Editor's note from China Economic Net:
On February 17th, Jiangsu Huasheng Lithium Battery Materials Co., Ltd. ("Huasheng Lithium Battery") will launch its first meeting. The sponsor is Huatai United Securities Co., Ltd., and the sponsor representatives are Cai Fuxiang and Li Jun. .
Huasheng Lithium Battery plans to be listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The number of shares to be issued this time is 28 million shares (excluding the number of shares issued by the over-allotment option), and it is not less than 25% of the total number of shares after the completion of the issuance.
Huasheng Lithium Battery is a high-tech enterprise focusing on the research, development, production and sales of lithium battery electrolyte additives.
The company plans to raise funds of 700 million yuan, which will be used for projects with an annual output of 6,000 tons of vinylene carbonate and 3,000 tons of fluoroethylene carbonate; R&D center construction projects.
As of the signing date of the prospectus, Shen Jinliang and Shen Ming collectively controlled 81.31% of the voting rights of Huasheng Lithium Battery (including the voting rights of 34.00% of the shares directly held by Shen Jinliang, Shen Ming and their concerted parties and related enterprises of Jinnonglian and Dunhang). The total voting rights of 47.31% of the shares entrusted to Shen Jinliang) can have a decisive influence on the decision-making of Huasheng Lithium Battery Shareholders' General Meeting, and is the company's controlling shareholder and actual controller.
During the reporting period, the actual controller has changed.
From January 2018 to February 2019, the controlling shareholder of Huasheng Lithium was Changyuan Group, with no actual controller.
Since March 2019, the controlling shareholders and actual controllers of Huasheng Lithium Battery are Shen Jinliang and Shen Ming.
From January to June in 2018, 2019, 2020, and 2021, the operating income of Huasheng Lithium Battery was 369.4282 million yuan, 423.4073 million yuan, 444.6700 million yuan, and 382.8765 million yuan, respectively. The net profit attributable to shareholders of the parent company was 60,321,500 yuan, 75,930,900 yuan, 78,030,200 yuan, and 121,426,200 yuan. After deducting non-recurring gains and losses, the net profits attributable to shareholders of the parent company were 55,622,900 yuan, 70,390,600 yuan, 65,977,800 yuan, and 118,591,200 yuan respectively. Operating activities The net cash flows generated were RMB 72.9496 million, RMB 104.5903 million, RMB 124.2708 million and RMB 50.5878 million respectively.
From January to September 2021, the operating income of Huasheng Lithium Battery was 691.4691 million yuan, a year-on-year increase of 135.61%; the net profit attributable to shareholders of the parent company was 266.5189 million yuan, a year-on-year increase of 561.37%; after deducting non-recurring gains and losses, attributable to the parent company. The net profit of the company's shareholders was 264.4135 million yuan, a year-on-year increase of 666.95%; the net cash flow from operating activities was 120.2819 million yuan, a year-on-year increase of 35.33%.
In 2021, Huasheng Lithium Battery is expected to achieve operating income of 930 million yuan to 990 million yuan, a year-on-year increase of 109.14% to 122.64%, and the net profit after deducting non-deductibles will be 336.5 million yuan to 385.5 million yuan, a year-on-year increase of 410.02% to 484.29%.
At the end of 2018, the end of 2019, the end of 2020, and the end of June 2021, the current ratios of Huasheng Lithium were 0.79, 0.98, 1.41, and 1.66, the quick ratios were 0.64, 0.81, 1.23, and 1.52, respectively, and the combined asset-liability ratio was 51.30. %, 38.91%, 32.38%, 31.78%.
The company's main customers include Tinci Materials, Mitsubishi Chemical, Cathay Huarong, etc.
During the reporting period, Huasheng Lithium’s revenue from the top five customers accounted for 70.57%, 78.45%, 75.48% and 75.72% of its operating revenue respectively. The company’s performance was greatly affected by changes in the performance of downstream customers.
The prospectus shows that in 2018, 2019, 2020 and January-June 2021, the comprehensive gross profit margin of Huasheng Lithium Battery was 40.25%, 40.67%, 40.77% and 54.30%, respectively, with slight fluctuations in 2018-2020, and in 2021 From January to June, the gross profit margin increased significantly due to the shortage of products and the increase in price.
Among them, the gross profit margins of VC products were 46.53%, 48.46%, 48.68% and 60.34%; the gross profit margins of FEC products were 23.80%, 23.82%, 25.72% and 43.51%; the gross profit margins of related products fluctuated.
