Financial Associated Press, August 13 (reporter Wu Chao) in recent years, under the pressure of continuous decline in profits, Dawson shares (603800. SH) is acquiring Hongtian Technology's electrolytic copper foil field through "one in, one out" - that is, selling overseas oil and gas drilling equipment assets, in order to achieve strategic transformation.
"Most of the assets of overseas subsidiaries have been sold off." Dawson Co., Ltd. told the Financial Associated Press that in view of the impact of trade disputes and other factors, the company decided to gradually sell overseas oil and gas drilling equipment assets and vigorously invest in the new energy industry that has been advocated in China.
The higher performance commitment shows that Dawson shares are more confident in future growth. Dawson shares disclosed in the investor conference call held that hongtian technology downstream customers expand production faster, the company has sufficient orders in hand, products are fully sold, and order delivery has been scheduled beyond 2023. The above-mentioned company sources believe that after the merger of Hongtian Technology and listed companies, the company may have a greater increase in assets in the second half of the year, but there will be no significant change in profits in the short term.
Accelerate the layout of the copper foil field
In early July, Dawson said it had acquired a 51% stake in Hongtian Technology Co., Ltd., with a total consideration of 425 million yuan.
The core business of Hongtian Technology includes new energy lithium battery copper foil production equipment, electronic circuit copper foil production equipment, copper clad laminate CCL and PCB electronic circuit complete equipment. The acquisition allows Dawson shares to cut into the copper foil track quickly and efficiently.
As of the base date at the end of 2021, the appraised value of all equity interests of the shareholders of the target company was RMB833 million, a significant increase from its net book assets of approximately RMB187 million, with an appreciation rate of 346.95%. However, Dawson shares are more confident in the prospects of this transaction, and the two parties to the transaction have made performance commitments, and Hongtian Technology will achieve a net profit of not less than 85 million yuan, 115 million yuan and 160 million yuan in 2022-2024, respectively, with a total of not less than 360 million yuan in three years. In 2021, Hongtian Technology achieved a net profit of 77.93 million yuan.
Dawson Co., Ltd. told the Financial Associated Press reporter that because Hongtian Technology was merged into a listed company on June 30 this year, but before the real completion of industrial and commercial registration and handover procedures, the profits of Hongtian Technology still belong to the old shareholders, so there will be no significant changes in profits in the short term.
Subsequently, Dawson Signed a Strategic Cooperation Agreement with NORD and decided to establish a long-term partnership. The two sides will carry out comprehensive and in-depth cooperation in the field of lithium battery copper foil, including copper foil equipment technology research and development, 3 micron and other extremely thin copper foil products and composite copper foil product technology research and development, equipment technology transformation, lithium battery copper foil equipment supply and marketing, etc., in order to improve the shortcomings of Dawson copper foil production technology.
It is worth noting that Dawsons proposed that the current Nord shares have a new 200,000 tons of lithium battery copper foil production project construction, Hongtian Technology due to its own expansion of production capacity still needs time, there is a possibility that it can not fully meet the priority supply of lithium battery copper foil production equipment to it.
On August 3, Dawson Co., Ltd. planned a non-public offering of shares, and planned to raise 1.5 billion yuan to invest in the research and development of high-end complete sets of equipment mainly for electrolytic copper foil and copper foil products and new materials.
This is another blockbuster operation after the company announced its entry into the copper foil track. The above-mentioned company sources said that at present, the fixed increase is still in the preparatory stage, and the company continues to increase the copper foil field, which is optimistic about the development prospects of the copper foil field.
Weak performance growth Divestiture of inefficient assets
Dawson has been focusing on oil and gas drilling and production equipment, and the expansion of the "territory" to the new energy industry is behind the fact that the performance is shrinking.
According to the financial report data, from 2020 to 2021, Dawson shares achieved operating income of 848 million yuan and 1.175 billion yuan respectively, and the net profit attributable to the mother was 0.04 billion yuan and -0.36 billion yuan.
