Event: Wansheng shares signed the Investment Agreement with Zhou Jian, Zheng Huidong, Hainan Sishang, Fujian Huazhi and Fujian Zhongzhou. After the capital increase, the company directly held 46.05% of the shares in Fujian Zhongzhou and 20.51% through the equity incentive platform. The company holds a total of 66.56%, and the following investment platform holds 3.50%.
(2) the "Sanming Lithium Ion electrolyte Additives and Conductive New Materials Project" is to be built in Zhongzhou, Fujian Province, with an annual output of 15 kinds of lithium ion electrolyte additives and new conductive materials, a total of 95500 tons of production equipment and supporting facilities, office buildings, R & D buildings, etc., the project will be completed in two phases: the first phase will achieve a production capacity of 20500 tons, the construction period will take 24 months, and the total investment of the first phase of the project is expected to be 450 million yuan.
Overseas investment in lithium additive business, into new energy materials. The main business of Zhongzhou, Fujian, which the company intends to hold, is the application and development of lithium electrolyte additives and new materials, which are currently key functional materials with high scientific and technological content and high added value. According to the agreement, after the settlement of the investment, the original shareholders and related parties will bear the obligation to prohibit business competition. at the same time, Zhou Jian has promised to undertake a net cash contribution of 30 million yuan in the entrusted processing business carried out by the company by December 31, 2022. We believe that the above regulations reflect the reliability of the project, ensure the feasibility of promotion, and contribute to the healthy development of the industry through technical exclusive agreements.
The first phase of the project mainly distributes mainstream electrolyte additives such as VC, FEC, DTD, and looks forward to a variety of small batch additives. VC, FEC and DTD are all mainstream SEI film forming additives, which can improve battery capacity and life, improve cycle performance and low temperature discharge performance. The layout of electrolyte additives will enable the company to provide complete solutions for complex electrolyte formula additives. In addition, in view of the current trend of increasing environmental protection requirements, the company has laid out a green environment-friendly solvent NNP instead of NMP. At the same time, Fujian Zhongzhou will carry out industrialization research on a series of advanced battery materials such as single-walled carbon nanotube conductive agents, so as to maintain the advanced nature of Fujian Zhongzhou in the field of battery materials. The project is located in Sanming, Fujian, which is rich in fluorite resources, where there is a gathering area of fluorine chemical new materials industry, which ensures the raw material supply of the project.
Maintain earnings forecasts and maintain "buy" ratings. It is estimated that the company's revenue from 2021 to 2023 will be RMB 4294x5262 million, and the net profit of the company will be RMB 902b, corresponding to PE of RMB 14max 12max 10X respectively, maintaining the "buy" rating.
