New Zeus plans to introduce LG New Energy to jointly increase Investment in Poland New Zeus to promote the implementation of Lithium Power Project

After trading on April 12, New Zeus (300037) issued an announcement that in order to meet the strategic development needs of the company, the company plans to introduce LG Energy Solution,Ltd. (hereinafter referred to as "LG New Energy"), a wholly owned subsidiary of LG Chemical (LG Chem,Ltd.) Co., Ltd., to jointly increase the capital of Polish New Zeus, with a total capital increase of 80276989 zlotys (equivalent to about 137 million yuan) and 50585227 zlotys (equivalent to about 86.6 million yuan). Hong Kong New Zeus contributed 12646307 zlotys (equivalent to about 21.65 million yuan), LG New Energy contributed 17045455 zlotys (equivalent to about 29.18 million yuan).

The announcement shows that after the completion of this capital increase, the share capital of the Polish new Zeus will increase from 11284000 zloty to 28153250 zloty, of which the new Zeus holds 68 per cent of the Polish new Zeus, the Hong Kong new Zeus holds 17 per cent of the Polish new Zeus, and LG New Energy holds 15 per cent of the Polish new Zeus. After the completion of this capital increase, the New Zeus directly holds 68% of the shares of the Polish New Zeus, and indirectly holds 17% of the Polish New Zeus through the Hong Kong New Zeus, which is still its controlling shareholder.

It is reported that on April 17, 2018, New Zeus announced that it had agreed to invest in the project with an annual production capacity of 40000 tons of lithium-ion battery electrolyte, 5000 tons of NMP and 5000 tons of conductive plasma, with an estimated investment of 360 million yuan.

In order to speed up the implementation of the project, on June 2 of the same year, the New Zeus agreed that the total investment of the Polish New Zeus project is expected to be 360 million yuan (equivalent to 204.5455 million zloty), which is all funded by the New Zeus, of which: 80% of the 288 million yuan (equivalent to 163.6364 million zloty) is directly funded by the company to the Polish New Zeus. 20% of the 72 million yuan (equivalent to 40.9091 million zloty) will be funded by the company after injecting capital into the new Zeus of Hong Kong and then by the new Zeus of Hong Kong to the new Zeus of Poland.

From July 2018 to October 2020, the New Zeus and the Hong Kong New Zeus contributed six times to the Polish New Zeus, with a total contribution of 26758254.08 zlotys (equivalent to RMB 45.81 million). Hong Kong New Zeus contributed a total of 6662035.77 zlotys (equivalent to about 11.41 million yuan). After the cumulative contribution, the share capital of Poland's new Zeus is 11284000 zloty (equivalent to about 19.32 million yuan).

This capital increase is the seventh time that New Zeus has contributed to New Zeus of Poland. The company said that the introduction of new shareholder LG New Energy in the way of capital increase and share expansion is a strategic consideration based on the future development of the company, which is conducive to improving the competitiveness of the company, helping Poland New Zeus to further expand its business and improving its business development capacity, and is of positive significance to the company's long-term development. In addition, after the completion of this capital increase and share expansion, it will help to further improve the governance structure of Poland's new Zeus, enrich the financial strength of Poland's new Zeus, and enhance the ability of business development and risk resistance.

Battery Network also noted that in terms of overseas layout, New Zebang said at the 2020 annual performance presentation that the company had set up an American company, a production base in Poland and offices in South Korea and Japan. Plans to build European companies. In terms of revenue, in 2020, the company's overseas revenue was 634 million yuan, an increase of 30.83% over the same period last year, accounting for 21.43% of the company's total revenue; overseas revenue accounted for about 21% of the total revenue in the battery chemicals business.

In addition, on March 25 this year, in order to implement the sustainable development strategy of international layout and meet the growing needs of customers, New Zebang plans to set up a wholly-owned subsidiary "CapchemEuropeB.V." in the Netherlands with a cash contribution of 10 million euros (about 77.78 million yuan) (provisional name, the final name shall be subject to the approval of the relevant registration authority). New Zebang said that the investment and establishment of a wholly-owned subsidiary in the Netherlands is in line with the company's international development strategy, through which wholly-owned subsidiaries can provide services to European customers more quickly and more comprehensively, which is conducive to speeding up the process of internationalization of the company. to further enhance competitiveness in the international market.