Magnesium Battery Project Development Business Plan Book

I. Broad market prospects: Magnesium batteries are new high-performance environmentally friendly batteries based on magnesium materials. They were first developed and produced by Israel and are now in China. The new technology mastered by our company's investment-controlled Shanxi and Tangshan magnesium battery enterprises has applied for national patents, possessing the independent intellectual property rights of production technology, and at the same time greatly improving production efficiency. The company's main product is the magnesium series battery. Because of the performance and price ratio of magnesium batteries, it is superior to any previous battery, and it is safer and more environmentally friendly. Therefore, it can replace all existing battery products on the market and will become the mainstream product in the market. This project can produce military magnesium batteries of various specifications and models and civilian magnesium batteries of various specifications and models. The annual output of China's more than 18 billion batteries accounts for more than 30% of the world's total battery production, and the annual sales volume reaches 7 to 8 billion. The market is huge.

Second, raw material advantages: China is the world's largest raw magnesium producer, accounting for 70% of the global market. As the most important producer of primary magnesium in the world, China's raw magnesium has sufficient capacity, full competition, low prices and international markets. China's primary magnesium production areas are mainly distributed in Shanxi, Ningxia, Liaoning and other places.

Third, the product cost advantage: magnesium battery is two-thirds of the cost of the same volume of lithium battery.

Fourth, the production technology advantage: through the identification of relevant technical departments, its production technical indicators are better than Israel and Germany.

V. Product performance advantages: Magnesium battery has the characteristics of high energy, small volume, light weight, large capacity, long storage life, wide working temperature range, wide application range, large cost performance, environmental protection, no pollution, and secondary recovery.

VI. Independent intellectual property rights: The inventor of the magnesium battery is a well-known expert in this field in China. Its intellectual property rights have been declared patents, the review has been passed, and it is currently in the two-year waiting period of the confirmation process. Its patented technology can be immediately applied to the commercialization process.

VII. Product maturity: Product performance advantage, cost advantage, and production technology advantage are the fundamental reasons for obtaining trial approval and order for important state-owned unit users.

8. National Encouragement Policy: Ordinary used batteries seriously pollute the environment. How to solve this problem has become increasingly prominent in front of people. To this end, the state has issued a number of policies aimed at solving these problems, but with little success. The environmentally friendly and new energy characteristics of magnesium batteries are the root cause of national policy encouragement.

IX. Enterprise development goals: The project is in line with the listing conditions of the capital market, and strives to develop into a high-quality listed company in the new energy industry in about three years.

X. Return on Investment: After the company is listed, the P/E ratio will be higher than the average P/E ratio of the market.

XI. Project risk control: 60% control of the project company, control of the board of directors, strengthening of management and internal supervision. There are orders from reliable users, and the company has low operational risk. The investment cost recovery cycle is short and the risk is low.

XII. Economic Benefit Expectation: Based on the potential demand of the market and the current order, the company will reach an investment target and form a stable operating condition and profitability. The annual profit will reach 300-800 million yuan.

Thirteen, listing time schedule: the second half of 2019.

14. Investment Amount: Shanxi Jinyuan Tianrong Magnesium Battery Co., Ltd. invested 100 million yuan; Tangshan Jinyuan Hongji Magnesium Battery Co., Ltd. invested 100 million yuan in the first phase and 200 million yuan in the second phase.

Fifteen, investment return rate: After three years, the expected equity appreciation is 5-10 times.

XVI. Project Status: The project is industrialized in Tangshan City, Hebei Province and Taiyuan City, Shanxi Province. After the completion of the Tangshan Plant, it can produce and process 19,500,000 varieties of magnesium batteries each year, with an annual output value of 189.95 million yuan.

17. Investment method: direct venture capital investment.

18. Shareholding ratio: Our company accounts for 60% of the newly formed magnesium battery company, and the technology inventor accounts for 40% of the shares.

19. Investment distribution bonus ratio: 60% of the company's annual net income after corporate income tax is used for dividend distribution.

20. Capital liquidity: After the expiration of the three-year period, under the condition of the investor's consent, the investor's entire equity of the investor shall be preferentially repurchased according to the equity transfer price of 160% of the investment amount.