Comprehensive M&A data with integrated detailed company information

Yunnan Energy New Materials to expand manufacturing capacity
Posted on Wednesday, 25 March 2020 08:42
Yunnan Energy New Materials is going cap in hand to investors for CNY 5.00 billion (USD 706.96 million) to fund the expansion of lithium battery separators manufacturing capacity.

The Yuxi-based company is offering 241.61 million new shares, which represent a 23.1 per cent post-issue stake, to as many as 35 investors.

By expanding its ability to produce lithium battery separators, the group will be able to match downstream customer demand, consolidate its sector position and boost market competitiveness and profitability.

At the same time, proceeds will supplement working capital to better meet the daily expenses of production and operation and financially support the company’s various business activities.

Lithium-ion battery separators are one of the key materials for lithium-ion batteries, which have multiple applications, including consumer electronics, electric vehicles, energy storage, as well as in some market segments like power tools.

Yunnan Energy New Materials claims to be a global leader in this segment, with 30 wet process diaphragm production lines in four major cities representing the biggest capacity in the world.

According to the statement, the company accounted for about 31.0 per cent of the domestic lithium-ion separator market in 2019.

Furthermore, it had a 43.0 per cent share of the homegrown wet-film separator market last year.

Expanded production capacity means Yunnan Energy New Materials would be able to meet growing demand of downstream manufacturers and take large-scale orders from the likes of Panasonic, Samsung and LG Chem.

The group’s operating income has increased from CNY 1.22 billion in the financial year ended 31st December 2017 to CNY 3.16 billion in FY 2019.

Zephyr, the M&A database published by Bureau van Dijk, shows 2,710 capital increase have been announced so far this calendar year.

Yunnan Energy New Materials’ cash call is the 30th largest of 2020 to date.

© Zephus Ltd