Shanshan shares split clothing business focus on lithium battery industry

On May 10, Ningbo Shanshan Brand Operating Co., Ltd. (hereinafter referred to as "Shanshan Brand"), a holding subsidiary of Ningbo Shanshan Stock Company, received the approval of China Securities Regulatory Commission (CSRC) on the approval of Shanshan Brand's issuance of overseas listed foreign capital stocks, and approved that Shanshan Brand issue no more than 42857000 overseas listed foreign capital stocks with the face value per share of the people. 1 yuan, all for common stock.

After the completion of this issue, the brand of Shanshan can be listed on the main board of The Stock Exchange of HongKong Limited. This means that the original main business of Shanshan clothing will be split and go to H shares separately. After listing, the main business of Shanshan Stock Company has become more prominent, becoming a lithium-ion new energy industry company with lithium battery materials as the dominant and upstream and downstream industry chains as the auxiliary.
Many people think that the main business of Shan Shan is a suit. But in fact, it has been transformed into a lithium battery industry company, and is the world's largest supplier of positive, negative and electrolyte materials for lithium batteries.
We can analyze the above changes from the annual business report data of Shanshan Stock Company. The annual business income of Shanshan Stock Company in 2017 shows that the company achieved 8.27 billion yuan, an increase of 51.07% over the previous year, a net profit of 896 million yuan, an increase of 17.142% over the previous year, and a net profit of 441 million Yuan excluding recurrent gains and losses, an increase of 72.07% over the previous year. Among them, the new energy business reached 7.489 billion yuan, accounting for 90.5% of the total revenue; the clothing brand business was 666 million yuan, accounting for 8.1% of the company's total revenue; the net profit was 49.374 million yuan, accounting for 5.5%. From the perspective of revenue growth, the substantial increase in revenue in 2017 over 2016 is also due to the new energy business, such as lithium-based materials, which has nearly 2 billion yuan more revenue, and other new energy-related businesses which have nearly 700 million yuan more revenue.
It is reported that the positive material produced by Shanshan shares has been ranked first in the country in brand competitiveness for four consecutive years, while the negative material also topped the list for the first time in 2017, while the electrolyte rose to the fourth place in China, which shows the success of this transformation.
Moreover, Shanshan's split of apparel business has also been recognized by the securities industry. The Research Report of Tianfeng Securities Research Report on April 26 concludes that, in view of the company's current focus on the new energy field, in order to get a better financing platform for the apparel business, the company's split apparel business is listed in H shares. And clothing business spin off, Shanshan can focus more on battery materials business.
It is reported that Shanshan has established the lithium battery new energy material industry as the company's main business, and will continue to increase investment in technology research and development and capacity scale in the future.
From the point of view of R&D technology, as the first enterprise in China to industrialize lithium-electric materials technology, Shanshan has established a national enterprise technology center, two provincial enterprise technology centers and two post-doctoral workstations. It has a solid foundation in the frontier fields of high-pressure lithium cobalt oxide, high nickel ternary materials, low-temperature fast charging, silicon-carbon negative materials and so on. Strong force. With the idea of "application generation, development generation and reserve generation", Cedar Energy has produced the world's first 4.45V high voltage lithium cobalt oxide product in high voltage lithium cobalt. In terms of ternary materials, while developing materials with more than 80% nickel content, the company also produces and promotes single crystal ternary materials, which can effectively improve battery capacity and cycle performance.
From a large scale, Shanshan is the largest lithium battery material manufacturer in the world. At the end of 2017, the output capacity of the fir was 60 thousand tons, and the output capacity of the positive pole was 43 thousand tons, all of which were the first in the world. The second stage of LiCobalt Production Line in Shanshanning Township, Hunan Province, was first put into production in April 2017, and the ternary production line was put into trial production at the end of 2017. Cedar Energy started the project of high nickel ternary and precursor with an annual output of 7200 tons in Shizuishan, Ningxia, and put into trial production in March 2018. In 2018, through the construction of Changsha positive pole and Baotou negative pole projects of 100,000 tons, the production capacity will be further strengthened.
Source: Shanghai, China