Financial News Agency, December 8 (Reporter Liang Xiangcai) The convertible bond project after the restart of Yuguang Gold Lead (600531.SH) is still the “heart and soul” of investors. At the performance briefing held today, investors repeatedly asked about the status of the project. Li Xinzhan, general manager of the company, said that currently the convertible bonds matter is under review, and the recycled lead closure project and copper foil project are under construction.

In July of this year, Yuguang Gold and Lead temporarily suspended a convertible bond project to raise 1.47 billion yuan due to mixed reforms. However, after the company and investors failed to reach an agreement on a “capital increase agreement,” the mixed process was ended, and the convertible bond project was then restarted at the end of September.

According to reports, among Yuguang Gold and Lead's convertible bond projects of 1.47 billion yuan, the two largest investment projects are the “10,000 tons of copper foil project” and the “recycled lead closed production line project”, with a total proposed investment of 582 million yuan and 418 million yuan respectively.

Regarding the copper foil project, Li Xinzhan said at the conference that the products of the project are 4.5 μm, 6 μm and 8 μm lithium copper foil and 9 μm thick standard electronic circuit copper foil (determined according to market demand). In terms of raw materials, self-produced cathode copper and sulfuric acid are used, and the supply is stable, which can effectively reduce the risk of fluctuations in raw material prices and form strong competitiveness; copper foil products have passed quality certification and customer recognition, and have rich potential customer resources.

Li Xinzhan also confessed that since the implementation of the project requires a certain amount of time, in the future, adverse situations such as a decline in demand due to sudden changes in the market environment or changes in industrial policy, will bring uncertainty, which in turn will adversely affect the company's operating conditions.

In fact, the copper foil industry as a whole is currently under pressure, and copper foil for electronic circuits is being dragged down by sluggish demand for consumer electronics. The leading domestic copper foil manufacturer, Copper Crown Copper Foil (301217.SZ), once stated in this year's three-quarter report that the company's copper foil processing fee revenue has declined due to multiple factors such as global economic instability, the downturn in the consumer electronics market, and industry competition.

In terms of lithium battery copper foil, Yu Can, a copper strip foil analyst at the Shanghai Steel Union Copper Division, told reporters that it is expected that the lithium battery copper foil market will decline even more in the first half of next year compared to this year. Supply will not stop increasing production due to insufficient demand, and enterprises may actively or passively enter a period of mutual exhaustion; after the remaining planned production capacity is released, the industry may enter a period of low levels of volatility for a long period of time, and processing costs are struggling. After that, the industry as a whole may enter a recovery period. Leading companies will grow bigger and bigger, and market share will increase markedly, and it is expected that “big fish snacks will appear” In the situation, processing fees are expected to rise slightly, but the increase is limited.

According to Mysteel data, the current mainstream price for processing fees for 6 micron lithium batteries is 15,000 to 20,000 yuan/ton. The gap between leading companies and small and medium-sized enterprises is becoming more obvious. Since the beginning of the year, the average price has dropped by about 18,000 yuan/ton; the mainstream price of 8 micron lithium copper foil processing fees is 14,000-18,000 yuan/ton, down about 10,000 yuan/ton from the beginning of the year to date.

In terms of recycled lead projects, the Finance Association reporter previously learned from relevant company sources that if convertible bonds can be successfully issued, the pressure on the company can be reduced at the capital level, but from the strategic perspective of the company's production and operation, these projects must move forward.