Significant progress was made in refinancing Contemporary Amperex Technology Co.Limited(300750) 45 billion yuan.
On January 13, the official website of Shenzhen Stock Exchange disclosed that the refinancing application of Contemporary Amperex Technology Co.Limited(300750) was approved on January 12. The issuance and listing audit institution of Shenzhen Stock Exchange reviewed the application documents of the company for issuing shares to specific objects and considered that the company met the issuance conditions, listing conditions and information disclosure requirements. The specific audit opinions shall be subject to the opinion implementation letter of the audit center.
According to the announcement, the subsequent Shenzhen Stock Exchange will report to the CSRC to perform the relevant registration procedures.
From the formal acceptance on September 16, 2021 to the approval now, Contemporary Amperex Technology Co.Limited(300750) the refinancing took about 4 months, during which it also experienced inquiry and revision of the scheme, and the overall efficiency is quite high.
In brief, on August 13, 2021, Contemporary Amperex Technology Co.Limited(300750) disclosed the refinancing plan and planned to issue shares to raise no more than 58.2 billion yuan for projects such as lithium-ion battery (power battery) production expansion, new energy advanced technology R & D and application, and supplement working capital.
This is the largest refinancing since the gem registration system, and it is also the “most refinancing” of A-share private enterprises.
On September 30, 2021, Shenzhen Stock Exchange issued an inquiry letter to Contemporary Amperex Technology Co.Limited(300750) , focusing on the necessity and scale rationality of this fixed increase. On October 18, Contemporary Amperex Technology Co.Limited(300750) explained that there was no over financing in the company with a reply on page 71.
In mid November 2021, Contemporary Amperex Technology Co.Limited(300750) revised the reply to the inquiry letter and the financing plan: the total amount of raised funds was reduced from no more than 58.2 billion yuan to no more than 45 billion yuan.
In the reply letter, Contemporary Amperex Technology Co.Limited(300750) said that from the perspective of future capacity demand and the company’s existing capacity, the company’s capacity gap in 2025 is about 280gwh.
After issuing the refinancing plan, Contemporary Amperex Technology Co.Limited(300750) launched a number of new production expansion projects, including Yichun production base, Yichang production base, Guizhou Gui’an new area production base, Xiamen production base and other new project investment plans.
Accordingly, in the latest audit implementation letter, the exchange requires the company to fully explain the issuer’s capacity to digest risks in combination with the existing capacity, the capacity under construction and proposed capacity of its own funds, the capacity expansion of this raised investment project, changes in market demand, etc.
One background is that with the outbreak of downstream markets such as new energy vehicles, the power battery industry is expanding wildly. According to the statistical data released by the battery network in December 2021, China Shipbuilding Industry Group Power Co.Ltd(600482) the total planned capacity of the top 10 enterprises with battery competitiveness has exceeded 2.77twh, which has also aroused the discussion of “whether the industry has overheated investment”.
Another problem is the iterative risk of technology. The audit implementation letter disclosed by Shenzhen stock exchange requires Contemporary Amperex Technology Co.Limited(300750) to explain the development of technology paths such as solid-state batteries, sodium ion batteries and hydrogen fuel cells, and the impact of product scientific and technological innovation on the company’s production and operation and capacity expansion.
Previously, the chairman of a listed company in the power battery industry publicly said that by 2025, the global demand for lithium battery for new energy vehicles and energy storage will be about 1600gwh, but at present, the expansion of lithium battery industry has reached 4725gwh, far exceeding the demand. This large-scale expansion may bring about structural overcapacity and the risk of technical iteration.
