Capital power lithium battery industry will open resources champions

In recent years, benefited from China's new energy vehicle and energy storage requirements and the rapid growth of our country The lithium battery In particular, Power battery Industry ushered in the outbreak period of development, industry long-term prospects be valued by all parties. Layout of lithium batteries, as a result, many listed companies trying to grab a slice. At that time, lithium battery stocks are popping up, illusory. Therefore, this article specifically to the lithium battery industry listed companies, and to analyze its financial, to help readers deeper and thorough understanding of the industry status quo.

According to the mechanism analysis, 2017 the year China's lithium battery shipments have reached 74.8 GWH, global shipments by 52.1%;Among them, the car Power lithium battery(EVLIB) shipments of 38.0 GWH, accounting for global auto power lithium battery (EVLIB) shipments of 65.4%.In 2016, our country Lithium power battery Shipments is 30.5 GWH, 17.0 2015 GWH.

Lithium battery shipments also led to the growth of the upstream demand the rapid growth of lithium compounds. According to preliminary statistics, China nonferrous metals industry association Lithium industry branch 2017 world production of lithium and its derivatives (lithium carbonate equivalent of about 235400 tons, up 21.5% from a year earlier. Among them, the lithium salt production 123400 tons, up 43.5% from a year earlier. Global consumption of lithium or lithium carbonate in 2017 about 237000 tons, year-on-year growth of around 15%;Global supply of lithium compounds in a tight balance throughout the year, at the beginning of lithium carbonate price also by 12, 30000 Yuan/ton, all the way up to 16, 70000 Yuan/ton, the highest when even reached 180000 Yuan/ton; Among them, battery grade lithium carbonate or reached 47.54%, highest industrial grade lithium carbonate rise of 52.73%.

Lithium carbonate, lithium quick surge in prices of raw materials not only promoted the original enterprise capacity expansion, also attracted many outsiders into a battle for lithium is slowly opened.

Day's Lithium industry lead noms

Sky Lithium industry is the world's five largest lithium suppliers, one of its main business includes: solid lithium lithium resources development, chemical products production and trade in lithium. Main products include chemical grade, technical grade lithium lithium concentrate ore concentrate, industrial grade lithium carbonate, battery grade lithium carbonate, industrial-grade lithium hydroxide, battery grade lithium hydroxide, anhydrous lithium chloride, lithium and other lithium chemical products.

In 2017, benefit from high prices to match demand such as lithium carbonate, sky Lithium industry performance growth: lithium concentrate sales compared with last year increased by 29.84%, up to 407200 tons, sales of average price increased by 27.04% on the previous year; Lithium chemical products sales year-on-year increase 33.28% to 32400 tons; Annual business income is 5.47 billion Yuan, up 40.09% from a year earlier. Integrated product gross margin was 70.14% (see chart 1);Implement shareholders attributable to the parent company net profit of 2.145 billion Yuan, up 41.86% from a year earlier.

Good performance, high lithium products prices brought the day his Lithium industry greater confidence and greater ambitions. According to the results, 2018 days together Lithium industry will vigorously promote capacity expansion: suining housing are stepping up to 20000 tons of lithium carbonate project feasibility study and other preparatory work, Australia amounted to 48000 tons of battery grade single water lithium hydroxide in the implementation of construction projects is in an orderly way, one of the period of 24000 tons to be completed by the end of 2018, the second phase will be completed at the end of 2019;Hong base and Zhangjiagang base continued implementation of technical renovation, Chongqing qi lithium metal and lithium profile production line is optimized in the repair. And now owns lithium salt production capacity of 34000 tons/year, including 05000 tons of lithium hydroxide and 29000 tons of lithium carbonate, predicts 2020 days together Lithium industry lithium production capacity will exceed 100000 tons.

Sky Lithium industry such expansion in addition to keep confidence to the market, more is prepared based on its own competitiveness.

A day is sufficient resources reserves, qi Lithium industry has solid lithium resources in salt lake resources, its controlling talies in have at present are mining reserves in the world's largest and best quality lithium fai quarries - western Australia Green bushes (green bush mine).According to berry do bear Australian private co., LTD. (BehreDol bear Australia Pty. Limited) issued by the reserves evaluation report, as of September 30, 2016, green bush lithium total resources of 165.1 million tons, 8.33 million tons of lithium carbonate or equivalent; Lithium reserves totaled 86.4 million tons, 5 million tons of lithium carbonate or equivalent.

Its wholly owned subsidiary sheng Lithium industry with Yajiang county in Sichuan hui cuo la lithium ore mining, the mining area 1971 activity have ten thousand tons of ore quantity, amount to 255744 tons of lithium resources, 1.3% average grade lithium oxide, lithium carbonate (the equivalent of about 630000 tons.

