Brief description of the layout of the entire industrial chain of Ganfeng lithium industry

Recently, Gan feng lithium industry released the first quarter of 2018 results forecast that the company expected a profit of 3.07-375 million yuan in the first quarter, an increase of 125 % -175 % over the same period last year.

Gan Feng Lithium Industry said that the company's performance changes are due to: As the downstream lithium-powered battery market drives the demand for the upstream battery material industry, the demand for lithium chemical products continues to grow; What? The company's supply of raw materials was guaranteed in this period compared to the same period of last year, and the production and sales of lithium products increased significantly from a year ago. (RIM's lithium pyroxene project was successfully put into operation in February 2017. The first ship arrived in March 2017 and the company's raw materials supply in the first quarter of 2017 was insufficient.)

As a representative manufacturer of lithium compounds in China, the Lithium industry mainly sells lithium compounds, metallic lithium and lithium battery products. With the rapid surge in demand in the new energy industry, especially in the power battery industry, the company has accelerated the pace of the overall industrial chain while the revenue of the lithium salt business has skyrocketed. At present, it has been involved in the extraction of upstream lithium resources, deep processing of lithium compounds, lithium metal production, power cell production, and lithium recovery business.

The financial data in the 2017 annual report also released recently fully illustrate the effectiveness of the entire industrial chain layout of the Lithium industry.

According to the announcement, the Lithium industry achieved operating income of 4.383 billion yuan in 2017, an increase of 54.12 % year-on-year; The net profit of shareholders belonging to listed companies was 1.469 billion yuan, a year-on-year increase of 216.36 %.

Among them, the company's lithium metal series revenue in 2017 was 826 million yuan, an increase of 72.02 % year-on-year; The gross profit margin was 44.97 %, an increase of 4.65 percentage points year-on-year. The revenue of deep-processed lithium compounds was 2.905 billion yuan, an increase of 64.98 % year-on-year; The gross profit margin was 45.50 %, an increase of 1.07 percentage points year-on-year. The revenue of lithium batteries, batteries and their direct materials was 286 million yuan, a year-on-year decrease of 14.53 %; The gross profit margin was -7.14 %, a decrease of 17.74 percentage points year-on-year.

In contrast, the dominant products of the Ganfeng lithium industry are still in lithium salts, and the proportion of lithium batteries, batteries, and their direct material income is still small, and the gross profit margin is significantly lower.

In order to maintain the advantages of the core products, according to the company's current plan, the production capacity of lithium salt is still relatively large: the 20,000-ton lithium hydroxide production line has been ignited for trial operation, with a total of three production quarters. A 17.5 million tons of lithium carbonate production line is under construction and is expected to be commissioned in the fourth quarter of 2018, with production reaching quarterly. It is estimated that by the end of 2018, lithium salt processing capacity, including battery recycling, will exceed 80,000 tons.

However, there are also analysis of the prospects for the future of lithium battery industry in the field of solid-state batteries.

In 2017, Ganfeng Lithium introduced Dr. Xu Xiaoxiong's team and invested 250 million yuan to build the first-generation solid-state lithium battery production line. According to the plan disclosed in the announcement, the production line will be completed and put into operation in December 2018. Lithium battery production line, and to achieve sample delivery).

The most important step in improving the energy density of solid lithium batteries is to change the negative electrode to metallic lithium. The Lithium industry has a long history of metal lithium production. Currently, it has 1,500 tons of metal lithium production capacity and is the world's largest producer of metal lithium. One of them, It is expected to take the lead in the increase in demand for metallic lithium brought about by the promotion of solid lithium batteries.

It is worth mentioning that the recent investment announcement of the Lithium industry in the Ganfeng industry has highlighted its ambition to extend the layout of new energy vehicles.

On March 6, Ganfeng Lithium Industry (002460) announced that it had agreed to invest RMB 100 million in the company's subordinated Lufeng Industry Fund to invest in the convertible bonds of Qiantu (Suzhou) Co., Ltd. for one year. Ganfeng Industry Fund has the right to choose the convertible bond from the future of the convertible bond to convert the principal and interest of the convertible bond, or convert the convertible bond principal and interest into a 10% stake in the prospective car, and further convert it into the parent company Great Wall Huaguan of the prospective car. Equity.

The company said that the above-mentioned foreign investment is to help promote the production of future vehicles and strengthen the company's investment and development capabilities in strategic emerging industries, which is conducive to further improving the company's core competitiveness and profitability.

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