Securities code: Anhui Zhongyuan New Materials Co.Ltd(603527) securities abbreviation: Anhui Zhongyuan New Materials Co.Ltd(603527) Announcement No.: 2022010 Anhui Zhongyuan New Materials Co.Ltd(603527)
（ANHUIZHONGYUANNEWMATERIALSCO.,LTD.）
Non public offering of A-Shares in 2022
Feasibility analysis report on the use of raised funds
March, 2002
1、 Use plan of raised funds
The total amount of funds raised from this non-public offering of shares shall not exceed 75 million yuan. The net amount of funds raised after deducting the issuance expenses will be used for the following items:
No. name of the main project implementing the project total investment raised capital investment (10000 yuan) (10000 yuan)
Annual output of 100000 tons of high-precision copper alloy sector and strip and 5
1. Yongjie copper 10000 ton copper strip blank production line project (phase I with an annual output of 586442 million tons and 410 million tons of high-precision copper alloy strip)
2. The new main body has an annual output of 50000 tons of battery foil (phase I has an annual output of 2500035 Ping An Bank Co.Ltd(000001) 900000 tons of battery foil)
3 Anhui Zhongyuan New Materials Co.Ltd(603527) supplementary working capital 1500000
Total 136442007500000
Before the raised funds are in place, the company will invest the self raised funds first according to the actual situation of the project progress. After the raised funds are in place, the self raised funds that have been put into use before this issuance will be replaced in accordance with the relevant provisions of the company on the use and management of raised funds.
If the actual amount of raised funds (after deducting the issuance expenses) is less than the total amount of raised funds to be invested in the above projects, within the finally determined scope of this raised investment project, the company will adjust and finally determine the specific investment projects, priorities and specific investment amount of each project according to the actual amount of raised funds and the priorities of the projects, The insufficient funds raised shall be raised by the company itself.
2、 Details of the use of raised funds
(I) high precision copper alloy sector and strip with an annual output of 50000 tons
1. Necessity of project construction
(1) Necessary choices to meet the needs of market and Industry Development
With the development of global economy, the demand for copper processing products such as copper strip, copper bar and wire in the world continues to grow steadily, providing a broad market for copper processing enterprises. On the whole, China’s copper processing industry has maintained a rapid and sustainable development trend, and has become an important copper production, consumption and trade country in the world. However, the production of high-precision copper is still mainly concentrated in the United States, Japan and Germany, and China’s copper processing industry still has great room for improvement. In recent years, with the rapid development of the national economy, the acceleration of the digital process, the popularization of new energy vehicles, and the transformation and upgrading of traditional industries such as electrical and communication, the demand for high-end copper strip has ushered in a new round of rapid growth. To sum up, the high-precision copper alloy strip project with an annual output of 50000 tons is a necessary choice to meet the market demand for high-end copper strip products.
(2) The company’s position in the copper strip industry will be further enhanced
Since its establishment, the company has been focusing on the R & D, production and sales of red copper strip foil. After more than ten years of development, the production capacity of red copper strip foil products of the company has gradually increased from 6000 tons / year at the beginning of establishment to 100000 tons / year at present. At present, the company has become an enterprise with large business scale and leading technical strength in the subdivided industry of copper sector, strip and foil in China, with economies of scale. The company has a prominent position in the field of copper sector and strip manufacturing, and has the ability to further optimize the manufacturing process and improve the market share.
After the completion of the project, it will effectively expand the production capacity of high-precision copper alloy strip, expand the development space and strengthen the competitiveness of the company, so as to cope with the rapidly increasing market demand, improve the market share and further enhance the industry position.
2. Feasibility of project construction
(1) In line with the national industrial policy and the development plan of non-ferrous metal industry
Made in China 2025, the guiding opinions of the general office of the State Council on creating a good market environment, promoting the structural adjustment of non-ferrous metal industry, promoting transformation and increasing benefits (GBF [2016] No. 42), the outline of the national medium and long-term scientific and technological development plan (20062020), the plan for the adjustment and revitalization of non-ferrous metal industry and other relevant policies, Systematically planned the development strategy of copper processing industry and increased the support for copper processing enterprises.
