Xiamen Tungsten Xineng today Science and Technology Innovation Board went public and raised 1.541 billion yuan to expand the production of lithium cathode materials.

Xiamen Tungsten Xinneng is listed on the Shanghai Stock Exchange Science and Technology Innovation Board today under the stock code 688778 at an issue price of 24.5 yuan per share, according to an announcement by the exchange. As of press time, the company's stock price reached 108.2 yuan per share, which is 341.63% higher than the issue price.

Official data show that Xiamen Tungsten Xineng's main business is the research and development, production and sales of cathode materials for lithium-ion batteries, and its main products are lithium cobalt, nickel, cobalt and manganese ternary materials. The company, formerly known as the Battery Materials Division of Xiamen Tungsten Industry, has been developing and producing cathode materials for lithium-ion batteries since 2004, and established a new company to operate independently in December 2016. It has become a subsidiary of Xiamen tungsten industry specializing in the R & D, production and sales of cathode materials for lithium-ion batteries.

According to Xiamen Tungsten Xinneng's previous announcement, from 2018 to 2020, the production capacity of lithium cobalt and NCM ternary materials increased year by year, of which the production capacity of lithium cobalt increased from 14000 tons in 2018 to 32800 tons in 2020, and the production capacity of NCM ternary materials increased from 12500 tons in 2018 to 22200 tons in 2020.

Although there has been a large increase in production capacity, Xiamen Tungsten Xineng said that NCM ternary materials in the field of new energy vehicles is one of the most important business sectors in the company's energy new materials planning for the next 5-10 years. At present, the company's NCM ternary material production capacity obviously can not support the company's strategic goal of becoming bigger and stronger. In tracking the medium-and long-term supply demand of major customers, the company's current production capacity has been unable to meet, and will continue to expand more customers, the market demand of the entire customer group will be further expanded.

It is worth noting that Xiamen Tungsten Xinneng IPO this public offering of 62.8931 million shares, raising a total of 1.541 billion yuan, after deducting the issuance costs, plans to invest 40, 000 tons of lithium-ion battery materials industrialization project (phase I, II) (proposed investment of 900 million yuan) and supplementary liquidity (proposed investment of 600 million yuan).

Specifically, the industrialization project of lithium-ion battery materials with an annual production capacity of 40000 tons is divided into three phases, of which the first and second phases (with a total production capacity of 20, 000 tons / year, with a total investment of 1.848 billion yuan) are used as this fund-raising project, the new production capacity is high-nickel NCM ternary materials, models include Ni6 series and above high-nickel NCM ternary materials (nickel content more than 60%), covering the mainstream high-nickel NCM products in the market. Through the optimization of production equipment and production process, the performance of the company's high-nickel NCM ternary materials can be improved.

Xiamen Tungsten Xinneng said that after all the production expansion projects have reached production, the company will increase the production capacity of NCM ternary cathode materials by 20,000 tons per year, which is a big increase compared with the existing NCM ternary materials. After the expansion of the project, it can better meet the needs of the rapid development of the new energy vehicle market, quickly occupy the vehicle power high nickel material market, and maintain long-term strategic cooperation with major customers of new energy materials. consolidate the company's dominant position in the field of lithium battery cathode materials.

Xiamen tungsten Xinneng said it has made adequate preparations for the digestion of the new production capacity of the fund-raising project. At present, the company has become one of the major suppliers of positive materials in the first echelon of the industry in terms of sales scale of ternary materials in China, and has carried out cooperation on related ternary materials with well-known battery manufacturers such as Panasonic, BYD, Ningde Times, AVIC Lithium, Yiwei Lithium Energy and Guoxuan Hi-Tech, and the growing demand of relevant customers in the next few years is expected to effectively cover the company's new production capacity.

In terms of performance, Xiamen Tungsten Xinneng reported in an online roadshow held at the end of July that the company's operating income from 2018 to 2020 was 7.026 billion yuan, 6.978 billion yuan and 7.99 billion yuan respectively, and the net profit of returning to its mother was 80 million yuan, 150 million yuan and 251 million yuan respectively. The net profit after deducting non-return is 73 million yuan, 72 million yuan and 244 million yuan respectively. From 2018 to 2020, the sales income of lithium cobalt oxide of the company was 4.81 billion yuan, 4.401 billion yuan and 6.252 billion yuan respectively, accounting for 69.13%, 63.59% and 78.49% of the main business income respectively. The sales income of the company's NCM ternary materials was 2.099 billion yuan, 2.516 billion yuan and 1.713 billion yuan respectively, accounting for 30.16%, 36.35% and 21.51% of the main business income respectively.

In the first half of 2021, Xiamen Tungsten Xinneng achieved an operating income of 6.568 billion yuan, an increase of 113.80% over the same period last year. For the main reasons for revenue growth, the company said that, on the one hand, as the demand for downstream 3C electronic products continues to grow, sales of lithium cobalt products continue to improve; on the other hand, sales of NCM ternary materials affected by the epidemic declined in the first half of 2020, and NCM ternary materials sales increased significantly in the first half of 2021 as the demand of downstream industries warmed up and the sales of new products increased significantly compared with the same period last year. In addition, the operating profit and total profit of the company in the first half of the year were 282 million yuan and 280 million yuan respectively, an increase of 171.03% and 199.82% respectively over the same period last year; the net profits attributable to the shareholders of the parent company and the net profits belonging to the shareholders of the parent company after deducting non-recurrent profits and losses were 251 million yuan and 232 million yuan respectively, up 163.15% and 141.56% respectively over the same period last year.

According to the plan, in the future, Xiamen Tungsten Xineng will also increase the research and development investment in the core technology of cathode materials for lithium-ion batteries, and constantly improve the level of research and development. On the basis of the existing business, further enhance the company's production capacity and improve production efficiency.