Yuefeng Group plans to issue 2.8 billion yuan convertible bonds to expand the production capacity of precision aluminum alloy parts in the field of new energy vehicles
July 13, 2023
On the evening of July 11, Yuefeng Group issued a prospectus for issuing convertible corporate bonds to unspecified objects. The company intends to raise a total of no more than 2.8 billion yuan in convertible bonds, mainly to invest in the production capacity construction of precision aluminum alloy parts in the field of new energy vehicles.
Yuefeng Group is one of the leading enterprises in the field of automotive precision aluminum alloy parts, and its business is highly focused on the field of new energy vehicles. The relevant person in charge of the company told the Securities Daily reporter: "The company's fundraising project is closely focused on the main business, which is conducive to further expanding the company's production and operation scale, increasing the company's financial strength, optimizing the company's debt structure, and achieving sustainable development."
For the expansion of Yuefeng Group, Wang Chikun, a researcher at the Beijing Understanding Research Institute, said in an interview with reporters that the company's move has a certain necessity and feasibility. "In recent years, under the trend of automotive lightweight, global new energy vehicle sales have repeatedly hit new highs, the industry has a solid foundation for future sustained growth, at this stage, aluminum alloy instead of traditional steel is the core path to achieve automotive lightweight, and the battery, motor and electronic control system required in new energy electric vehicles further increase the application scenario and future demand for aluminum alloy materials."
The relevant person in charge of Yuefeng Group also said: "In recent years, the scale of the company's business continues to expand, and it is necessary to further build capacity through this fundraising, strengthen the main business operation, and timely grasp the incremental demand of the downstream market."
Public information shows that from 2020 to 2022, Yuefeng Group's operating income increased from 1.628 billion yuan to 4.454 billion yuan, with a compound annual growth rate of 65.42%; Net profit increased from 333 million yuan to 700 million yuan, with a compound annual growth rate of 45.05%. At the same time, the company's annual production capacity utilization rate in 2020, 2021 and 2022 is 80.68%, 86.93% and 84.10%, respectively, and the production and sales rates of automotive precision aluminum alloy parts are 98.29%, 93.46% and 92.72%, respectively.
According to the relevant person in charge of Yuefeng Group: "The capacity planning of the company's fundraising project is more focused on the three power system related products of new energy vehicles." This is a further strengthening of the company's existing main business, which is conducive to deepening the company's advantages in the three dimensions of "new energy, lightweight and integration" and strengthening the company's differentiated competitive advantage."
Specifically, the new energy vehicle powertrain project of Yuefeng Group will add 500,000 sets of battery system shell assembly, 1.46 million sets of electronic control system structural parts and 1 million sets of control system structural parts to the company; The construction of key lightweight automotive components projects will add 1.3 million sets of transmission system structural parts, 600,000 sets of electronic control system shell assembly and 250,000 sets of battery system structural parts to the company; After the completion of the green manufacturing project for automotive lightweight structural parts, 800,000 sets of transmission system structural parts and 700,000 sets of lightweight body structural parts will be added to the company.
"In the future, the company will continue to focus on high-quality customer demand in the field of new energy and lightweight, in order to meet the arrival of the era of full electrification, and become one of the important players in the sustainable energy economy." The relevant person in charge of the above Yuefeng Group said.