The rare earth industry chain continues to be high, and relevant listed companies have set off a refinancing boom.
The latest refinancing plan is Ningbo Yunsheng Co.Ltd(600366) ( Ningbo Yunsheng Co.Ltd(600366) . SH).
According to the announcement, Ningbo Yunsheng Co.Ltd(600366) plans to refinance 1.08 billion yuan through fixed increase for the intelligent manufacturing project with an annual output of 15000 tons of high-performance rare earth permanent magnet materials with a total investment of 1.1 billion yuan.
“We will strive for the implementation of fixed growth as soon as possible.” Ningbo Yunsheng Co.Ltd(600366) relevant people told the 21st Century Business Herald reporter, “now the fixed increase fund-raising projects have been invested in advance with their own funds, and it is planned to replace them after the fixed increase fund-raising is in place.”
According to the plan, Ningbo Yunsheng Co.Ltd(600366) the planned construction period of the above-mentioned fixed raising investment project is 24 months. After 36 months of completion and operation, it is expected that the financial internal rate of return (after tax) will be 13.34% and the static investment payback period (after tax) will be 9.28 years (including 2-year construction period).
Jl Mag Rare-Earth Co.Ltd(300748) ranked first in refinancing
Compared with Ningbo Yunsheng Co.Ltd(600366) , which recently launched the fixed growth plan, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) ( Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) . SZ) and Jl Mag Rare-Earth Co.Ltd(300748) ( Jl Mag Rare-Earth Co.Ltd(300748) . SZ, 06680. HK), which belong to the rare earth NdFeB industry, have taken the lead and completed refinancing in the near future.
However, there are also differences in refinancing methods, Ningbo Yunsheng Co.Ltd(600366) is a fixed increase, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) is a share allotment, and Jl Mag Rare-Earth Co.Ltd(300748) obtains more funds through listing in Hong Kong.
According to the announcement on March 7, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) this refinancing actually placed 151 million shares, raising a total of 677 million yuan, all of which were used for the new construction, expansion and transformation projects of rare earth permanent magnet materials in Ningbo and Ganzhou with a total investment of 890 million yuan.
According to the calculation of the 21st Century Business Herald reporter, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) the planned construction period of the above-mentioned equity placement project is 2.5-3 years, and the total annual profit is expected to increase by about 236 million yuan after completion.
The total profit of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) 2020 is 213 million yuan, which is lower than the new amount after the above-mentioned projects are completed.
“In addition to the equity placement and investment projects, this year we will use our own funds or bank loans to expand the production of 5000 tons of neodymium iron boron.” Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) relevant people disclosed to the 21st Century Business Herald reporter, “there are also projects in Ganzhou. The newly-built capacity is more than 2000 tons. The actual land purchase is based on the capacity of 10000 tons, and the space for future production expansion has been reserved.”
The rare earth company was listed on the Shenzhen Stock Exchange in August 2018.
Jl Mag Rare-Earth Co.Ltd(300748) was listed and traded on the main board of the Hong Kong Stock Exchange on January 14 this year. In this H-share listing, Jl Mag Rare-Earth Co.Ltd(300748) issued 125.5 million shares and obtained a net fund-raising of about HK $4.045 billion.
According to the disclosure, Jl Mag Rare-Earth Co.Ltd(300748) this fund-raising is mainly used for the construction of Ningbo production base, potential acquisition to expand the layout of industrial chain, R & D, etc. According to public data, Jl Mag Rare-Earth Co.Ltd(300748) the annual production capacity of high-performance Nd-Fe-B permanent magnet blank will reach 23000 tons and 40000 tons in 2022 and 2025 respectively.
In addition to listing in Hong Kong, Jl Mag Rare-Earth Co.Ltd(300748) in 2021 and 2019, through private placement and convertible bonds in the A-share market, it obtained refinancing of 521 million yuan and 435 million yuan respectively.
Rare earth Nd-Fe-B listed companies started a new round of production expansion through refinancing. Even Yantai Zhenghai Magnetic Material Co.Ltd(300224) ( Yantai Zhenghai Magnetic Material Co.Ltd(300224) . SZ), which terminated the refinancing plan, did not slow down the pace of production expansion.
Previously, in March 2020, Yantai Zhenghai Magnetic Material Co.Ltd(300224) launched a fixed increase refinancing plan of 1.025 billion yuan, which was intended to be used for the construction of low weight rare earth permanent magnet production base and other projects. Then, in August of the same year, the fixed increase refinancing was terminated on the grounds of “proposed adjustment and optimization of the financing scheme”.
Although it has not been refinanced, Yantai Zhenghai Magnetic Material Co.Ltd(300224) announced at the end of 2020 that it will invest in the construction of a high-performance Nd-Fe-B permanent magnet material production base project with an annual capacity of 18000 tons in Rugao high tech Zone. The project plans to invest about 3 billion yuan in fixed assets, and the annual sales volume is expected to be 3.8 billion yuan after the project is completed.
