Securities code: Zhe Kuang Heavy Industry Co.Ltd(300837) securities abbreviation: Zhe Kuang Heavy Industry Co.Ltd(300837) Zhe Kuang Heavy Industry Co.Ltd(300837)
Issue convertible corporate bonds to unspecified objects
Feasibility analysis report on the use of raised funds
April, 2002
1、 Use plan of the raised funds
Zhe Kuang Heavy Industry Co.Ltd(300837) company (hereinafter referred to as " Zhe Kuang Heavy Industry Co.Ltd(300837) company") plans to issue convertible corporate bonds (hereinafter referred to as "this issuance") to unspecified objects. The total amount of funds raised in this issuance does not exceed 320million yuan (including this amount). The net amount of funds raised after deducting the issuance expenses will be used for the following items:
Unit: 10000 yuan
No. project name total project investment amount of raised funds
1. 40613 Shanxi Securities Co.Ltd(002500) 000 construction project of waste new energy battery recycling equipment manufacturing demonstration base
2 construction project of construction waste resource recycling equipment production base 1537121700000 items (phase I)
Total 55984213200000
After the funds raised in this offering are in place, if the actual net amount of funds raised is less than the total amount of funds raised for the above-mentioned investment projects, the insufficient part shall be solved by the company's own funds. Before the raised funds of this offering are in place, the company can use its own funds to make early investment in the investment projects with raised funds according to the market conditions, and replace them in accordance with the relevant provisions and legal procedures of the company on the use and management of raised funds after the raised funds are in place. 2、 Background and basic information of the project invested by the raised funds (I) construction project of manufacturing demonstration base for waste new energy battery recycling equipment
1. Project implementation background
During the 14th Five Year Plan period, China will strive to build a new development pattern with China's big cycle as the main body and China's international double cycle promoting each other, release the potential of domestic demand, expand residents' consumption, improve the level of consumption, and build a super large-scale Chinese market. The demand for resources and energy will still grow rigidly. However, from the perspective of resource endowment, China's current situation of rich coal and poor oil has led to China's foreign dependence on crude oil running at a high level of more than 70% for four consecutive years from 2018 to 2021 (50% is the safety line), which not only highlights the contradiction between supply and demand, but also faces great pressure on resource security. Especially in recent years, the more complex international environment has put forward more urgent requirements for China to develop circular economy, improve resource utilization efficiency and renewable resource utilization.
With the increasing shortage of energy in the world, lithium battery is increasingly becoming a new type of power energy with its unique advantages, and is widely used in various electric vehicles, energy storage systems, military, aerospace, intelligent Siasun Robot&Automation Co.Ltd(300024) and other fields. Especially in recent years, the new energy vehicle industry has shown a good development trend driven by the support of national policies and strong market demand. By the end of 2021, the total number of Shanxi Guoxin Energy Corporation Limited(600617) vehicles has reached 7.84 million. Considering that the lithium batteries carried by new energy vehicles will have to be replaced due to the decline of battery performance after 3-5 years of use, the total decommissioning amount of power batteries of new energy vehicles will gradually enter the peak period during the 14th Five Year Plan period. However, at present, the capacity of battery recycling in China is relatively limited. The existing treatment methods of waste new energy batteries are mainly manual disassembly and extensive sorting. Most of the waste new energy batteries have not been effectively disposed of, which will pose a potential threat to the natural environment and human health. Therefore, with the rapid development of the lithium battery industry, the recycling of waste new energy batteries has gradually become an indispensable part of realizing the sustainable development of the new energy industry, which is also in line with China's policies and guidelines for building a resource-saving and environment-friendly harmonious society.
2. Basic information of the project
The project plans to invest 406.13 million yuan to build a comprehensive utilization production line of waste new energy batteries and a production line of new energy battery crushing and sorting equipment. The construction site of the project is located in the industrial park of Heping Town, Changxing County. After the completion of the project, the annual treatment capacity of the company's waste new energy batteries and lithium battery production waste will reach 21000 tons, and the annual capacity of 10 sets of new energy battery crushing and sorting equipment will be realized.
