① Baoming Technology terminated the 6.2 billion yuan composite copper foil production base construction project in Maanshan, but investors are still “optimistic about the future of lithium battery composite copper foil” and “production expansion plans have not changed.” ② The previous 6 billion yuan composite copper foil project had a total investment of 240 million yuan by the end of 2023.
Financial Services Association, May 21 (Reporter Zeng Chuchu) Baoming Technology (002992.SZ) terminated the construction project of a 6.2 billion composite copper foil production base in Maanshan, but in response investors “are optimistic about the future of lithium battery composite copper foil” and “there is no change in production expansion plans.”
Baoming Technology announced today. Recently, the company and the Maanshan Ningma New Functional Zone Management Committee signed the “Termination Agreement on the Investment and Construction Contract and Supplementary Agreement for the Baoming Technology Composite Copper Foil Production Base Project”, and Anhui Baoming New Material Technology Co., Ltd. and Maanshan Hengwang Industrial Park Operation and Management Co., Ltd. signed the “Termination Agreement on the Construction Contract for Baoming Technology Composite Copper Foil Production Base Construction Project”.
Baoming Technology announced in February last year that it plans to invest a total of 6.2 billion yuan to build the above composite copper foil production base project. On April 30 this year, the company announced that it decided to terminate the Maanshan Baoming Technology composite copper foil production base project.
Regarding the reason for the decision to terminate the project, the company stated in the announcement that due to changes in the company's investment plan, in order to avoid waste of project resources and effectively safeguard the interests of the company and all shareholders, after careful research and agreement with the Ningma New Functional Zone Management Committee and Maanshan Hengwang Industrial Park Operation and Management Co., Ltd., the relevant contract was terminated.
However, in response to investors' recent doubts about terminating the Ma'anshan project on an interactive platform, Baoming Technology replied, “The company is firmly optimistic about the future development prospects of lithium battery composite copper foil and the company's competitive advantage. The company's investment and production expansion plan for lithium battery composite copper foil has not changed. For relevant investment arrangements, please pay attention to the relevant announcements issued by the company in the future.”
According to reports, Baoming Technology is mainly engaged in R&D, design, production and sales of new flat panel display devices. Since 2021, it has been laying out lithium-ion composite copper foil, and its stock price has soared.
(Photo Credit: Tung Flush)
However, two years after the layout, the company's composite copper foil is still in the sample delivery stage, and large-scale revenue has not yet been generated. According to the company's 2023 annual report, display device manufacturing and lithium battery composite copper foil accounted for 99.99% and 0.01% of revenue, respectively. Among them, composite copper foil revenue was 167,000 yuan, an increase of 51.77% over the previous year. The increase was due to an increase in customer sample testing orders.
In addition, Baoming Technology (002992.SZ)'s shift in composite copper foil PP and PET route selection has also attracted market attention. According to information, a composite fluid collector is a new type of fluid collector material with a “metal conductive layer - polymer material support layer - metal conductive layer” sandwich structure. In theory, composite copper foil has the advantages of high safety, low cost, and high energy density compared to traditional copper foil. Currently, the main technical routes are PP base film and PET base film.
Baoming Technology revealed on an interactive platform that the first phase of PET composite copper foil products plans to be mass-produced in the second quarter of 2023. Since then, it has also indicated that the composite copper foil uses PP as a base material. When asked by investors why PET copper foil should be abandoned, the company previously replied, “The PP lithium battery composite copper foil products currently produced have better quality performance.” In response to a recent question about mass production of composite copper foil, it was stated that “the company already has the capacity to mass-produce and deliver lithium PP composite copper foil.”
Currently, Baoming Technology's Ganzhou composite copper foil project is still under construction. The company said on an interactive platform that the first phase of the Ganzhou project will produce about 150 million square meters of lithium battery composite copper foil per year after delivery. The project was announced in July 2022. The total investment plan is 6 billion yuan, and the first phase of the project plans to invest 1.15 billion yuan. The annual report shows that by the end of 2023, the project had invested 240 million yuan, and the project progress was 22.11%.
(Photo source: Baoming Technology's 2023 Annual Report)