China's leading manufacturer of high-strength and high-conductivity copper alloy rods and wires, copper alloy tubes, and special-shaped precision copper bars, NBJT Copper Alloy Materials Technology Group, issued an announcement on its public issuance of convertible bonds five months after listing, and the company raised funds The time interval is short, reflecting its full order situation and saturated capacity utilization. The announcement shows that the total amount of funds raised by NBJT in this issuance of convertible bonds will not exceed 1.5 billion yuan, and will be used for the following items after deducting issuance costs:
Contrary to the trend to expand production capacity and actively expand product application areas
Among the projects with this fund-raising investment, the construction period of "80,000 tons of hot-rolled copper strip project" and "50,000 tons of high-strength and high-conductivity copper alloy rod and wire project" is estimated to be two years, and the internal investment rate of return (after tax) ) Are 14.10% and 13.27% respectively. After the project is completed, the production capacity of copper strip and copper rod will be increased by 130,000 tons. According to the NBJT prospectus, its copper wire (row) capacity utilization rate reached 115.60% in 2019. With the increasing concentration of the copper processing market and the increasingly fierce competition in the industry, NBJT bucked the trend to expand its production capacity, further stabilize its leading position in the industry and enhance its comprehensive competitiveness.
It is worth noting that in this fundraising project, the construction content of the "GDJT Copper High-end Copper-based New Material Project" includes the construction of 350,000 tons/year high-strength, high-conductivity and high-toughness copper wires, 20,000 tons/year new energy vehicles and One high-efficiency motor special magnet wire and one 20,000 tons/year special-shaped precision copper row production line. The specific products are high-strength, high-conductivity and high-toughness copper wire, new energy vehicle and high-efficiency motor special magnetic wire, special-shaped precision copper row, etc. In the high-end market, its downstream faces new areas such as high-speed rail, smart grid and new energy vehicles.
NBJT has been seeking the application of copper products in new fields. After the completion of the new material project, its products will be more widely used downstream, and it is expected to enjoy the dividends brought by the vigorous development of new infrastructure and new energy vehicles.
The construction progress of fund-raising projects leads the industry, and the competitiveness of products is prominent
According to the semi-annual report, NBJT's listed investment projects "40,000 tons of high-precision copper alloy strip project" and "350,000 tons of high-conductivity and high-toughness copper wire project" are expected to be put into production in the second half of 2020.
Compared with NBJT, some companies in the same industry have performed differently in the progress of fundraising projects in recent years. Among them, AHCJ Copper Material Technology Group has conducted three fundraising between 2016 and 2019, and some fundraising projects are expected to be put into production in the second half of 2021 or 2022; ZJHL Alloy Materials Technology Group has conducted two fundraising between 2018 and 2019. The fundraising project in 2019 is expected to be put into production in 2022.