On February 16, Yunnan Yuntianhua Co.Ltd(600096) , Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) simultaneously announced that the three companies signed the new energy battery whole industry chain project cooperation agreement with Yuxi Municipal People’s Government of Yunnan Province and Zhejiang Huayou Holding Group Co., Ltd. (hereinafter referred to as “Huayou holding”) in Kunming, Yunnan Province.
According to the agreement, the parties jointly set up two joint ventures in Yuxi City, one mainly engaged in mineral resources development (hereinafter referred to as “mineral development company”) and the other mainly engaged in mineral deep processing (hereinafter referred to as “mineral processing company”). After the joint venture obtains the exploration and mining rights in accordance with the law, it will jointly mine mineral resources, carry out mineral deep processing, joint research and development Produce and sell new energy batteries and upstream and downstream materials of new energy batteries, drive the construction of new energy battery industry chain, and promote the formation of the whole industry chain cluster of new energy batteries in Yuxi City.
The parties agree that the shareholding structure of the mineral development company and the mineral processing company is: Yuxi Municipal People’s government or its designated investor is the largest shareholder, holding 23%, Yunnan Energy New Material Co.Ltd(002812) holding 22%, Yunnan Yuntianhua Co.Ltd(600096) holding 17%, Eve Energy Co.Ltd(300014) and Huayou holding 20% and 18% respectively. At the same time, the parties agree that other partners introduced in the future can enter the joint venture through equity participation, and the equity of both parties will be diluted in the same proportion at that time. The profits generated from the future operation of the joint venture company shall be enjoyed by each shareholder of the joint venture company according to the proportion of paid in capital contribution.
In the construction of supporting projects such as battery, isolation film and battery anode and cathode materials, Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) , Huayou holding, Yunnan Yuntianhua Co.Ltd(600096) and other plans to build battery supporting projects such as new energy battery, lithium battery isolation film, iron phosphate, lithium iron phosphate and copper foil projects in Yuxi city around the target mineral resources of Yuxi City in the future. The project is invested in three phases. The first phase of the project promises to invest about 18.05 billion yuan and will be completed before December 31, 2023; The committed investment in phase II of the project is about 33.65 billion yuan and will be completed before December 31, 2025; The third phase of the project is planned to be completed by 2030.
In terms of specific implementation, the above four companies (or their designated affiliates) directly set up project companies for cooperative research and development, synthesis, production and sales of new energy batteries, new energy battery positive and negative materials, positive material precursors and isolation films. In principle, the project company whose main business involves one party’s advantageous industry should lead the project, and other parties (including Yuxi Municipal People’s government or its designated investor) can choose to participate in the project appropriately.
According to the announcement, the above agreement is the preliminary cooperation framework agreement reached by all parties. The registered capital, business scope and investment progress of the joint venture in the mineral resources cooperative development project shall be separately agreed by all parties according to the needs of the project at that time; The specific content, investment amount and other relevant implementation details of the supporting projects planned to be invested and constructed by all parties need to be further implemented and clarified. The rights and obligations of all parties shall be subject to the provisions of the specific project investment agreement. The specific matters need to be reviewed by the board of directors / general meeting of shareholders of the company before formal implementation.
Yunnan Yuntianhua Co.Ltd(600096) said that this cooperation is conducive to further give play to the advantages of the company’s phosphorus chemical industry chain, improve the diversified and in-depth development of the company’s phosphate rock resources, accelerate the extension, transformation and upgrading of the industrial chain, further improve the company’s sustainable development ability and comprehensive competitiveness, and comply with the company’s overall development strategy. The performance of this agreement will not have a significant impact on the company’s financial status and operating results in the short term.
