Sheng Xin Lithium can plan to raise no more than 3 billion yuan for BYD's full subscription.

In recent years, with the increasingly fierce competition for lithium resources, lithium battery head enterprises have also begun to strengthen the deep binding of upstream suppliers!

On the evening of March 22nd, Shengxin LiNeng (002240) disclosed the preliminary plan for a non-public offering of shares. The price of the company's non-public offering shares is 42.99 yuan per share, the number of shares is not less than 46.5224 million shares and not more than 69.7837 million shares, that is, between 5.38% and 8.06% of the total share capital of the company before this issue, and the total amount of funds to be raised does not exceed 3 billion yuan. After deducting the issuance expenses, it is intended to be used to replenish working capital and repay debts.

Battery Network noted that Shengxin Lithium plans to introduce BYD (002594) as a strategic investor through a targeted stock offering. BYD, a specific target, will fully subscribe for the shares issued by Shengxin LiNeng in cash and will not transfer the shares within 36 months from the date of listing. Upon completion of the offering, BYD's stake in the company is expected to exceed 5%. It is reported that this is also the first time that BYD has fully subscribed for the issued shares of a listed company.

Data show that, as one of the leaders in the global new energy vehicle industry, BYD has a huge technical research and development team and a strong integrated production capacity. It has developed highly safe lithium iron phosphate batteries and high energy density ternary batteries, which are widely used in the field of electric commercial vehicles and electric passenger vehicles.

Shengxin Lithium can be listed on the Shenzhen Stock Exchange in 2008, mainly engaged in lithium mining and lithium products production and sales, the main products are lithium concentrate, lithium carbonate, lithium hydroxide, lithium chloride, lithium metal. At the end of September 2020, the company completed the sale of the controlling stake in the subsidiary of wood-based panel business, and at the end of May 2021, the company completed the sale of rare earth business, focusing on the development of new energy materials business.

In terms of lithium salt, Shengxin lithium energy lithium salt business is implemented by subsidiaries Zhiyuan Lithium Industry, Suining Shengxin and Shengtuo Lithium Energy (Indonesia). At present, the company has built lithium salt production bases with an annual capacity of 72000 tons in Deyang and Suining, built a new lithium salt production base with an annual capacity of 60, 000 tons in Indonesia, and operated a lithium carbonate equivalent production line of 2500 tons in salt lakes in Argentina. It is estimated that the total annual production capacity of lithium salt in 2023 will reach 140000 tons.

In terms of lithium resources, Shengxin Lithium owns the mining right of Yelonggou spodumene Mine in Jinchuan County, Aba Prefecture. The mine was completed and put into operation in 2019, with an annual ore processing capacity of 405000 tons, which is one of the two stable spodumene mines in China.

In addition, Shengxin Lithium can actively promote the construction and production of Sichuan plush spodumene mine, which is a participating company, and has rich experience in lithium mine development, construction and operation. In 2021, Shengxin Lithium can acquire the Sabixing Lithium Tantalum Mine in Zimbabwe and actively layout the Argentine Salt Lake, further increasing the layout of overseas lithium ore resources.

Guojin Securities estimates that the resource self-sufficiency rate of Shengxin Lithium will reach 20% in 2022 and is expected to reach more than 70% in 2025.

Sheng Xin LiNeng said that the company is BYD's upstream raw material supplier. In the future, with the vigorous development of the new energy vehicle industry and energy storage industry and the continuous landing of BYD's capacity investment plans, the demand for BYD's lithium products will continue to release, laying a solid foundation for business cooperation between the two sides. Helping Sheng Xin Lithium can expand sales scale and improve sales performance.

At the same time, BYD has a wide range of new energy industry resources, and its global layout is highly consistent with the development direction of Shengxin Lithium Energy. After becoming a strategic investor in Shengxin LiNeng, BYD will give full play to and make full use of its advantages to actively assist Shengxin LiNeng to cooperate with high-quality enterprises in the industry, including but not limited to markets, channels, brands, technology, resources, investment and financing, etc., and provide strategic support for business development and global business coordination.

In addition, according to the previous performance forecast issued by Shengxin LiNeng, the company expects to achieve a net profit of 830 million yuan to 920 million yuan in 2021, an increase of 2954.31% 3285.5% over the same period in 2020; The estimated deduction of non-net profit is 848 million yuan to 938 million yuan, an increase of 472.96% over the same period last year. 512.55% of Shengxin LiNeng said that the performance in 2021 increased significantly over the same period last year, mainly due to the rapid development of the new energy industry and the strong growth in demand for lithium salt from downstream customers. The company's production, sales and sales prices of lithium salt rose sharply over the same period last year.

It is reported that in addition to BYD, Shengxin Lithium Energy has also established a stable cooperative relationship with Ningde era, AVIC Lithium Power, LG, Shanshan Energy, Xiamen Tungsten New Energy, German Nano, Bertre, Rongbai Technology, Dangsheng Technology and other battery new energy industry chain enterprises.