After Tongling Nonferrous Metals Group Co.Ltd(000630) put Copper Crown copper foil on the gem, Jiangxi Copper Company Limited(600362) also wants to promote its subsidiary Jiangxi copper foil to the capital market by means of spin off and listing. Coincidentally, the spin off targets of the two listed companies are subsidiaries engaged in copper foil R & D, production and sales.
help Jiangxi copper foil connect directly to the capital market
On February 22, Jiangxi Copper Company Limited(600362) announced that in order to promote the business development of the company and its holding subsidiary Jiangxi copper foil, the board of directors of the company authorized the company and the management of Jiangxi copper foil to start the preliminary preparations for the spin off and listing of Jiangxi copper foil. After the spin off, the company will still control Jiangxi copper foil.
According to the announcement, Jiangxi copper foil is mainly engaged in the R & D, production and sales of all kinds of high-performance electrolytic copper foil. The main products are classified by application fields, including electronic circuit copper foil and lithium battery copper foil. Electronic circuit copper foil is one of the important basic materials of copper clad laminate and printed circuit board. Printed circuit board is widely used in many fields such as communication, optoelectronics, consumer electronics, automobile, aerospace and so on. Jiangxi Copper Company Limited(600362) holds 70.19% of its shares.
Jiangxi Copper Company Limited(600362) its main business covers the mining, smelting and processing of copper and gold; Extraction and processing of rare and scattered metals; Sulfur chemical industry, finance, trade and other fields, and established a complete industrial chain integrating exploration, mining, beneficiation, smelting and processing in the field of copper and related non-ferrous metals. It is an important copper, gold, silver and sulfur chemical production base in China. Jiangxi Copper Company Limited(600362) believes that its business field and operation mode with its holding subsidiary Jiangxi copper foil maintain high independence from other businesses, and the spin off will not have a substantial impact on the continuous operation of other business segments of the company.
Jiangxi Copper Company Limited(600362) said that the split listing is conducive to improving the brand awareness and social influence of Jiangxi copper foil, strengthening the competitive position and competitive advantage of Jiangxi copper foil in the professional field, enhancing the comprehensive competitiveness of electrolytic copper foil business, increasing the further investment and development of core and cutting-edge technologies of Jiangxi copper foil, maintaining the vitality of business innovation and promoting its sustainable and healthy development.
Jiangxi Copper Company Limited(600362) revealed that after the spin off and listing, Jiangxi copper foil will realize the direct connection with the capital market, give full play to the functions and advantages of direct financing in the capital market, broaden financing channels, improve financing flexibility and improve financing efficiency, so as to effectively reduce the capital cost and provide sufficient capital guarantee for the further investment and development of Jiangxi copper foil core and cutting-edge technologies. In the future, Jiangxi copper foil can carry out various capital operations such as industrial mergers and acquisitions with the help of the capital market platform, further expand its business scope, enrich its product line and realize leapfrog development.
high prosperity of the industry stimulates enterprises to expand production
Copper foil is an important raw material for new electronic materials and new energy. The reporter of Shanghai Securities News noted that in the past year, many enterprises in the copper foil industry have expanded their production one after another.
Guangdong Jiayuan Technology Co.Ltd(688388) in November 2021, a fixed increase plan of 4.9 billion yuan was put forward for the construction of four copper foil projects with a total capacity of 81000 tons. In February 2021, the company issued 1.24 billion yuan of convertible bonds to invest in 15000 tons of high-performance copper foil project, new high-strength and very thin lithium battery copper foil research and development and other key technology research and development projects. Zhejiang Hailiang Co.Ltd(002203) in November 2021, it was announced that it was planned to invest in the project of high-performance copper foil materials with an annual output of 150000 tons, including 120000 tons of lithium battery copper foil and 30000 tons of standard copper foil. The project investment is 8.9 billion yuan, including 6.9 billion yuan of fixed asset investment and 2 billion yuan of working capital. Nuode Investment Co.Ltd(600110) announced on January 17 this year that it plans to invest in the construction of Nord 100000 ton copper foil material production base in Huangshi Economic Development Zone, Hubei Province. The registered capital of the project is 3.5 billion yuan, and Nuode Investment Co.Ltd(600110) is the only investor.
The listing and financing of Copper Crown copper foil under Tongling Nonferrous Metals Group Co.Ltd(000630) is also to expand production. The company’s 820 million yuan IPO raised funds for the construction of an annual output of 20000 tons of ultra-thin electronic copper foil for high-precision energy storage (phase II). Previously, the total capacity of Copper Crown copper foil was 20000 tons.
The positive expansion of production comes from the high prosperity of the industry, and the performance of relevant companies is bright. For example, Guangdong Jiayuan Technology Co.Ltd(688388) is expected to realize a net profit of 530 million yuan to 603 million yuan in 2021, with a year-on-year increase of 184.25% to 223.56%; Guangdong Chaohua Technology Co.Ltd(002288) it is expected to realize a net profit of 118 million yuan to 130 million yuan in 2021, with a year-on-year increase of 449.63% to 505.53%; Nuode Investment Co.Ltd(600110) the performance is even brighter. The company expects the net profit in 2021 to be 390 million yuan to 420 million yuan, with a year-on-year increase of 7142% to 7699%.
On the whole, the pre increase in performance of these listed companies is mainly due to the strong demand of upstream customers, the release of new production capacity, the improvement of production and sales, the rise of copper foil processing fee, the rise of copper clad laminate price and other factors, which drive the increase of product gross profit margin.
Tongguan copper foil also said on the investor interaction platform a few days ago that at present, the supply and demand relationship of copper foil in China has basically remained stable, and the supply of some products is relatively tight; Lithium battery manufacturers are basically in the state of order saturation, and the demand for copper foil of lithium battery is relatively strong.