Huasheng Lithium Battery stated that during the reporting period, the company’s comprehensive gross profit margin was relatively stable, and the gross profit margin level was higher than the average of comparable companies. In each period, the average gross profit margins of comparable companies were 24.61%, 28.18%, 29.13%, and 31.78%. .
At the end of 2018, the end of 2019, the end of 2020 and the end of June 2021, the balance of accounts receivable of Huasheng Lithium Battery was 118.4734 million yuan, 137.4502 million yuan, 174.9995 million yuan and 237.9210 million yuan respectively, and the proportion of accounts receivable balance to operating income was respectively were 32.07%, 32.46%, 39.35% and 62.14%.
Huasheng Lithium Battery pointed out that from the end of 2018 to the end of 2020, Huasheng Lithium Battery’s accounts receivable balance accounted for a relatively stable proportion of operating income. At the end of June 2021, the proportion of accounts receivable balance to operating income increased significantly, mainly due to the company’s sales growth. To.
The company's accounts receivable turnover ratio is lower than the average of comparable companies.
The accounts receivable turnover ratios of Huasheng Lithium Battery in each period were 3.65, 3.31, 2.85 and 3.71 respectively, and the average accounts receivable turnover ratios of comparable companies were 6.52, 5.48, 5.07 and 6.56 respectively.
In addition, the overdue amounts of Huasheng Lithium's accounts receivable in 2020, 2019 and 2018 were 19.6695 million yuan, 44.0528 million yuan and 26.5723 million yuan respectively.
Huasheng Lithium Battery stated that at the end of each period of the reporting period, the sum of the book values of the company’s notes receivable, accounts receivable, and accounts receivable financing was 197.0201 million yuan, 198.2292 million yuan, 277.2469 million yuan and 380.5934 million yuan, accounting for the current flow at the end of each period. The proportion of assets was 62.66%, 67.12%, 71.79% and 69.46% respectively.
With the continuous expansion of the company's business scale, the increase in receivables will further increase the company's working capital turnover pressure; at the same time, if the downstream industries or major customers' operating conditions undergo major adverse changes, it will also increase the company's bad debt losses. Risks, which in turn adversely affect the company's asset quality and financial condition.
According to the Economic Information Daily, Huasheng Lithium has frequent related transactions during the reporting period.
During the reporting period, the total amount of Huasheng Lithium Battery's recurring connected transactions was 6.248 million yuan.
Among them, Huasheng Lithium Power purchased stainless steel barrels and equipment from Jiangyin Hainian Machinery Manufacturing Co., Ltd. with an amount of 5.9066 million yuan.
It is worth noting that the actual controller of Jiangyin Hainian is Shen Gang, the son of Shen Jinliang, the actual controller of Huasheng Lithium Battery. Since 2011, Jiangyin Hainian has customized the production of stainless steel barrels for Huasheng Lithium Battery.
What is more noteworthy is that the prospectus shows that Jiangyin Hainian did not actually produce during the reporting period of Huasheng Lithium Battery. The above-mentioned Huasheng Lithium Battery’s 5,906,600 yuan-related purchase items are from Jiangyin City Guoyuan Power Equipment Co., Ltd. and Suzhou. Purchased from Jibang Packaging Container Co., Ltd.
According to "One Financial Letter", Huasheng lithium battery is plagued by safety and environmental protection issues.
On June 30, 2021, the IPO of Huasheng Lithium Battery Science and Technology Innovation Board was accepted by the Shanghai Stock Exchange.
However, only half a month later, Huasheng Lithium Battery was "named" because of safety production issues.
On July 19, the official website of Zhangjiagang Municipal People's Government issued a warning notice.
The notice mentioned that at around 19:00 on July 15, the Huasheng lithium battery solid waste warehouse spontaneously ignited, causing some equipment and facilities to burn down, but no casualties were caused.
Huasheng Lithium has frequent loopholes in safety production management.
In August 2020, the Zhangjiagang Free Trade Zone Safety and Environmental Protection Bureau organized a night-time inspection of safety production within its jurisdiction. The enterprises that were randomly inspected included Huasheng Lithium Battery.
Although Huasheng lithium battery safety equipment and facilities are in normal and safe operation, the data of the company's personnel information system is inaccurate, the actual number of people on site does not match the number shown by statistics, and the management is not in place.
