Shanshan owned subsidiary company of new energy and T & I (T & I is a Japanese company, which holds 75% of the Toda shares, Itochu holds a 25% stake), signed on the lithium battery cathode material cooperation agreement related to: A, the establishment of Toda new material Shanshan Co., Ltd. (holding company consolidated 75%): Shanshan new energy and T & I signed the “Joint Venture Contract”, T & I agreed capital increase by way of joint ventures in Hunan Shanshan change the grounds of a joint venture between the parties company. After the capital increase, Hunan, Hunan Shanshan Shanshan Toda changed its name to New Materials Co., Ltd., Shanshan New Energy holds 75% of the shares of the company, T & I holds a 25% stake. Main Shanshan top Toda new materials for lithium ion battery LCO (lithium cobalt oxide) cathode materials for the manufacture and sale. B, Toda set up Shanshan advanced material Co., Ltd. (holding company Consolidated 32.5%): Shanshan Toda new materials with T & I signed the “Joint Venture Contract”, jointly set up a joint venture Toda Hunan Shanshan advanced material Co., Ltd.. Advanced materials company’s registered capital of 20 million yuan, accounting for new materials Toda Shanshan advanced material company registered capital of 50%; T & I account for advanced materials company with registered capital of 50%. LCO advanced materials company’s main outside the cathode material of lithium-ion battery cathode materials, manufacture and sale.
The establishment of two joint venture companies, to further enrich the company’s lithium battery cathode material production line. “New Materials” companies engaged in the manufacture of lithium cobalt oxide top-selling, “Advanced Materials” in the other lithium battery cathode materials (including but not limited to, lithium manganese oxide, ternary system, lithium iron phosphate, etc.).
Toda technology to ensure the company’s products a competitive advantage. Source of two joint venture companies are Toda technology (technology use fee per company 22.5 million yen per year). Japan, Toda, Japan’s second lithium battery cathode materials manufacturer in the world with strong competitiveness and leading R & D capabilities. “New Materials Co., Ltd. (Hunan Shanshan)” has excellent production equipment and customer base, one of the shareholders of the Itochu holds a global market network (the registered capital of 202.2 billion yen). If you put aside the issue of cultural identity and integration, the tripartite co-operation called the “golden partner.”
According to media reports of Changsha, is expected to “New Materials” Joint Venture in the first year of 15 billion yuan sales revenue (in 2009 sales revenue of 4.14 billion), and 25% annual rate of increase by leaps and bounds. Advanced materials company currently has no operating data, but we expect growth will soon.
Shanshangufen complex issues of ownership structure makes it very complicated. Our business by three of its valuation: 1, textile and apparel business given the market value of about 1 billion, 2, holds 189 million shares of Bank of Ningbo shares, worth 23.4 billion. 3, the company’s current market capitalization of 9.8 billion, equivalent to the market value of the battery materials business of 65 billion yuan. We believe the company anode material in the first position in the industry, the development of cathode materials will soon enter the fast lane, the capitalization level is not high. So we bought to maintain the rating.
