Restructuring plan:
The Hengli Petrochemical Co.Ltd(600346) willbecome the controlling shareholder of Dalian Thermal Power Co.Ltd(600719) . This spin off will not cause the company to lose control of Kanghui new materials and will not affect other business segments of the company.
Introduction to Kanghui new material: Kanghui new material is an important starting point for Hengli Petrochemical Co.Ltd(600346) in the field of high-end and differentiation in the field of polyester new materials. Relying on the Bruckner film process in Germany and the polyester synthesis technology owned by Hengli, Kanghui new material has spared no effort to build biaxially stretched polyester film (BOPET), PBT engineering plastics, functional polyester and PBS / PBAT biodegradable plastics. After more than ten years of technical accumulation, Kanghui new material has become the first-class level in the field of medium and high-end functional films and new plastic materials.
Kanghui’s current products and production bases: there are three major production bases in China: Yingkou, Dalian Changxing Island and Suzhou FenHu. Yingkou base has an annual production capacity of 240000 tons of PBT engineering plastics. It is the largest PBT manufacturer in China, mainly used in automobile parts, polymer alloy, optical cable protective sleeve, electronics and other industrial fields; With an annual production capacity of 385000 tons of BOPET functional film, it is applied to high value-added links such as optical equipment, release protection, electronics and appliances, vehicle decoration, construction field and packaging field of BOPET; It has the largest annual production capacity of 33000 tons of PBAT in China based on independent technology, which is applied to green environmental protection applications such as food grade shopping bags, tableware and straws of PBS / PBAT.
Projects under construction include: 1) Suzhou FenHu base has 470000 tons of high-end functional polyester film, 100000 tons of special functional film, 150000 tons of modified PBT and 80000 tons of modified PBAT under construction, with a total investment of about 11.1 billion. 2) Dalian Changxing Island base has a 450000 ton degradable plastic project under construction, with a total investment of about 1.8 billion. 3) Kanghui new materials introduces 12 wet lithium battery diaphragm production lines from Zhipu Machinery Co., Ltd. of Japan and Qingdao Zhongke Hualian new materials Co., Ltd., with an annual capacity of 1.6 billion square meters. It is expected to complete delivery within 18 months from January 2022.
Financial information: according to the data disclosed in Hengli Petrochemical Co.Ltd(600346) 2021 annual report, Kanghui new material has total assets of 8.516 billion yuan, net assets of 2.926 billion yuan and net profit of 1.086 billion yuan
We believe that Hengli Petrochemical Co.Ltd(600346) will still control Kanghui if Kanghui new material is listed separately. Kanghui is expected to usher in new development opportunities as a development platform for polyester film and degradability.
Risk prompt: transaction approval risk; The risk of suspension, termination or cancellation of the transaction; Risk of transaction scheme adjustment
