Following the acquisition of SHE, JSRT, and SZJL, China's leading lithium battery separator technology group SHEJ has once again acquired a lithium battery wet process separator company!
On August 7, SHEJ issued an announcement stating that SHEJ and YNTH Group have signed a cooperation agreement. The company intends to use its own and self-raised funds to publicly bid for 54.76% of its subsidiary CQNM Technology.
According to the data, CQNM is a listed company specializing in the production and operation of lithium battery separators. At present, it has 6 production lines for lithium battery separators. Its main customers include Zhuhai Guanyu, LG Chemical and other domestic and foreign first-class 3C consumer batteries and power tools. Manufacturers of batteries, electric bicycle batteries and automobile power batteries.
SHEJ has established four major lithium battery isolation membrane production bases in China, Shanghai, Zhuhai, Jiangxi, and Wuxi. SHEJ has 6 production lines with a total annual output of 320 million square meters; ZHEJ Phase I project has 12 production lines with a total annual output of 10 100 million square meters, and the second phase of the ZHEJ project has been launched. 4 base film production lines have been invested. The estimated total investment is 1.1 billion yuan. Civil construction is currently underway; JSTR has invested in 8 base film production lines with a capacity of 400 million square meters. Six production lines have been officially put into operation; the first phase of WXEJ project has four production lines officially put into production, and the second phase of the WXEJ new material industry base project was launched in July 2019, and 8 production lines with a capacity of 520 million square meters were built. The base film production line is expected to have a total investment of 2.8 billion yuan.
SHEJ stated that in order to further expand the production capacity of the lithium battery isolation film business, expand the 3C consumer lithium battery isolation film market and customer range, increase the company's 3C consumer lithium battery isolation film sales revenue, and improve the company's lithium battery isolation film field Strategically, the company plans to acquire part of the equity of CQNM with its own and self-raised funds. The smooth implementation of this transaction and the completion of follow-up work will help the company further expand the production capacity of its lithium battery isolation film business and support the company's strategic layout in the field of lithium battery isolation film.
In addition, on the evening of July 24, SHEJ issued an announcement stating that the company intends to acquire a 5.14% stake in SHE with a total of 490 million yuan in its own and self-raised funds. After the completion of this transaction, the company holds 95.22% of SHE.
In addition to expanding production through mergers and acquisitions, SHEJ's major moves in financing expansion have also continued this year:
SHEJ has raised 1.6 billion yuan through convertible bonds in February 2020, which will be used for JXTR's annual 400 million square meters lithium-ion battery separator project (Phase I) and WXEJ new material industrial base project. It is understood that the JXTR lithium-ion battery separator (phase one) project will be completed in the first quarter of 2020. The company’s management predicts that the production line will reach full production and reach a stable production status by the end of 2021. The WXEJ New Material Industry Base project is expected to be completed in the third quarter of 2020, and the expected time for full production and stable production status is the first half of 2022.
In July, SHEJ announced again that the application for non-public issuance of shares has been approved, and that it will raise no more than 5 billion yuan for the first phase expansion project of JXTR lithium battery separator, the second phase expansion of the industrial base and supplementary working capital.
In July of this year, SHEJ will increase the production capacity of wet-process diaphragms by about 1 billion square meters each year.
As of the end of 2019, the production capacity of SHEJ wet process diaphragm reached 2.3 billion square meters, ranking first in the world in terms of production capacity. In 2019, the company shipped more than 800 million square meters of wet diaphragms, with a market share of over 40%, ranking first in the industry.