On May 18, 2018, the official website of the Taixing Municipal People's Government announced that when the city safety supervision and law enforcement officers inspected the safety production of Huasheng Lithium Electronics Company Taixing Huasheng Fine Chemical Co., Ltd., they found at least 7 safety hazards in the safety production of the enterprise. The company is ordered to rectify immediately.
In the same year, Taixing Huasheng was also punished twice by environmental protection for excessive discharge of air pollutants and abnormal operation of solid waste incinerator waste gas pollution prevention and control facilities, with a total fine of 800,000 yuan.
In addition to the safety production and environmental protection problems of Huasheng Lithium Battery and its subsidiaries, Huasheng Lithium Battery's selected cooperative suppliers are not worried about these issues.
According to public information, three of the top five suppliers of Huasheng Lithium Battery in 2018 were plagued by environmental protection and safety production issues.
"One Financial Letter" also stated that there are differences between the financial data related to Huasheng Lithium Battery disclosed in the annual report of the former controlling shareholder Changyuan Group and the financial data disclosed in the prospectus of Huasheng Lithium Battery.
In addition, there was also a "fight" in the letter of the Huasheng Lithium Power Investment Project.
According to China Energy News, Huasheng Lithium Battery has certain technical risks.
The synthesis process used in the production of VC by Huasheng Lithium Battery has been patented and authorized by Zhangjiagang Guotai Huarong Chemical New Material Co., Ltd. in April 2005.
Huasheng Lithium Battery signed the "Patent Implementation License Contract" with Cathay Pacific Huarong in September 2012, stipulating that Cathay Pacific Huarong licenses Huasheng Lithium Battery to use the subject matter within the validity period of the subject patent (the statutory expiration date of the patent is April 29, 2025). The patented method carries out production and business activities, and has the priority to assign the patent.
Huasheng Lithium Battery admits that since the licensor and its shareholding companies also reserve the right to implement the patented technology, there is a risk that the licensor will use the patented technology to produce similar products and intensify market competition.
If due to reasons such as cooperation between the two parties, the relevant agreement is terminated and Cathay Pacific Huarong authorizes other parties to use the licensed technology, it may have a certain adverse impact on the company's performance and future operations.
Focus on lithium battery electrolyte additives IPO plans to raise 700 million
Founded in 1997, Huasheng Lithium Battery is a high-tech enterprise focusing on the R&D, production and sales of lithium battery electrolyte additives.
The company's products mainly include two series of electronic chemicals and special organic silicon.
As of the signing date of the prospectus, Shen Jinliang and Shen Ming collectively controlled 81.31% of the voting rights of Huasheng Lithium Battery (including the voting rights of 34.00% of the shares directly held by Shen Jinliang, Shen Ming and their concerted parties and related enterprises of Jinnonglian and Dunhang). The total voting rights of 47.31% of the shares entrusted to Shen Jinliang) can have a decisive impact on the decision-making of the Huasheng Lithium Battery Shareholders' Meeting, and is the company's controlling shareholder and actual controller.
During the reporting period, the actual controller has changed.
From January 2018 to February 2019, the controlling shareholder of Huasheng Lithium Battery was Changyuan Group, with no actual controller.
Since March 2019, the controlling shareholders and actual controllers of Huasheng Lithium Battery are Shen Jinliang and Shen Ming.
Huasheng Lithium Battery plans to be listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The number of shares to be issued this time is 28 million shares (excluding the number of shares issued by the over-allotment option), and it is not less than 25% of the total number of shares after the completion of the issuance.
The sponsor of Huasheng Lithium Battery is Huatai United Securities Co., Ltd., and the sponsor representatives are Cai Fuxiang and Li Jun.
Huasheng Lithium Electric plans to raise funds of 700 million yuan, of which 674 million yuan will be used for the project with an annual output of 6,000 tons of vinylene carbonate and 3,000 tons of fluoroethylene carbonate, and 26.5025 million yuan will be used for the R&D center construction project.
In 2021, it is expected that non-net profit will increase by 410.02% to 484.29%
From January to June in 2018, 2019, 2020, and 2021, the operating income of Huasheng Lithium Battery was 369.4282 million yuan, 423.4073 million yuan, 444.6700 million yuan, and 382.8765 million yuan, respectively. The net profit attributable to shareholders of the parent company was 60,321,500 yuan, 75,930,900 yuan, 78,030,200 yuan, and 121,426,200 yuan. After deducting non-recurring gains and losses, the net profits attributable to shareholders of the parent company were 55,622,900 yuan, 70,390,600 yuan, 65,977,800 yuan, and 118,591,200 yuan respectively. Operating activities The net cash flows generated were RMB 72.9496 million, RMB 104.5903 million, RMB 124.2708 million and RMB 50.5878 million respectively.
