Securities code: 600110 securities abbreviation: Nuode Investment Co.Ltd(600110) Announcement No.: pro 2022-010 Nuode Investment Co.Ltd(600110)
Announcement on investment in the construction of a new production base of 100000 tons of copper foil materials
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Investment project: Nord 100000 ton copper foil material new production base
Special risk warning: the project may have market competition risk, policy change risk and other related risks.
This investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
1、 Basic information of foreign investment
Nuode Investment Co.Ltd(600110) (hereinafter referred to as "the company" or " Nuode Investment Co.Ltd(600110) ") in order to comply with the rapid development of the new energy battery material market, match the rapidly growing scale of customers, further improve the market share, give play to the industrial scale effect and enhance the competitiveness of enterprises. 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 new production base of 100000 tons of copper foil materials. The registered capital of the project is 3.5 billion yuan. The company is the sole contributor and enjoys all rights and interests of the project. The project has a good market prospect 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 is in line with the company's business development strategy. The investment has been deliberated and approved at the 48th meeting of the ninth board of directors of the company and needs to be submitted to the general meeting of shareholders for deliberation.
This investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
2、 Project overview
1. Project Name: Nord lithium battery copper foil and copper base material production base project
2. Project investment scale: the registered capital of the project is 3.5 billion yuan. It includes two subprojects, high-end lithium battery copper foil, standard copper foil for 5g high-frequency high-speed circuit board and copper based material.
3. Construction content and scale: after the completion of phase I and phase II, it can produce 100000 tons of high-end lithium battery copper foil and standard copper foil for 5g high-frequency high-speed circuit board, and 200000 tons of copper based materials.
4. Basic information of the subject of the investment agreement
Name of the subject of the investment agreement: Huangshi economic and Technological Development Zone Management Committee · Tieshan District People's Government
Nature of unit: local government organization
The company has no relationship with the Management Committee of Huangshi economic and Technological Development Zone and the people's Government of Tieshan district. 3、 Main clauses and sections of the contract
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 use term of the project construction land shall be implemented in accordance with relevant national laws and regulations. Land shall be obtained through bidding, auction and bidding in accordance with laws and regulations.
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 investment intensity of fixed assets of the Nuode Investment Co.Ltd(600110) project shall meet local requirements. The recognition of fixed asset investment amount shall be reviewed and determined by relevant units organized by Huangshi Economic Development Zone in accordance with the accounting law of the people's Republic of China and other relevant regulations.
Huangshi Economic Development Zone will actively assist Nuode Investment Co.Ltd(600110) Huangshi project in applying for qualified policy support in accordance with national laws and regulations; It will actively coordinate the State Grid Corporation and relevant green power generation resources within Huangshi City to provide clean energy such as wind power, photovoltaic power generation and Hydropower for Huangshi project.
4、 Impact of the proposed investment project on the company
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. This investment project is in line with the company's overall development strategy and will not have a significant impact on the company's financial and operating conditions in the short term. The impact on the company's long-term income will depend on the actual promotion of subsequent specific businesses, and there is no situation that damages the interests of the company and shareholders.
5、 Risk analysis of this investment
1. This matter can only be implemented after being deliberated and approved by the general meeting of shareholders of the company, and corresponding pre-approval procedures such as project initiation and filing, construction land use right, approval of environmental impact assessment of construction projects, energy conservation assessment and review shall be obtained in accordance with national regulations. The actual progress of the project is uncertain.
2. Under the background that many lithium battery materials in China have expanded their production capacity, the project may have certain market competition risks in the future. In view of the market competition risk, the company will continue to strengthen R & D efforts, establish product barriers, strengthen the development of customers and increase customer stickiness, so as to further stabilize and strengthen the market share pattern of the company. And by strengthening operation and management and giving full play to scale effect, reduce production costs and enhance the company's anti risk ability. At the same time, the company will fully consider the flexible switching production of standard copper foil and lithium battery copper foil in the planning and design, so as to adapt to the demand changes of the future market.
3. As of September 30, 2021, the balance of monetary capital of the company is RMB 1.832 billion. The sources of investment funds 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.
4. The project investment amount, investment plan, construction scale and construction cycle involved in the investment are estimated, and various uncertain factors may be faced in the process of project construction. It is expected that the project will not have a significant impact on the company's operating performance in the short term.
The company will actively promote relevant links according to the actual situation of project progress. The company will actively pay attention to the follow-up progress and timely perform relevant information disclosure obligations in strict accordance with relevant regulations. Please pay attention to investment risks.
It is hereby announced.
Nuode Investment Co.Ltd(600110) board of directors January 17, 2022