3. Necessity of project implementation
(1) The inevitable choice of adapting to sustainable development and developing an environment-friendly society
All kinds of heavy metal elements and other pollutants harmful to the environment in new energy batteries are the main environmental problems they face after decommissioning. The existing treatment methods of waste new energy batteries are mainly solidification, deep burial, storage in waste mines and resource recycling. Most of the waste new energy batteries have not been effectively disposed of, which will bring potential threats to the natural environment and human health. The cathode materials of new energy batteries contain heavy metals such as lithium, cobalt, nickel and manganese, which will cause heavy metal pollution without professional recycling; The electrolyte solute lithium hexafluorophosphate is a toxic and corrosive substance and is easy to deliquescence. Improper treatment will cause fluorine pollution, and the solvent will cause water pollution. Therefore, in the context of the rapid rise in the number of Chinese Shanxi Guoxin Energy Corporation Limited(600617) vehicles and the continuous rise in the loading of new energy batteries, new energy batteries will face a large scale of retirement in the near future. Properly handling the retired waste new energy batteries will become an inevitable choice for China to adhere to sustainable development and develop an environment-friendly society.
(2) Huge business opportunities to expand the recycling market of waste new energy batteries
According to the statistics of relevant departments, the output of lithium-ion batteries in China will reach 28.3 billion in 20232019, with an average year-on-year growth rate of 28.3 billion in 20232019. Such a large number of new energy batteries will bring a large number of waste lithium-ion batteries. According to the data of lithium battery research institute of Gaogong Industry Research Institute, in 2018 and 2020, the total scrapped batteries (including lithium iron phosphate, ternary battery and lithium cobaltate battery) in China increased from 241000 tons to 280000 tons, showing a continuous value-added trend, while the recycling volume of China Shipbuilding Industry Group Power Co.Ltd(600482) batteries was only 5472 tons, accounting for 7.4% of the total scrapped old power batteries. A large number of waste new energy batteries have not been effectively recycled and utilized. From the perspective of recycling value, waste new energy batteries contain a variety of recyclable high-value metals, including lithium, cobalt, nickel, manganese, etc. recycling them can create good social and economic benefits, and there is a huge market space and development potential.
(3) Upgrading and transformation from professional equipment manufacturers to integrated service operators
In recent years, the company adheres to user demand-oriented and based on years of precipitation technology accumulation, and constantly expands the application scenarios of the company's products in other fields except sandstone and metal ore. With the wide application of new energy batteries and the continuous rise of the number of new energy vehicles and battery loading, the corresponding market demand in the field of waste new energy battery recycling is becoming stronger and stronger. The implementation of this raised investment project will further expand the coverage and depth of the company's business in the field of environmental protection. By extending to the crushing and sorting equipment of new energy batteries and cutting into the downstream industrial chain of lithium batteries, it will open a broader market space for the company, so as to lay a foundation for the role transformation and business upgrading of the company from a single special equipment manufacturer to a comprehensive service operator.
4. Feasibility of project implementation
(1) Policy feasibility
The investment project of the raised funds conforms to the development direction encouraged by the national and regional industrial policies. In recent years, with the rapid development of the new energy vehicle industry, the state has intensively issued relevant policies to encourage the recycling industry of waste new energy batteries, so as to promote the healthy and rapid development of the industry. The main policy documents are as follows:
In March 2018, the Ministry of industry and information technology, the Ministry of science and technology, the Ministry of environmental protection and other seven departments jointly issued the pilot implementation plan for the recycling of new energy vehicle power batteries, which proposed to "explore a diversified recycling mode of waste power batteries with strong technical economy and friendly resources and environment, and promote the construction of recycling system."
In november2019, the Ministry of industry and information technology printed and distributed the "construction and application of new energy vehicle power battery recycling service network" and other enterprises can jointly build and share recycling service network. "
In March 2020, the Ministry of industry and information technology issued the key points of industrial energy conservation and comprehensive utilization in 2020, which pointed out that "promote the construction of power battery recycling system of new energy vehicles, carry out pilot work in depth, accelerate the exploration and promotion of market-oriented recycling mode with strong technical economy and environment-friendly, and cultivate a number of backbone enterprises for power battery recycling."
