A few days ago, Wanshun New Materials announced that Jiangsu Zhongji Composites Co., Ltd. (hereinafter referred to as "Jiangsu Zhongji"), a wholly-owned subsidiary of the company, intends to use its own capital of RMB 35.7 million to buy 51 per cent of Shenzhen Yuqiang New Materials Co., Ltd. (hereinafter referred to as "Shenzhen Yuqiang") held by Li Ke and Song Shangjiude New Materials Technology Co., Ltd. (hereinafter referred to as "Songshangjiude").

According to Wanshun New material, Shenzhen Yuqiang's main products are carbon-coated aluminum foil and conductive paste, which are mainly used in battery fluid collection, which can reduce battery internal resistance, improve battery charge and discharge efficiency and service life, and the terminal is used in new energy vehicles, energy storage and other fields. Shenzhen Yuqiang is the downstream enterprise of the company's battery aluminum foil business, this acquisition will help the company to seize the opportunity of new energy development, improve the battery aluminum foil business layout, and enhance the overall competitiveness of the company.

On April 11, Wanshun Xincai announced its first-quarter results in 2022. The company expects to make a profit of 50 million yuan to 55 million yuan in the first quarter, an increase of 605.69% and 676.26% over the same period last year.

In terms of customers, Wanshun New material has entered the supply chain system of the battery head enterprise Ningde era and began to supply its battery cathode foil downstream customers including Ningde Bofa, Youyuangcai and so on; its battery soft package foil customers include excellent new materials, Mingguan new materials, Zijiang new materials and so on.

In a recent survey by investment institutions, Wanshun Xincai said that the company currently has full orders for battery foil and cannot meet the needs of other lithium battery companies due to limited production capacity.