The power tool market is hot, Yiwei Lithium will change the use of fund-raising and expand the production of ternary cylindrical lithium batteries

On May 24, Yiwei Lithium Energy released an announcement to change the use of part of the raised funds. It will change the use of raised funds for the implementation of the 'High-performance Lithium-ion Power Battery Industrialization Project' and invest it in the wholly-owned subsidiary Jingmen Yili The location of the 'High-performance Lithium-ion Cylindrical Battery Industrialization Project' implemented by Wistron Lithium Battery Co., Ltd. was changed from Huizhou City, Guangdong Province to Jingmen City, Hubei Province. According to the announcement, approved by the China Securities Regulatory Commission on Approval of the Non-public Issuance of Shares by Huizhou Yiwei Lithium Energy Co., Ltd., the company privately issued nearly 115 million RMB ordinary shares (A shares) at an issue price of 21.74 yuan per share, the total amount of funds raised is nearly 2.5 billion yuan, and the actual net proceeds after deducting various issuance expenses is about 2.467 billion yuan. As of March 31, 2021, the company actually used raised funds of 1.743 billion yuan (including the pre-invested part of the replacement), and the balance of the raised funds in the special account was 234 million yuan. Among them, the 'high-performance lithium-ion power battery industrialization project' has not yet used the amount of raised funds of 604 million yuan. Yiwei Lithium Energy stated that during the project implementation stage, as the company's ternary cylindrical battery products have been widely recognized by customers at home and abroad, the company's existing sites and production lines have been operating at full capacity, but the supply is still in short supply in the past year. The product has a good market prospect. The company carefully decided to change the use of the raised funds for the implementation of the 'High-performance Lithium-ion Power Battery Industrialization Project' and invest in the 'High-performance Lithium-ion Cylindrical Battery Industrialization Project' implemented by Jingmen Chuangneng. ProjectThe implementation of the 'High-performance Lithium-ion Cylindrical Battery Industrialization Project' is the company’s wholly-owned subsidiary Jingmen Yiwei Chuangneng Lithium Battery Co., Ltd. The construction period of the project is 24 months. The product of the project is a cylindrical ternary lithium-ion battery, mainly for electric The project plans to invest 3.031 billion yuan in supporting applications of tools. Among them, 600 million yuan was invested with raised funds, and the remaining part was invested with self-owned funds and self-raised funds. The project filing and environmental impact assessment procedures are being processed. Yiwei Lithium Energy said that miniaturization, light weight, and cordless power tools have become the future development trend. In recent years, the market scale of power tools has grown rapidly. At present, due to the impact of the emerging coronavirus pneumonia, the insufficient production capacity of Japanese and Korean battery companies has led to a tight supply in the cylindrical ternary lithium-ion battery market. The supply gap caused by the impact of the epidemic is the company further consolidating market share and increasing the market. Opportunity for share. As one of the major lithium battery suppliers in the field of power tools, the company can only speed up the construction of advanced production capacity and rapidly expand production scale to effectively solve the capacity bottleneck, meet the rapidly growing market demand, and continue to consolidate the company's dominant position in the field of lithium-ion batteries.