Securities code: 300056 securities abbreviation: Xiamen Zhongchuang Environmental Technology Co.Ltd(300056) Announcement No.: 2022-030 Xiamen Zhongchuang Environmental Technology Co.Ltd(300056)
Reply to gem concern letter [2022] No. 70
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Xiamen Zhongchuang Environmental Technology Co.Ltd(300056) (hereinafter referred to as “the company” or ” Xiamen Zhongchuang Environmental Technology Co.Ltd(300056) “) received the attention letter (GEM attention letter [2022] No. 70) issued by the management department of GEM companies of Shenzhen Stock Exchange on January 27, 2022. The company paid great attention to it and actively organized personnel to carefully check the problems raised in the attention letter. The relevant replies are hereby announced as follows:
1、 The announcement shows that the target company is currently mainly engaged in NMP recovery engineering business, and the company plans to jointly increase the cash capital of the target company by 70 million yuan with the counterparty. Among them, the capital increase of the company is RMB 60 million, accounting for 75% of the equity of the target company. It is paid in installments according to the actual capital needs of the target company. After the company invests in the target company, it will provide it with a working capital loan guarantee of no more than RMB 100 million according to the capital needs of the target company; The counterparty increased the capital of the target company by RMB 10 million, accounting for 25% of the equity of the target company after the capital increase. When the target company achieved a net profit of RMB 200 million, it was paid in one time.
(I) please use concise, clear and easy to understand language to supplement the basic information such as NMP’s product characteristics, main functions, upstream production and downstream application, and explain the market situation, industrial chain significance and economic benefits of NMP recycling engineering business, combined with the business development of the target company in recent two years, completed orders, orders in hand, market position Main suppliers and customers, main financial data, relevant patented technologies, peer comparable companies and other information, specifying the industry status and competitive advantage of the target company. reply:
1. NMP product characteristics
N-methyl-2-pyrrolidone (NMP for short) has the following basic properties: colorless and transparent liquid, slight smell of amine, melting point of – 24.4 ℃, boiling point of 203 ℃, flash point of 95 ℃, slight smell of ammonia, and median lethal dose (rat, oral) of 3.8mg/kg. It is miscible with water and soluble in most organic solvents such as ether and acetone. It can dissolve most organic and inorganic compounds, polar gases, natural and synthetic polymer compounds. It is relatively stable in neutral solution. In 4% sodium hydroxide solution, 50% ~ 70% hydrolysis occurs after 8 hours. Hydrolysis occurs gradually in concentrated hydrochloric acid to produce 4-methylaminobutyric acid. Due to the reaction of carbonyl, ketal or thiopyrrolidone can be produced. NMP is widely used in lithium-ion batteries because of its good solubility and dilution of adhesive PDVF. It is the main solvent component in the production of lithium-ion batteries.
2. Main functions of NMP:
(1) In the lithium battery industry, NMP is used as the solvent of polyvinylidene fluoride (PVDF), the auxiliary material for electrode production and the dispersant of electrode materials.
(2) In the polymer industry, NMP exists as the solvent of para aramid polycondensation reaction.
(3) In the insulating material industry, NMP is used as the reaction and dilution solvent of polyimide paint in the insulating material industry.
(4) In the electronic materials industry, NMP is used for cleaning IC, PCB, led and semiconductor in electronic materials, mainly ultra pure electronic chemicals.
(5) Petrochemical industry, such as butadiene extraction, isoprene extraction, desulfurization of syngas, recovery of acetylene, refining of lubricating oil, etc.
3. Basic information of upstream production and downstream application
The main raw material for upstream production is 1,4 butanediol (BDO), which is formed by reaction γ- Butyrolactone (GBL), reactant γ- Butyrolactone and methylamine aqueous solution are sent to the reactor under certain conditions. The methylamination of GBL is completed in the reactor to obtain NMP crude product, which is sent to the separation project for separation and refining.
Downstream NMP is widely used in lithium battery, medicine, pigment, detergent, insulating material and other industries. It is specifically used as solvent in the production of lithium battery, coating, synthetic fiber and integrated circuit, extractant in the process of aromatics extraction, acetylene concentration, butadiene separation and desulfurization of syngas, industrial detergent, dispersant, dye, lubricating oil antifreeze, etc. At present, the main application market is focused on the manufacturing of new energy materials such as lithium-ion batteries and new materials such as aramid, polyphenylene sulfide and polyimide, mainly power batteries.
4. NMP recycling project business
(1) Market conditions
The lithium battery industry is now in a period of rapid development. In the future, from the perspective of market scale, take the new lithium battery capacity as an example. According to statistics, since 2021, 21 enterprises, including Contemporary Amperex Technology Co.Limited(300750) , LG new energy, AVIC lithium battery, Eve Energy Co.Ltd(300014) , ski, Byd Company Limited(002594) , have planned a capacity of 3155 GWH, which will increase by more than 2700 GWH compared with the end of 2020. According to the current production line specification, the maximum capacity of a single production line is 2 ~ 3gwh, and a single production line needs to be equipped with 1 ~ 2 sets of NMP recovery equipment. Therefore, the market demand of NMP recovery project will increase rapidly in the future; At the same time, about 1000 tons of NMP solvent is required for each 1GWh lithium-ion battery. Therefore, NMP synthesis and recovery refining also have a broad market.
(2) Significance of industrial chain
As a solvent, NMP plays a very important role in electrode production, but the electrode itself cannot retain NMP. Therefore, NMP will volatilize from the slurry in gaseous form in the later stage of electrode production, and then more than 99% of NMP will be recovered through NMP recovery project. The recovered waste liquid can be sent to a third-party processing enterprise for purification, After purification to the electronic level, it can be returned to the electrode production section for further use as a solvent. It can be seen that NMP recycling project is the basic part of the whole cycle and plays a connecting role. At the same time, NMP recycling project is also the basic project of energy conservation and cost reduction for each lithium battery enterprise.
