Nuode Investment Co.Ltd(600110) (600110. SH) announced on January 16 that the company and Tieshan District People’s Government of Huangshi economic and Technological Development Zone, Huangshi City, Hubei Province (hereinafter referred to as “Huangshi economic and Technological Development Zone”) intend to sign the project investment contract to invest in the construction of Nord’s 100000 ton copper foil material new production base, and the registered capital of the project is 3.5 billion yuan. The company is the sole contributor and enjoys all the rights and interests of the project.
The reporter of economic information daily noted that by the end of the third quarter of 2021, the current assets and current liabilities of Nuode Investment Co.Ltd(600110) were 4.352 billion yuan and 2.948 billion yuan respectively, of which monetary funds and short-term loans were 1.832 billion yuan and 1.564 billion yuan respectively.
Nuode Investment Co.Ltd(600110) is mainly engaged in the R & D, production and sales of electrolytic copper foil for lithium-ion batteries. The products are mainly used in the production and manufacturing of lithium batteries. At the same time, the company is also engaged in wire, cable and accessories business and material trade. In recent years, the company has focused on the main business of lithium battery copper foil, and the main business has not changed significantly.
The announcement said that the project has good market prospects and development space, complies with the national macro industrial policy, responds to the urgent needs of the market, combines the advantages of local raw materials, the radiation of surrounding markets and the advantages of the enterprise’s own products, promotes the accelerated development of the enterprise and conforms to the company’s business development strategy.
According to the announcement, the project is called “Nord lithium battery copper foil and copper base material production base project”, which includes two sub projects: high-end lithium battery copper foil and standard copper foil for 5g high-frequency high-speed circuit board project and copper based material project.
The project is proposed to be located in Tieshan District, Huangshi economic and Technological Development Zone. The land area of phase I project is about 375 mu (the adjacent land of phase II is reserved). The actual area and four-way range are subject to the planned red line. The project is constructed in two phases. Among them, 50000 tons of high-end lithium copper foil and standard copper foil for 5g high-frequency high-speed circuit board (considering both flexible switching capacity) and 100000 tons of copper based material production line are planned to be built in phase I. The construction of phase I is planned to be started before April 2022 and is expected to be put into operation before June 2023; Phase II will start construction in time according to the market supply and demand.
The sources of funds for this investment are self owned funds and self raised funds. If the company raises funds for project construction through bank loans in the future, it may lead to an increase in financial expenses.
According to the 2021 semi annual report, Nuode Investment Co.Ltd(600110) has two production bases focusing on lithium battery copper foil in Xining City, Qinghai Province and Huizhou City, Guangdong Province. Among them, the total capacity of Qinghai copper foil base will reach 65000 T / a by the end of 2021, and that of Huizhou copper foil base will reach 20000 t / a by the end of 2021.
Nuode Investment Co.Ltd(600110) said that according to the needs of business layout, the company invested in the construction of a new production base of 100000 tons of copper foil materials in the central region of the country to provide supporting supply to downstream customers nearby. In line with the national macro industrial policy of vigorously developing clean energy and accelerating the promotion and application of new energy, it is conducive to further expand the company’s production capacity, reduce the company’s product cost, strengthen the company’s industrial competitiveness and improve the company’s income level. After the completion of the project, the company’s business performance will achieve effective growth, and the company’s market scale and sustainable profitability will be further improved.
According to the financial report, Nuode Investment Co.Ltd(600110) the operating revenue in the first three quarters of 2021 was 3.236 billion yuan, a year-on-year increase of 137.26%; The net profit attributable to shareholders of listed companies was 322 million yuan, a year-on-year increase of 2070.12%.
On January 14, Nuode Investment Co.Ltd(600110) closed at 14.95 yuan / share, up 2.33%.
