The source of this article: Times Finance Author: Wei Yalin
Another A-share listed company cross-border lithium battery, but after the news came out, the stock price fell to a halt.
On the evening of January 16, Shangwei shares (603333. SH) announced that on January 14, the company cooperated with the Leshan Municipal Government and Conch Venture (00586. HK) and others signed an investment agreement to invest in the construction of a "New Energy Southwest Manufacturing Base Project" in the High-tech Zone of Leshan City, Sichuan Province.
Image credit: Unsplash
On January 17, the staff of the securities department of Shangwei Co., Ltd. told Times Finance that the company's strategy since 2018 is to "walk on one more leg", after all, cable is a relatively traditional industry, and the current development of the anode material market is very good; in addition, Yunnan and Sichuan are dominated by green electricity, which has certain advantages in the manufacturing cost of anode materials.
Investors, however, don't seem to be buying it. On January 17, Shangwei shares set the auction stage for a time, then dived, opened 6 points low, and then opened 6 minutes after opening.
Times Finance noted that Shangwei shares are the "big bull stocks" in recent months, and in the two and a half months from the beginning of November last year to January 14 this year, the stock price rose by 126.83%.
Some investors posted in the "stock bar": "If the price is low, you can gamble on storytelling, and if the price is high, you must be careful with storytelling." ”
Image source: Shares
As of the close of trading on January 17, another related company, Conch Ventures, was down 0.13%.
Frequent cross-border Shangwei shares
According to the announcement, Shangwei shares will establish a joint venture with Conch Venture, and the two sides will hold 49% and 51% of the equity respectively. The joint venture company will invest in the construction of an anode material integration project with an annual output of 200,000 tons of power storage batteries in Leshan, Sichuan, of which the first phase of the project has a production capacity of 40,000 tons, and the construction time is expected to start in April 2022, and the construction period of the first phase of the project is 18 months.
Image source: Conch Entrepreneurship official website
Public information shows that Shangwei co., Ltd. is a cable company located in Leshan, Sichuan. In 2020, 85.63% of Sunway's revenue came from special cables and 11.23% from ordinary cables. In fact, before October 2018, the stock of Sunway shares was referred to as "Star Cable".
On November 3, 2021, Shangwei co., Ltd. replied on the online interactive platform that the new energy field is the company's focus direction, and in the case of suitable opportunities, the company does not rule out the opportunity to enter the aforementioned fields, and the company will be laid out in a timely manner according to the actual situation.
For the shareholders of Sunway shares, in recent years, they may have become accustomed to the company's "unconscionable cards". Times Finance has previously reported that Shangwei shares have repeatedly tried to invest across borders.
In July 2015, Sunway began its first cross-border merger and acquisition, which was aimed at a tea planting and supply base. However, four months after disclosing the news of the acquisition, Shangwei said that it could not reach an agreement with the target parent company on the transaction and terminated the acquisition.
In February 2018, Sunway applied for suspension of trading due to the planning of major events, and according to later disclosures, it set its sights on an overseas pneumatic components company, and the company's core products include cylinders, drives and valve systems. However, less than a month later, Shangwei announced the termination of the above-mentioned major matters, on the grounds that overseas assets were involved, and there was uncertainty in the transaction conditions and transaction time, and the two parties could not reach an agreement.
The most cross-border of Shangwei shares in recent years is in November 2020, and it wants to transform into live e-commerce. When Shiwei issued an announcement, it intends to acquire 40.27% of the equity of Chengdu Starry Sky Wild Hope Technology Co., Ltd. with its own and self-raised funds of not more than 589 million yuan - Star Wild Hope is the main operating company of Luo Yonghao's live streaming.
When the acquisition of The company was established for only half a year, it was valued at 1.464 billion yuan, a premium of 2819.13%. This transaction naturally attracted the attention of the exchange, requiring Shangwei shares to respond to related matters.
The acquisition also ended in failure. On the evening of December 3, 2020, after three postponements to reply to the exchange's inquiry letter, Shangwei announced that it terminated the purchase of the equity of Starry Sky Wild Hope, and the relevant doubts were also resolved.
