TU-TESL

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On December 12, Tianqi Co., Ltd. (002009) issued a major announcement on foreign investment, intending to acquire 61% of the equity of Jiangxi Tianqi jintaige Co., Ltd. for a consideration of RMB 475 million. According to the announcement, Jiangxi Jintai gege is a high-tech enterprise focusing on the recovery, treatment and resource utilization of waste lithium ions. Its main products are cobalt oxide, cobalt hydroxide, cobalt sulfate and nickel sulfate. In the first half of 2017, 2018 and 2019, Jiangxi jintaige's revenue was 239 million yuan, 522 million yuan and 169 million yuan respectively, and its net profit was 23.01 million yuan, 61.14 million yuan and 16.12 million yuan respectively. Tianqi Co., Ltd. participated in the establishment of industrial investment fund financial holding Tianqi in 2017 to invest in Jiangxi jintaige. After nearly two years, Jiangxi jintaige has completed the second phase of technical transformation, and its production and operation scale has been expanded. After the completion of this transaction, Tianqi will directly control Jiangxi jintaige, vigorously develop the comprehensive recycling of retired power batteries, from the comprehensive recycling of consumer batteries to the comprehensive recycling of retired power batteries of new energy vehicles, and promote the development of recycling industry in the comprehensive recycling of retired power batteries. At the same time, Jiangxi jintaige will also become an important part of the company's circular industry strategic layout, and play a synergistic effect with other subsidiaries of the company's circular industry. Tianqi is a supplier of logistics automation technology and equipment for manufacturing industry. Its main products include automobile assembly, automobile welding, body storage, automobile coating, airport logistics automation system, etc. In December 2017, Tianqi Co., Ltd. entered the field of lithium battery recycling by holding 51% of the equity of Shenzhen Qiantai Energy Recycling Technology Co., Ltd. At present, Shenzhen qiantai scrapped new energy vehicle recycling and dismantling and power battery recycling Industrial Park Phase I project has been completed, accepted and put into operation, and its holding subsidiary, Shenshan qiantai technology, has gradually carried out power battery dismantling business. At the same time, on December 12 last year, Tianqi announced that it planned to transfer 65% of the shares of LiZhi industry for a consideration of 58.5 million yuan. Li Zhi industry is mainly engaged in the production, processing and sales of lithium carbonate and lithium hydroxide. The acquisition of lithium salt enterprises and recycling enterprises will help Tianqi to implement the "one body, two wings" development strategy of recycling industry and form a complete industrial chain in the field of comprehensive recycling of power batteries. In the first half of 2019, Tianqi Co., Ltd. launched the demonstration base project of comprehensive recycling of waste automobiles. At present, it has preliminarily completed the planning of Hubei base and Ningbo base. In the first half of 2019, the revenue of recycling sector is 372 million yuan. According to GGII, at this stage, the recovery mode of lithium battery will still be disassembly and recovery. After 2020-2022, with the end-of-life of power battery approaching, the recovery volume of power battery will usher in a "peak", and the market recovery volume will account for more than 20%. However, at this stage, the relevant supporting policies and the battery recycling model are not perfect, and the output value growth of China's lithium battery recycling industry is limited. In the future, with the gradual implementation of relevant policies of various departments and the increase of ancillary value of end products, some enterprises will usher in a large profit space. Therefore, the enterprises that arrange the recycling, dismantling and reuse of power battery ahead of time occupy an advantage in technology upgrading, qualification certification and other aspects, and meet the 10 billion market of power battery recycling.