It is reported that under the combined impact of the Sino-US trade dispute and the low degree of industry prosperity, the main business of Dawson Co., Ltd. has shrunk significantly in international market orders as the pillar of the business, and the gross profit margin has declined sharply.
In the face of the challenges of the main market, Dawson co., Ltd. has gradually begun to try the wind power and construction machinery and equipment industries in the past two years, but the performance has been poor. In terms of wind power equipment, the revenue in 2021 was 120 million, but the operating cost was as high as 103 million, and the cost increased by 27.72% year-on-year.
In this context, Dawson continued to divest inefficient assets, optimize the asset structure, and pave the way for the company's industrial transformation.
On July 26, Dawson Shares proposed to sell Douson Control Products, Inc. (Dawson, USA) and Dawson (Singapore) New Energy Technologies Pte Ltd (Dawson Singapore) are 100% owned. After reference to the appraisal report and consensus between the two parties, the equity transfer consideration of Dawson in the United States is RMB121 million, and the equity transfer consideration of Dawson in Singapore is RMB63.38 million.
The above-mentioned company insider told the Financial Associated Press reporter that from the perspective of the oil and gas industry, affected by the continuous Sino-US trade dispute, the continuous change of tariffs, the repeated epidemic and other factors, since 2020, the operating efficiency of overseas companies has dropped sharply to losses, and there is a trend of increasing losses. The company's move is to divest inefficient assets, optimize the asset structure of listed companies, and improve the future profitability of listed companies.
High-end equipment demand is strong A number of listed companies have poured in
The Financial Associated Press reporter learned that due to the rapid development of 5G information technology, Internet of Things, big data, industrial intelligence and new energy vehicles, the demand for copper foil in the mainland has been continuously improved, and the demand for electrolytic copper foil has broad prospects.
Ultra-light and thin is the market trend of lithium battery copper foil development. In 2021, the mainstream lithium battery manufacturers on the market have adopted 6μm copper foil, accounting for more than 80% of the annual lithium battery copper foil shipments. At the same time, in 2021, some lithium battery copper foil enterprises will ship a small number of 4.5μm specification products, which is expected to become one of the mainstream products in the future.
Some manufacturers, including NORD Technology, Huaqi Copper Foil and Jiayuan Technology, have mastered the production technology of 4.5μm lithium battery copper foil. According to the strategic agreement between Dawsons and NORD, the two sides will jointly develop extremely thin copper foil and composite copper foil products such as 3μm to reserve the next generation of copper foil technology.
In terms of competition pattern, the reporter of the Financial Associated Press did not completely count, in addition to Dawson shares, many listed companies such as Tongguan Copper Foil, Baoming Technology, Sdic, Fangbang Shares and Yuxing Shares have research and development layout plans for copper foil-related businesses.
Recently, Dawson disclosed in an investor conference call held that hongtian technology downstream customers expand production faster, the company has sufficient orders in hand, products are fully sold, and order delivery has been scheduled after 2023.
At present, the core products of Hongtian Technology are electrolytic copper foil cathode rollers, foil machines, anode plates, high-efficiency copper dissolving tanks, surface treatment machines, etc. The annual production capacity exceeds 1,000 sets, in order to further enhance its core competitiveness and market share, the company is expanding a new high-end complete equipment industrial park of about 110,000 square meters in Yancheng, Jiangsu Province to expand production capacity.
New energy veteran Qi Haiyan told the Financial Associated Press reporter that benefiting from the increase in the demand for copper foil in the new energy vehicle power battery and electronic circuits, the localization process of copper foil production equipment in the mainland has accelerated significantly, and the copper foil equipment of Hongtian Technology has certain advantages in the production of high-performance copper foil products.
Qi Haiyan said that in the face of the new situation of rising raw materials such as copper prices, improving the level of technology, reducing losses, improving yield rate and excellent rate is the only way for the new energy high-end intelligent equipment industry to continuously meet the iterative upgrading of downstream industry products and move towards high-quality development.
(Editor: Cao Jingchen)
This article originated from Wu Chao, a reporter from the Financial Associated Press