Zhenhua New Materials Co., Ltd. IPO accepted and proposed to raise 1.2 billion plus lithium cathode materials business

On January 5, the application of Guizhou Zhenhua New Materials Co., Ltd. (hereinafter referred to as "Zhenhua New Materials") for listing on the board was accepted, with CITIC Construction Investment Securities as its sponsor.

IPO, Zhenhua new material plans to raise 1.2 billion yuan for lithium-ion battery cathode material production line construction project (Shawen II), lithium-ion power battery ternary material production line construction (Yilong II) and supplementary liquidity.

Zhenhua New Materials took the lead in completing the R & D and production of primary granular large single crystal materials for nickel-cobalt-lithium manganate ternary cathode materials at home and abroad in 2009. a number of core technology reserves have been formed, such as primary granular large single crystal Ni-Co-mn ternary material synthesis technology, large single crystal cobalt-free layered Ni-mn binary material synthesis technology, high-voltage lithium cobalt oxide material synthesis technology, polycrystal Ni-Co-mn ternary cathode material synthesis technology and so on. And form a perfect product layout in the field of medium high nickel and low cobalt, high nickel and low cobalt.

As of the signing date of this prospectus, Zhenhua New material has obtained 28 patents for independent intellectual property rights. Among them, 12 invention patents protect nickel ternary series products in large single crystal, 11 invention patents form protection for large single crystal ternary products with high nickel, 9 invention patents form protection for large single crystal high nickel ternary series products, and 2 invention patents form protection for lithium cobalt series products. 7 invention patents protect polycrystalline ternary products, 5 invention patents protect spinel structure composite modified materials, 13 invention patents protect surface modification technology, and 12 invention patents protect cathode material doping technology.

The battery network learned that the production scale of Zhenhua new materials for lithium-ion battery cathode materials is in the forefront of the domestic industry. As of the date of signing of this prospectus, the company has formed an annual production capacity of 30,000 tons of lithium-ion battery cathode materials. Among them, the production capacity of high nickel (Ni ≥ 80mol.%) ternary cathode materials is 6000 tons (fully compatible with medium and high nickel series products), medium and high nickel (50mol.% < Ni < 80mol.%), medium nickel (Ni ≤ 50mol.%) ternary cathode materials, lithium cobalt, composite ternary cathode materials, etc., with a production capacity of 24000 tons.

In terms of scientific research investment, the company has always attached importance to R & D investment and continued to increase financial support for the development of new products and new technologies. From January to September in 2017, 2018, 2019 and 2020, the company's R & D expenditure was 51.1718 million yuan, 56.5178 million yuan, 66.6644 million yuan and 44.0896 million yuan respectively, and the proportion of R & D investment in operating income was 3.80%, 2.13%, 2.75% and 6.45%, respectively.

In terms of revenue, affected by the fluctuation of terminal demand, the company's operating income in 2017, 2018, 2019 and 2020 was 1.3468224 billion yuan, 2.6548493 billion yuan, 2.4284634 billion yuan and 684.0738 million yuan, respectively. The business income in 2018 increased by 97.12% over 2017, the business income in 2019 decreased by 8.53% compared with 2018, and the business income from January to September in 2020 decreased by 68.12% compared with the same period last year.

In terms of customers, in 2017, 2018, 2019 and January-September 2020, the proportion of the company's sales to the top five customers to the current operating income was 81.52%, 85.67%, 93.55% and 89.88%, respectively. Among them, the proportion of sales to Ningde era to the current operating income was 51.72%, 65.22%, 74.44% and 32.03%, respectively. The company accounts for a relatively high proportion of sales to the top five customers, among which the proportion of sales to the Ningde era continues to increase from 2017 to 2019, mainly due to the high concentration of downstream power lithium-ion battery industry and the company's competitive strategy of concentrating limited resources to track and serve major customers. At present, the company's customers of lithium-ion battery cathode materials cover domestic mainstream lithium-ion battery enterprises, and form long-term cooperative relations with Ningde Times, Funeng Technology, New Energy Technology (ATL), Weihong Power, Tianjin Lishen, Zhongshan Tianmao, Polyfluorodo, Zhuhai Guanyu, Huizhou Liwei and so on.