According to the disclosure of the Hong Kong Stock Exchange on June 24, Nanjing Hanrui Cobalt Co., Ltd. (referred to as "Hanrui Cobalt") submitted an application for listing on the main board to the Hong Kong Stock Exchange, with China International Capital Corporation as its exclusive sponsor, Zhitong Financial APP learned.
According to Frost Sullivan report, Hanrui Cobalt Industry is one of the few enterprises in China with a complete cobalt industry chain, covering complete industrial processes including ore acquisition, rough processing, smelting and purification, cobalt powder and cobalt compound production. According to the Frost Sullivan report, Hanrui Cobalt is the third largest cobalt powder producer in the world and the largest in China in terms of production as of December 31, 2020.
In addition to cobalt powder, the company's main products include cobalt-related products such as cobalt compounds and copper-related products such as electrolytic copper. The company's cobalt products are important materials for battery materials, cemented carbide, superalloy, magnetic materials, etc., which are widely used in aviation, electric vehicles, electronics and other fields.
Hanrui Cobalt operates three production facilities in Anhui and the Democratic Republic of the Congo, with a total production capacity of 10500 metal tons of cobalt-related products and 35000 metal tons of copper-related products. In addition to the existing production facilities, the company has built 10,000 tons of new cobalt materials (including cobalt sulfate, cobalt chloride, cobalt carbonate and cobalt tetroxide) and 26000 tons of ternary precursor projects in Ganzhou, China. After the completion of the above project, the layout of its cobalt industry will be more comprehensive, and its market competitiveness is expected to be further improved.
As of the last practical date, Hanrui Cobalt has registered 44 domestic intellectual property rights independently developed, including 23 invention patents and 21 utility models, and the company has also registered two Democratic Republic of the Congo (DRC) patents.
Since March 6, 2017, Hanrui Cobalt's A shares have been listed on the growth Enterprise Market of Shenzhen Stock Exchange under the stock code 300618.
On the financial side the business income and net profit of Hanrui Cobalt Industry fluctuated significantly. From 2018 to 2020, the income was 2.78 billion yuan (RMB, the same below), 1.778 billion yuan and 2.247 billion yuan respectively; the gross profit margin was 42.3%, 7.6% and 19.8% respectively; and the net profit was 730 million yuan, 13.589 million yuan and 334 million yuan respectively.
Hanrui Cobalt plans to use the proceeds for 1) the continuous improvement of the company's core business, 2) to strengthen the R & D and innovation of new business and the upgrading of production technology, and 3) working capital and general enterprise uses.