Baichuan Co., Ltd. plans to invest 758 million in lithium battery project and graphite anode material project.

On November 10th, Baichuan (002455) announced that its subsidiary, Haiji New Energy, plans to invest in the construction of an annual 2GWh lithium-ion battery and battery pack project with a total investment of 470 million yuan.

The announcement shows that the annual production of 2GWh lithium-ion batteries and battery packs will take 10 months, the annual after-tax profit of the project will be 83.37 million yuan, and the investment payback period (after tax) is 3.45 years (including the construction period).

Baichuan said that this investment can seize the opportunity of the rapid development of new energy, expand sea-based new energy capacity, increase market share, achieve rapid expansion of the company's overall scale, and further improve the company's market competitiveness and risk resistance.

In order to further enhance the financial strength of sea-based new energy, expand the production capacity of sea-based new energy lithium power projects, and meet the needs of funds for the future development of sea-based new energy, Baichuan shares and relevant shareholders of sea-based new energy jointly signed the Capital increase Agreement of Jiangsu Haiji New Energy Co., Ltd. in Jiangyin, which intends to increase the registered capital of sea-based new energy from 750 million yuan to 950 million yuan.

On the same day, Baichuan Co., Ltd. Ningxia Baichuan New material plans to invest in the construction of a project with an annual output of 15000 tons of graphite anode material (10, 000 tons of graphitization), with a total investment of 280 million yuan.

The announcement shows that the construction period of the project with an annual output of 15000 tons of graphite anode material (10, 000 tons of graphitization) is one year, the average annual net profit of the project is 147.5571 million yuan, and the payback period of investment after income tax of the project (excluding the construction period) is 2.54 years.

Baichuan shares said that the source of funding for this foreign investment is self-raised funds from Ningxia Baichuan New Materials, and this investment is in line with the company's future development strategic planning, which can extend the new energy industry chain, expand production capacity, and create new profit growth points for the company, which can further improve the company's market competitiveness and anti-risk ability.

It is worth noting that at present, the projects in which Ningxia Baichuan New Materials have obtained record certificates are: "annual output of 460000 tons of lithium electricity materials, annual recycling of 300000 tons of lithium battery materials and waste catalysts", "annual production of 72000 tons of lithium iron phosphate", "annual production of 50, 000 tons of graphite anode materials, 10, 000 tons of graphite crucibles project", "pilot plant project", etc. Mainly include annual output of 150000 tons of needle coke, 100000 tons of graphite anode materials (100000 tons of graphitization), 100000 tons of ferric phosphate, 30 tons of lithium ferric phosphate / lithium ferromanganese phosphate, 72000 tons of lithium ferric phosphate, 30 tons of ternary precursor materials, 100000 tons of lithium battery resources utilization, 50 tons of waste electrode resource utilization, 100000 tons of NMP resources utilization, 50 tons of cobalt manganese catalyst resource utilization, 10,000 tons of graphite crucible and pilot plant and other projects.

At present, the environmental impact assessment reply of Ningxia Baichuan New material has been obtained. the production scale of the project is as follows: annual output of 100000 tons of needle coke, 60, 000 tons of graphitization, 80, 000 tons of anode material, 20, 000 tons of iron phosphate, 12000 tons of lithium iron phosphate, 10, 000 tons of graphite crucible and pilot plant project; 50, 000 tons / year needle coke, 40, 000 tons / year graphitization, 20, 000 tons / year graphite anode materials, 40, 000 tons / year iron phosphate, 12000 tons / year lithium iron phosphate, 2000 tons / year waste cobalt-manganese catalyst recycling, 2500 tons / year waste lithium iron phosphate battery recycling, 15500 tons / year waste ternary battery recycling.

At present, Ningxia Baichuan New Materials has invested in the following projects: "annual output of 5000 tons of graphite anode material (10, 000 tons of graphitization) project", "annual output of 50, 000 tons of needle coke project", "annual production of 20, 000 tons of iron phosphate, 6000 tons of lithium iron phosphate product project", "annual capacity of 20, 000 tons of lithium battery resource utilization project".

In addition, Battery Network is also concerned that Baichuan shares publicly issued 5.2 million convertible corporate bonds on January 3, 2020, raising a total of 520000000.00 yuan, deducting 12262000.00 yuan from issuance fees (including VAT). In addition, the issuance expenses can be deducted against value-added tax of 694075.47 yuan, and the net amount of funds raised by the issue is 508432075.47 yuan. As the convertible bond investment project is implemented through Ningxia Baichuan New Materials, a subsidiary of Nantong Baichuan, the raised funds are transferred to the Nantong Baichuan capital supervision account by the company to form a current account. In order to optimize the asset-liability structure, the company plans to increase capital to Nantong Baichuan by holding 508 million yuan of creditor's rights and 12 million yuan of its own funds, totaling 520 million yuan. After the completion of this capital increase, the registered capital of Nantong Baichuan will be changed from 680 million yuan to 1.2 billion yuan. the company owns 100% equity in Nantong Baichuan, and Nantong Baichuan is still a wholly-owned subsidiary of the company.