Securities code: Chengxin Lithium Group Co.Ltd(002240) securities abbreviation: Chengxin Lithium Group Co.Ltd(002240) Chengxin Lithium Group Co.Ltd(002240)
Non public offering of a shares
Feasibility analysis report on the use of raised funds
March, 2002
Chengxin Lithium Group Co.Ltd(002240) (hereinafter referred to as " Chengxin Lithium Group Co.Ltd(002240) ", "the company") intends to introduce Byd Company Limited(002594) (hereinafter referred to as " Byd Company Limited(002594) ) (hereinafter referred to as" Byd Company Limited(002594) ") as strategic investors and raise funds through non-public offering of A-Shares (hereinafter referred to as" this non-public offering "or" this offering "), The net amount of raised funds after deducting the issuance expenses will be used to supplement working capital and repay debts. The feasibility analysis of the company on the use of the funds raised by this non-public offering is as follows: I. The use plan of the raised funds
The total amount of funds to be raised in this non-public offering (including issuance expenses) shall not exceed 300 million yuan (including this amount). The net amount of funds raised after deducting issuance expenses will be used to supplement working capital and repay debts. The details are as follows:
No. total investment of the project amount of raised funds to be invested (10000 yuan) (10000 yuan)
1. Replenish working capital and repay debts 3000 Fawer Automotive Parts Limited Company(000030) 000000
Total 3000 Fawer Automotive Parts Limited Company(000030) 000000
2、 Necessity and feasibility of the project invested by the raised funds (I) necessity of project implementation
1. The industry of new energy vehicles and power batteries continues to grow rapidly, and the market space of lithium new energy materials is broad in the future
The world's major national and international mainstream automobile enterprises are accelerating the transformation and layout of electrification, and the substitution of electric vehicles for fuel vehicles has clearly become the future development trend Byd Company Limited(002594) , Tesla, Volkswagen, BMW, Mercedes Benz, Toyota, Nissan and other well-known brand car enterprises have continued to make efforts in the field of new energy vehicles, and have put forward electric vehicle development plans one after another. They plan to invest heavily in the new energy vehicle market and increase the sales proportion of new energy vehicles. In the future, the penetration rate of new energy vehicles will increase significantly.
At the same time, the new energy vehicle industry has become a national strategic emerging industry. With the strong support of the government, after years of accumulation and development, many new energy vehicle enterprises represented by Byd Company Limited(002594) and new forces of vehicle manufacturing have emerged.
As the key link and core component of the value chain of new energy vehicles, the power battery and lithium battery new energy materials industry will continue to expand the market capacity with the rapid popularization of new energy vehicles, and there is a broad space for development in the future. According to the research data of Gaogong lithium battery, the installed capacity of global power battery reached 292.13gwh in 2021, with a year-on-year increase of 114%; According to the prediction of Citic Securities Company Limited(600030) research department, the global power battery demand of new energy vehicles is expected to reach 1100gwh in 2025, with a compound annual growth rate of 40%.
The company judges that the long-term good development trend and broad market space of the industry will bring historic development opportunities. Therefore, it is necessary to seize the opportunity to cooperate with downstream leading enterprises and consolidate the leading position of subdivided industries.
2. Introducing leading downstream lithium battery customers for strategic cooperation will help the company achieve its strategic objectives
There are still some shortcomings in the new energy battery industry chain, such as imperfect supporting facilities and insufficient supply of key resources, which can not meet the market demand and may restrict the long-term development of the industry. As a leading enterprise in the subdivided field of lithium salt, the company plans to accelerate the realization of the strategic goal of "becoming a global leader in lithium battery new energy materials" by strengthening industrial chain cooperation and coordination with downstream leading enterprises.
The company plans to introduce Byd Company Limited(002594) as a strategic investor through directional issuance of shares. As one of the leaders in the global new energy vehicle industry, Byd Company Limited(002594) has a huge technology research and development team and strong integrated production capacity. It has developed highly safe lithium iron phosphate batteries and high energy density ternary batteries, which are widely used in the field of electric commercial vehicles and electric passenger vehicles.
The introduction of Byd Company Limited(002594) as a strategic investor in this non-public offering will help both parties to coordinate the industrial chain business, further optimize the company's ownership structure, enhance the company's shareholder background, improve the overall governance level, and then improve the company's comprehensive competitiveness, laying a solid foundation for the company to further strengthen its existing competitive advantages and actively expand its business in the future.
3. Provide financial support for future business development and improve profitability
In recent years, the company's lithium salt production capacity and output have increased rapidly, and extended rapidly upstream along the lithium salt industry chain, with a large demand for working capital.
All the funds raised in this non-public offering are used to supplement working capital and repay debts. After the raised funds are in place, they can meet the working capital needs brought by the expansion of the company's business scale, alleviate the company's capital pressure and increase the company's anti risk and profitability.
(II) feasibility of project implementation
1. The use of the raised funds in this non-public offering meets the requirements of relevant laws and regulations
The use of non-public funds raised by the company meets the requirements of relevant laws and regulations. The purpose of the raised funds is to supplement working capital and repay debts, which is in line with the actual operation situation of the company. After the raised funds are put into use, it can effectively alleviate the capital pressure of the company, reduce the financial cost of the company and provide sufficient impetus for the long-term sustainable development of the company's business.
2. The use of the raised funds in this non-public offering has the implementation subject of standardized governance and perfect internal control
According to the governance standards of listed companies, the company has established a modern enterprise system with the corporate governance structure as the core, and formed a more standardized corporate governance system and a more perfect internal control system through continuous improvement and perfection. The company has revised the measures for the management of raised funds in 2020, which clearly stipulates the storage, use and investment direction change of raised funds. After the funds raised from this non-public offering are in place, the board of directors of the company will continue to manage and supervise the company's storage and use of the raised funds, so as to ensure the rational and standardized use of the raised funds and prevent the risks of the use of the raised funds. 3、 The impact of this issuance on the company's operating and financial conditions (I) the impact of this issuance on the company's operation and management
After deducting the issuance expenses, the funds raised by the company in this issuance will be used to supplement working capital and repay debts, and the capital strength of the company will be enhanced. It is expected that after the implementation of this non-public offering, the core competitiveness of the company will be further improved and the ability of the company to resist risks will be enhanced, which is of great strategic significance to realize the long-term sustainable development of the company.
(II) impact of this issuance on the company's financial position
After the funds raised from this non-public offering are in place, the total assets and net assets of the company will increase, the working capital will be further enriched, the financial structure of the company will be further optimized, the financial risk of the company will be effectively reduced, and a strong guarantee will be provided for the sustainable development of the company.
After the funds raised from this non-public offering are in place, the total share capital of the company will increase immediately, but it will take a certain time to supplement the working capital to generate benefits. Therefore, there is a risk that the earnings per share of the company will be diluted in the short term. However, in the long run, the introduction of strategic investors and raising funds will help to improve the company's comprehensive strength and core competitiveness. 4、 Conclusion on the feasibility of this issue
The use plan of the funds raised by this non-public offering complies with relevant policies, laws and regulations, as well as the company's overall strategic development plan in the future, which is necessary and feasible. After the raised funds are in place and put into use, the company's financial structure will be optimized, which is conducive to improving the company's profitability and overall competitiveness, enhancing the company's sustainable development ability and anti risk ability, so as to provide important support and guarantee for the company's subsequent development. To sum up, the use of the funds raised in this non-public offering is reasonable and in line with the interests of the company and all shareholders.
Chengxin Lithium Group Co.Ltd(002240) board of directors March 22, 2002