The second is financial well-prepared. In 2017, the day his Lithium industry asset-liability ratio is only 40.39% (see chart 2), the flow ratio 3.11, monetary assets of liquid assets ratio is as high as 70.24%, which means that their monetary assets is twice the current liabilities, no repayment pressure. The monetary fund of 5.524 billion Yuan, financing activities increased by 2.264 billion Yuan, business activities increased by 3.095 billion Yuan. Obviously, the sky Lithium industry do enough financial preparation for capacity expansion.

Three is cost control and research. In 2017, the day his Lithium industry R&D investment is 28.55 million Yuan, increased by 342% year-on-year. Vigorously to increase R&D spending at the same time, strictly control the other costs (see chart 3), it was clearly beneficial to its gross margin improvement and competitive.

Sky Lithium industry already do enough good preparation for the future competition. As a domestic rival, Jiangxi feng Lithium industry don't lag behind.

Jiangxi feng Lithium industry layout

Jiangxi feng Lithium industry as global supplier of metallic lithium, lithium compounds and its business covers the upper lithium extraction, middle lithium lithium compounds and metal processing and the downstream lithium battery production and recovery, including: upstream of lithium resource extraction, processing of lithium compounds, metal lithium, lithium battery and lithium secondary production use, and recycling and other five major business.

In 2017, jiangxi feng Lithium industry performance growth: operating income increased from 2.844 billion Yuan in 2016 to $2017 in 4.383 billion, the growth rate of 54.12%;Net profit attributable to shareholders of listed companies from 464 million Yuan in 2016 increased to $2017 in 1.469 billion, the growth rate of 216.36%.Company's total assets increased from 3.809 billion Yuan in 2016 to $2017 in 8 billion, the growth rate of 110.02%;Net worth increased from 2.488 billion Yuan in 2016 to $2017 in 4.037 billion, the growth rate of 62.25%.

Just like the day his Lithium industry, jiangxi feng Lithium industry began their upstream capacity expansion. On February 25, 2018, jiangxi feng Lithium industry said its new 20000 tons of lithium hydroxide production line has been completed and put into operation, at the commissioning stage; The 17500 tones of lithium carbonate production line is still under construction plans to begin production in the second half of 2018, and currently has nearly 40000 tons of production capacity, by the end of 2018, the lithium salt processing capacity will reach 80000 tons.

Jiangxi feng Lithium industry do enough resources layout for capacity expansion. At present, jiangxi feng Lithium industry has located in Australia, Argentina, China and Ireland the equity of six high quality lithium resources, including:

It is Mount Marion, the world's second largest of spodumene mine. Mount Marion according to the control of JORC rules inferred resource for 2.7 million tons of LCE, lithium content is 1.37% on average. Company sets up an underwriting agreement for a long time, from 2017 to 2020, all can be produced in underwriting Mount Marion lithium concentrate, 2020 years after the underwriting of not less than 49% of the lithium concentrate;

Second, marina, one located in Argentina, and the province of lithium potassium salt lake. Mining resource estimates compiled according to the administrators, marina project of lithium brine reserves of 1.127 billion cubic meters, control and infer the lithium resources for 1.866 million tons of LCE. Preliminary exploration results show that the marina has homogeneous earth chemical composition, through the traditional solar evaporation process at relatively low cost to extract;

Three is Cauchari - Olaroz, one in Argentina Hu Hu Iraq (Jujuy) in the province of lithium salt lake.Cauchari - Olaroz project of LCE lithium brine reserves of 11.8 million tons. Company sets up an exclusive sales agreement, purchase the americas Lithium industry Cauchari - Olaroz resource issue 50% 80% of the products in practical production. Cauchari - Olaroz plans to begin production in late 2019 or early 2020.

Four is Pilgangoora, in western Australia one of the world's biggest new spodumene mine. Spodumene Pilgangoora project reserves of 4.9 million tons of LCE, lithium content is 1.25% on average. Company sets up an underwriting agreement for a long time, to obtain annual supply of 160000 tons of raw materials, the original deadline for ten years. At present, Pilgangoora project plan in the second half of 2018 and put into production;

Five is Avalonia, is located in the Irish spodumene mine, at present is at the early stage of exploration;

Six is dinin heYuan mine, located in ganzhou city of jiangxi province in ningdu, dinin heYuan the lithium resources in ore 100000 tons of LCE, lithium oxide content of 1.03% on average.

Financial preparation, at the end of 2017, jiangxi feng Lithium industry asset-liability ratio is 49.45% (see chart 4), the flow ratio 1.62, is healthy, no repayment pressure; Cash is 2.237 billion Yuan, relatively abundant; There is a better cost control (see chart 5).

Salt lake of advance

See the two giants aggressively expanding, back to salt lake salt lake resources shares also not to be outdone.

