CNNC Hua Yuan Titanium Dioxide Plans to Acquire Controlling Stake in Zhaoqing Helin Liye Technology and Establish Battery Business
2023-06-13 9:30

On June 5, CNNC Hua Yuan Titanium Dioxide Co. Ltd. announced that it has entered into an agreement with all the shareholders of Zhaoqing Helin Liye Technology Co. Ltd. Under the agreement, Hua Yuan will increase the registered capital of Helin in multiple phases, adding a total of RMB 450 million. After the completion of the transaction, Hua Yuan will possess a 75.385% stake in Helin, which will become its subsidiary and be included in its consolidated statements.

Established in 2020, Helin focuses on battery technologies. However, its products have remained mostly in the R&D phase, and its initial investments were directed toward operational expenses, including the maintenance and upgrade of a leased factory and the acquisition of equipment. As a result, it has also been operating at a loss. Helin incurred losses of RMB 71.0201 million and 14.5077 million for 2022 and the period from January to February 2023 respectively.

Even though Helin is posting losses, Hua Yuan appears to have an immense interest in Helin’s battery business that encompasses a wide range of technologies related to Li-ion battery cells, BMS, NEV power battery system, energy storage systems. Furthermore, Helin appears to be capable of engaging in not only R&D but also manufacturing and sales. Furthermore, Helin claims that it has patents for the key sections of the battery industry chain, including patents for cells, BMS, and packs. Additionally, Helin obtained certification for IATF16949 and ISO9001 in 2022.

Helin’s technological focus is on a solid-state polymer battery. The company has also been developing both the hardware and software for a BMS in-house. Boasting an impressive design capability, Helin has had its manufacturing process and offerings undergo on-site audits by esteemed clients such as Seres, Dongfeng, and GAC. Furthermore, some European clients have ordered small quantities of its products.

Established in 1989 and listed on the Shenzhen Stock Exchange on August 3, 2007, Hua Yuan is one of the major Chinese suppliers for titanium dioxide. Its main offerings are related to high-quality rutile titanium dioxide. According to its current growth strategy, Hua Yuan will be exploring opportunities in green circular economy during the period of the 14th Five-Year Plan. The company will be extending its presence across the battery industry chain, developing businesses pertaining to resource extraction, chemicals, advanced materials, and new energy technologies. As Hua Yuan maintains its position as the leading Chinese supplier for titanium dioxide, it is also transforming itself into a new energy enterprise with a significant market influence.

Hua Yuan’s core businesses have been the production and sales of titanium dioxide, iron sulfate, and other chemical products. Even before this transaction, the company commenced the setup of production lines for iron sulfate, LFP, and other materials related to the cathodes of Li-ion batteries. The first phase its iron phosphate project has been completed and entered pilot production. Following this transaction, Hua Yuan’s businesses will expand include various batteries for NEVs, energy storage equipment, and other specialty applications.

Hua Yuan said that acquiring a controlling stake in Helin will allow it to execute its growth strategy. Hua Yuan will be able to quickly build on Helin’s foundation and expand into the battery market, thereby taking full advantage of the historic opportunities brought by this latest energy revolution. At the same time, Helin’s resources will enable Hua Yuan to pursue high-quality and sustainable development.

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.