Xucheng Technology Purchases Separator Film Production Line for Lithium Batteries

Xucheng Technologies announced on the evening of September 5 that it plans to issue no more than 32 million shares (including) at a price of 3.43 yuan per share to no more than 35 eligible investors. It is estimated that the total amount of funds raised will not exceed 109.76 million yuan (including).

For the purpose of raising funds, 90.6 million yuan will be used to purchase 3# lithium battery separator film production line and supporting facilities, and 1916 million yuan will be used to supplement the liquidity. By the end of 2016, the company's net asset per share was 1.46 yuan. The company said that after the implementation of the fund-raising project, it will increase production capacity, increase market development efforts, and the business scale will continue to grow.

Xucheng Science and Technology is mainly engaged in the research and development, production and marketing of lithium battery diaphragms, which are mainly used for power batteries and energy storage batteries. The company uses direct selling mode to sell to end customers. In the first half of the year, the company realized net profit of 5.52 million yuan, down 39.28% from the same period last year. Because of the decline of the new energy vehicle subsidy standard in 2017 and the strictness of the subsidy standard, the battery production of downstream customer battery manufacturers has decreased, and the demand for battery diaphragm products has slowed down. From the current situation, sales of new energy vehicles are rising, which will drive the demand for lithium power supply and battery separators. In the medium and long term, the development of new energy automobile industry has broad space, but the competition in lithium battery field is fierce, technology, capital and other important factors affecting the development of enterprises.

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