Securities code: 688560 securities abbreviation: Crown Advanced Material Co.Ltd(688560) Crown Advanced Material Co.Ltd(688560) (registered address: No. 32 Jingfa Avenue, Yichun economic and Technological Development Zone, Yichun City, Jiangxi Province) demonstration and analysis report on the scheme of issuing A-Shares to specific objects in 2022
January, 2002
Crown Advanced Material Co.Ltd(688560) (hereinafter referred to as the "company") is a company listed on the science and Innovation Board of Shanghai Stock Exchange. In order to meet the capital needs of the company's business development, enhance the company's capital strength and enhance its profitability, in accordance with the provisions of the company law, the securities law, the articles of association, the measures for the administration of securities issuance and registration of companies listed on the science and Innovation Board (for Trial Implementation) (hereinafter referred to as the administrative measures) and other relevant laws, regulations and normative documents issued by the CSRC, The company plans to issue A-Shares to specific objects, and the raised funds shall not exceed 2 million yuan (including this amount). Unless otherwise specified in this report, relevant terms have the same meanings as those in the plan for issuing A-Shares to specific objects in Crown Advanced Material Co.Ltd(688560) 2022
1、 Background and purpose of this issuance of shares to specific objects
(I) background of this issuance
1. The demand for lithium batteries is growing rapidly, and the aluminum-plastic film market has broad growth space
Lithium battery applications mainly include traditional 3C battery, power battery and energy storage battery. At present, the growth rate of traditional 3C batteries is relatively slow, while the demand for power batteries and energy storage batteries will continue to grow under the strong impetus of the global demand for new energy vehicles and Fengguang energy storage.
In the field of power batteries, in November 2020, the State Council issued the development plan for new energy vehicle industry (2021-2035), which pointed out that the development of new energy vehicles is the only way for China to move from a large automobile country to a powerful automobile country and a strategic measure to deal with climate change and promote green development; From 2021, the proportion of new energy vehicles in public areas of national ecological civilization pilot zone and key areas of air pollution prevention and control shall not be less than 80% of new or updated buses, taxis, logistics distribution and other vehicles; By 2025, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) new cars should reach about 20% of the total sales volume of new cars. By 2035, we will strive to realize the full electrification of vehicles in the public domain.
In the field of energy storage batteries, in July 2021, the national development and Reform Commission and the National Energy Administration jointly issued the guiding opinions of the national development and Reform Commission and the National Energy Administration on accelerating the development of new energy storage. The document pointed out that the development of new energy storage should be regarded as improving the regulation capacity, comprehensive efficiency and safety guarantee capacity of energy power system with the goal of carbon peak and carbon neutralization, Important measures to support the construction of new power system; By 2025, realize the transformation of new energy storage from the initial stage of commercialization to large-scale development, with an installed capacity of more than 30 million KW; By 2030, the comprehensive market-oriented development of new energy storage will be realized, and the installed capacity will basically meet the corresponding needs of the new power system.
According to the white paper on the development of China's aluminum plastic film industry (2021) released by evtank, the global soft pack battery shipment will reach 134.3gwh in 2021, and the global soft pack battery shipment will rise to 407.2gwh in 2025, with a compound growth rate of 39%. Aluminum plastic film, as the core material of cell packaging in the soft package technology route of lithium battery, has a broad market growth space under the double overweight of the increase in the total demand of lithium battery and the increase in the penetration rate of soft package battery.
2. The double carbon policy was vigorously promoted and the photovoltaic industry policy was improved
In 2020, the Chinese government proposed at the UN General Assembly the double carbon goal of "striving to peak carbon dioxide emissions by 2030 and strive to achieve carbon neutrality by 2060". As an important starting point for carbon reduction and emission reduction, the photovoltaic industry has developed rapidly with the support of national policies. According to the data of the European Photovoltaic Industry Association, the global new PV installed capacity in 2020 was 138.2gw, an increase of 18.22% over 2019. According to the statistics of the China Photovoltaic Industry Association, the new PV installed capacity in China reached 14.1gw from January to June 2021, a year-on-year increase of 22.6%.
In 2021, the first year after the release of the dual carbon policy, in order to gradually implement the top-level design of the dual carbon goal, Chinese departments have continuously issued relevant policies to restrict the expansion of high emission excess capacity and guide the development of low-carbon new energy industry. On June 20, 2020, the comprehensive Department of the National Energy Administration issued the notice on submitting the pilot scheme for the development of roof distributed photovoltaic in the whole county (city, district), which clearly proposed that the construction of roof distributed photovoltaic in the whole county should be carried out, emphasizing that the distributed photovoltaic "should be connected" and "should be built as much as possible", It is pointed out that "promoting the whole county" is an important measure to realize the two major national strategies of "carbon peak, carbon neutralization" and Rural Revitalization. On October 24, 2021, the CPC Central Committee and the State Council issued the opinions on completely, accurately and comprehensively implementing the new development concept and doing a good job in carbon peak and carbon neutralization. The document pointed out that the proportion of China's non fossil energy consumption should reach 20% and 25% by 2025 and 2030. Photovoltaic and wind power, as the largest components of non fossil energy, have significant growth space. On October 26, 2021, the State Council issued the notice on the action plan for reaching the carbon peak before 2030. The document stressed: "deepen the application of renewable energy in buildings and promote the integrated application of photovoltaic power generation and buildings. By 2025, the replacement rate of renewable energy in cities and towns will reach 8%, and the roof photovoltaic coverage rate of new public institution buildings and new factories will strive to reach 50%."
