On February 23, Zhejiang Huayou Cobalt Co.Ltd(603799) announced that the company’s public offering of A-share convertible corporate bonds will be purchased online on February 24. The total amount of funds raised by the convertible bonds is no more than 7.6 billion yuan (including 7.6 billion yuan). After deducting the issuance expenses, the funds raised will be used for the investment of the following projects: the integration project of ternary cathode material and 100000 tons of ternary precursor material for 50000 tons of high-performance power batteries, the ternary cathode material precursor project for 50000 tons of high-performance power batteries, and supplement working capital.
According to the data, Zhejiang Huayou Cobalt Co.Ltd(603799) is mainly engaged in the R & D and manufacturing of new energy lithium battery materials and cobalt new material products. After nearly 20 years of development, the company has formed an industrial pattern of integrated and coordinated development of three business segments: resources, nonferrous metals and new energy. The three business segments constitute a vertically integrated industrial chain within the company. At the same time, the company is also laying out recycling business and making every effort to build a new energy lithium electric industry ecology from cobalt and nickel resource development, green smelting and processing, ternary precursor and cathode material manufacturing to resource recycling.
On January 12, Zhejiang Huayou Cobalt Co.Ltd(603799) released the performance forecast for 2021. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be between 3.7 billion yuan and 4.2 billion yuan, with a year-on-year increase of 218% to 261%; The net profit attributable to the shareholders of the parent company after non deduction was between 3.79 billion yuan and 4.29 billion yuan, with a year-on-year increase of 237% to 282%. In the fourth quarter of 2021, the corresponding company realized a net profit attributable to shareholders of listed companies ranging from 1.23 billion yuan to 1.73 billion yuan, with a year-on-year increase of 157% – 262% and a month-on-month increase of 37% – 92%; The net profit attributable to the shareholders of the parent company after non deduction was between 1.47 billion yuan and 1.97 billion yuan, with a year-on-year increase of 197% to 297% and a month-on-month increase of 63% to 118%. The performance exceeded expectations.
It is worth mentioning that Zhejiang Huayou Cobalt Co.Ltd(603799) with its rich operation experience and forward-looking development strategy precipitated in cobalt and copper resources, takes the new energy lithium battery material industry as the core business of key development, actively increases the layout of Indonesian nickel resources projects and the exploitation of overseas lithium resources mining rights, and accelerates the improvement of the upstream resource map of lithium battery, Continue to strengthen the control of the raw material end of the ternary positive electrode.
Statistics show that at present, some production lines of Huayou Indonesia subsidiary Huayue nickel cobalt hydrometallurgy project with an annual output of 60000 tons of nickel and 7800 tons of cobalt metal have been put into trial production at the end of December 2021, and the first batch of products have been successfully produced; On February 14, the seagoing ship carrying the first batch of 9500 tons of crude nickel cobalt hydroxide products of Huayue company sailed smoothly from morowali port in Indonesia to China Ningbo Zhoushan Port Company Limited(601018) , marking the success of the export of the first ship products of Huayue nickel cobalt project. In addition, Huake 45000 ton pyrometallurgical nickel smelting project and Huafei 120000 ton hydrometallurgical nickel smelting project invested by Indonesia are progressing smoothly and will be gradually put into operation from 2022 to 2023, contributing incremental profits.
For the issuance of convertible bonds, Zhejiang Huayou Cobalt Co.Ltd(603799) said that the investment of the raised funds is in line with the national industrial policy and the company’s development plan, as well as the development trend of the industry. The fund-raising investment project will help the company to promote its development strategy, improve its industrial layout, seize the market highland, bring returns to shareholders and meet the interests of the company and all shareholders.