“The project is under construction. It is planned to put into operation 6000 tons in the second half of this year, and the full capacity will be completed by the end of 2024.” Yantai Zhenghai Magnetic Material Co.Ltd(300224) staff told the 21st Century Business Herald reporter.
The above Yantai Zhenghai Magnetic Material Co.Ltd(300224) staff also said that at present, the company has no clear refinancing plan, and the project investment mainly depends on its own funds or bank loans. “If there is a refinancing plan, it will be announced in time.”
Rising Nonferrous Metals Share Co.Ltd(600259) fixed increase main input downstream extension
The refinancing of NdFeB listed companies has sprung up, and the upstream rare earth suppliers are not willing to fall behind.
Shenghe Resources Holding Co.Ltd(600392) ( Shenghe Resources Holding Co.Ltd(600392) . SH), which is good at obtaining overseas rare earth resources through investment, launched a non-public offering plan for 2021. It plans to raise 1.368 billion yuan for production expansion projects such as rare earth smelting and separation and rare earth metal processing technology transformation.
Shenghe Resources Holding Co.Ltd(600392) said the move was to meet the growing demand of downstream applications and stabilize the supply of rare earth raw materials.
Shenghe Resources Holding Co.Ltd(600392) said that rare earth elements play an important role in modern industry. They are the core materials supporting the new generation of information technology, aerospace and modern weapons and equipment, advanced rail transit, energy-saving and new energy vehicles, high-performance medical devices and other high-tech fields, and have become one of the focus of global competition.
According to the data quoted by Shenghe Resources Holding Co.Ltd(600392) China, China’s expected plan for the rare earth industry is that the replacement standard rate of rare earth permanent magnet materials will reach 70%, 80% and 85% in 2025, 2030 and 2035 respectively.
The fixed increase of Shenghe Resources Holding Co.Ltd(600392) is still on the way, but the refinancing of Rising Nonferrous Metals Share Co.Ltd(600259) ( Rising Nonferrous Metals Share Co.Ltd(600259) . SH) has been obtained.
According to the announcement on March 3, Rising Nonferrous Metals Share Co.Ltd(600259) this non-public offering of 346336 million shares at a price of 40.31 yuan / share, with a net fund-raising of 1.386 billion yuan.
The 21st Century Business Herald reporter noted that Rising Nonferrous Metals Share Co.Ltd(600259) this fixed increase was popular in the market. The reserve price of its non-public offering was 35.83 yuan / share, but the final issue price was 40.31 yuan / share, which was 112.5% higher than the reserve price.
However, Rising Nonferrous Metals Share Co.Ltd(600259) this refinancing has been adjusted downward, and the total amount of refinancing initially announced was 1.648 billion yuan.
“The net amount raised is less than the total investment of the project raised, and the insufficient part is raised by the company itself. We have a plan for the use of funds, which is no problem.” Rising Nonferrous Metals Share Co.Ltd(600259) staff told the 21st Century Business Herald reporter.
However, different from the main business expansion of Shenghe Resources Holding Co.Ltd(600392) , Rising Nonferrous Metals Share Co.Ltd(600259) focuses on the 8000t / a high-performance NdFeB permanent magnet material project extending downstream, with an investment of 1.252 billion yuan; Related to the upstream is the relocation, upgrading and transformation project of Fuyuan company, which handles 5000 tons of medium yttrium rich europium mixed rare earth ore every year, with an investment of only 197 million yuan.
“The company’s direction is mainly around the rare earth industry chain, with neodymium iron boron as the focus.” The above Rising Nonferrous Metals Share Co.Ltd(600259) personnel said.
The Rising Nonferrous Metals Share Co.Ltd(600259) , the main enterprise of Guangdong rare earth industry group, which is one of the six national rare earth industry groups, has a low resource self-sufficiency rate.
“There will be an increase in rare earth mines. The mines were under construction before and will be gradually produced this year. Another mine is applying for a mining license, and there will be some increment, but it still can’t reach its full consumption.” The above personnel.
Rising Nonferrous Metals Share Co.Ltd(600259) also publicly announced that the company will continue to do a good job in the search and sorting of replacement mines.
Relevant data show that the rare earth concentrate used by Rising Nonferrous Metals Share Co.Ltd(600259) to produce rare earth oxides needs to be purchased in large quantities, and most of the rare earth oxides are also sold for profit.
“Most of last year was the construction period, and there was little production. This year, the production will be normal, and the rare earth concentrate will increase.” The above Rising Nonferrous Metals Share Co.Ltd(600259) personnel “last year, most of the rare earth oxides were sold out and some were used for their own use. After the 8000 tons of Nd-Fe-B production capacity invested was built, the rare earth oxides were mainly used for their own use.”
