On April 11, Hunan Corun New Energy Co.Ltd(600478) ( Hunan Corun New Energy Co.Ltd(600478) , SH) disclosed that Hunan Corun New Energy Co.Ltd(600478) Hybrid Technology Co., Ltd. (hereinafter referred to as CHS company), the holding subsidiary of the company, signed the capital increase subscription intention agreement to increase capital with the counterparty to the target company Jiangxi Dingsheng new material technology Co., Ltd. (hereinafter referred to as Jiangxi Dingsheng new material) in the form of hybrid system technology contribution.
For the purpose of capital increase, Hunan Corun New Energy Co.Ltd(600478) said that the company is implementing strategic adjustment, returning to the main battery industry, focusing on industries such as nickel hydrogen, lithium battery, other batteries and materials. At the same time, introduce strategic investors for the hybrid assembly system business of CHS company, a subsidiary of the company, to jointly help its independent development. All parties will jointly transform Jiangxi Dingsheng new materials into a high-tech enterprise integrating lithium ore, lithium battery materials, hybrid power and hybrid energy storage technology.
capital increase target owned lithium company
According to the announcement, the Hunan Corun New Energy Co.Ltd(600478) subsidiary signing the agreement is CHS company, the counterparties are Zhang Qiangjin, Zhang Min and Jiangxi Yifeng Tongan mineral products development Co., Ltd. (hereinafter referred to as Jiangxi Tongan), and the subject company of capital increase is Jiangxi Dingsheng new material.
In terms of subject matter, Jiangxi Dingsheng new material was established in 2010 with a registered capital of 350 million yuan. In terms of equity structure, Zhang Qiangjin, the participant in the capital increase, holds 76.29% and Zhang Min holds 23.71%. As of February 28, 2022 (Unaudited), Jiangxi Dingsheng new material has total assets of 870 million yuan and net assets of 337 million yuan; The operating income is 10 million yuan and the net profit is – 14 million yuan. It is worth mentioning that Jiangxi Dingsheng Xincai also holds 70% equity of Yifeng Jinfeng Lithium Industry Co., Ltd.
Jiangxi Tong’an, one of the participants in the capital increase, also holds the equity of the mining company. Qixinbao information shows that Jiangxi Tong’an owns 70% equity of Yifeng Donglian mineral products development Co., Ltd., which is also one of the consideration for this round of capital increase in Jiangxi Tong’an. In addition, Jiangxi Tong’an also owns the equity of Jiangxi Dingxing Mining Co., Ltd. and Jiangxi Xingli Technology Co., Ltdp align=”center” style=”text-align:center;”> Photo source: screenshot of qixinbao
According to the disclosed capital increase arrangement, Jiangxi Tong’an plans to increase the capital of the target company with its 70% equity of Yifeng Donglian mineral products development Co., Ltd., the original shareholder of the target company plans to contribute with other assets or cash, and CHS company plans to legally and completely own the relevant technical ownership of hybrid system. For the technical contribution of CHS company, it is specially emphasized in the arrangement that the above-mentioned technical contribution shall be valued based on the evaluation value evaluated by the evaluation institution, but shall not be lower than the net book value of the relevant asset evaluation base date on December 31, 2021, i.e. 1.12 billion yuan.
After the capital increase is completed, Zhang Qiangjin, Zhang Min and Jiangxi Tong’an jointly hold about 70% of the equity of the target company, and CHS company holds about 30% of the equity of the target company. However, the final valuation results and the contribution and shareholding ratio of all parties still need to be determined by all parties through negotiation according to the results of due diligence and asset evaluation.
For the capital increase, Jiangxi Dingsheng new material also made a commitment. CHS company intends to contribute with its ownership of relevant technologies. Jiangxi Dingsheng promises that for other patents and know-how that are not part of the contribution, within one year after the completion of the capital increase of the target company, the target company may transfer the patents and know-how at the book value of the above patents and know-how transfer according to the development situation; After the capital increase of the target company, the target company is responsible for relevant product R & D and market development, and CHS company is responsible for product production and delivery. After the target company forms an order, it purchases from CHS company in the form of entrusted production.
chs company’s performance has been sluggish in recent years
It is worth noting that CHS company, which participated in the capital increase, has been in a state of loss in recent years. According to an asset appraisal report released by the company in December last year, CHS company was in a state of loss from 2018 to 2020p align=”center” style=”text-align:center;”> Image source: screenshot of evaluation report
In May 2020, the Shanghai Stock Exchange issued an inquiry letter to inquire about the reasons for the business losses of CHS company. According to the reply of Hunan Corun New Energy Co.Ltd(600478) , one of the important reasons is the large amortization amount of intangible assets. From the establishment of CHS company to December 2019, the cumulative R & D investment is 1.688 billion yuan, including 1.055 billion yuan of technology investment included in intangible assets, and the amortization of intangible assets technology investment is about 106 million yuan every year.
Relevant persons of listed companies told reporters that at present, the income of CHS company is low, but the asset amortization is large, resulting in a loss of 180200 million yuan in the past two years.
In addition to the large amortization amount, the loss of CHS company is also affected by the changes of national policies on the automobile industry; The influence of high product cost factors.
As of the closing on April 12, Hunan Corun New Energy Co.Ltd(600478) share price was 6.22 yuan / share, down 2.05%.
