Jiangxi Copper Company Limited(600362) ( Jiangxi Copper Company Limited(600362) ) announced on the evening of May 22 that it planned to spin off its holding subsidiary Jiangxi copper foil to be listed on the gem. After the completion of this spin off, Jiangxi Copper Company Limited(600362) equity structure will not change, and will still maintain the controlling interest in Jiangxi copper foil.
Jiangxi copper foil is mainly engaged in the R & D, production and sales of all kinds of high-performance electrolytic copper foil. The main products include electronic circuit copper foil and lithium battery copper foil according to their application fields. The net assets attributable to the shareholders of the parent company at the end of 2021 were 2.408 billion yuan.
The lithium battery copper foil products produced by Jiangxi copper foil are mainly lithium battery copper foil for power battery, lithium battery copper foil for digital electronic products and lithium battery copper foil for energy storage. They are finally used in new energy vehicles, electric bicycles, 3C digital products, energy storage systems and other fields. In the second half of 2021, the company’s first lithium battery copper foil production line was fully put into operation. With the gradual release of lithium battery capacity, the company’s lithium battery copper foil production will be increased and the company’s operating performance will be improved.
In 2021, China Shanxi Guoxin Energy Corporation Limited(600617) automobile entered the explosive growth stage. According to the data of China Automobile Association, the production and sales of Shanxi Guoxin Energy Corporation Limited(600617) automobile in 2021 exceeded 3.5 million, and the market penetration reached 13.4%. In 2022, the sales volume of new energy vehicles is expected to exceed 6 million, and the penetration rate of new energy vehicles will reach about 22%.
With the prosperity and development of the new energy vehicle market, lithium battery, as one of its key components, will also usher in a sustained high demand. Benefiting from the increasing demand for lithium batteries, the market demand for lithium copper foil is also increasing. In the future, high-strength and lightweight lithium copper foil will become the main demand growth point of electrolytic copper foil.
It can not be ignored that while the prosperity of the industry continues to improve, more and more enterprises join the field of copper foil production and invest in the construction of electronic circuit copper foil and lithium battery copper foil production lines. With the intensification of market competition, all enterprises in the industry continue to increase production and R & D, improve their production technology and product performance, so as to obtain price and technical advantages and continuously expand their market share. This also means that the market competition in the field of copper foil production will be more and more fierce.
Jiangxi Copper Company Limited(600362) its main business covers the mining, smelting and processing of copper and gold; Extraction and processing of rare and scattered metals; Sulfur chemical industry, finance, trade and other fields, and established a complete industrial chain integrating exploration, mining, beneficiation, smelting and processing in the field of copper and related non-ferrous metals. It is an important copper, gold, silver and sulfur chemical production base in China.
The business field and operation mode of Jiangxi copper foil maintain a high degree of independence from Jiangxi Copper Company Limited(600362) other businesses, so this spin off will not have a substantial impact on the continuous operation of Jiangxi Copper Company Limited(600362) other business segments, and the existing other businesses of the company do not constitute horizontal competition for Jiangxi copper foil.
Jiangxi Copper Company Limited(600362) said that the spin off and listing will help to enhance the brand awareness and social influence of Jiangxi copper foil, strengthen the competitive position and competitive advantage of Jiangxi copper foil in the professional field, enhance the profitability and comprehensive competitiveness of the business, increase the further investment and development of the core and leading technologies of Jiangxi copper foil, maintain the vitality of business innovation and promote its sustainable and healthy development. The improvement of the core competitiveness of Jiangxi copper foil will help to improve the industry status, market share and profitability of listed companies, and further improve the asset quality and risk prevention ability of the company.
The split listing of Jiangxi copper foil helps to further broaden the financing channels, improve the overall financing efficiency of the company, reduce the overall asset liability ratio and enhance the comprehensive strength of the company. Therefore, Jiangxi Copper Company Limited(600362) separating Jiangxi copper foil from gem listing will have a positive impact on the interests of shareholders, creditors and other stakeholders of the company.
