Xinlun Technology raises funds for lithium battery aluminum film project

On the evening of December 7, Shenzhen Xinlun Technology Co., Ltd. (hereinafter referred to as "Company" or "Xinlun Technology") announced that due to the actual situation of the progress of the non-public offering of investment projects in 2016, in order to enable the raised funds To achieve optimal configuration and maximum benefits, the company intends to transfer part of the raised funds of "TAC Functional Optical Thin Film Materials Project" to RMB 250 million from the company's wholly-owned subsidiary Xinlun Composite Materials Technology (Changzhou) Co., Ltd. (hereinafter referred to as " "New-polymer composite material" "high-performance packaging material project for lithium battery cells" (hereinafter referred to as "lithium battery aluminum plastic film project"), used for the investment construction of the project Changzhou production line. Xinlun Technology started construction of a 3 million square meters lithium battery aluminum plastic film soft bag production line, but now it is necessary to double this capacity to reach 6 million square meters per month.

According to reports, Xinlun Technology held the 7th meeting of the 4th Board of Directors on January 20, 2017, to deliberate and approve the "Proposal on Investing in the New Lithium Battery Aluminum Plastic Film Soft Pack Production Line in the Changzhou Functional Materials Industry Base". Lithium battery cells are built with high-performance packaging materials. The investment in fixed assets of the project is about 331 million yuan, and the planned production capacity is 3 million square meters per month for the aluminum plastic film for lithium batteries. The main body of the project is Xinlun Composite, a wholly-owned subsidiary of the company. Up to now, the construction of the project has been completed, equipment installation is proceeding as planned, and it is expected that it will be transferred to equipment commissioning in March 2018.

After completing the merger of Japan's letterpress lithium battery aluminum plastic film soft bag project, Xinlun Technology has cultivated a number of production, process, management and other fields by participating in the production and operation of Japan's Mie Plant under the support and training of Japanese partners. The professional talents gradually mastered the key technologies for the production of aluminum-plastic film products for soft-packed lithium batteries. On the other hand, they actively explored the domestic market. The monthly sales volume of the aluminum-plastic film has exceeded 1.3 million square meters, of which about two-thirds are power. Battery customer. According to the construction plan of the company's major customers and the forecast of the future market, the company expects that the capacity of the above-mentioned projects will not be able to meet the demand of fast-growing power lithium battery manufacturers. In order to fully grasp the market opportunities, the company plans to expand a set of products in the Changzhou Functional Materials Industrial Park. The planned production capacity is also 3 million square meters/month of lithium battery aluminum plastic film soft package production line, the estimated fixed assets investment of about 331 million yuan. After the expansion of the production line, the company's high-performance packaging materials for the Changzhou lithium battery cell will have a maximum capacity of 6 million square meters per month. Together with Japan's triple 2 million square meters per month capacity, the company will become the world's largest lithium. Manufacturer of aluminum plastic film for batteries.

Japan Toppan Printing Co., Ltd., Toyo Can Co., Ltd., T&TEnertechno Co., Ltd. will continue to provide technical support and services for the design, construction, and operation of the new production line. In order to avoid the overall capacity decline, the equipment relocation of the Mie Plant in Japan will be postponed until the new construction. The production line is started after it is fully produced.

The strategic claim of Xinlun Technology relies entirely on the inevitable conversion of the lithium battery market to high energy density and is also the market adjustment made by the soft pack battery gradually leading the market.

On December 30, 2016, the Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the National Development and Reform Commission jointly issued a document to adjust the financial subsidy policy for the promotion and application of new energy vehicles, which will be implemented from January 1, 2017. In the new subsidy policy, the technical requirements for energy density are getting higher and higher, and the higher the energy density, the higher the unit subsidy amount of the battery, resulting in high-energy batteries (such as ternary batteries) and lightweight batteries (such as soft-pack batteries). After entering 2017, it has ushered in a good development opportunity in the domestic power battery market.

In 2017, from the perspective of power battery manufacturers, Soft Pack battery manufacturer Fu Neng Technology ranks among the top three in domestic passenger car power battery sales; in the top 10 domestic power battery list in 2017, there are 6 companies. All or part of the production of soft pack batteries; and after entering the second half, Fu Neng Technology, Shanghai Ka Nai, Meng Shi Technology, Tianjin Jie Wei, etc. have announced a 5 ~ 10GWH expansion plan, Japan's well-known soft pack power battery manufacturer AESC was After the acquisition of the domestic industrial fund, it has announced that it will build a soft-package lithium battery plant with an annual production capacity of 20GWH in Zhenjiang. From the perspective of OEMs, the more popular Beiqi EC180, Geely Zhidou, Nissan LEAF, and Chevrolet VOLT/BOLT in 2017 all use soft-packed power batteries.

According to the forecast data of domestic industry associations and the feedback information of major customers of the company, it is estimated that the annual demand for the aluminum plastic film for domestic soft-packed lithium batteries will reach 300 million square meters in 2020. In order to fully grasp the market opportunities, the company will charge the Changzhou lithium battery. The core is expanded with a high-performance packaging material project.

Aluminum plastic film is the only raw material in domestic production of soft-packed lithium batteries that have not been domestically produced. The construction of the project can realize the localization of imported products, which is of great significance for promoting the upgrading of national manufacturing industry and cultivating independent intellectual property rights. In October 2017, the project was included in the national blank project to fill the industrial chain and received special funds from the central foreign trade and economic development for 9.6 million yuan and Shenzhen financial supporting funds of 5.76 million yuan; in November, it was included in the national 2017 technical transformation special project. The central budget investment project was once again supported by the central government's financial support of 37.8 million yuan. The attention and support of national policies not only illustrates the importance of the project but also creates favorable conditions for the smooth implementation of the project.

