On the eve of the Spring Festival, Beijing Hezong Science&Technology Co.Ltd(300477) (300477) and Zhejiang Huayou Cobalt Co.Ltd(603799) (603799) both announced that the wholly-owned subsidiary of Beijing Hezong Science&Technology Co.Ltd(300477) Hunan Yacheng new materials Co., Ltd. (hereinafter referred to as “Hunan Yacheng”) plans to increase capital and shares, introduce strategic investors, and Zhejiang Huayou Cobalt Co.Ltd(603799) plans to jointly increase capital in Hunan Yacheng with the controlling shareholder Huayou holdings.
According to the capital and share increase agreement, Zhejiang Huayou Cobalt Co.Ltd(603799) plans to invest a total of 120 million yuan in Hunan Yacheng, which will obtain 12.13% equity of Hunan Yacheng; Huayou holdings plans to invest a total of 60 million yuan in Hunan Yacheng, which will obtain 6.07% equity of Hunan Yacheng. After the completion of this transaction, the registered capital of Hunan Yacheng will increase from 350 million yuan to 428 million yuan, Beijing Hezong Science&Technology Co.Ltd(300477) will hold 81.80% equity of Hunan Yacheng.
According to public information, Beijing Hezong Science&Technology Co.Ltd(300477) is mainly engaged in the manufacturing of power distribution and control equipment and related technical services, as well as the research and development of lithium battery cathode material precursors; Its wholly-owned subsidiary Hunan Yacheng is a leading enterprise in China’s lithium battery cathode material precursor iron phosphate material. The main products of Hunan Yacheng are lithium battery cathode precursor materials such as iron phosphate, cobalt trioxide and battery grade cobalt hydroxide for power batteries, of which the capacity of iron phosphate for power batteries is 60000 tons / year and the capacity of cobalt trioxide is 8000 tons / year.
As a strategic investor, Huayou holdings is a multinational holding group company focusing on the investment in lithium battery new energy materials industry. Its subordinate enterprises have a broad and deep industrial foundation in lithium battery ternary precursor, ternary cathode material, cobalt chemicals, copper nickel metal, lithium battery copper foil and lithium iron phosphate. At present, they have grown into a leader in cathode materials.
Beijing Hezong Science&Technology Co.Ltd(300477) said that the introduction of Zhejiang Huayou Cobalt Co.Ltd(603799) and Huayou holdings as strategic investors in the capital increase of Hunan Yacheng is a further landing of the previous strategic cooperation, which is conducive to promoting the in-depth cooperation between the two sides at the industrial and capital levels. It can realize the complementary advantages of both sides in the field of lithium new energy and construct a common value chain, which is conducive to promoting the rapid expansion of the capacity of the company’s new iron phosphate base.
Zhejiang Huayou Cobalt Co.Ltd(603799) said that the company’s development strategic plan during the 14th Five Year Plan period takes the new energy lithium battery material industry as the core business of key development. This joint capital increase with Huayou holdings in Hunan Yacheng is conducive to promoting the two sides to complement each other’s advantages and build a common value chain in the field of lithium battery new energy, It is conducive to the company to further strengthen the integrated layout of lithium iron phosphate industrial chain.