In July 2021, the European Photovoltaic Industry Association released the global photovoltaic market outlook (2021-2025). According to its forecast, the global newly added photovoltaic installed capacity in 2021 will be about 123.5gw and 197.9gw under pessimistic and optimistic conditions respectively, and the median situation is about 18% higher than that in 2020. With the continuous decline of photovoltaic power generation costs and the strong promotion of emerging markets, the global photovoltaic market will maintain rapid growth. Under optimistic circumstances, the global installed capacity of new photovoltaic will reach 346.7gw in 2025. As an important auxiliary material of photovoltaic modules, the demand for photovoltaic backplane mainly depends on the newly added photovoltaic installed capacity and the output of photovoltaic modules. Under the trend of good photovoltaic policies and continuous growth in the demand for photovoltaic modules, the demand for photovoltaic backplane will usher in a good growth trend.
(II) purpose of this issuance
1. Break through the company's existing capacity constraints and seize the high point of the aluminum-plastic film market
According to the white paper on the development of China's aluminum plastic film industry (2021) released by evtank, the global shipments of soft packed lithium-ion batteries reached 107.7gwh in 2020, an increase of 28.1% over 2019, mainly due to the increase in the demand for power batteries and energy storage batteries and the increase in the penetration rate of 3C battery soft packs. According to the statistics of evtank, the global aluminum-plastic film shipment reached 240 million square meters in 2020, an increase of 23.7% over 2019. If calculated at 22 yuan / square meter, the overall aluminum-plastic film market reached 5.28 billion yuan. According to evtank's prediction, by 2025, the market scale of aluminum plastic film will reach 13.32 billion yuan, with a compound growth rate of 20.33%, and the overall growth rate will be rapid.
The company is one of the earliest enterprises in China to carry out independent research and development of aluminum-plastic film products. It has applied for the invention patent of aluminum-plastic film for lithium battery since 2010 and obtained the authorization of the first invention patent of aluminum-plastic film in 2015, with deep technical accumulation. The dry heat composite preparation technology of aluminum plastic film developed by the company is the first in China. It has achieved mass production and can meet the performance requirements of lithium batteries in different fields such as 3C, power and energy storage. The fund-raising investment project will greatly expand the company's aluminum-plastic film production capacity, enhance the company's market competitiveness in the aluminum-plastic film industry, and seize the market high point under the background of domestic substitution.
2. Consolidate the company's backplane market position and optimize the revenue structure of the company's backplane products
In 2020, the company's sales volume of photovoltaic backplane will reach 70.6402 million square meters. According to the calculation of the newly installed capacity data of China photovoltaic Association, the company's photovoltaic backplane market share is about 15.57%, ranking the third in the industry. The fund-raising project will effectively improve the company's photovoltaic backplane production capacity, further give play to the company's cost advantage with the help of scale effect, and consolidate the company's market position after the release of relevant production capacity.
The fund-raising project will focus on the company's Bo fluorine-free backplane products. The Bo fluorine-free backplane is developed by the company based on the self-developed m membrane and does not use fluorine membrane. Therefore, it is more environmentally friendly than the traditional backplane. The company's Bo fluorine-free backplane has successfully passed the harsh environmental reliability test of TUV and other third-party certification institutions. It has high cost performance and safety reliability, and is exported to Singapore, South Korea, India and other overseas countries. Under the continuous promotion of Bo fluorine-free backplane, the sales revenue of Bo fluorine-free backplane products of the company reached 187997600 yuan from January to September 2021, accounting for 23.13% of the backplane revenue. After the implementation of the raised investment project, the sales proportion of Bo fluorine-free backplane products will further increase, help the transformation of the company's product revenue structure and improve the company's overall competitiveness.
3. Optimize the company's capital structure and improve the company's anti risk ability
The issuance of shares to specific objects to raise funds is conducive to the company's use of the advantages of capital market financing and enhance its capital strength. At the end of 2018-2020 and September 2021, the company's asset liability ratio was 45.00%, 38.68%, 23.76% and 26.91% respectively. The raised funds will further reduce the company's asset liability ratio, improve the company's anti risk ability and lay a foundation for the company to expand its business scale.
2、 The necessity of this issuance of shares and the selection of their varieties
(I) type and par value of the shares issued this time
The type of shares issued this time is domestic listed RMB ordinary shares (A shares), with a par value of RMB 1.00 per share.