The lithium-ion battery soft-pack aluminum-plastic film project has high technical barriers and strong profitability. It is one of the national key development projects and has received the attention and support of the national policy.

Aluminum plastic film is the key material for flexible packaging of lithium-ion battery cells. It is a composite material consisting of aluminum foil, various plastics, and adhesives (including adhesive resins). At present, although there are many lithium-ion battery packaging materials such as steel shells, aluminum shells or plastic shells on the market, the aluminum plastic film has the advantages of lightweight, flexible design, and flexible packaging batteries to achieve 360-degree arbitrary placement. Has been widely used. The presence of organic electrolyte solvent inside the battery requires that the flexible packaging material can resist the swelling, dissolution, and absorption of the organic solvent while ensuring strict resistance to oxygen and moisture. As the outer casing of the flexible packaging lithium-ion battery, the aluminum plastic film is not only a simple outer packaging of the lithium battery but also one of the important components of the flexible packaging lithium ion battery.

The development direction of lithium batteries, first, miniaturization and thinning, to meet the demand of consumer electronics; second, the development of large-capacity, high-power charge, and discharge, mainly used in the field of power and energy storage. The former requires that the aluminum plastic film develops in the direction of lightness and flexibility while ensuring the barrier properties of water and oxygen; the latter requires the aluminum plastic film to have higher mechanical strength, higher barrier property, and longer service life. The development trend of lithium batteries puts higher requirements on the quality of flexible packaging aluminum plastic film.

Due to the high technical barriers, the global aluminum film manufacturers for lithium batteries are mainly Dainippon Printing, Japan Showa Electric, Japan Toppan Printing and Korea Kurimura Chemical. At present, there are only a few technical indicators of China's aluminum-plastic composite film products that can reach the level of Japanese and Korean enterprises, and the overall performance is still wide. The aluminum plastic film technology has high barriers and strong monopoly, resulting in high prices and stable prices, with a gross profit margin of about 40%.

Aluminum plastic film is the only raw material in domestic production of soft-packed lithium batteries that have not been domestically produced. The construction of the project can realize the localization of imported products, which is of great significance for promoting the upgrading of national manufacturing industry and cultivating independent intellectual property rights. After the project is fully put into production, it will become the world's largest aluminum plastic film production project for lithium batteries, which will help break the monopoly of foreign products and promote the company's profit growth and industrial upgrading. In October 2017, the project was included in the national blank project to fill the industrial chain and received special funds from the central foreign trade and economic development for 9.6 million yuan and Shenzhen financial supporting funds of 5.76 million yuan; in November, it was included in the national 2017 technical transformation special project. The central budget investment project was once again supported by the central government's financial support of 37.8 million yuan. The attention and support of national policies not only illustrates the importance of the project but also creates favorable conditions for the smooth implementation of the project.

The new energy industry has become an important trend in the development of the world's energy industry. As a strategic industry, it has received increasing attention from all countries in the world. Developed countries such as the United States, Europe, and Japan, and some developing countries have upgraded new energy from supplementary energy to alternative energy, and vigorously developing new energy industry is one of the important breakthroughs in solving energy and environmental problems. Energy vehicle development is the focus of the development of the world's automobile industry. Countries around the world are vigorously developing new energy vehicles. China has included it in the seven strategic emerging industries. It is pointed out that by 2020, energy conservation and environmental protection industries will become nationals. The pillar industries of the economy, new energy, new materials, and new energy automobile industries must become the national economy leading industry. The Energy Conservation and New Energy Vehicle Development Plan (2011-2020) (hereinafter referred to as the "Planning") details the development goals and a series of support policies for China's energy-saving and new-energy vehicles. According to the plan, pure electric vehicles will become an important strategic direction for the transformation of China's automobile industry. The overall goal is to achieve the world's first new energy vehicle industrialization and market scale by 2020.

Energy-saving and new energy vehicles have become the development direction of the international automotive industry. The next 10 years will be an important strategic period for the transformation and upgrading of the global automotive industry. At present, China's automobile production and sales scale have ranked first in the world. According to the Ministry of Communications, the number of civilian vehicles in China will increase to 11.4 billion by 2020. China's energy-saving and new energy automobile industry are booming, driving the upstream and downstream industries into a golden period of rapid development. Power batteries and raw materials are the core components of new energy vehicles. They have developed rapidly in recent years and have become the world's major producers. Perfect has good industrial support and supporting capabilities.

On December 30, 2016, the Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the National Development and Reform Commission jointly issued a document to adjust the financial subsidy policy for the promotion and application of new energy vehicles, which will be implemented from January 1, 2017. In the new subsidy policy, the technical requirements for energy density are getting higher and higher, and the higher the energy density, the higher the unit subsidy amount of the battery, resulting in high-energy batteries (such as ternary batteries) and lightweight batteries (such as soft-pack batteries). After entering 2017, it has ushered in a good development opportunity in the domestic power battery market.

After the company acquired Japanese companies, it adopted high-precision coating technology, introduced international advanced production equipment, established a research and production platform for lithium battery aluminum plastic film, broke foreign monopoly, solved import substitution, promoted domestic related industry upgrades, and met domestic huge Market demand, improve the company's core competitiveness and achieve long-term sustainable development of the company. The project has the technical and market foundation, meets the requirements of the company's precision coating product line extension and product technology upgrade, and can improve the company's profitability and risk resistance.

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