On May 18, Liaoning Fu-An Heavy Industry Co.Ltd(603315) announced that the company plans to purchase 100% equity of Tianquan Fuan from Fuan holdings and Li Shijun by issuing shares and paying cash, and raise supporting funds at the same time. The share payment proportion and cash payment proportion of this transaction have not been finalized. This transaction is expected to constitute a major asset reorganization, a related party transaction and not a reorganization and listing. This transaction will not lead to the change of the actual controller of the company. The trading of the company’s shares will resume from the opening of the market on May 19.
Tianquan Fuan mainly provides graphitization processing services for manufacturers of lithium battery negative electrode materials. Graphitization is a key process in the preparation of artificial graphite negative electrode materials. At present, Tianquan Fuan provides graphitization processing services to beiteri, Ningbo Shanshan Co.Ltd(600884) , Kaijin energy, Shenzhen Xfh Technology Co.Ltd(300890) , Hunan Zhongke Electric Co.Ltd(300035) and other major negative material manufacturers in China, and has signed long-term cooperation agreements with beiteri and Kaijin energy.
According to the data, Tianquan Fuan was established on May 29, 2019. In 2020, 2021 and the first quarter of 2022, it achieved operating revenue of 144647 million yuan, 245 million yuan and 108 million yuan respectively; The net profit was -7.7049 million yuan, 583153 million yuan and 279271 million yuan.
The company said that thanks to the rapid development of China’s negative electrode material industry, the graphitization processing capacity of negative electrode materials is also in short supply, and there are broad prospects for development in the future. Affected by the supply-demand relationship of the industry and the rapid expansion of downstream cathode material production capacity, the target company has strong profitability and good operating performance. With the continuous investment of the capacity under construction of the target company, the business scale and profitability of the target company will be continuously improved.
After the completion of this transaction, the graphitization processing business of lithium battery cathode materials under Fuan holding will be injected into the listed company, which will help the listed company further deepen the layout in the new energy industry, improve the development space, help the listed company realize industrial upgrading and provide new support for the sustainable development of the listed company. In addition, it will lay a solid foundation for the listed company to improve the profitability and return of the listed company, and effectively improve the listed company’s asset structure.