In 2020, Huasheng Lithium will distribute cash dividends of 20.5 million yuan.
From January to September 2021, the operating income of Huasheng Lithium Battery was 691.4691 million yuan, a year-on-year increase of 135.61%; the net profit attributable to shareholders of the parent company was 266.5189 million yuan, a year-on-year increase of 561.37%; after deducting non-recurring gains and losses, attributable to the parent company. The net profit of the company's shareholders was 264.4135 million yuan, a year-on-year increase of 666.95%; the net cash flow from operating activities was 120.2819 million yuan, a year-on-year increase of 35.33%.
The company's management estimates based on the operating environment and market conditions that in 2021, Huasheng Lithium Electric is expected to achieve operating income of 930 million yuan to 990 million yuan, a year-on-year increase of 109.14% to 122.64%. 10,000 yuan, an increase of 410.02% year-on-year to 484.29%.
The above financial data for 2021 has not been audited or reviewed by accountants and does not constitute a profit forecast.
In terms of solvency, at the end of 2018, the end of 2019, the end of 2020, and the end of June 2021, the current ratios of Huasheng Lithium were 0.79, 0.98, 1.41, and 1.66, and the quick ratios were 0.64, 0.81, 1.23, and 1.52, respectively. The combined assets The debt ratios were 51.30%, 38.91%, 32.38% and 31.78% respectively.
The top five customers account for more than 70% of the revenue
The company's main customers include Tinci Materials, Mitsubishi Chemical, Cathay Huarong, etc.
During the reporting period, Huasheng Lithium’s revenue from the top five customers accounted for 70.57%, 78.45%, 75.48% and 75.72% of its operating revenue respectively. The company’s performance was greatly affected by changes in the performance of downstream customers.
Huasheng Lithium Battery pointed out that the relative concentration of the company's customers is consistent with the development status quo of the relatively concentrated competition pattern of the downstream power lithium-ion battery electrolyte industry.
If the company's product and service quality does not meet the requirements of major customers, resulting in major adverse changes in the relationship between the two parties, or the decline in the market share of major customers leads to a decrease in their purchases, or major customers due to major business risks and no longer continue In the event of contract, breach of contract, etc., the company cannot develop new customers in the short term, which will adversely affect the company's operating performance.
Gross margin higher than the average of comparable companies
The prospectus shows that in 2018, 2019, 2020 and January-June 2021, the comprehensive gross profit margin of Huasheng Lithium Battery was 40.25%, 40.67%, 40.77% and 54.30%, respectively, with slight fluctuations in 2018-2020, and in 2021 From January to June, the gross profit margin increased significantly due to the shortage of products and the increase in price.
Among them, the gross profit margins of VC products were 46.53%, 48.46%, 48.68% and 60.34%; the gross profit margins of FEC products were 23.80%, 23.82%, 25.72% and 43.51%; the gross profit margins of related products fluctuated.
From January to June in 2018, 2019, 2020 and 2021, the average gross profit margins of comparable companies were 24.61%, 28.18%, 29.13%, and 31.78%, respectively.
Huasheng Lithium Battery stated that the company’s comprehensive gross profit margin was relatively stable during the reporting period, and the gross profit margin level was higher than the average of comparable companies. The gross profit margin of electrolyte materials such as electrolytes and electrolyte lithium salts and solvents is relatively high.
The balance of accounts receivable at the end of June 2021 accounted for 62.14% of operating income
At the end of 2018, the end of 2019, the end of 2020 and the end of June 2021, the net accounts receivable of Huasheng Lithium Battery were 108.5397 million yuan, 127.7062 million yuan, 165.6933 million yuan and 225.8339 million yuan respectively, accounting for 34.52% of the current assets at the end of the period. %, 43.24%, 42.90% and 41.21%.
At the end of 2018, the end of 2019, the end of 2020 and the end of June 2021, the balance of accounts receivable of Huasheng Lithium Battery was 118.4734 million yuan, 137.4502 million yuan, 174.9995 million yuan and 237.9210 million yuan respectively, and the proportion of accounts receivable balance to operating income was respectively were 32.07%, 32.46%, 39.35% and 62.14%.
