Xinwangda 4 billion plus 3C 'cell + module'

On the evening of February 25th, Xinwangda disclosed a plan to issue stocks to specific targets. The total amount of funds to be raised will not exceed 3.937 billion yuan, which will be used for 3C consumer lithium-ion battery expansion projects and 3C consumer lithium-ion battery modules Expansion project, notebook computer lithium-ion battery module expansion project, supplement working capital. The '3C Consumer Lithium-ion Battery Expansion Project' has a total investment of 1.45 billion yuan. The execution unit is Zhejiang Liwei Energy Technology Co., Ltd. The project plans to build a production line with an annual output of 125 million consumer lithium-ion batteries. The construction period is 2.5 years. . The '3C Consumer Lithium-ion Battery Module Expansion Project' has a total investment of 1.3 billion yuan, and the executive unit is Xinwangda Electronics Co., Ltd. It plans to build an automated production line with an annual output of 125 million consumer lithium-ion battery modules, an important product It is a mobile phone digital lithium-ion battery module with a construction period of 3 years. The 'Laptop Lithium-ion Battery Module Expansion Project' has a total investment of 500 million yuan, and the implementation unit is Zhejiang Xinwangda Electronics Co., Ltd. The project plans to build a production line with an annual output of 40 million laptop-type lithium-ion battery modules. 2 years. In 2014, Xinwangda officially entered the consumer battery business by acquiring a 51% stake in Dongguan Liwei, realizing the extension of lithium-ion battery modules to the upstream of the industrial chain. In 2018, it acquired the remaining 49% of Dongguan Liwei. On February 25th, Xinwangda announced that it agreed to Huizhou Liwei to acquire from Lanchuang Group a 40% stake in Zhejiang Liwei with its own funds of 1,243,200 yuan. After the completion of the transaction, Zhejiang Liwei changed to A wholly-owned subsidiary of Huizhou Liwei. Xinwangda's acquisition of Liwei and continuous expansion of 3C battery cell and module output can be explained by several internal and external factors: from the perspective of external factors, with the continuous expansion of important application areas of consumer lithium-ion batteries, and the stock The innovation of product categories will further give rise to new rising points in the consumer electronics industry and provide considerable market growth space. According to data, global shipments of notebook computers will exceed 200 million units in 2020, an annual increase rate of more than 20%; global wearable device shipments in the third quarter of 2020 will be 125 million units, a year-on-year increase of 35.10%; global smartphones in 2020 Shipment volume is 1.292 billion units. With the emergence of new technologies such as 5G, folding screens and full screens, the new replacement cycle will drive shipments to rise again. From the perspective of internal factors, firstly, with the gradual release of Lithium power production, Xinwangda's battery cell self-sufficiency rate continues to increase, thereby increasing its battery business. Xinwangda mainly uses Dongguan Liwei and Huizhou Liwei as the main body of production and Ru0026D of consumer lithium-ion batteries. Limited by the output of consumer batteries, its self-supply rate still has a large room for improvement. In 2019, Xinwangda’s cell output reached 108 million, with a self-sufficiency rate of 16%. In 2020, Xinwangda issued convertible bonds to raise funds of 1.12 billion yuan to expand the production of consumer lithium-ion batteries, and it is expected that the new output will increase by 94 million units per year after reaching production capacity. Through the execution of this fundraising project, it will increase the production scale of its mobile phone digital and notebook computer lithium-ion battery modules, and continue to increase its consumer lithium-ion battery self-supply capacity. In terms of profitability, the current profitability of the battery cell business is higher than that of the Pack business. Lithium-ion batteries account for a relatively high proportion of the cost structure of lithium-ion battery modules (about 60%), and the gross profit margin of the battery cell business is 20%, and the gross profit margin of the battery pack business is about 10%. With the gradual release of battery cell production, its battery cell business will continue to rise in the next three years. Second, through the expansion of consumer lithium-ion battery modules, it can digest the new battery production and help reduce costs. Judging from this fundraising project, Xinwangda has expanded the production of both mobile phone battery modules and notebook battery modules. At present, Xinwangda consumer lithium-ion battery modules require outsourcing of batteries. As an important raw material for lithium-ion battery modules, battery cells will be effectively digested with the release of battery cell output. According to the announcement, Xinwangda's battery cell products have successively passed the audit, testing and certification of most lithium-ion battery module customers and entered mass production supply, which guarantees its output digestion. Under the supply combination of battery cells + battery modules, integrated design and production management can better guarantee the production and delivery of products and help reduce costs.