Super track again! The company wants to raise more than $4 billion

After holding hands with Contemporary Amperex Technology Co.Limited(300750) , Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) (300390) "lithium wants" more.

The company disclosed the fixed increase plan on February 8, and plans to raise no more than 4.6 billion yuan for the 60000 ton battery grade lithium hydroxide construction project of Sichuan Tianhua times lithium energy Co., Ltd., the 25000 ton battery grade lithium hydroxide project of Yibin Weineng lithium industry science and Innovation Co., Ltd., the acquisition of 7% equity of Yibin Tianyi lithium industry science and Innovation Co., Ltd. and the supplement of working capital.

Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) we hope to further expand the lithium hydroxide production capacity through this fixed increase, seize the opportunity of the rapid development of new energy industry, and expand and strengthen the lithium chemical business.

add 85000 tons of lithium hydroxide per year

Lithium chemical industry is a capital and technology intensive industry, with large investment amount, long investment cycle and strong scale effect. Before this issuance, Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) has completed the 45000 ton lithium hydroxide project of Tianyi lithium industry phase I and phase II. However, there is still a gap between the existing capacity scale and leading enterprises in the industry such as Yabao and Ganfeng Lithium Co.Ltd(002460) in the United States, and it is difficult to match the rapid growth demand of downstream industries in the future.

Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) said that with the capacity expansion of downstream enterprises, on the one hand, the company needs to increase the capacity scale accordingly to ensure that it matches the capacity of downstream customers. If the capacity scale is small, it cannot match the needs of major customers such as car enterprises and power battery manufacturers; On the other hand, when the company's production capacity is relatively small, in order to give priority to the supply of strategic customers, it may lead to significant dependence on key customers and face operational risks.

It is also against this background that Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) decided to launch this fixed increase plan and planned to invest in "60000 ton battery grade lithium hydroxide construction project of Sichuan Tianhua times lithium energy Co., Ltd." and "25000 ton battery grade lithium hydroxide project of Yibin Weineng lithium industry science and Innovation Co., Ltd. phase I". The former is located in Meishan City, Sichuan Province, with a total investment of 2.5 billion yuan and a planned investment of 2.4 billion yuan; The latter is located in Yibin City, Sichuan Province, with a total investment of 970 million yuan and a planned investment of 820 million yuan.

after the completion of the above two projects, Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) increases the annual production capacity of battery grade lithium hydroxide by 85000 tons, which will greatly increase the production capacity of the company's lithium hydroxide products. Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) said that this will help the company to continue to improve the scale effect on lithium hydroxide products, improve the company's market share, and enhance the company's comprehensive competitive strength and anti risk ability.

further acquisition of Tianyi lithium equity

Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) plans to spend 980 million yuan to acquire 7% equity of Tianyi lithium, which is also a major focus of this fixed increase.

Previously, in November 2018, the company announced that it had invested 294 million yuan to participate in the establishment of the joint venture Tianyi lithium. At that time, Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) held 42% and was the largest shareholder of Tianyi lithium; Chendao investment holds 26% and is the second largest shareholder; Contemporary Amperex Technology Co.Limited(300750) holds 15% and is the third largest shareholder.

According to the announcement, Tianyi lithium signed the cooperation agreement with Contemporary Amperex Technology Co.Limited(300750) on November 8, 2019. Contemporary Amperex Technology Co.Limited(300750) and Tianyi lithium agreed to become partners to jointly create competitive advantages in the lithium battery industry chain and jointly resist market risks. According to the cooperation agreement, Contemporary Amperex Technology Co.Limited(300750) gives priority to purchasing lithium carbonate and lithium hydroxide products from Tianyi lithium according to the market and production and operation needs; Tianyi lithium gives priority to meeting the procurement demand of Contemporary Amperex Technology Co.Limited(300750) and ensuring supply. According to the product index parameter required by Contemporary Amperex Technology Co.Limited(300750) , it processes and produces battery grade lithium carbonate and lithium hydroxide products and supplies them to Contemporary Amperex Technology Co.Limited(300750) . The cooperation period is from the date of signing the agreement to November 7, 2024.

In November 2020, the company acquired 26% equity of Tianyi lithium industry held by chendao investment in cash, with a total transaction amount of 162 million yuan. After the completion of this transaction, Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) shares reached 68% and became the controlling shareholder of Tianyi lithium.

Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) said in the latest announcement that Tianyi lithium has become a subsidiary that contributes the most revenue and profits. Weineng lithium, a wholly-owned subsidiary of Tianyi lithium, will build a capacity of 50000 tons of lithium hydroxide in the future. After the completion of this acquisition, the company's shareholding in Tianyi lithium industry will rise from 68% to 75%, and further increase its shareholding in Tianyi lithium industry, which is consistent with the development strategy of the company's layout of lithium battery materials. By further increasing the shareholding ratio of Tianyi lithium, the company can better share the growing income and profits of Tianyi lithium, and the dividends implemented by Tianyi lithium in the future will also belong to listed companies.

It is understood that Tianyi lithium has received good customer feedback since the completion, production and sales of phase I 20000 ton battery grade lithium hydroxide construction project. The company has established long-term and stable cooperative relations with Contemporary Amperex Technology Co.Limited(300750) and other new energy enterprises.

At the same time, Tianyi lithium has established in-depth cooperative relations with mainstream lithium battery cathode material manufacturers in China. In terms of overseas customers, Tianyi lithium has begun to export lithium hydroxide products to Korean customers and made steady progress as planned.

According to the annual report disclosed by Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) , in 2021, the company realized an operating revenue of 3.398 billion yuan, an increase of 158.73% over the same period of last year, and realized a net profit attributable to shareholders of listed companies of 911 million yuan, an increase of 218.44% over the same period of last year.

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