Yacheng New Materials completes 180 million yuan of strategic financing to introduce Huayou Cobalt Industry to speed up the development of lithium materials

Recently, Hunan Yacheng New Materials Co., Ltd. (hereinafter referred to as "Yacheng New Materials"), a subsidiary of Hezhong Technology (300447), has completed 180 million yuan of strategic financing, invested by Huayou in Tongxiang and the investment institution of Huayou Holdings.

It is understood that January 28, the company's subsidiary Yacheng New Materials proposed to increase capital and shares to introduce strategic investors, Huayou Cobalt Industry (603799) and controlling shareholder Huayou Holdings intend to jointly increase the capital of Yacheng New Materials. According to the "Capital increase and share expansion Agreement", Huayou Cobalt intends to invest a total of 120 million yuan in Yacheng New Materials, corresponding to acquire 12.13% equity interest in Yacheng New Materials; Huayou Holdings plans to invest a total of 60 million yuan in Yacheng New Materials, and corresponding will acquire 6.07% equity interest in Yacheng New Materials. After the completion of this transaction, the registered capital of Yacheng Xincai will increase from 350 million yuan to 428 million yuan, and Hezhong Technology will hold an 81.8% stake in Yacheng Xincai.

Data show that Hunan Yacheng, a wholly-owned subsidiary of Hezhong Technology, is committed to the research, development, production and application of high-end new energy materials, and is a leading enterprise of lithium battery cathode material precursor iron phosphate material in China. Hunan Yacheng's main products are lithium battery cathode precursor materials such as ferric phosphate, cobalt tetroxide and battery-grade cobalt hydroxide for power batteries, in which ferric phosphate for power batteries can produce 60, 000 tons per year, and cobalt tetroxide can produce 8000 tons per year.

Hezhong Technology said that Hunan Yacheng, a subsidiary, introduced Huayou Cobalt Industry and Huayou Holdings as strategic investors, which can realize the complementary advantages of both sides in the field of lithium new energy and build a common value chain. It is conducive to promoting the rapid expansion of the company's new iron phosphate base production capacity, and further promoting the company's technology and market leading position in the field of lithium battery cathode material precursor manufacturing. To promote the company to achieve higher-quality development, in line with the strategic interests of both sides, in line with the strategic needs of the market.

In August 2021, Hedong Science and Technology announced that Huayou Holdings signed a "Strategic Cooperation Agreement". The two sides will cooperate in the construction of Yibin battery-grade iron phosphate intelligent project, industrial chain cooperation, capital market cooperation, business exchanges and other aspects of complementary advantages, resource sharing and common development. Sichuan Yacheng, a subsidiary of Hezhong Technology, is the main body of the project investment, construction and operation of the 550,000 t / a battery-grade iron phosphate intelligent factory in Yibin base.

According to the agreement, after the first phase of Yibin battery-grade iron phosphate intelligent project is put into production, Huayou Holdings and / or its related parties should purchase its iron phosphate products from Sichuan Yacheng, which should not be less than 70% of the production capacity of Sichuan Yacheng; at the same time, Hezhong Technology ensures that Sichuan Yacheng provides 70% of the production capacity of iron phosphate products to Huayou Holdings and / or its related parties. After the second phase of the project is put into production, procurement cooperation shall be carried out with reference to the first phase of the project.

In addition, it is worth noting that Huayou Cobalt Industry announced on the evening of February 7 that the company recently received a reply from the China Securities Regulatory Commission, approving the company to issue convertible corporate bonds with a total face value of 7.6 billion yuan to the public.