On March 25, Nations Technologies Inc(300077) ( Nations Technologies Inc(300077) ) holding subsidiary Inner Mongolia snow New Material Technology Co., Ltd. (hereinafter referred to as “Inner Mongolia snow”) signed the letter of intent for investment in the integration project of new energy power battery cathode materials with an annual output of 100000 tons (hereinafter referred to as “the letter of intent”) with Suizhou Municipal People’s government and the Management Committee of Suizhou high tech Industrial Development Zone The investment agreement for the negative electrode material integration project of new energy power battery with an annual output of 100000 tons and its supplementary agreement (hereinafter referred to as the “investment agreement”) intend to invest in the construction of the “negative electrode material integration project of new energy power battery with an annual output of 100000 tons” in Suizhou City, Hubei Province.
According to the contract, Nations Technologies Inc(300077) the above “integration project of negative electrode materials for new energy power batteries with an annual output of 100000 tons” is planned to be implemented in Xihe town (Funan Industrial Park) of Suizhou high tech Industrial Development Zone. The main body of implementation is snow in Inner Mongolia or its company registered in Hubei. The project land is about 700 mu, and the new plant and supporting construction area is about 350000 square meters.
The announcement also shows that the total investment of the project is about 3 billion yuan (subject to the actual investment), ensuring the investment intensity of fixed assets of more than 1.5 million yuan / mu and the full caliber tax intensity of more than 150000 yuan / mu; The construction period of the project is 5 years. The project is constructed in two phases. The first phase is 50000 tons, and the construction period is about 8 months. The construction will be started within 3 months from the date of delivery of the project land. If there are no special circumstances, the construction of phase II project shall be started within one year after the phase I project is put into operation.
Nations Technologies Inc(300077) said that the current negative electrode material production capacity of the company is small. After the investment agreement is signed, if the project can be smoothly promoted, it will help the company expand the production capacity of new energy negative electrode material products, solve the problem of insufficient existing production capacity, meet the needs of downstream customers, further form a scale effect and improve the profitability and core competitiveness of the company.
It is understood that Nations Technologies Inc(300077) is mainly engaged in the R & D, design and sales of integrated circuit chips of its own brand, and provides corresponding system solutions and after-sales technical support services. Its general-purpose MCU chip products have entered the mainstream application scenario, cut into the supply chain of leading enterprises such as Huawei, Beijing Roborock Technology Co.Ltd(688169) , glory, etc., successfully covered the main application fields of MCU chips, shipped in many subdivided fields such as TWS headphones, battery BMS and energy storage, and further covered subdivided applications in many directions such as the Internet of things.
In terms of lithium battery business, in December 2017, Nations Technologies Inc(300077) priced at 1.336 billion yuan to acquire 70% of the shares of snow industry, an enterprise engaged in the R & D and production of battery cathode materials, with a revenue of 138 million yuan in 2020. The performance forecast shows that in 2021, the company’s lithium battery industry developed rapidly, the sales of the company’s negative material business increased significantly, and the sales revenue and gross profit of the negative material business increased significantly.
It is worth noting that Nations Technologies Inc(300077) 2021 announced that the company and poscochemicalco, Ltd (hereinafter referred to as “POSCO”) signed the letter of intent. POSCO intends to cooperate with the company in the business field of lithium-ion battery cathode materials by transferring part of the equity of snow industry or its subsidiaries held by the company, or establishing a joint venture.
In addition, Nations Technologies Inc(300077) also said that the investment and construction of the project will increase the company’s capital expenditure, debt financing scale and cash expenditure, and will have a certain impact on the company’s financial expenses and cash flow. In the long run, it will have a positive impact on the company’s business layout and operating performance, which is in line with the interests of all shareholders of the company.
