Securities code: Shenzhen Xfh Technology Co.Ltd(300890) stock abbreviation: Shenzhen Xfh Technology Co.Ltd(300890) Shenzhen Xfh Technology Co.Ltd(300890)
Shenzhen XFH Technology Co., Ltd
(unit J, 20 / F, block C, building 9, Baoneng Science Park, No. 1, Qingxiang Road, Longhua street, Longhua new area, Shenzhen)
Demonstration and analysis report on the scheme of issuing shares to specific objects through simple procedures in 2022
March, 2002
Section I background and purpose of this stock issuance
Shenzhen Xfh Technology Co.Ltd(300890) (hereinafter referred to as "the company") is a company listed on the gem of Shenzhen Stock Exchange. In order to meet the capital needs of the company's business development, increase the company's capital strength and enhance its profitability, in accordance with the provisions of the company law, the securities law, the articles of association, the measures for the administration of securities issuance and registration of companies listed on the gem (for Trial Implementation) and other relevant laws, regulations and normative documents issued by the CSRC, The company plans to raise no more than RMB 300 million and no more than 20% of its net assets at the end of the most recent year, and will be used for the following projects:
Unit: 10000 yuan
Project name estimated total investment amount proposed to use raised funds
30000 ton high-end graphite anode material 54815401450000 production base construction project
R & D center construction project 1347295750000
Total 68288352200000
(unless otherwise specified in this report, relevant terms have the same meanings as those in Shenzhen Xfh Technology Co.Ltd(300890) 2022 plan for issuing shares to specific objects through summary procedures).
1、 Background of this stock issuance
(I) the scale of new energy vehicle industry in the global market is developing rapidly
In order to promote the development of new energy vehicles, countries have successively issued new energy vehicle support policies, including car purchase subsidies, tax incentives, credit policies, etc. the new energy vehicle policy has created a new global environment in the new energy era, and the trend of new energy vehicle globalization has come. In order to seize the commanding height of a new round of industry, some countries have formulated a timetable to stop the production and sales of traditional energy vehicles. Britain and France announced that they would completely ban the sale of fuel vehicles in 2040; Germany will ban the sale of traditional internal combustion engine vehicles after 2030; The Netherlands and Norway will ban the sale of fuel vehicles in 2025; India will completely ban the sale of fuel vehicles by 2030.
According to the 2018 electric vehicle outlook released by Bloomberg, the global sales of electric vehicles will rise from 1.1 million in 2017 to 11 million in 2025, and then increase to 30 million in 2030. China will dominate this transformation. In 2025, electric vehicles will account for 19% of all passenger vehicle sales in China, The sales of China's electric vehicle market will account for nearly 50% of the global electric vehicle market; Europe is second only to China, accounting for 14% of the global electric vehicle market sales, and the United States ranks third, accounting for 11%. By 2040, about 60 million electric vehicles are expected to be sold worldwide, equivalent to 55% of the global light vehicle market; The number of electric vehicles reached 559 million, accounting for 33% of all types of vehicles.
(II) China Shanxi Guoxin Energy Corporation Limited(600617) automobile market has great development potential
At present, China is the world's largest new energy vehicle market and the fastest growing market. It is the main driving force driving the growth of the global new energy vehicle market. In the first half of 2021, benefiting from the growth of new energy vehicle terminal market outside China, China's lithium new energy industry developed rapidly and the market demand for cathode materials increased. According to the statistics of China Automobile Industry Association, the production and sales of new energy vehicles in 2021 were 3.545 million and 3.521 million respectively, with a year-on-year increase of 159.5% and 157.5% respectively; According to the data of China automotive power battery industry innovation alliance, the cumulative output of China Shipbuilding Industry Group Power Co.Ltd(600482) battery in 2021 was 154.5gwh, with a year-on-year increase of 142.8%; According to the white paper on the development of China's negative electrode material industry (2022) jointly issued by evtank, Ivy Economic Research Institute and China Battery Industry Research Institute, the shipment of China's negative electrode materials reached 779000 tons in 2021, with a year-on-year increase of 86.4%. Combined with the target of 20% of new energy vehicles proposed in the development plan of new energy vehicle industry (20212035), the target of comprehensive electrification of vehicles in the public domain in 2035, and the strategic objectives of "carbon peak" and "carbon neutralization", the new energy vehicle market has great development potential in the future, which will promote the rapid development of power battery and material industry. It is estimated that by 2030, the sales volume of electric vehicles will reach 50% of the global sales volume of passenger vehicles. At present, China Shipbuilding Industry Group Power Co.Ltd(600482) lithium battery and its upstream materials industry have obvious advantages in international competition. The rapid development of overseas new energy vehicle markets such as Europe will further enhance the market share of China Shipbuilding Industry Group Power Co.Ltd(600482) lithium battery enterprises, and the upstream industrial chain of power lithium battery is expected to benefit.