Huasheng Lithium Battery pointed out that from the end of 2018 to the end of 2020, Huasheng Lithium Battery’s accounts receivable balance accounted for a relatively stable proportion of operating income. At the end of June 2021, the proportion of accounts receivable balance to operating income increased significantly, mainly due to the company’s sales growth. To.
Huasheng Lithium Battery stated that at the end of each period of the reporting period, the sum of the book values of the company’s notes receivable, accounts receivable, and accounts receivable financing was 197.0201 million yuan, 198.2292 million yuan, 277.2469 million yuan and 380.5934 million yuan, accounting for the current flow at the end of each period. The proportion of assets was 62.66%, 67.12%, 71.79% and 69.46% respectively.
With the continuous expansion of the company's business scale, the increase in receivables will further increase the company's working capital turnover pressure; at the same time, if the downstream industries or major customers' operating conditions undergo major adverse changes, it will also increase the company's bad debt losses. Risks, which in turn adversely affect the company's asset quality and financial condition.
From January to June in 2018, 2019, 2020, and 2021, Huasheng Lithium Battery’s accounts receivable turnover ratios were 3.65, 3.31, 2.85, and 3.71, respectively, and the average accounts receivable turnover ratios of comparable companies were 6.52 and 5.48, respectively. , 5.07, 6.56.
Huasheng Lithium said that the company’s accounts receivable turnover rate is lower than the average level of comparable companies, and the main difference is that Shi Dashenghua’s accounts receivable turnover rate is higher.
The sales of Shida Shenghua oil and gas products are mainly through cash settlement, and the carbonate products adopt cash settlement or credit period settlement, and a relatively strict collection system has been established, so the turnover rate of accounts receivable is significantly higher than that of the company and other comparable listed companies. .
In addition, the overdue amounts of Huasheng Lithium's accounts receivable in 2020, 2019 and 2018 were 19.6695 million yuan, 44.0528 million yuan and 26.5723 million yuan respectively.
Frequent affiliated transactions
According to the Economic Information Daily, Huasheng Lithium has frequent related transactions during the reporting period.
According to the prospectus, the controlling shareholders and actual controllers of Huasheng Lithium Battery are Shen Jinliang and Shen Ming and their sons.
During the reporting period, the total amount of Huasheng Lithium Battery's recurring connected transactions was 6.248 million yuan.
Among them, Huasheng Lithium Power purchased stainless steel barrels and equipment from Jiangyin Hainian Machinery Manufacturing Co., Ltd. (referred to as "Jiangyin Hainian") for an amount of 5.9066 million yuan.
It is worth noting that the actual controller of Jiangyin Hainian is Shen Gang, the son of Shen Jinliang, the actual controller of Huasheng Lithium Battery. Since 2011, Jiangyin Hainian has customized the production of stainless steel barrels for Huasheng Lithium Battery.
What is more noteworthy is that the prospectus shows that Jiangyin Hainian did not actually produce during the reporting period of Huasheng Lithium Battery. The above-mentioned Huasheng Lithium Battery’s 5,906,600 yuan-related purchase items are from Jiangyin City Guoyuan Power Equipment Co., Ltd. and Suzhou. Purchased from Jibang Packaging Container Co., Ltd.
Safety and environmental issues
According to "One Financial Letter", on June 30, 2021, the IPO of Huasheng Lithium Battery Science and Technology Innovation Board was accepted by the Shanghai Stock Exchange.
However, only half a month later, Huasheng Lithium Battery was "named" because of safety production issues.
On July 19, the official website of Zhangjiagang Municipal People's Government issued a warning notice.
The notice mentioned that at around 19:00 on July 15, the Huasheng lithium battery solid waste warehouse spontaneously ignited, causing some equipment and facilities to burn down, but no casualties were caused.
The country has always attached great importance to the safety production of the chemical industry, and Huasheng Lithium Battery, which is in the fine chemical industry, uses some raw materials in the production process with flammable, toxic and other chemical properties, so it should pay more attention to safety production issues, but Huasheng lithium battery There are frequent loopholes in the safety production management of lithium batteries.
In August 2020, the Zhangjiagang Free Trade Zone Safety and Environmental Protection Bureau organized a night-time inspection of safety production within its jurisdiction. The enterprises that were randomly inspected included Huasheng Lithium Battery.
