand for cobalt in the market, and production capacity has become the bottleneck of the company's development.
At the same time, the latest prospectus of Tengyuan Cobalt Industry shows that with the extensive application of lithium batteries, the recycling and echelon utilization of waste lithium batteries have been paid more and more attention by many countries. China's Ministry of Industry and Information Technology and other departments have specially issued a management method for the cascade comprehensive utilization of lithium batteries, but the waste lithium batteries that have been used in echelons will eventually go into disassembly and recycling valuable resources. The analysis shows that the average content of cobalt 12% "18%", nickel 13% "20%, lithium 2.5%" 4.8%, copper 8% "10%, aluminum 4%" 8%, and shell alloy about 30%. Take cobalt as an example, a battery weighing about 40g contains about 6g of metal cobalt (about 15%). According to 100 million scrapped each year, about 600 tons of cobalt can be recovered, and the content of cobalt in waste lithium-ion batteries is higher than that in cobalt concentrates. It can be seen that the realization of green separation and recycling of waste lithium-ion batteries can effectively alleviate the shortage of non-ferrous metal resources in China.
Tengyuan Cobalt Co., Ltd.'s IPO investment project
Tengyuan Cobalt IPO plans to raise 2.198 billion yuan and finally raise 5.478 billion yuan. After deducting the issuance cost, it will be used for the annual production of 20, 000 tons of cobalt and 10, 000 tons of nickel metal series products in remote intelligent technological transformation and upgrading and raw and auxiliary materials supporting production project (the second phase) (to raise funds of 1.698 billion yuan) and supplementary liquidity (to be invested and raised of 500 million yuan).
Specifically, Tengyuan Cobalt Co., Ltd. has an annual output of 20, 000 tons of cobalt and 10, 000 tons of nickel metal series products, and the matching production project of raw and auxiliary materials is a new project. using cobalt intermediate products, cobalt manganese materials, nickel intermediates and lithium battery waste as raw materials, using leaching + extraction stripping + electrodeposition crystallization + calcination process to produce cobalt series products, the annual output of cobalt series products is 20000 tons (based on cobalt metal). In order to meet the requirements of environmental protection, existing enterprises need to be relocated in different places, which is divided into two phases of construction. Among them, the construction funds of the first phase of the project come from the government relocation compensation, and the second phase of the project uses this public offering to raise funds for investment.
Annual output of 20,000 tons of cobalt, 10,000 tons of nickel metal series products remote intelligent technical transformation and upgrading and raw and auxiliary materials supporting production project phase I is the relocation and transformation of the existing factory capacity in different places. The second phase of the project is expansion, that is, on the basis of relocation and transformation in different places, increase production capacity and product variety. After the completion of the project, the scale of the first phase is 6500 tons of cobalt metal per year, the products are cobalt sulfate, cobalt chloride and electrowinning copper, etc., and the scale of the second phase is 13500 tons of cobalt metal and 10000 tons of nickel metal. the products are electrowinning cobalt, nickel sulfate, manganese sulfate, lithium carbonate, ternary precursors and so on. In order to achieve self-production of sulfuric acid and SO2, a sulfur-based sulphuric acid plant will be built in the second phase of the project, with an annual output of 98% sulfuric acid of 320000 tons and liquid SO26600 tons, waste heat recovery from sulphuric acid production and power generation.
Tengyuan Cobalt said that the fund-raising investment project revolves around the company's main business, and after the completion of the project, it will effectively improve the company's production capacity and further expand the company's business scale; the construction of the ternary precursor production line will realize the recycling of lithium battery waste, further enrich the variety of the company's products, extend the company's industrial chain, and reduce the company's operating risk. The application of sulfur sulphuric acid plant will further reduce the cost of raw and auxiliary materials and enhance the comprehensive competitiveness of the company.
At the same time, Tengyuan Cobalt will take this public offering and listing as an opportunity to make timely and reasonable use of the platform of the capital market, in the next five years to form a variety of production capacity of cobalt salts, cobalt oxides, metal cobalt, copper, ternary material precursors, etc., to better expand and strengthen the enterprise, pay equal attention to scale and efficiency, and strive to become a global cobalt industry leader in resource-saving and environment-friendly.
In terms of performance, Tengyuan Cobalt achieved an operating income of 4.158 billion yuan in 2021, an increase of 132.66% over the same period last year, and a net profit of 1.144 billion yuan, an increase of 122.91% over the same period last year, mainly due to an increase in the sales price and quantity of cobalt and copper products over the same period last year.
According to the overall development strategy of Tengyuan Cobalt Industry, in addition to this fund-raising project to expand the production capacity of cobalt products, the company plans to use self-raised funds to continue to expand the construction of cobalt and copper wet smelters in the Democratic Republic of the Congo (DRC). To increase copper production capacity while obtaining more associated cobalt resources to open up the upstream industry. The factory plans to adopt the production process of "sulfuric acid leaching copper + copper extraction electrodeposition + optimized cobalt leaching to remove iron + sulfurization to precipitate cobalt" and sulphur sulphuric acid production and sulphide ore roasting to produce sulphuric acid. After the completion of the project, Congo Tengyuan can increase its annual copper production capacity by 40000 tons. The newly invested capacity will meet the needs of current customers and new customers in the future, and will enrich the company's existing business structure.
In addition, it is worth noting that Tengyuan Cobalt issued a total of 31.4869 million RMB common shares (A shares), and the strategic allotment accounted for 19.17% of the total number of shares issued, reaching 6.0352 million shares.
Among the six participants in the strategic placement, the large enterprises or their subordinate enterprises that have strategic cooperation or long-term cooperation vision with Tengyuan Cobalt include: China North Industry Co., Ltd., Wanxiang 123 Co., Ltd., Shanghai Automobile Group Co., Ltd., Zhongwei New Materials Co., Ltd. And Jiangxi Ganfeng Lithium Industry Co., Ltd.
Participation in strategic placement with enterprises with strategic cooperation or long-term cooperation vision with Tengyuan Cobalt Co., Ltd.
With regard to participating in the strategic placement of Tengyuan Cobalt, Zhongwei said that Tengyuan Cobalt, as an important supplier of the company, has maintained a close cooperative relationship with it for many years, considering the position of both sides in their respective industries and broad business coordination prospects in the future, this participation in the strategic placement of Tengyuan Cobalt will help both sides to give full play to their respective advantages in resources, capital and technology, and give full play to their business synergy. Carry out in-depth cooperation in areas such as the supply of cobalt raw materials.
On February 16, Zhongwei also signed a "Memorandum of Strategic Cooperation" with Tengyuan Cobalt Co. from 2022 to 2025, the two sides estimated that the total supply and demand of cobalt salt would be 10-200000 physical tons, with an annual average of 250-50, 000 physical tons.