(II) necessity of this issuance of shares
1. Meet the capital needs of the investment project with the raised funds
In recent years, the global photovoltaic industry has shown a good development trend. According to the data of the European Photovoltaic Industry Association, the global newly added photovoltaic installed capacity in 2020 was 138.2gw, an increase of 18.22% over 2019; According to the data of China Photovoltaic Industry Association, China's newly added photovoltaic installed capacity was 48.20gw in 2020, an increase of 60.13% over 2019. As countries around the world successively put forward the goal of "carbon neutralization", as one of the main clean energy, the photovoltaic industry has broad development prospects in the future. On December 12, 2020, Xi Jinping president announced at the climate ambition summit that China's non fossil energy will account for about 25% of primary energy consumption by 2030. In order to achieve this goal, the China Photovoltaic Industry Association predicts that during the 14th Five Year Plan period, China's average annual new photovoltaic installed capacity may be between 70-90gw, far exceeding the average level of 2018-2020.
As the key packaging material of soft pack battery, aluminum-plastic film has high technical barriers. At present, the global aluminum-plastic film industry is still monopolized by Japanese and Korean enterprises, resulting in high prices of imported aluminum-plastic film products. With the continuous decline of subsidy policies, China's lithium battery industry chain has entered the stage of marketization. Under the huge pressure of cost reduction, soft pack battery manufacturers began to try domestic aluminum-plastic film products with great price advantages, and the trend of domestic substitution of aluminum-plastic film is becoming more and more obvious. With the continuous promotion of the national "double carbon strategy", the new energy vehicle and clean energy industry will have a good development prospect in the future. The demand for power batteries and energy storage batteries will rise sharply, and the aluminum-plastic film has a good market prospect.
In order to comply with the development trend of the industry, support the company's strategic development and further consolidate and expand the company's business, the company plans to raise funds through this issuance for the production capacity construction project of aluminum-plastic film and fluorine-free backplane, which will help the company further consolidate the position of Cecep Solar Energy Co.Ltd(000591) battery backplane industry and quickly improve the production capacity of aluminum-plastic film products, Further reduce the cost of domestic aluminum-plastic film through scale advantages, accurately grasp the domestic substitution trend and meet the expansion needs of downstream industries. Due to the large capital demand of the above projects, if the company uses its own funds or carries out debt financing, it may bring great capital pressure to the company. Therefore, the company chooses to issue shares to specific objects to raise funds to meet the capital demand of the above-mentioned investment projects with raised funds.
2. Issuing shares to specific objects to raise funds is the best way for the company to raise funds at present
The financing cost of the company through bank loans and other debt financing methods is relatively high, and the financing amount is relatively limited. If the fund source of this raised investment project is entirely based on bank loans, it will affect the stable financial structure of the company, increase operational and financial risks, and is not conducive to the stable development of the company.
The company's business development needs long-term financial support. The company can effectively reduce the debt repayment pressure through equity financing, which is conducive to ensuring the smooth implementation of the raised investment project and maintaining the reasonable and stable capital structure of the company.
In conclusion, it is necessary for the company to raise funds by issuing shares to specific objects this time.
3、 Appropriateness of the selection scope, quantity and standard of the issuing object
(I) appropriateness of the selection scope of the issuing object
The objects of this issuance of shares to specific objects include securities investment fund management companies, securities companies, trust companies, finance companies, asset management companies, insurance institutional investors, qualified overseas institutional investors, other domestic legal person investors, natural persons or other qualified investors. Securities investment fund management companies, securities companies, qualified foreign institutional investors and RMB qualified foreign institutional investors who subscribe for more than two products under their management shall be regarded as one issuance object; If a trust company is the issuing object, it can only subscribe with its own funds.
After obtaining the decision of China Securities Regulatory Commission on the registration of the issuance of shares to specific objects, the final issuance object will be determined by the board of directors of the company and the sponsor (lead underwriter) in accordance with the provisions of relevant laws, administrative regulations, departmental rules or normative documents. If the national laws and regulations have new provisions on the issuing object of issuing shares to specific objects, the company will adjust according to the new provisions. All issuers subscribe for the shares issued this time in cash at the same price.
To sum up, the selection scope of this offering object complies with the relevant provisions of laws and regulations such as the measures for the administration of securities issuance and registration of listed companies on the science and Innovation Board (for Trial Implementation) (hereinafter referred to as the "administrative measures"), and the selection scope is appropriate. (II) appropriateness of the number of objects of this issuance
The number of issuing objects of this issuance shall not exceed 35. The number of issuing objects shall comply with the provisions of the administrative measures and other relevant laws and regulations, and the number of issuing objects shall be appropriate.
(III) appropriateness of the standards for the objects of this issuance
The issuing object should have certain risk identification ability and risk bearing ability, and have corresponding capital strength. The standards of the objects of this issuance comply with the relevant provisions of the administrative measures and other laws and regulations