The national development and Reform Commission issued the Guiding Catalogue for industrial structure adjustment (2019 version), which listed “production of new non-ferrous metal materials in transportation, high-end manufacturing and other fields”, “continuous metal coils for new energy, semiconductor lighting and electronic fields, vacuum coating materials and high-performance copper foil materials” as national encouraged projects. The guidance catalogue of key products and services of strategic emerging industries covers five major fields and eight industries of strategic emerging industries, among which “high-precision copper and tube, rod and linear products” and “high-strength and high conductivity copper materials” are clearly mentioned in the field of advanced structural materials industry among new materials. The construction of the project conforms to the national industrial policy and the development plan of non-ferrous metal industry.
(2) The company has the advantages of product structure upgrading and capacity expansion
In recent years, affected by the changes in the macroeconomic environment outside China, fluctuations in downstream demand, fierce industry competition and other factors, the reshuffle and reorganization pattern of the copper processing industry has begun to take shape gradually, and some enterprises with small scale, poor capital strength, lack of core technology, weak independent innovation ability and low product added value have been gradually eliminated by the market. With the progress of science and technology, copper processing products are gradually developing in the direction of high performance, high quality, high precision and low cost. Copper processing enterprises are facing both opportunities and challenges.
Since its establishment, the company has been focusing on the R & D, production and sales of copper strip and foil. It has become an enterprise with large business scale and leading technical strength in the subdivided industry of copper strip and foil in China, and has formed a more prominent competitive advantage in the industry. The terminal products of the raised investment project are positioned in China’s international medium and high-end market. The products can effectively meet the booming needs of smart grid, semiconductor integrated circuit, 5g communication in China and the world, as well as the rising needs of new energy vehicles, Cecep Solar Energy Co.Ltd(000591) batteries, super capacitors, lithium battery energy storage and other industries.
While consolidating its industrial scale and product advantages, the company further improves the proportion of high value-added products through the construction of new projects, so as to realize the continuous upgrading of product structure.
(3) Technology, talent and production process guarantee
The company always adheres to the continuous innovation of products, attaches great importance to product R & D, actively promotes product R & D, quality research and technological innovation, complies with the needs of the market, creates better products and improves the company’s core competitiveness. At the same time, after years of development, the company has gathered a large number of mature employees, formed a stable and experienced core team, and has rich management skills and operation experience in business operation, R & D, technical management and marketing. The company’s profound technical accumulation and excellent R & D team are the important foundation for the smooth implementation of this project.
The company has been deeply engaged in the industry for many years, and the process flow of the existing production line is mature, with obvious advantages in product production cost. At the same time, with the advanced technology level, the company produces products with different specifications and performance to meet the different needs of downstream customers. Rich production and manufacturing experience, production organization experience and mature production technology will provide sufficient support for the company’s future sustainable operation and profitability, which is an important guarantee for the smooth implementation of the project.
3. Basic scheme of project construction
(1) Basic contents of project construction
After the completion of the project, it is expected to form an annual production capacity of 50000 tons of high-precision copper alloy strip.
(2) Project construction progress
It is estimated that it will take 24 months to complete the construction of the project.
(3) Project implementation subject and construction site
The main body of the project is Yongjie copper, a wholly-owned subsidiary. The project is located in the economic development zone of Nanling County, Wuhu City, Anhui Province.
(4) Specific investment composition of the project
The total investment of the project is 864.42 million yuan, of which 410 million yuan is planned to come from the investment of the raised funds. All the raised funds are used for capital expenditures such as construction projects and equipment purchase. The specific investment composition of the project is as follows:
No. project investment (10000 yuan)
1 construction works 10673
2. Equipment purchase 27839
3 installation works 1145
4 other expenses 4035
5. Working capital 42750
The total investment of the project is 86442
4. Environmental impact assessment and filing of the project
The project has obtained the project filing form of Nanling County Development and Reform Commission (220234022304-01284010) issued by Nanling County Development and Reform Commission, and the relevant EIA is being handled.