Although Huasheng lithium battery safety equipment and facilities are in normal and safe operation, the data of the company's personnel information system is inaccurate, the actual number of people on site does not match the number shown by statistics, and the management is not in place.
On May 18, 2018, the official website of the Taixing Municipal People's Government announced that when the municipal safety supervision and law enforcement officers inspected the safety production of Huasheng Lithium Electronics Company Taixing Huasheng Fine Chemical Co., Ltd. (hereinafter referred to as "Taixing Huasheng"), they found that the company There are at least 7 safety hazards in production, and the company is ordered to make rectification immediately.
In the same year, Taixing Huasheng was also punished twice by environmental protection for excessive discharge of air pollutants and abnormal operation of solid waste incinerator waste gas pollution prevention and control facilities, with a total fine of 800,000 yuan.
In addition to the safety production and environmental protection problems of Huasheng Lithium Battery and its subsidiaries, Huasheng Lithium Battery's selected cooperative suppliers are not worried about these issues.
According to public information, three of the top five suppliers of Huasheng Lithium Battery in 2018 were plagued by environmental protection and safety production issues.
The supplier Nantong Mingxin Chemical Co., Ltd. (hereinafter referred to as "Mingxin Chemical") is the second largest supplier of Huasheng Lithium Battery in 2018, and sold 16.1004 million yuan of potassium fluoride to Huasheng Lithium Battery.
According to the "List of Issues Assigned by the Central Environmental Protection Inspector 'Looking Back' on June 19, 2018" published on the official website of the Nantong Municipal People's Government in June 2018, Mingxin Chemical has environmental problems of waste water and waste gas polluting the surrounding environment.
Two suppliers located in Taixing City, Taizhou City, Jiangsu Province, Taixing Taipeng Pharmaceutical Chemical Co., Ltd. (hereinafter referred to as "Taipeng Pharmaceutical") and Taixing Taida Fine Chemical Co., Ltd. (hereinafter referred to as "TEDA Fine Chemical") also have many problems. .
On April 17, 2017, in the "263" special action investigation led by the mayor of Taizhou City, Taipeng Pharmaceutical's site had problems such as aging production equipment, disordered management, and backward environmental protection facilities.
Although Taida Fine Chemicals was in a state of suspension during the inspection, there are still environmental safety hazards in the factory area.
In 2018, both suppliers appeared among the top five suppliers of Huasheng Lithium Battery.
Huasheng Lithium Power purchased ethylene carbonate of 20.8981 million yuan from Taipeng Medicine and 9.2523 million yuan of ethylene carbonate from Taida Fine Chemicals.
On July 10, 2018, Taipeng Pharmaceutical was fined 50,000 yuan by the Taizhou Municipal Safety Supervision Bureau for violating the "Safety Production Law" for 2 of the 6 combustible gas detection and alarm instruments without regular detection reports.
On June 3, 2019, Taipeng Pharma was fined 640,000 yuan by Taixing Ecological Environment Bureau of Taizhou City for failing to take measures to reduce the discharge of gaseous pollutants and failing to set up waste gas discharge outlets as required.
Frequent discrepancies in information disclosure
According to "One Financial Letter", there are differences between the financial data related to Huasheng Lithium Battery disclosed in the annual report of the former controlling shareholder Changyuan Group and the financial data disclosed in the prospectus of Huasheng Lithium Battery.
According to the 2018 annual report of Changyuan Group, the total assets of Huasheng Lithium Battery in the current period were 873.3083 million yuan, the net assets were 429.9008 million yuan, the operating income was 379.5419 million yuan, the operating profit was 75.9194 million yuan, and the net profit was 62.8717 million yuan. The above is a combination caliber.
(Screenshot from Changyuan Group's 2018 Annual Report)
However, Huasheng Lithium’s prospectus shows that in 2018, the total assets were 874.8535 million yuan, the net assets were 420.1666 million yuan, the operating income was 369.4282 million yuan, the operating profit was 71.2958 million yuan, and the net profit was 60.9519 million yuan.
The data of the above subjects are different from the corresponding data disclosed by Changyuan Group.
(Screenshot from Huasheng Lithium Battery Prospectus)
In addition to the discrepancies in financial data disclosures, there was also a "fight" in the disclosures of Huasheng Lithium's fundraising and investment projects.