(3) Economic benefits:
At present, the price of electronic grade NMP in the market is 47200 yuan / ton. The production of 1GWh lithium battery consumes about 1000 tons of NMP. The NMP recovery equipment can achieve a recovery rate of about 99%. The recovered NMP waste liquid is entrusted to a third party for processing, only a certain processing cost is charged, which saves a lot of new liquid purchase funds.
5. Business development of the company in recent two years
(1) Business development
Five NMP recycling engineering contracts were signed in 2020, eight in 2021, and six in 2022. A total of about 100 sets of NMP recycling equipment were signed.
(2) Completed order
Eight contracts will be completed in 2020 and five in 2021, with a total of about 80 sets of NMP recovery equipment delivered.
(3) Order in hand
There are 9 orders under production, construction or trial operation, and 5 orders under contract and still in the design stage. (4) Market position
In 2021, the amount of NMP recovery project signed (won the bid) reached 78 million yuan. According to the order scale, it is in a medium position in the industry, but it has high market participation and good customer satisfaction. Generally speaking, it is in a medium position in the industry.
(4) Major suppliers and customers
Suppliers are divided into standard parts and non-standard parts. Standard parts include suppliers of instruments, valves and electrical. These suppliers are first-line or second-line brands in China. Some electrical components are imported devices, and the suppliers are mainly Chinese agents; The suppliers of non-standard parts are mainly Wuxi, Suzhou and Nantong, supplying aluminum sector heat exchanger, surface cooler, fan, etc. there are 2-3 suppliers of non-standard parts. Customers mainly include: catl, honeycomb, Yiwei, Sunwoda Electronic Co.Ltd(300207) , GuoXuan, Wanxiang, Haichen, Fenghua and other enterprises. Among them, catl, honeycomb, Yiwei and GuoXuan are the leading enterprises in the lithium battery production industry, and Haichen and Sunwoda Electronic Co.Ltd(300207) are also enterprises with great growth momentum in the lithium battery production industry.
(5) Main financial data:
Unit: RMB
Main financial indicators December 31, 2021
(Unaudited)
Total assets 50387970.69
Net assets 3575101.15
Operating income 22553860.35
Net profit 406579.69
(6) Related patented technology
A total of 41 patents have been applied for, including 12 invention patents and 29 utility models; A total of 29 patents have been granted, including 1 invention patent and 28 utility models (22 are the first or single patentee).
(7) Comparable companies in the same industry
The competitors with more bids are oselai and Shenghe, whose annual output value is between 100 million and 200 million yuan. Shenghe (Shanxi) Chemical Technology Co., Ltd., registered in August 2016, is located in Changzhi City, Shanxi Province. The total investment of the project is about 20 million yuan. It is mainly engaged in processing NMP recovery solution, washing machine water and recovering NMP. It has an annual output of 12000 tons. It is a large entity chemical enterprise specializing in processing NMP recovery solution.
Founded in June 2016, Guangdong ousailai Technology Co., Ltd. has successively installed more than 400 sets of NMP recovery devices. The annual recovery of high-value NMP recovery liquid is more than 10000 tons, and the power saving on the coater is more than 100 million yuan / year.
6. Industry position and competitive advantage
(1) Industry status
In the NMP recycling equipment industry, there are few manufacturers with NMP recycling performance of several large lithium battery manufacturers such as Contemporary Amperex Technology Co.Limited(300750) , Yiwei, honeycomb and GuoXuan. The target company has not only done this, but also made different NMP recycling process routes, including three-stage water washing, condensation & tail gas water washing, condensation & runner and so on, In terms of performance, it is basically recognized in the industry and can participate in most NMP recovery project bidding projects. In fact, with the vigorous development of lithium battery industry, the target company also participated in many bidding projects in 2021. The amount of NMP recovery project signed (won the bid) in 2021 is about 78 million, which is in a medium position in the industry according to the order scale, However, the market participation is high and the customer satisfaction is also good. Generally speaking, it is in the upper middle position in the industry.
(2) Competitive advantage
It is mainly reflected in performance and design. Because the lithium battery enterprises in the head of the target company have practical application performance, and various recovery processes of NMP have practical application performance, it can meet the bidding requirements of most enterprises. The target company also has NMP recovery engineering and distillation performance; It has patents and process technologies for recycling engineering, distillation and synthesis; Suzhou maiwo’s design is continuously reduced after repeated theoretical and practical verification. There are not only strict theoretical simulation calculation, but also actual operation data verification. The optimization of the design has a clear guiding nature and can tend to minimize the cost.
(II) in combination with the financial data of the target company in previous periods, please supplement the specific meaning of “when the target company achieves a net profit of 200 million yuan, it will be paid in one time”, and whether it includes the realized profit or loss to be made up of the target company; While the company is agreed to provide funds and guarantees for the operation of the target company, the reason and rationality of the counterparty only taking the target company’s net profit of 200 million yuan as the paid in condition, and the reason and rationality of the different paid in capital contribution conditions between the company and the counterparty, whether there is a situation that the listed company bears all the investment risks of the target company and damages the interests of the listed company.
reply:
The main financial data of the target company are as follows:
Unit: RMB
Main financial indicators December 31, 2021
(Unaudited)
Total assets 50387970.69
Net assets 3575101.15
Operating income 22553860.35
Net profit 406579.69
The specific meaning of “one-time paid in place when the target company achieves a net profit of 200 million yuan” refers to the obligation of Suzhou maiwo Ruixin and Jiang Xuan to make a one-time contribution when the target company achieves a net profit of 200 million yuan, excluding the realized profits or losses to be made up of of the target company.
Target company