(III) negative electrode material manufacturers have expanded their production one after another
Driven by the rapid growth of Shanxi Guoxin Energy Corporation Limited(600617) automobile production in China, negative material manufacturers have launched production expansion plans one after another. In the short term, the negative material industry is in short supply. With the gradual release of industrial capacity, the overall supply and demand of negative material market will remain stable in the long run. The industry profit tends to concentrate on a few lithium-ion battery cathode material enterprises with strong competitiveness. There are great differences in the industry profit level in different application fields and market segments. With the continuous embodiment of the scale effect of lithium-ion battery cathode material production enterprises and the continuous improvement of downstream customers' requirements for the performance of lithium-ion battery cathode materials, enterprises with strong R & D ability, quality and cost control ability in the industry are expected to strive for higher profit space.
(IV) the sustainable and healthy development of the company needs to rely on independent innovation
The company has been committed to developing high-performance lithium battery cathode materials. Through continuous R & D investment, the company has industry-leading preparation technology in the field of natural graphite and artificial graphite. The developed natural and artificial graphite products with high energy density, low expansion and long cycle have been highly recognized by downstream power lithium battery leading manufacturers.
The company has 49 invention patents and 8 utility model patents. The company's R & D team is solid and complete, including technical engineers, R & D engineers, test engineers, project engineers, equipment engineers, electrical engineers, etc. the core personnel have more than 10 years of industry R & D experience. During the reporting period, the company's R & D expenses accounted for 3.62% to 4.17% of its operating revenue, and the sales revenue of core technology products accounted for more than 99% of its operating revenue. The sustainable and healthy development of the company needs to rely on independent technological innovation.
2、 Purpose of this stock issuance
(I) increase production capacity, improve R & D capacity, and consolidate and improve the position of the industry
Driven by the demand for lithium batteries, graphite anode materials will maintain a high growth rate, and the market scale of graphite anode materials will be further expanded. Through the implementation of this project, the company can significantly improve its product manufacturing capacity to meet the needs of developing downstream fields and consolidate the company's market share.
At the same time, the raised funds are used for the construction project of the R & D center to meet the future company's integration of the company's existing R & D resources, upgrade the R & D center and testing equipment, further enrich the R & D talent team, facilitate the training, technical exchange and learning of R & D personnel, facilitate the sharing of resources, and meet the strategic needs of the company's long-term development.
The project to be invested by the funds raised in this offering conforms to the relevant national industrial policies and the future development direction of the company, which will help to enhance the competitiveness of the company and consolidate its position in the industry. After the successful implementation of the fund-raising project, the company's technical level in relevant fields will be further improved, and the company's comprehensive strength will be effectively enhanced, so as to better meet the rapidly growing market demand and lay a solid foundation for realizing the company's development strategy and the goal of maximizing the interests of shareholders.
(II) optimize the capital structure to meet the capital needs of future business development
The company raised funds through bank loans to provide financial support and guarantee for the company to expand its business scale and enhance its market competitiveness, but this led to the increase of financial leverage, increased interest expenses and reduced the company's profitability.
This issuance is an important means for the company to use the capital market for equity financing, which is conducive to broadening the financing channels and enriching the financing methods. The company will further optimize the product structure, improve the R & D capacity and enhance the financial strength, so as to lay a solid foundation for the long-term sustainable development of the company.
Section II necessity of securities issuance and variety selection
1、 Types of securities to be issued this time
The type of securities issued by the company this time is to issue shares to specific objects through simple procedures. The type of shares issued this time is RMB ordinary shares (A shares), with a par value of RMB 1.00 per share.
