龙蟠科技: H股公告-进一步公告关连交易增资协议

Core Viewpoint - Jiangsu Lopal Tech. Co., Ltd. has entered into a capital increase agreement with Changzhou Lithium Source, a non-wholly owned subsidiary, and the valuation report indicates that the valuation is based on the income approach, which constitutes a profit forecast under the listing rules [1][2]. Valuation Report Summary - The valuation report outlines that the assessment of the total equity value of shareholders is based on three fundamental methods: income approach, market approach, and asset-based approach [3][5]. - The income approach focuses on the future earning capacity of the assessed unit, converting expected future earnings into present value using an appropriate discount rate [6][18]. - The market approach involves analyzing comparable companies and transaction prices to determine the enterprise value, utilizing market multiples such as price-to-earnings and price-to-book ratios [8][19]. Financial Performance and Forecast - Changzhou Lithium Source was profitable in 2022, but due to significant fluctuations in lithium carbonate prices, it is expected to incur losses in 2023 and 2024. However, management anticipates a return to positive gross margins starting in 2025 as high-cost inventory is depleted [5][21]. - The projected compound annual growth rate (CAGR) for operating revenue from 2024 to 2029 is estimated at 9.3%, with a stable sales price expected due to the stabilization of lithium carbonate prices [21][22]. - The total equity value of Changzhou Lithium Source is assessed at approximately RMB 4.84 billion (approximately USD 0.66 billion) based on the income approach, while the market approach yields a value of approximately RMB 4.58 billion (approximately USD 0.64 billion) [19][20]. Industry Context - The lithium iron phosphate (LFP) cathode material is crucial for lithium batteries, with a projected increase in demand as the market for new energy and energy storage continues to expand. In 2024, China's lithium battery shipments are expected to reach 1,175 GWh, a year-on-year increase of 32.6% [20][21]. - The industry is currently facing price adjustments, but the long-term outlook remains positive due to the growing market for renewable energy and energy storage solutions [20][21].