Vitro cream increase promotes polymer lithium battery line upgrade

On September 30, 17, Vecco essence(600152) issued an announcement stating that the 18th meeting of the company's eighth board of directors considered and passed the "Proposal on the use of part of the fundraising funds to increase capital to subsidiary companies for fundraising projects."

According to the motion, the company's "Polymer Lithium Battery Production Line Technology Upgrade Project" and "R&D Center Construction 3 Project" of the company's project are organized and implemented by the company's subsidiary Ningbo Weike Battery Co., Ltd.(hereinafter referred to as "Weike Battery"). Among them, the "Polymer Lithium Battery Production Line Technology Upgrading Project" raised 250 million yuan, and the "R&D Center Construction Project" raised 28 million yuan, totaling 278 million yuan.

In order to promote the implementation of the fundraising project, the company intends to use the raised funds to increase the capital of Viko batteries by 278 million yuan, and the capital increase will be allocated in phases according to the progress of the fundraising project. After the capital increase, the registered capital of Viko Battery increased from 76.92 million yuan to 35.92 million yuan. The company still holds 100 % equity in Viko Battery directly and indirectly.

Vecco essence said that the capital increase will not have a negative impact on the company's financial and business conditions, does not involve related transactions and asset reorganization, this bill has yet to be submitted to the company's shareholders general meeting for consideration.

The high-industrial lithium power grid understands that due to the influence of macro environment and industry decline, the sales revenue and profits of Vecco's elite textile business have continued to decline significantly. In the first half of 2017, the company achieved operating income of 205 million yuan, a year-on-year decline of 21.34 %. In 2016, the company achieved operating income of 539 million yuan, a year-on-year decrease of 28.47 %; Net profit attributable to shareholders of listed companies was -64.4013 million yuan, down 245.6 % year-on-year.

In order to achieve new growth points and improve the company's asset quality, business scale and profitability, in February, VICO essence acquired more than RMB 900 million in equity stakes in the three companies and held a 100 % stake in VICO Battery through direct and indirect means.

Viko Battery was established on October 14, 2004. Its main business is the research and development, manufacturing and sales of lithium-ion batteries. It is mainly used in consumer electronics such as mobile phones, tablets, mobile power supplies, and smart wearable devices. In the mobile phone field, the company's products are mainly used for high-end brand mobile phones. At present, it has established good business cooperation relations with well-known mobile phone manufacturers such as Lenovo, Jinli, Hisense, Tune, and HTC in the downstream industry. It has a leading position in the smartphone industry.

In January 2016, Viko Battery(835456) was listed for public transfer in the National stock transfer system through an agreed transfer.

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