On December 31, 2021, Wuxi Dk Electronic Materials Co.Ltd(300842) announced that the company planned to purchase 100% equity of Jiangsu SOTE by issuing shares. After negotiation between the two parties, the transaction price of 100% equity of Jiangsu SOTE was RMB 1.247 billion. At the same time, the company plans to issue shares to no more than 35 qualified specific objects to raise supporting funds, which will be used to supplement the working capital of the listed company and its subsidiaries and pay the relevant expenses of the transaction.
The announcement shows that after the completion of the transaction, Wuxi Dk Electronic Materials Co.Ltd(300842) will hold 100% equity of Jiangsu SOTE and own the solamet photovoltaic silver slurry business of the original DuPont group through Jiangsu SOTE. As the actual controller of the listed company and one of the counterparties of the transaction, Shi Weili will participate in the actual operation of the listed company and solamet business after the completion of the transaction. Shi Weili promises that the net profits of solamet business in 2022, 2023 and 2024 will be 53.7486 million yuan, 90.5358 million yuan and 127.8723 million yuan respectively.
Wuxi Dk Electronic Materials Co.Ltd(300842) is mainly engaged in the R & D, production and sales of high-performance electronic materials. It is a leading enterprise in the field of photovoltaic conductive silver paste in China. The solamet photovoltaic silver paste business of the target company has been deeply rooted in the electronic paste industry for more than 30 years, and has developed into a world-famous photovoltaic conductive paste brand. Its sales network has covered many regions such as Asia and Europe, and has a traditional dominant position in the field of photovoltaic conductive silver paste.
According to the statistics released by the International Energy Agency (IEA), by the end of 2020, the global cumulative photovoltaic installed capacity had reached 707.49gw, a year-on-year increase of 21.82%, about 17 times that of 2010. With the deepening of global energy reform and the adjustment of energy structure, it is expected that the global photovoltaic installed capacity will be further expanded in the future. According to Irena’s prediction, the cumulative global PV installed capacity is expected to reach 2840gw in 2030.
Since 2021, in the context of carbon neutrality, the outline of the 14th five year plan and the policy requirements issued by the national energy administration have promoted the use of non fossil energy, including Cecep Solar Energy Co.Ltd(000591) , and promoted the development of clean energy by organizing and carrying out the pilot development of roof distributed photovoltaic in the whole County (city and district), It has greatly broadened the market space of China’s photovoltaic power generation and the market demand for photovoltaic conductive silver paste.
Some analysts said that under the background of affordable Internet access, the new generation of battery technology is expected to promote the further growth of the demand for photovoltaic silver paste. Photovoltaic conductive silver paste enterprises with advanced technology, excellent R & D and innovation capabilities and able to meet the dual needs of downstream cell manufacturers to reduce costs and improve efficiency will have a more competitive advantage.
The company said that after the completion of this transaction, the two sides will cooperate to develop new series of products, promote the industrialization of technical achievements, and create a complete technical support system for product development, so as to further grasp the technical dynamic changes in the market, meet the dual needs of customers to reduce costs and improve efficiency, and enhance the market competitiveness of the company’s products. At the same time, the two sides can implement effective coordination in brand, marketing network, procurement channels and other businesses, which is conducive to the company to further optimize business layout, improve market share and enhance sustainable profitability.
(China Securities Journal)
