Guoxuan Hi-Tech 1 billion sets up two new subsidiaries to accelerate the layout of the whole lithium industry chain.

On the evening of May 7th, Guoxuan Hi-Tech (002074) issued an announcement that recently, the company has completed the industrial and commercial registration procedures of Feidong and Yichun's new subsidiaries Feidong Guoxuan and Jiangxi Guoxuan, and obtained the "business license".

It is reported that in order to achieve the strategic goal of "2025 power lithium battery capacity reaching 100GWh" and ensure the safety and stability of upstream raw material supply, Guoxuan Hi-Tech issued an announcement on April 22nd that it intends to set up wholly-owned subsidiaries Feidong Guoxuan and Jiangxi Guoxuan in Feidong County, Anhui Province and Yichun City, Jiangxi Province, with registered capital of 500m yuan. The company will hold 100% equity of Feidong Guoxuan and Jiangxi Guoxuan with its own capital.

The completion of the industrial and commercial registration procedures indicates that the above newly established subsidiaries of Guoxuan Hi-Tech have officially entered the licensed operation stage.

Battery Network noted that in addition to Feidong Guoxuan and Jiangxi Guoxuan, since the beginning of this year, Guoxuan Hi-Tech has been planning a layout in the battery industry chain to consolidate its market position in the lithium battery industry.

On February 28th, the people's Government of Yichun City and Guoxuan holding Group Co., Ltd. signed a strategic cooperation framework agreement in Yichun. Guoxuan Group invested 11.5 billion yuan in lithium new energy industry project and officially settled in Yichun Economic Development Zone. The project is planned to include industrialization projects such as lithium carbonate production and supporting materials for lithium batteries, which will be built in two phases. The construction of the first phase of the project is expected to start in mid-2021 and is scheduled to be completed within 2 years, and the total two phases of the project are scheduled to be completed within 5 years. In the later stage, according to the strategic planning for the development of the new energy industry, the two sides will work together to actively promote the integration of the upstream and downstream of the industrial chain combined with the unique advantages of lithium ore resources in Yichun.

On March 10, Hefei Guoxuan Hi-Tech Power Energy Co., Ltd., a wholly-owned subsidiary of Guoxuan Hi-Tech, funded the establishment of a wholly-owned subsidiary Hefei Guoxuan Recycling Technology Co., Ltd. (hereinafter referred to as "Guoxuan New Materials") and Hefei Guoxuan New Materials Technology Co., Ltd. Among them, the establishment of Guoxuan Xunke to carry out lithium battery recycling business, the establishment of Guoxuan new materials to carry out negative material research and development, production and sales business, both registered capital of 50 million yuan. As of the date of disclosure of the announcement, the above newly established companies have completed the industrial and commercial registration procedures.

On the evening of March 15, Guoxuan Hi-Tech issued an announcement that in order to enhance the capital strength and core competitiveness of Liuzhou Guoxuan, a subsidiary of the company, speed up the construction of Liuzhou Guoxuan power lithium battery capacity, and effectively implement the company's strategic development goals, the company's wholly-owned subsidiaries Hefei Guoxuan and Liuzhou Investment increased the capital of Liuzhou Guoxuan in cash respectively. Among them, Hefei Guoxuan increased capital by 100 million yuan, Liuzhou investment increased by 50 million yuan, all from their own funds. After the completion of this capital increase, the registered capital of Liuzhou Guoxuan increased from 150 million yuan to 300 million yuan. Hefei Guoxuan holds a 66.67% stake in Liuzhou Guoxuan, and Liuzhou Guoxuan is a subsidiary of Hefei Guoxuan. As of the date of disclosure of this announcement, the above-mentioned capital increase has completed the registration procedures for industrial and commercial changes.

On March 22nd, Guoxuan Hi-Tech and the government of Feidong County signed an investment cooperation agreement to invest 12 billion yuan in the Hefei Circular economy demonstration Park in Feidong County to build a series of projects of power battery industry chain, mainly for the upstream raw materials and battery recycling of power lithium battery. the project is planned to cover an area of 2280 mu and is expected to be completed and put into production within 24 months. After the completion of the project, it will ensure that the power battery production capacity of Guoxuan Hi-Tech will reach the raw material supply of 100GWh in 2025, and effectively solve the problems of lithium battery recycling and echelon utilization.

On March 24th, Guoxuan Hi-Tech signed a "Cooperation Agreement" with Yichun Mining Co., Ltd. (hereinafter referred to as "Yichun Mining"). The two sides jointly contributed 100 million yuan to establish a joint venture Yichun Guoxuan Mining Co., Ltd. Among them, the company contributed 51 million yuan in its own currency, accounting for 51% of the registered capital of the joint venture company, while Yichun Mining contributed 49 million yuan, accounting for 49% of the registered capital of the joint venture company. According to the agreement, the business scope of Yichun Guoxuan includes the exploitation, management and operation of mineral resources, with the aim of jointly investing in the development of mineral resources and ensuring the supply of lithium ore resources of the company. After the completion of this investment, Yichun Guoxuan became a holding subsidiary of the company.

On the 24th, Guoxuan Hi-Tech also signed an investment cooperation agreement with Yichun Economic and technological Development Zone for the construction of Yichun Lithium Industrial Park, including the extraction, processing and application of lithium carbonate resources. and Synchronize to promote lithium battery research and development and manufacturing and other industrialization projects, will also build Guoxuan high-tech supply chain regional headquarters. The project covers an area of 500 mu, which is divided into two phases of construction. The first phase of the project strives to be completed and put into production by the end of 2022, with another 500 mu of land reserved for the project.

In order to give full play to the advantages of resources and build a platform for the battery material industry, on April 22, Guoxuan Hi-Tech also announced that it plans to set up a phosphating Guoxuan New Energy Materials Co., Ltd. in Fuquan City, Guizhou Province, with a registered capital of 500 million yuan, of which the company will contribute 200 million yuan in currency and assets and will hold a 40% stake in phosphating National Xuan.

Guoxuan high-tech business territory continues to expand at the same time, business performance also showed a climbing trend, continued to improve. Last year, the company achieved operating income of 6.724 billion yuan, up 35.60% from the same period last year; the net profit attributed to the owner of the parent company was 150 million yuan, up 192.02% from the same period last year. According to the annual report, thanks to the strong downstream demand for new energy power lithium batteries in China, Guoxuan Tech's sales of lithium batteries reached 2.5831 billion amperes last year, an increase of 69.24% over the same period last year; revenue reached 6.277 billion yuan, an increase of 45.27% over the same period last year, accounting for 93.35% of revenue. In the first quarter of this year, Guoxuan Hi-Tech achieved revenue of 1.292 billion yuan, an increase of 77.09% over the same period last year, and net profit of 47.9183 million yuan, an increase of 42.49% over the same period last year.

In addition, it is worth noting that on April 6, Guoxuan Hi-Tech issued an announcement that the company's 2020 non-public offering was approved by the China Securities Regulatory Commission. This means that its plan to introduce Volkswagen China as a strategic investor has been basically completed, and Volkswagen China will become the largest shareholder of Guoxuan Hi-Tech.

According to Shouchuang Securities Analysis, Volkswagen's entry will bring about the integration of systems and standards, and Guoxuan Hi-Tech will aim at international first-class power battery suppliers in the future. Volkswagen will open world-class battery testing standards to Guoxuan Tech to further improve its R & D and testing system; in the fields of battery module design, battery PACK design, battery system thermal management, as well as process and quality control, the company is expected to make great progress. In the future, Guoxuan Tech will aim at international first-class power battery suppliers and value its long-term development.