(II) 25000 tons of battery foil per year
1. Necessity of project construction
(1) Seize the development opportunity of new energy industry and lay a solid foundation for the company to gradually enter the field of new energy
The fund-raising project “25000 tons of battery foil per year” is an extension of the company’s copper sector, strip and foil products and production process foundation, an expansion and upgrading of the existing industrial chain, and an important strategic choice made by the company under the environment of the rapid development of new energy industry. After the project is put into operation, the company will enter the field of battery foil, laying a solid foundation for the company to seize the development opportunity of new energy industry and gradually enter the field of new energy.
(2) Add new products such as new energy battery aluminum foil, optimize the company’s product structure and enhance the company’s profitability. The company has been deeply cultivated in the non-ferrous metal rolling processing industry for many years. Through continuous improvement of technical level and production capacity, the rolling processing and production process is complete, covering most copper sector, strip and foil products. Based on the existing production capacity, this raising and investment will add new products such as new energy battery aluminum foil for the company. While meeting the needs of the downstream market, it will help to optimize the company’s product structure, gradually broaden the company’s industrial chain, enrich product types, optimize industrial layout and improve comprehensive competitiveness.
2. Feasibility of project construction
(1) The state has issued relevant plans and industrial policies to encourage the construction of new energy battery aluminum foil projects
The 13th five year plan for national economic and social development points out to support the development of strategic emerging industries, enhance the supporting role of emerging industries, and support the development and growth of industries in the fields of new generation information technology, new energy vehicles, biotechnology, green and low-carbon, high-end equipment and materials, digital creativity and so on.
The development plan for Nonferrous Metals Industry (20162020) proposes to focus on the development of “aluminum foil, copper foil and porous copper foil with high strength, high ductility and low defects for lithium-ion batteries, oxygen reduction catalyst for fuel cells with high efficiency and low cost core-shell structure, and air electrode materials for metal (aluminum, magnesium, etc.) air cells.”
The development plan for energy saving and new energy vehicle industry (20122020) points out that we should vigorously promote the technological innovation of power battery, focus on the safety and reliability research and lightweight design of power battery system, and accelerate the development of key materials such as positive and negative poles, diaphragms and electrolytes of power battery and their production, control and testing equipment, Develop new supercapacitors and their combined systems with batteries, and promote the standardization and serialization of power batteries and related spare parts and assemblies; Advance the deployment in the major basic and cutting-edge technology fields of power batteries, focus on the research on new materials, new systems, new structures and new processes of high specific energy power batteries, and focus on breaking through a number of key common technologies supporting long-term development.
The new energy vehicle industry development plan (20212035) emphasizes the implementation of battery technology breakthroughs. Carry out research on key core technologies such as positive and negative electrode materials, electrolyte, diaphragm and membrane electrode, strengthen the research on short board technology of high-strength, lightweight, high safety, low-cost and long-life power cells and fuel cell systems, and accelerate the research, development and industrialization of solid-state power cell technology.
The project also meets the requirements of the Guiding Catalogue for industrial structure adjustment (2019 version) and other documents. The above documents point out the direction for the industrial structure optimization and technological upgrading of key basic materials, including aluminum processing.
(2) The sales volume of new energy vehicles increased, and the demand for power battery aluminum foil was strong
The global sales of new energy vehicles continue to grow rapidly, and the global demand for lithium batteries has entered the TWH era, with a broad prospect. According to wind statistics, in the first half of 2021, the global sales volume of new energy vehicles was 2.252 million, a year-on-year increase of 151%, the installed capacity of power batteries was about 100.49 GWH, a year-on-year increase of 141%, and the driving power batteries of new energy vehicles increased rapidly.
China Shipbuilding Industry Group Power Co.Ltd(600482) battery output (MWh)
160 Ping An Bank Co.Ltd(000001) 4000000