2、 Necessity of selection of securities issued this time
(I) the implementation of this raised investment project needs long-term financial support
The funds raised in this issuance shall not exceed (including) 22 million yuan. After deducting the issuance expenses, it is proposed to be used for the construction of 30000 tons of high-end graphite cathode material production base and R & D center. The implementation of raised investment projects will help the company expand its business scale, accelerate the progress of R & D, enhance its profitability and improve its comprehensive competitiveness. At present, the company's own funds are difficult to meet the capital needs of project construction, so the company needs long-term financial support.
(II) there are limitations in debt financing methods such as bank loans
The financing cost of enterprises through debt financing such as bank loans is relatively high, and the financing amount is relatively limited. If it is obtained entirely through bank loans, it will greatly increase the asset liability ratio of the company, increase the operation risk and financial risk of the company, and generate large financial expenses, reduce the profitability and shareholder income of the company, which is not conducive to the sustainable development of the company.
(III) equity financing is conducive to optimizing the company's capital structure
Equity financing is conducive to optimizing the company's capital structure, reducing future debt repayment pressure and capital outflow. It has good planning and coordination, and is conducive to the company's long-term development strategy. The use plan of the raised funds has been demonstrated in detail by the management, which is conducive to further improving the profitability and enhancing the core competitiveness of the company. With the smooth implementation of the company's raised investment projects and the growth of operating performance, the company has the ability to absorb the dilution impact of equity expansion on immediate income and protect the interests of the company's original shareholders.
To sum up, it is necessary for the company to issue shares this time.
Section III appropriateness of the selection scope, quantity and standard of the issuing object I. appropriateness of the selection scope of the issuing object
The objects of this offering are securities investment fund management companies, securities companies, trust companies, financial companies, insurance institutional investors, qualified foreign institutional investors, RMB qualified foreign institutional investors, and other legal persons, natural persons or other qualified investors in accordance with the provisions of the CSRC, No more than 35 distribution objects (including 35).
Securities investment fund management companies, securities companies, qualified foreign institutional investors and RMB qualified foreign institutional investors who subscribe for more than two products under their management shall be regarded as one issuance object; If a trust company is the issuing object, it can only subscribe with its own funds.
The final issuance target will be determined by the board of directors and its authorized persons through negotiation with the lead underwriter in accordance with the provisions of relevant laws, regulations and normative documents and the bidding situation of the issuance, and in accordance with the principle of price priority.
During the implementation of this offering bidding, the subscription invitation letter issued by the listed company will require the subscription object to make a commitment: there shall be no affiliated relationship between the qualified investors participating in the bidding as stipulated in the company law and the Shenzhen Stock Exchange GEM Listing Rules (revised in 2020), and they shall not actively seek the control of the issuer.
2、 Appropriateness of the number of objects to be issued this time
The issuance targets are no more than 35 specific objects that comply with the provisions of relevant laws and regulations, the number of which complies with the relevant provisions of laws and regulations such as the measures for the administration of securities issuance and registration of companies listed on the gem (for Trial Implementation), and the number of issuance targets is appropriate.
3、 Appropriateness of the standards for the object of this issuance
The issuing object has certain risk identification ability and risk bearing ability, and has corresponding capital strength. The standards of the objects of this offering comply with the relevant provisions of laws and regulations such as the measures for the administration of securities issuance and registration of companies listed on the gem (for Trial Implementation), and the standards of the objects of this offering are appropriate.
Section IV rationality of the principles, basis, methods and procedures for pricing this offering I. Principles and basis for pricing this offering
The pricing benchmark date of this issuance is the first day of the issuance period of the company's shares.
The issue price shall not be less than 80% of the average price of A-Shares of the company 20 trading days before the pricing benchmark date (the average price of A-Shares 20 trading days before the pricing benchmark date = the total trading volume of A-Shares 20 trading days before the pricing benchmark date / the total trading volume of A-Shares 20 trading days before the pricing benchmark date).
If the company's shares have ex right and ex interest matters such as dividend distribution, share distribution and conversion of capital reserve into share capital from the pricing benchmark date of this issuance to the issuance date, the issuance price of this issuance will be adjusted accordingly. The adjustment formula is as follows:
Distribution of cash dividends
