curado301hg| Xinzhoubang plans to invest US$350 million to build overseas factories with a production capacity of more than 670,000 tons of core products under construction

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SourceCurado301hgChangjiang Commercial Daily

Zhang Lu, a reporter from Changjiang Business Daily.

New Zebang, manufacturer of key materials for batteries (300037Curado301hg.SZ) start a large-scale production expansion plan.

On May 21, New Zeus announced that the company intends to build a battery chemicals project in Louisiana with a wholly owned company Capchem Technology USA Inc. (referred to as "New Zeus") or other newly established holding companies as the main body, with a total investment of about 3%.Curado301hg.50 million US dollars.

New Zebang said that the purpose of this overseas plant is to meet the needs of the North American market for battery chemicals such as lithium-ion battery electrolytes and to deepen cooperation with long-term strategic customers.

New Zebang started with capacitor electrolyte business, and its main products include battery chemicals, organic fluorine chemicals, capacitive chemicals and semiconductor chemicals. Among them, battery chemicals are still the core business, accounting for more than 60% of the company's total revenue in 2023.

According to the financial report, by the end of 2023, the new Zebang has a battery chemical production capacity of 269700 tons, a capacity utilization rate of 81.29%, and a capacity of 672400 tons under construction.

The pace of going to sea is accelerated.

A few days ago, New Zeus announced that the company intends to take the wholly-owned company New Zeus or other newly established holding companies as the main body to build a battery chemicals project in Louisiana.

Specifically, the company plans to build an annual production capacity of 200000 tons of carbonate solvents and 100000 tons of lithium-ion battery electrolytes in Ascension Parish, Louisiana, with a total investment of about $350 million.

According to the announcement, the project aims to meet the demand for battery chemicals such as lithium-ion battery electrolytes in the North American market and deepen cooperation with long-term strategic customers.

In fact, in recent years, with the continuous improvement of the requirements for the localized production of supply chain enterprises in the European and American new energy vehicle market, the "going out to sea" of lithium power enterprises has gradually become a trend, and the new Zebang belongs to the vanguard force.

As early as 2018, New Zeus set up a subsidiary in Poland, and its local project has now entered the stage of formal production. Then, in March 2021, New Zeus announced the establishment of a subsidiary in the Netherlands and disclosed plans to expand production.

In June 2023, New Zeus announced that it plans to build a battery chemical production base in Ohio, USA. The total investment of the project is no more than 120 million US dollars, the construction period is three years, and the construction is divided into two phases, of which the investment in the first phase is not more than 75 million US dollars.

New Zebang said that building a factory in North America is an effective means to consolidate and expand the US market. Sales of electric vehicles in the United States in 2022 were nearly 800000, an increase of nearly 55 percent over the same period last year. In terms of energy storage, it is expected that the installed scale of new energy storage in the United States will reach 74.2GW/241GWh in 2023-2027.

According to the financial report, the overseas sales of New Zeus reached 1.887 billion yuan in 2023, accounting for 25.22% of revenue, an increase of 10.11% over the same period last year.

It can be predicted that with the completion of overseas investment projects, the overseas supporting capacity of the new Zeus will be greatly enhanced, and at the same time, it will contribute to the overall performance development of the new Zeus.

The production capacity in the construction exceeds 670000 tons.

According to public data, the new Zebang was founded in 2002 and listed on the gem of the Shenzhen Stock Exchange in 2010. Since its establishment, the company has been based on the medium-and long-term development strategy of fine chemical industry and industrial extension, with equal emphasis on endogenous growth and epitaxial development. the company has successively completed the research and development of capacitor chemicals, battery chemicals and semiconductor chemicals to mass production.

Benefiting from the rapid development of the new energy vehicle industry, New Zebang achieved a net profit growth of more than 150% in 2021. Changjiang Business Daily reporter noted that from 2015 to 2022, the company achieved net profit growth for eight consecutive years.

However, after the boom in the industry, as the production capacity of relevant companies continues to release and electrolyte prices continue to fall, the profitability of New Zeus has been affected by this.

In 2023, New Zeus realized revenue, net profit and deducted non-net profit of 7.484 billion yuan, 1.011 billion yuan and 956 million yuan respectively, down 22.53%, 42.5% and 44.20% respectively from the same period last year. In the same period, the company's net operating cash flow was 3.448 billion yuan, an increase of 90.53% over the same period last year.

From the product line, in 2023, the company's four series of battery chemicals, organic fluorine chemicals, capacitive chemicals and semiconductor chemicals accounted for 67.52%, 19.05%, 8.40% and 4.15% of revenue respectively.

According to the financial report, by the end of 2023, the new Zebang has a battery chemical production capacity of 269700 tons, a capacity utilization rate of 81.29%, and a capacity of 672400 tons under construction. At present, the company has nine production bases worldwide to ensure the delivery of battery chemicals, including eight in China and one in Europe.

New Zebang said in the latest announcement that although the company's electrolyte business is under short-term pressure, at the same time, the company adheres to the international strategy, strengthens cooperation with strategic customers, and continues to implement various measures to reduce costs and increase efficiency, which will continue to improve the overall profitability of the company.