More than a year has passed, and Shangwei shares are once again eager to try, and their eyes are on the hot new energy track. This time, has its cross-border plans become more reliable?
Reliable partner?
There is no related technology accumulation itself, and the partner selected by Shangwei cortex is Conch Entrepreneurship.
According to the announcement on the evening of January 16, Shangwei shares are not currently involved in the field of power storage battery anode materials, and there is no technical and talent reserve in this field; however, the partner Conch Venture has mastered the core technology and process flow of anode materials, and has made necessary talent preparations.
On January 17, the above-mentioned staff of Shangwei co., Ltd. told Times Finance that there was a relevant plan before the conch started a business, and there was already a lithium iron phosphate cathode material project in Wuhu, and choosing to cooperate with Shangwei co., Ltd. was also optimistic about the company's local advantages in Sichuan.
Times Finance noted that Conch Venture is a Hong Kong-listed company with close relations with cement leader Conch Cement (600585.SH/00915.HK). According to the voluntary announcement of The Third Quarter Report of Conch Ventures in 2021, Conch Ventures and its subsidiaries indirectly own 49% of the equity of Conch Group Corporation, which holds about 36.40% of the shares of Conch Cement.
Compared with Shangwei shares, the accumulation of conch entrepreneurship in the field of lithium batteries is more abundant. According to the 2021 mid-year report of Conch Venture, its main revenue and profit in the first half of the year came from the waste disposal and solid waste and hazardous waste disposal sectors.
By the second half of 2021, Conch Venture began intensive investment in the field of new energy. On the evening of September 23, 2021, Conch Venture issued an announcement that it would acquire part of the equity of the target company Hengchuan Technology and increase its capital. Upon completion, Conch Entrepreneurship and its employee investment platform will collectively hold 51% of hengchuan technology.
According to the above announcement, Hengchuan Technology is a high-tech enterprise that uses wet process to produce and sell high-performance lithium-ion battery separator materials, with a planned production capacity of 120×20 million square meters / year, of which the first production line has been put into operation in September 2021, and the second production line is expected to be put into operation in early 2022.
On October 10, 2021, Conch Venture issued an announcement that in order to achieve rapid development in the new energy industry, the company has signed an investment agreement with the Management Committee of Anhui Wuhu Economic Development Zone on the lithium iron phosphate cathode material project. According to the plan, the first phase of the planned construction capacity is 50,000 tons of lithium iron phosphate cathode material per year, and it is planned to be completed and put into operation by the end of 2022. In addition, the subsequent planned production capacity is 500,000 tons / year.
The lithium battery anode material project announced on the evening of January 16 and Shangwei is the third lithium battery-related investment disclosed by Conch in the past six months. So far, Conch Entrepreneurship has gathered three major project types in the field of power batteries: lithium iron phosphate cathode materials, anode materials, and diaphragms.
Image source: Wind
Will Conch Venture continue to expand its lithium battery business? On January 17, Times Finance repeatedly called the Conch Venture Securities Department, but the other party's phone was not answered.
However, in the news dynamics of the official website of Conch Entrepreneurship, Guo Jingbin, chairman of Conch Entrepreneurship, said at the signing ceremony on January 14 that Conch Entrepreneurship quickly cut into the new energy materials track while making the main business of environmental protection bigger and stronger, actively laying out the lithium-ion battery industry, and seeking development opportunities for the upstream and downstream industrial chain material industry.
Guo Jingbin also revealed that the first phase of the cathode material project with an annual output of 500,000 tons of high-performance lithium iron phosphate new energy batteries has started, and the first set of CKB lithium battery recycling projects in China has entered the production test stage.
According to the State-owned Assets Supervision and Administration Commission of Anhui Province, the CKB lithium battery recycling project was jointly developed by Conch Venture and Japan's Kawasaki Heavy Industries, and the project is planned for two phases, one of which is planned to deal with 5,000 tons of waste lithium batteries / year.
Since 2021, dozens of A-share listed companies have chosen to cut into the lithium-ion battery track, and the competition in this blue ocean will become more and more fierce in the future. Whether the cross-border dream of lithium battery anode materials of Sunway Co., Ltd. can be realized remains to be officially landed by the project.