Another large group to increase capital Xingsheng lithium industry

Yahua Group(002497) announced on December 16 that in order to increase the investment in the lithium industry, it intends to increase capital and expand shares of Sichuan Xingsheng lithium industry limited liability company(hereinafter referred to as "Xingsheng lithium industry"), a wholly-owned subsidiary.

The amount of the capital increase and expansion is 72 million yuan, of which 18 million yuan will increase the registered capital and 54 million yuan will increase the capital area. After the capital increase is completed, the registered capital of the lithium industry will increase from 82 million yuan to 100 million yuan.

The production and sale of lithium hydroxide, lithium carbonate and Yuanming powder in the lithium industry; Sales and other businesses of other lithium salt series products(excluding hazardous products). The company's revenue from January to September 2017 was 40.06 million yuan, and net profit was -9,404,900 yuan(unaudited); 2016 revenue of 190 million yuan, net profit of 563,400 yuan.

With the rapid development of the new energy industry, the lithium industry will surely usher in better historical development opportunities. Xingsheng lithium industry is one of the important production companies for the processing of lithium salt, which is the foundation of the lithium industry. The company will increase its operating scale and strength by increasing its registered capital to create good operating performance.

Since this year, Yahua Group's layout in the lithium industry has been frequent, including expanding lithium salt production capacity and ensuring the supply of raw materials are its two most important tasks.

On December 1st, Yahua International Investment Development Co., Ltd., a wholly-owned subsidiary of Yahua Group(hereinafter referred to as "Yahua International"), signed a five-year lithium concentrate off-take agreement with the Galaxy lithium industry; An off-take agreement on DSO lithium mines was signed with Lithium Development(Graz North Territory) Ltd., a wholly-owned subsidiary of Australian Core.

By signing the above two purchasing agreements, it will solve the problem of supply shortage of lithium raw materials in the coming years.

On September 11, Yahua Group and Sichuan Energy Investment jointly acquired Sichuan Guoli Lithium Materials Co., Ltd.(hereinafter referred to as "Sichuan Guoli") with 62.75 % of the shares held by other shareholders other than Yahua Group.

Yahua group said that the cooperation company will use the position of state-owned enterprises and mining development experience of energy investment in Sichuan province to speed up the construction and mining process of lijiagou lithium-pyroxene mine, and realize the transformation of resources to production capacity as soon as possible, becoming an important product production of Sichuan guoli lithium-salt. Lithium-mineral resources guarantee.

At present, Sichuan Guoli, a holding subsidiary of Yahua Group, now has a capacity of 6,000 tons per year of lithium carbonate, and is currently upgrading a production line to add 3,000 tons of production capacity; Sichuan Guoli, a wholly-owned subsidiary of Sichuan Guoli, now has 6,000 tons of lithium hydroxide production capacity per year, and an additional flexible production line with an annual output of 7,000 tons; Xingsheng Lithium, a wholly-owned subsidiary, now has a capacity of 6,000 tons/year of lithium hydroxide, and will add a production line with an annual output of 6,000 tons. By 2018, Yahua Group will have a total of 24,000 tons/year of lithium hydroxide and 9,000 tons/year. Lithium carbonate production capacity.

On this basis, Yahua Group also launched a new round of lithium salt production capacity expansion plan, and increased capital to Yahua Technology, Yahua International, Ya'an Lithium, Xingsheng Lithium and other subsidiaries to enhance the subsidiary's business strength and scale, For its lithium salt capacity expansion construction to provide guarantees.

The industry believes that although the current Yayhua Group is still small in the area of lithium salt, it will have certain advantages in raw materials supply, cost reduction and production capacity release under the support of domestic and foreign lithium mineral resources supply. It is beneficial to its lithium salt capacity utilization rate and market share increase.

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