According to the prospectus, in this IPO, Huasheng Lithium Electric plans to raise 700,002,800 yuan to build a project with an annual output of 6,000 tons of vinylene carbonate and 3,000 tons of fluoroethylene carbonate (hereinafter referred to as "Project 1") and a research and development center construction project.
Among them, the total investment of project one is 873.500 million yuan, and the construction period is planned to be 2 years.
The project adds 6,000 tons of vinylene carbonate, 3,000 tons of fluoroethylene carbonate, 20,675 tons of hydrochloric acid, 49,089 tons of sodium hypochlorite, 7,977 tons of sodium chloride, 4,265 tons of potassium chloride and potassium fluoride mixed salt.
The construction site of Project 1 is located in Yangzijiang International Chemical Industrial Park, Zhangjiagang City. The existing factory of Huasheng Lithium Battery has reserved space (Zhangjiagang Phase II production base, located at No. 5 Qinghai Road) and the new factory area (Huasheng New District, located at Ganghua Road and Nanhai) Road junction northeast) two plots.
Among them, the Zhangjiagang Phase II production base covers an area of 3661.36 square meters, with a construction area of 9111.88 square meters; the new factory covers an area of 37994.00 square meters, with a construction area of 58570.00 square meters.
However, the EIA document of Project 1 shows that the total investment of the project is 807.500 million yuan, and the construction period is 12 months. The project will build a third factory area in the northeast of the intersection of Ganghua Road and Nanhai Road in the Yangtze River International Chemical Industrial Park.
Because the project is an expansion in a different place, the production will be carried out in the new third factory, which has no relationship with the first factory and the second factory.
And the EIA document also disclosed that the construction area and area of the project are 101,883.00 square meters, and the construction area is 58,570.00 square meters.
There are certain technical risks
According to China Energy News, data from Gaogong Lithium Battery Research Institute shows that my country's electrolyte output in 2019 was 183,000 tons, a year-on-year increase of 30.81%, mainly due to the increase in power and energy storage battery electrolyte production and the steady growth in exports. .
In 2020, my country's electrolyte shipments reached 252,000 tons, a year-on-year increase of 37.7%. The market growth rate exceeded expectations, mainly driven by the substantial growth in the market demand for new energy vehicles in the second half of the year.
According to reports, Huasheng Lithium has insisted on independent innovation for many years, focusing on R&D investment.
At present, it has a number of core technologies in the field of lithium battery electrolyte additives and special silicones, and has obtained 44 domestic authorized patents and 9 international patents.
At present, it has two production bases in Zhangjiagang Phase I and Phase II and a wholly-owned subsidiary Taixing Huasheng, with an annual production capacity of 5,000 tons of VC and FEC products.
However, there are still certain risks in the production of Huasheng lithium battery products.
Data shows that Huasheng lithium battery products are mainly VC and FEC, and the total revenue accounts for about 85% of the total revenue, of which the revenue from VC products accounts for more than 50% of the total revenue.
However, the synthesis process used in the production of VC by Huasheng Lithium Battery has been patented and authorized by Zhangjiagang Guotai Huarong Chemical New Material Co., Ltd. (hereinafter referred to as "Guotai Huarong") in April 2005.
Huasheng Lithium Battery signed the "Patent Implementation License Contract" with Cathay Pacific Huarong in September 2012, stipulating that Cathay Pacific Huarong licenses Huasheng Lithium Battery to use the subject matter within the validity period of the subject patent (the statutory expiration date of the patent is April 29, 2025). The patented method carries out production and business activities, and has the priority to assign the patent.
"In view of the fact that the licensor and its shareholding companies also reserve the right to implement the patented technology, there is a risk that the licensor will use the patented technology to produce similar products and intensify market competition. If Rong authorizes other parties to use the licensed technology, it may have a certain adverse impact on the company's performance and future operations." Huasheng Lithium Battery admitted.
In addition, with the development of the industry and the iteration of technology, new technology paths such as hydrogen fuel cells and solid-state lithium batteries may have an impact on the existing liquid lithium-ion batteries.
"If the performance, technical indicators and economy of lithium-ion batteries are surpassed by power batteries of other technical routes in the future, the market share of lithium-ion batteries may be squeezed or even replaced. As a supplier of lithium battery electrolyte additives, if the company cannot adapt to the development of the industry If technological progress or transformation is realized in a timely manner, revenue and operating results will be greatly adversely affected.” Huasheng Lithium Battery pointed out.