U.S. Energy Release 2017 Annual Report

Medu Energy released its annual report for 2017, and its annual operating income was 6.482 billion yuan, a year-on-year increase of 46.61 billion yuan; The net profit was 57.89 million yuan, a year-on-year decrease of 61.18 million yuan.

The company is in a transition phase and plans to phase out its property development business and enter the energy industry, the report said. The current energy business of Medu Energy mainly includes: exploration, development, production and sales of traditional energy, including crude oil and natural gas; The new energy business includes the research and development and production of lithium carbonate, cathode materials, and lithium batteries in the upper reaches of the new energy automotive industry chain, and the cultivation of industrial applications of graphene emerging materials.

In 2017, through the acquisition of mature enterprises in the fields of lithium carbonate, lithium hydroxide, ternary materials, and lithium batteries, Medu Energy has initially formed the "Lithium-lithium carbonate battery ternary positive material-ternary power lithium battery-new energy vehicle service". Industry chain, At the same time, it will continue to pay close attention to the graphene industry and continuously implement the layout of the new energy industry.

According to the report, the business situation of the new energy sector in 2017 is as follows.

Lithium Battery Material Business

The lithium electric materials business of Medu Energy mainly includes the research and development, production and sales of lithium electric new materials such as lithium carbonate, lithium hydroxide and lithium metal; Production and sale of three-way battery positive electrode materials and precursor products.

The subsidiary Ruifu Lithium has 25,000 tons per year of battery-grade lithium carbonate production line and 3,000 tons per year of Gaochun's lithium carbonate production line, while 10,000 tons per year of battery-grade lithium hydroxide is under implementation. It is expected that by the second half of 2018, Ruifu Lithium will have 38,000 tons/year lithium salt production capacity.

In the lithium extraction process of Ruifu Lithium, the conversion rate of ore can reach 98 <UNK>, the acid rate can reach 98 <UNK> or more, the leaching rate of lithium can reach 99 <UNK>, the final extraction rate of lithium can reach 87 <UNK>, and the residual lithium in the slag can be 0.5 <UNK>.

The subsidiary, Medouhai Chuang, currently has 12,000 tons of precursor production capacity and 6,000 tons of positive material production capacity. Another 20,000 tons of ternary precursor projects and 20,000 tons of ternary cathode materials are under construction. As of the disclosure date of this report, construction of a new annual output of 50,000 tons of new energy lithium battery materials in the United States has started. After the completion of the project, the annual production capacity of the ternary precursor can be reached by 54,000 tons, the annual output of the ternary positive material is 50,000 tons, and 80,000 tons of anhydrous sulfuric acid is produced jointly.

Lithium battery production business

The Medu Lithium Battery business is mainly for the production and sale of three-way power lithium batteries for new energy vehicles. The products include three-way power batteries, lithium iron phosphate batteries, polymer batteries, and electric bicycle battery components.

The joint stock subsidiary Delang can build a new 2600mAh and 3200mAh 18650 model powered lithium battery in 2017. It has a high energy density and can provide more power for new energy vehicles in the same volume battery module, thereby improving the endurance. By the end of 2017, Delang had three production bases in Zhangjiagang, Shanghai and Ningbo, with a total production capacity of 2.5 GWh.

Network car operation business

Medu Energy New Energy Vehicle Service is mainly a new energy vehicle battery recharging service and network car operation business.

The "Blue Avenue" plan is a system solution provided by Hangzhou Yaoding, a participating subsidiary, for the new energy generation of urban transportation. The plan has been verified over 100 million kilometers of actualspecial. The plan focuses on high-frequency travel scenarios, replacing large energy vehicles with taxis and network vehicles, and simultaneously building supporting facilities to provide scientific operation management models, eventually driving the overall development of the urban new energy industry.

Graphene industry

As of the disclosure date of the report, the subsidiary Medumene has already obtained a patent for a graphene composite electrode material and preparation method, and two graphene related patents have entered the substantive review stage. Three other graphene related patents have been received by the State Intellectual Property Office of the "Initial Examination of Invention Patent Applications".

The company's new energy business is mainly located in production upstream of the new energy car industry chain, but the integration of the businesses between the subsidiaries will take time, the company said. The report stated that the company is making every effort to develop the new energy industry. The amount of investment in various industrial projects is large, and the amount of liquidity required for the initial investment and construction of the project is large. In 2017, there will be no profit distribution, nor will it be increased by the Provident fund.

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