Tinci Materials, a major Chinese supplier for materials used in Li-ion batteries, has submitted its application for issuing of GDRs and listing on the SIX Swiss Exchange to China Securities Regulatory Commission (CSRC). The company announced on December 27 that CSRC has received all the proper documents related to the application and will begin the review process.
Tinci stated that it will have to obtain approval from CSRC and the Swiss counterpart before it can issue GDRs. The company emphasized that there are uncertainties in getting the relevant regulatory authorities to review and approve its application. Therefore, investors need to be aware of the related risks.
Tinci is among the first Chinese suppliers for electrolytes used in Li-ion batteries. It was established in June 2000 and successfully got itself listed on the Shenzhen Stock Exchange in January 2014. The core businesses of the company are materials used in Li-ion batteries, chemicals for everyday uses, and specialty chemicals.
Currently, Tinci has plans to set up electrolyte manufacturing projects in Fuding (Fujian Province), Nantong (Jiangsu Province), Meishan (Sichuan Province), and Jiangmen (Guangdong Province). In the second half of June, the company released a whitepaper on its global electrolyte business. The whitepaper reported that Tinci’s planned production capacity worldwide for electrolytes has already surpassed 2 million tons per year.
On December 17, construction formally began on the manufacturing project in Jiangmen. Entailing an investment of RMB 1.2 billion, the project will have 200,000 tons per year of production capacity for electrolytes and 100,000 tons per year of battery recycling capacity. Once up and running, the project will generate an annual output value of around RMB 5.7 billion.
Tinci is one of the main suppliers to CALB, and the manufacturing project in Jiangmen will be used to support this client’s battery production. On January 26, CALB and the government of Jiangmen signed an investment cooperation agreement. Under the agreement, CALB will build a local base for manufacturing NEV power batteries. The production capacity of the base is set at 50GWh per year.
In addition to electrolytes, Tinci has also started mass production of LFP. On November 30, a ceremony was held to inaugurate a manufacturing project in Yichang (Hubei Province). With an investment of RMB 1.388 billion, the project has 300,000 per year of production capacity for LFP and 50,000 per year of LFP battery recycling capacity. It is the world’s first LFP manufacturing project to achieve this kind of scale and will likely remain as the largest LFP manufacturing project in China.
In terms of financial performance, Tinci’s realized revenue for the first three quarters of 2022 came to RMB 16.429 billion, showing a huge year-on-year increase of 148.06%. Its net profit attributable to parent company for the same period also rose sharply by 180.65% year on year to RMB 4.36 billion. Its net profit excluding extraordinary profit and loss for the same period rose by 181.68% year on year to RMB 4.255 billion.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.
