Wynca acquiring 55% stake in Jincan Technology to support new energy development, at cost of RMB190 million

On January 4, Wynca announced its acquisition of a 55% stake in Jincan New Energy Technology (Huzhou) Co., Ltd., (Jincan Technology) affiliated to SINOSTEEL ANSHAN RESEARCH INSTITUTE OF THERMO-ENERGY CO. LTD., at a cost of RMB193 million. 

Jincan Technology is engaged in the research, development, production and marketing of lithium-ion battery anode materials. Its major products include artificial graphite, natural graphite and silica anode materials, which are primarily used in power batteries, consumer batteries and energy storage batteries.

Wynca said that the acquisition of the equity and assets of Jincan Technology will drive its strategic deployment in the new energy industry sector and facilitate the capacity expansion of application, research, development and industrialization of anode materials, which will speed up the integration, consolidation and differentiation of its anode material development. Meanwhile, the existing advantages of silicon and phosphorus industries can be fully utilized to create total material solutions, along with Wynca’s characteristics tailored to new energy application scenarios. Therefore, Wynca will create its important third source of growth, which will effectively drive its transformative development from the ″dual wheel run″ concept toward the ″triple wheel run″ objective.

Continued efforts in new energy material development 

As a listed agrochemical company under the umbrella of Zhejiang Transfar, Wynca has two major industries, which are crop protection and silicon-based new materials, having established a strong synergy within the company. In terms of crop protection, Wynca developed the integrated business model of ″intermediates-technicals-formulations,″ covering a complete crop protection system that includes seedlings, herbicides, insecticides, fungicides and crop nutrition. The company currently has a production capacity of 80,000 tons of glyphosate, and also purchases glyphosate technical to produce formulations, with annual sales equivalent to nearly 100,000 tons of glyphosate technical.

In terms of silicon-based new materials, Wynca owns a complete industrial chain covering upstream silicon mining and smelting, organosilicon monomer synthesis and downstream product manufacturing, which broadly apply to the 5G communications, photovoltaic new energy, rail transit, automobile, electric power, medical and health, architecture and building construction industries. Concerning organosilicon monomer synthesis, Wynca has established a complete industrial chain covering silicon ore smelting, silicon powder processing, monomer synthesis and downstream product processing, having formed its four major product series - silicone rubber, silicone oil, silicone resin and silane coupling agent.

Over the past two years, global agricultural product prices have risen rapidly, and the market price of glyphosate has hit a historical high. Meanwhile, the organosilicon industry sector has been given new opportunities for growth by the energy-saving and environmental protection industry sectors, photovoltaics and new energy, ultra-high voltage and ultra-high power grid construction, as well as smart wearable devices. Currently, Wynca’s two major business sectors are running at full capacity, continuously supporting the growth of the company’s profitability to new highs.

In light of the fast-growing new energy industry, in 2021, Wynca drafted a new series of strategic plans, which aim to transform its development from the ″dual wheel run″ concept towards the ″triple wheel run″ objective, meaning that future development will be based on two advantageous major industries, which are silicon and phosphorus-based industries, while existing industries are extended to new energy application scenarios, to shape Wynca’s characteristic total material solutions. 

Wynca’s acquisitions and investments in crop protection, silicon and phosphorus industries over the last two years

-On February 3, 2021, Wynca invested RMB210 million in the acquisition of a 51% stake in Hefei Xingyu and increased its capital, which was included in consolidated statements. 

-On February 23, 2021, an agreement was reached between Wynca and the Kaihua County Government on the transformation and upgrading of Zhejiang Kaihua Synthetic Materials Co., Ltd., a subsidiary of Wynca, at a cost of RMB2.26 billion, to creating a world-class and advanced manufacturing base for new organosilicon materials.

-On August 3, 2021, Wynca announced the establishment of a joint venture with the DFD Group to establish an annual 10,000-ton lithium hexafluorophosphate material plant.

-On September 3, 2021, Wynca and Huapont Life Sciences signed the Share Transfer Agreement. Under the agreement, Wynca contributed RMB800 million to take over shares in Nutrichem held by Huapont Life Sciences. Upon completion of the transaction, Wynca now holds a 12.31% stake in Nutrichem, therefore, becoming its second largest shareholder. 

-In November 2018, Wynca and Evonik Degussa (China) Investment Co., Ltd. made a joint investment to establish Evonik Wynca (Zhenjiang) Silicon Materials Co., Ltd. On October 14, 2021, the 9,000-ton fumed silica production base of Evonik Wynca (Zhenjiang) in Zhenjiang City, Jiangsu Province, started operations. This project is Evonik’s first fumed silica project in China, and is a joint venture where the Chinese partner holds the highest percentage of shares.

-On November 25, 2021, Wynca spent RMB246 million to acquire a 100% stake in Jingcheng Silicon Industry Ltd., aimed at expanding its silicon production capacity.

-On April 22, 2022, Wynca disclosed a board resolution stipulating that it will invest in Zijin Liyuan, a subsidiary of mining giant Zijin Mining, with a capital increase of RMB75.57 million.

-On January 4, 2023. Wynca disclosed its plan to designate its subsidiary, Zhejiang Qiyuan New Materials Ltd., to acquire a 55% stake in Jincan Technology, which is affiliated to SINOSTEEL ANSHAN RESEARCH INSTITUTE OF THERMO-ENERGY CO. LTD, at the transaction price of RMB193 million.