Event: a total of 125 million yuan to participate in Star Sodium Power, each holding 7.5% of its equity company and its related parties signed an investment agreement with Liaoning Star Sodium Battery Co., Ltd., agreed that the company and Color Chemical will increase the capital of Star Sodium Power with a total investment of 125 million yuan, and both parties intend to contribute 62.5 million yuan to subscribe to Star Sodium Power's additional registered capital of 8.825 million yuan. After the completion of this related party transaction, the company and Qicai Chemical will each hold 7.5% of Star Sodium, and Star Sodium will become the company's shareholding company.

Event 2: with Qicai Chemical to increase the capital of its subsidiary Meicai New Materials by 750 million yuan, and maintain 51% of the equity company plans to increase its holding subsidiary, Liaoning Meicai New Materials Co., Ltd., by 750 million yuan according to its shareholding ratio. After the additional investment, the total investment of the company in Meilai new materials is 637.5 million yuan, accounting for 51% of the registered capital of the underlying company, while the total investment of Qicai Chemical in Midea lottery new materials is 612.5 million yuan, accounting for 49% of the registered capital.

Event 3: star Sodium acquired 125 million yuan of shares in Meilai New Materials, transferred technology patents, and production and marketing cooperated with Star Sodium Power after the investment agreement came into effect and obtained 125 million yuan of investment paid by Wachovia New Materials and Seven Color Chemics. with a total investment of 125 million yuan, acquire its 10% equity stake in Meilai New Materials from Qicai Chemical. And free transfer of its own sodium ion Prussian blue cathode, hard carbon anode materials related technology and patents a total of 17 items to American lottery new materials, so as to achieve in-depth strategic cooperation between all parties, the parties undertake that American lottery new materials is the only platform for cooperative research and development, production and sale of sodium ion Prussian blue positive and hard carbon anode materials, and the parties shall not engage in related work alone or in cooperation with other third parties.

Star sodium positive and negative material research and development and battery production integration, academician Jiang Lei, Chinese Academy of Sciences hundred people plan Cui Guanglei led Star Sodium Power was established on January 24, 2018, is a sodium ion battery positive and negative material research and development and battery manufacturing as one of the high-tech company, the core technology products are: Prussian blue cathode materials, straw coconut shell and other biomass carbon, sodium ion batteries and so on. With sodium ion energy storage as the core driving force, it has set up the Electric Energy Storage Research Institute and sodium ion battery laboratory, which is composed of a number of top academician-level experts and doctoral elite teams in the field of materials at home and abroad.

Jiang Lei: academician of the Chinese Academy of Sciences, Academician of the Academy of Sciences of developing countries, Foreign Academician of the National Academy of Engineering of the United States, Foreign Academician of the Australian Academy of Sciences, Dean of the School of Chemistry and Environment of Beijing University of Aeronautics and Astronautics, Dean of the School of Future Technology of the University of the Chinese Academy of Sciences, expert on inorganic chemistry and nanomaterials

Cui Guanglei: 100 talents Plan of the Chinese Academy of Sciences, researcher and doctoral supervisor of Qingdao Institute of Biological Energy and process of the Chinese Academy of Sciences-Star Sodium production R & D technology leading the industry, breaking the problem of crystal water and increasing battery capacity and cycle life by 1. 5%. Star Sodium Power established the world's first pilot production line of sodium ion battery in Anshan in August 2018, and produced the world's first industrial application of sodium ion battery in October. This production line is the first to use non-toxic and non-polluting Prussian blue as positive material and hard carbon with excellent sodium ion storage performance as negative material to build soft battery system. After years of research and development, Star Sodium has the ability to independently achieve large-scale mass production of sodium ion batteries and reach the level of commercial application.

two。 Led by Academician Jiang Lei and researcher Cui Guanglei, the research and development team of Star Sodium Electric successfully broke through the difficult treatment of crystallization water of Prussian blue soft bag battery, such as easy bulging, poor stability and so on, by using additives to process the internal structure of Prussian blue. The R & D team also increased the capacity and cycle life of the battery, ensured the stability of the battery, and further improved the performance of the battery by adjusting the production process of the homogenized electrode and the matching of positive and negative materials. It provides a guarantee for the large-scale commercial application of Prussian blue sodium ion battery.

3. At present, Star Sodium has obtained 9 invention patents with sodium ion batteries and materials as the core, and another 8 invention patents are under examination, and the R & D capability is in the leading level in the industry.

The prospect of sodium ion battery is broad, and the company cooperates to build a Prussian sodium lead with multi-dimensional advantages. under the background of large demand for lithium-ion battery but limited supply of lithium resources, sodium-ion battery is a supplement and extension of lithium-ion battery. it has the advantages of good high and low temperature performance, strong safety, good rate performance and low cost, and has broad prospects for industrialization. The company continues to lay out the field of sodium battery, multi-party cooperation shows multi-dimensional advantages:

1. Technology and process to ensure product performance: the company established a joint venture with colorful Chemistry to build 180000 tons of battery-grade Prussian blue (white) project. Colorful Chemical has the advantages of Prussian blue (white) industrialization technology, cost and environmental protection.

two。 Integrated supply and reduction: sodium cyanide is the core raw material of Prussian cathode, and the subsidiary's production capacity of 300000 tons provides strong support for the expansion of cathode materials, and the integrated layout is conducive to reducing costs and expanding the market. On the other hand, the company signed an investment attraction agreement with Sichuan Dazhou last time, making full use of the local abundant natural gas and mineral resources, and planned to build plastic color masterbatch and ferrous sulfate project. the by-product ferrous sulfate is an intermediate raw material for the production of ferric phosphate and Prussian blue, which effectively ensures the supply of raw materials and cost advantages.

3. High barriers to entry: cyanide is a dangerous chemical, its production and preparation requires extremely stringent special qualifications, high barriers to entry and expansion, and few industry participants. The company has a scarce production license and more than 30 years of production experience, and the world's leading production capacity, with obvious first-mover advantages.

4. Strategic cooperation to develop downstream applications to verify the feasibility and economy of the Prussian route of sodium battery: although the Prussian route of sodium battery has the advantages of high energy density, stable structure and low cost, however, the market is still worried about its crystalline water and toxicity under extreme conditions. material manufacturers and downstream battery factories work together to develop downstream applications, which can strongly prove the feasibility and economy of Prussian sodium battery application. Thus promote the development of industrialization.

This time, the company cooperated with Starsky Sodium Electric to obtain its technology patent and coordination of production and marketing, as well as continuous upstream and downstream cooperation with Hunan Cube New Energy, a deep strategic partner, to jointly research and develop the technical route of Prussian blue sodium ion battery cathode materials and hard carbon anode materials, so as to give full play to the advantages of all technical teams in the field of sodium ion battery grade materials. Coordinate to promote the industrialization of Prussian blue sodium ion battery cathode materials and Prussian blue route sodium ion batteries, and strive to create a Prussian system sodium lead.

Investment suggestion: the company's net profit from homing in 22-23-24 is expected to reach 3.31 pound 509pm 745 million yuan, corresponding to the 29x/19x/13x of Pamp E, maintaining a "buy" rating.

Risk tips: the development of new energy vehicles is not as expected; the development of capacity expansion products is not as expected; material price fluctuations and so on.