In August 2021, the Ministry of industry and information technology, the Ministry of science and technology, the Ministry of ecological environment and other five departments issued the management measures for echelon utilization of power batteries for new energy vehicles, which proposed to "encourage the use of business models such as leasing and large-scale utilization to facilitate the recycling of echelon products, so as to improve the efficiency of echelon utilization and the performance, reliability and economy of echelon products."
In January 2022, the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of science and technology and other eight departments issued the notice on accelerating the implementation plan of promoting the comprehensive utilization of industrial resources, which made it clear that "promote the cooperation between upstream and downstream of the industrial chain to jointly build recycling channels and build a cross regional recycling system. Strengthen the R & D and promotion of technologies such as nondestructive testing of power batteries, automatic disassembly and efficient extraction of valuable metals."
To sum up, China has intensively issued a series of important industrial policies, laws and regulations to encourage and support the recycling and utilization of waste new energy batteries, providing a favorable policy environment for the implementation of the project.
(2) Market feasibility
With the increasing improvement of lithium battery function and the steady improvement of battery performance in recent years, the demand for lithium battery in its downstream main application markets, new energy vehicles, 3C digital field, energy storage, small power and electric tools, continues to rise. For new energy vehicles with large lithium battery consumption, the loading volume of China Shipbuilding Industry Group Power Co.Ltd(600482) batteries increased from 15.7gwh in 2015 to 154.5gwh in 2021, with a compound annual growth rate of 46.4%. Considering that the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in China has increased since 2015, and then maintained a rapid growth trend, the power batteries of new energy vehicles promoted in the early stage have entered the scrap period one after another. If the waste new energy batteries are not effectively treated and recycled after decommissioning, it will not only threaten the ecological environment and human health, but also cause a lot of waste of resources. At the same time, the recycling rate of waste new energy batteries in China is still at a low level, and there are still a large number of waste new energy batteries that have not been effectively recycled and utilized. Therefore, the recycling demand of waste new energy batteries is becoming increasingly urgent, and the market capacity is huge. Therefore, the implementation of this project has market feasibility.
(3) Technical feasibility
The company's main business is the R & D, design, production and sales of high-end professional complete sets of equipment, and provides intelligent equipment and overall solutions for the crushing and processing of sandstone mine resources, the crushing and processing of metal mine resources, the recycling and reuse of waste lead-acid batteries, the recycling and reuse of building decoration waste and other fields. After years of industry cultivation, the company has mastered the core technologies of mining equipment and resource recycling equipment crushing and sorting. The main process flow of waste new energy battery recycling includes pretreatment (disassembly, crushing and sorting), acid leaching, extraction, evaporative crystallization and drying. It has certain commonality and ductility with the process treatment of gravel, metal mine resources crushing and processing and waste lead-acid battery recycling. The company has sufficient technical foundation in the field of crushing and processing technology of sand and stone and metal mine resources and the recycling and reuse of waste lead-acid batteries, which can provide experience and technical support for the company's process treatment process in the field of waste new energy battery recycling.
In addition, the company strictly complies with the requirements of ISO 9001 quality management system. After long-term experience in production and operation, the company has formulated relatively mature control standards in production, technology and quality, and established a perfect and standardized quality control system, which has laid a solid foundation for the smooth implementation of the construction project of waste new energy battery recycling equipment manufacturing demonstration base.
To sum up, the implementation of the project is technically feasible.
5. Project implementation subject and investment estimate
The implementation subject of the project is Zhe Kuang Heavy Industry Co.Ltd(300837) . The estimated total investment of the project is 406.13 million yuan. The company plans to use the raised fund of 250 million yuan for project construction, including engineering construction, equipment purchase and installation, and the rest will be raised by the company itself.
No. project or cost name proportion of total project investment
1. Construction cost 3035800 74.75%
1.1 construction and installation works 1189800 29.30%
1.2 equipment purchase and installation 1846000 45.45%
2. Other expenses of project construction 238800 5.88%
3. Basic reserve 163700 4.03%
4. Initial working capital 623000 15.34%
5. Total investment of the project
