Huazheng New Materials intends to issue 570 million convertible bonds to build a high-grade copper plate Fushan Industrial Park manufacturing base

On the 21st, Huazheng New Materials released a feasibility analysis report on the fund-raising project: the public issuance of convertible bonds, the total amount of funds to be raised does not exceed 57 million yuan for the following projects, the implementation of the project is the company's wholly-owned subsidiary Zhuhai Huazheng New Materials Co., Ltd.
1, project basic situation
"annual output of 24 million high-grade copper plate Fushan Industrial Park manufacturing base project" aims to use their own technology, the new high-grade copper plate production line, the formation of an annual output of 24 million high-grade copper plate production capacity. Products can be widely used in communication information exchange systems, cloud computing storage systems, self-driving signal acquisition systems, Internet of Things radio frequency systems, medical equipment, rail transit, new energy, green logistics and other major

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total investment in this project was 2049 million yuan, of which 1949 million yuan was invested in fixed assets and 100 million yuan was invested in the floor. It is expected that the project will generate an average annual sales revenue of about 264 million yuan, an average annual after-tax profit of about 252.38 million yuan, and a construction period of 2 years.
2, the background of the project construction
(1) copper plate industry multi-polarization development, domestic upgrade to replace the speed increase
The upstream raw materials of copper plate mainly include copper foil, fiberglass cloth, resin and other materials. Copper plate is the core material of the production of printed circuit board, which is responsible for the three functions of conductive, insulating and supporting the printed circuit board. The quality of the copper plate determines the performance, quality, processability, manufacturing level, manufacturing cost and long-term reliability of the printed circuit board. China is the largest market for CCL in the world.
2019, global PCB production was $61.34 billion, according to Prismark. Of this total Chinese mainland,942 million U.S. dollars, the largest global share. However, China's current copper plate products are still mainly low-end products, the United States, Japan enterprises on communications and IDC demand for high-frequency high-speed sheet technology maturity is higher. Domestic high-tech, high value-added CCL varieties are relatively scarce, according to the General Administration of Customs disclosed CCL import and export price data, China's CCL export prices have long been lower than the import price, and in recent years the gap between the two has been widening, import replacement space is large.
3, the necessity of project construction
(1) to enhance the company's product delivery capacity, consolidate and enhance the company's market position
In order to meet the increasing needs of the market, enhance the company's product delivery capacity, consolidate and improve the company's market position, according to the company's overall business strategy planning by the company's management and board of directors discussed the decision, the company invested in the establishment of Zhuhai wholly-owned subsidiaries, responsible for building an efficient intelligent manufacturing and service base in southern China, and subsequent copper plate and other related products production and sales.
(2) To solve capacity bottlenecks and meet the growing demand of the market
The capacity utilization rate of the company's existing copper plate is more saturated, the existing capacity can no longer meet the rapidly growing demand for down-travel, and further expansion of capacity is needed through the implementation of new projects. At the same time, the expansion of downstream PCB applications such as 5G communications, automotive electronics and the Internet of Things has driven downstream customer demand for mid- to high-end copper-clad products.
(3) Seize the opportunity of industry development and enhance the company's market position
The electronic information industry is a strategic, basic and leading pillar industry of the national economy, a technical support and material basis for accelerating industrial transformation and upgrading and the construction of national economic and social information, and an important cornerstone for safeguarding national defense construction and national information security. As an important part of the electronic information industry, copper plate industry is an industry that our government attaches great importance to and strongly supports the development of. China has issued a number of policies, the copper plate industry-related products as the focus of development, for the development of the copper plate industry to provide policy support. Facing the development opportunities of the industry, the company urgently needs to maintain the production capacity of high-grade copper cover in 5G communication and other fields that match the trend of market demand, and continuously improve the technical level, production capacity and business scale of high-grade copper coating products to enhance the company's market position.
(4) to enhance the level of intelligent manufacturing, to achieve sustainable development of the company
At the same time, the domestic population dividend is gradually disappearing, labor costs are rising, how to improve production efficiency, reduce production costs has become an important problem facing copper plate production enterprises, but also copper plate production enterprises in the fierce market competition to win the key. Through the implementation of this investment project, the company will improve the level of production line automation and intelligence to improve production efficiency and product quality stability, on the other hand, improve the company's technical level and production management capabilities, improve product quality, shorten product delivery, improve customer service satisfaction, meet customer's personalized, diversified product needs, enhance customer stickiness, achieve sustainable development strategic objectives.