Sinopec Science and Technology raised 5 billion yuan plus battery diaphragm project

On the evening of March 14, Sinopec (002080) disclosed the prospectus for the public offering of green corporate bonds (the first phase) to professional investors in 2022.

It is reported that the total size of Sinopec's bond issue is no more than 5 billion yuan (including 5 billion yuan), using phased issuance. The current issue is the first issue, with an issue size of no more than 800 million yuan (including 800 million yuan). It is expected to be issued from March 17, 2022 to March 21, 2022, with a total of 3 trading days.

According to the announcement, after deducting the issuance expenses, no less than 70% of the funds raised in the first phase of bonds will be used for the construction, operation, acquisition or repayment of green project loans for green industry projects (hereinafter referred to as green projects), and no more than 30% of the raised funds will be used for business development in the field of green industry.

Specifically, Sinopec plans to use 364 million yuan to raise funds for the construction of the power lithium-ion battery diaphragm production line project with an annual output of 408 million square meters (hereinafter referred to as "Tengzhou Battery diaphragm Project"). It is proposed to use the raised funds of 176 million yuan to repay the interest-bearing loan of the special wet diaphragm production line project for lithium batteries with an annual output of 120 million square meters (hereinafter referred to as "Changde Battery diaphragm Project"). It is proposed to use 20.25 million yuan of raised funds for the project operation of wind power projects with an annual output of more than 800 sets of 4MW, and to use 240 million yuan of raised funds for the development of green industries.

According to the prospectus, Sinopec has confirmed that its battery diaphragm is mainly supplied to leading battery companies at home and abroad, such as Ningde Times, BYD, Yiwei Lithium Energy, Amperex Technology Limited, LGES (LG New Energy), and other leading battery companies at home and abroad, for the production of power batteries for new energy vehicles.

At present, Sinopec has four production bases in Tengzhou, Shandong, Changde, Hunan, Ningxiang, Hunan and Hohhot, Inner Mongolia. In addition to the above-mentioned Tengzhou battery diaphragm project and Changde battery diaphragm project, in 2021, Sinopec Science and Technology frequently expanded production.

On December 22, 2021, Sinopec Science and Technology announced that Inner Mongolia Zhongli, a subsidiary of Sinopec Lithium Film, plans to invest 2.303 billion yuan in Hohhot, Inner Mongolia Autonomous region, planning to build six single-line wet base membrane production lines with an annual effective capacity of 120 million square meters, with a total substrate production capacity of 720 million square meters, and 18 coating production lines with a total coating capacity of 748 million square meters.

This investment is an increase in the production capacity of Inner Mongolia diaphragm base by Sinopec. Prior to this, Sinopec announced that Inner Mongolia Zhongli plans to invest 895 million yuan to build a "special wet diaphragm production line with an annual capacity of 320 million square meters for lithium batteries" in Hohhot. In view of this, Sinopec's planned diaphragm production capacity in Hohhot has reached 1.04 billion square meters.

On May 19th, Sinopec Science and Technology announced that Nanjing Lithium membrane, a wholly owned subsidiary of Sinopec Lithium membrane, plans to invest in the construction of an "annual production line of 1.04 billion square meters of lithium ion battery diaphragm" in Nanjing.

It is worth mentioning that Sinopec recently said in the investor interactive platform that the lithium film has been put into production base to achieve profits. The company's diaphragm industry is currently in the accelerated stage of industrialization. With the release of production capacity, product and customer structure optimization and management optimization, the profitability of the company's diaphragm industry will continue to improve. According to the 2021 performance forecast, Sinopec expects to return home with a net profit of 3.263 billion yuan to 3.875 billion yuan in 2021, an increase of 60% over the same period last year.