TU-TESL

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On November 13, Hanrui cobalt (300618) announced that the company plans to raise 1.901 billion yuan, mainly for the construction of "10000 tons / year metal cobalt new materials and 26000 tons / year three yuan precursor project". After the completion of the project, the annual average revenue is expected to be 3.081 billion yuan, and the annual net profit is 254 million yuan. According to the announcement, the project will be carried out in two phases. In the first phase, the crude cobalt hydroxide raw materials produced by Congo met company, a subsidiary of Hanrui cobalt industry, will be used in the cobalt smelting production line of cobalt series products, of which the design scale of cobalt (metal volume) is 10000t / A; in the second phase, the hydrometallurgical production line of ternary battery waste will be used to build 26000t / a ternary precursor. Hanrui cobalt said that the company's early cobalt powder precursor is mainly processed by domestic hydrometallurgy enterprises, which is not conducive to the company's next production capacity expansion and quality improvement. Therefore, the company mainly raised and invested high-performance nickel cobalt manganese ternary material precursor and cobalt oxide products this time. The main reason is that, on the one hand, this is the performance of the company in the field of waste recycling in the new energy industry chain; on the other hand, the construction of the hydrometallurgy production line replaces the outsourcing processing of the company's Cobalt intermediate products, which is conducive to further improving the company's complete industrial chain layout, improving the company's profitability, and meeting the company's long-term development strategy and plan. According to the high tech lithium battery, since the first half of the year, due to the sharp drop in cobalt prices, the once haloed Hanrui cobalt industry once suffered "Waterloo". Financial data shows that in the first three quarters of 2019, the company's revenue was 1.243 billion yuan, down 42.41% year-on-year; the net profit attributable to shareholders of listed companies was - 40.2985 million yuan, down 105.75% year-on-year. In the first half of this year, the revenue was 922 million yuan, down 38.62% year on year; the net profit attributable to shareholders of listed companies was - 76.53 million yuan, down 114.47% year on year. It can be seen that Hanrui cobalt industry affected by the decline of cobalt price is still not out of the dilemma, but the overall performance is more and more serious because of the drag of cobalt price. At the same time, according to the current market situation, if Hanrui cobalt cannot find a self rescue method in time at this juncture, the consequences will be predictable. It is worth noting that from the perspective of this project, Hanrui cobalt intends to expand its recycling business. As for battery recycling, at the policy level, since 2016, the Ministry of industry and information technology and other relevant departments have successively issued a number of policies on promoting the recycling of new energy vehicle power battery, guiding and regulating the construction and operation of power battery recycling service outlets, providing guidance and development direction for the enterprise layout. At the market level, with the continuous rise of new energy vehicles, the installed capacity of power batteries is also increasing, at the same time, battery recycling becomes imminent. According to the industry news, the power battery recycling industry is about to usher in a period of concentrated capacity scrap. By 2020, the scrap volume of vehicle power battery in China will reach 32gwh. With the double advantages of policy and market, the performance of Hanrui cobalt industry in the field of battery recycling seems to be reasonably explained. However, it remains to be seen whether the fundraising can succeed and successfully save Hanrui cobalt industry, whose performance has plummeted.