Azure lithium core plans to raise an additional 1.5 billion to expand the annual production capacity of lithium batteries will exceed 1.9 billion.

On the evening of March 5th, Azure Lithium Core (002245) disclosed the fixed increase plan, and the total amount of funds raised in this issue did not exceed 1.5 billion yuan. Among them, the blue lithium core real controller CHENKAI or its control of the main commitment, the subscription amount in this increase is not less than 40 million yuan, not more than 150 million yuan.

After deducting the issuance expenses, the funds raised in this issue are intended to be used for the expansion project of new lithium-ion battery with an annual output of 1 billion AH with high safety, long life and high energy density and the industrialization project of high-efficiency new lithium-ion battery with an annual output of 2 billion AH. The former has a total investment of 1.256 billion yuan and intends to raise 600 million yuan, with Jiangsu Tianpeng Power supply Co., Ltd., a wholly owned subsidiary of the company, as the main body of the project, while the latter has a total investment of 2.35 billion yuan and intends to raise 900 million yuan. The company or its holding subsidiary will set up a new subsidiary in Huai'an as the main body of the project.

Azure Lithium Core said that Tianpeng Power supply, a wholly owned subsidiary of the company, is a high-tech enterprise with more than 10 years of R & D and manufacturing experience in the field of ternary cylindrical lithium batteries, and has a top horizontal cylindrical lithium battery automatic production line at home and abroad. it has a large-scale production capacity of cylindrical power lithium-ion batteries, especially in the field of lithium batteries for power tools.

The company's lithium battery products are mainly used in small power systems (including power tools, electric bicycles / motorcycles / forklifts / AGV vehicles, floor sweeping robots / vacuum cleaners and other matching power batteries), and is one of the main suppliers of small power batteries in the supply chain of power tools companies.

In recent years, the business of Azure lithium-core lithium battery has maintained rapid growth. In 2020, the company's lithium battery business achieved an operating income of 1.4466211 billion yuan, an increase of 49.97% over the same period last year, and a net profit of 267.4253 million yuan, an increase of 137.87% over the same period last year. The lithium battery business has become the company's biggest source of profit.

In the face of booming market demand, insufficient production capacity has affected the customer service and business development of Azure lithium-core lithium battery business. According to the company's development strategic plan, the company further focuses on the lithium battery industry and accelerates the expansion of lithium battery production under construction and preparatory projects.

The battery network also noted that on the evening of March 4, Azure Lithium Core announced that the company signed the "Investment Agreement on Tianpeng Lithium Energy industrialization Project" with the people's Government of Qingjiangpu District, Huaian City, Jiangsu Province, and the Management Committee of Jiangsu Huaian Qinghe Economic Development Zone on March 3, 2021, and planned to invest in the construction of a high-efficiency new lithium-ion battery industrialization project in Huaian Qinghe Economic Development Zone. The total investment of the project is 5 billion yuan to build a new 4 billion AH cylindrical lithium battery industrialization project.

According to the announcement, the project is planned to be built in two phases, with an investment of 2.35 billion yuan in the first phase, which will be implemented by the company or its holding subsidiary newly established Huaian Tianpeng Lithium Energy Co., Ltd. (provisional name, final industrial and commercial registration shall prevail).

On the evening of March 5, while issuing the fixed increase fund-raising announcement, Azure Lithium Core also issued an announcement on the investment in the industrialization project of high-efficiency new lithium-ion batteries, which further said that after the completion of the project, combined with the existing and under construction capacity, the company's total annual capacity of lithium batteries will exceed 1.9 billion, greatly improving product supply capacity. The company will have the capacity guarantee to expand from the field of power tools to other areas of new energy use.