Is a veteran in qinghai salt lake shares listed company, its business of lithium carbonate is part of the comprehensive utilization of salt lake resources, mainly by indirect subsidiary blue Lithium industry to business, currently has production capacity of ten thousand tons of lithium carbonate.

Shares in 2017, salt lake achieve business income is 11.699 billion Yuan, compared with last year increased by 12.88%;Among them, the business of lithium carbonate only achieve 748 million Yuan in revenues, but the net profit of 420 million Yuan, the profit margin is as high as 56.15%, gross margin of 68.59% (see chart 7).

No doubt, to improve the capacity lithium products, improve the proportion of income is the best means to improve enterprise profitability.

Then, on December 27, 2017, salt lake co announced capacity expansion project: salt lake shares proposed planning starting project of 50000 tons/year battery grade lithium carbonate, among them, the blue division Lithium industry proposed in the existing 10000 tons/year lithium carbonate device based on the expansion of 20000 tons/year battery grade lithium carbonate project, after expanding production scale will reach 30000 tons/year lithium carbonate; In addition, salt lake BYD will new annual output of 30000 tons/year battery grade lithium carbonate project, after the expansion, salt lake shares will have a capacity of 60000 tons.

According to the results, according to the salt lake in the expansion is based on the development of chaerhan salt lake lithium resources advantage in the first place. Salt lake potash shares production every year according to the production of 5 million tons, annual emission amount of old bittern, about 200 million cubic meters per year, the lithium ion concentration is controlled in 200-250 mg, namely emissions a year old bittern of lithium resources or lithium chloride is 20-300000 tons; The liquid raw material for the lithium industry development provides a reliable guarantee of resources.

The second is technology advantage. Blue cape Lithium industry yearly produces ten thousand tons of lithium carbonate project, in 2010 the introduction of Russia adsorption technology of extracting lithium brine, and has set up a breakthrough from magnesia low lithium brine extraction of lithium salt key technology.

3 it is cost advantage. Blue cape Lithium industry relying on rich in chaerhan salt lake lithium resources and public facilities of salt lake joint-stock company industrial park, adsorption extracting lithium technology of lithium carbonate production costs relative to peers has a comparative advantage, and is suitable for large-scale lithium industry layout.

At present, in view of the salt lake of repayment pressure (see table 8), expanding its capacity lithium carbonate will still increase in the short term debt repayment pressure. But the capacity is released, the industry of high gross margins will get enough for its cash flow and profits, and finally improve their financial condition.

Elegance group's ambition

Is different from the former three, elegance group main business of industrial explosive and lithium business, at the same time also continue to expand overseas, transportation and military operations; Lithium, lithium business mainly covers the upstream resources safeguard, middle lithium carbonate, lithium hydroxide lithium salt production and sales of the product.

In 2017, elegance group business income is 2.358 billion Yuan, up 49.33% from a year earlier. Among them, the lithium products business income is 698 million Yuan, accounting for 29.59% of total revenue, increased by 100.92%;Total profit of 336 million Yuan, up 73.21% from a year earlier. To achieve net profit attributable to shareholders of listed companies is 238 million Yuan, up 78.11% from a year earlier. Earnings per share 0.25 Yuan, up 78.57% from a year earlier.

Obviously, lithium product revenue contribution to elegance group is large, and the profit contribution is relatively small (see table 9).

In this case, elegance group still overweight lithium products production capacity. According to the results, elegance group will boost yoann project in 2018, 20000 tons, at the same time to carry out the second phase of 20000 tons of lithium hydroxide construction preparation; After the completion of the project, and now owns xing sheng Lithium industry (wholly owned) production capacity 6000 tons of lithium hydroxide, the reason (56.26%) of 5000 tons of lithium hydroxide and lithium salt production capacity of 7000 tons of lithium carbonate, around 2019, it will have a lithium salt production capacity of 38000 tons, 2020 will be 58000 tons of lithium salt production capacity.

Elegance group overweight lithium capacity of bottom spirit is one of its lithium resources protection. According to the results, elegance group constantly enrich the future for the development of lithium industry lithium mineral resources reserves, the development of lithium industry provide a full lithium resources expansion: with Australia is important to a galaxy Lithium industry lithium concentrate production enterprises long-term supply agreement, lithium salt and stable production for the company to provide the most basic resources; Second is the development of cooperation with Sichuan can throw in Sichuan li ditch lithium fai quarries, its proven reserves of lithium oxide 512185 tons; Three is the Core company in Australia, for its right of lithium underwriting. It is worth mentioning that the Core company has 100% fe loch lithium mineral rights, the mining area is about 400 square kilometers, is located in the northern territory of Australia, by BP33, Far West, Ahoy and rolled up four ore composition, the mine is located in the plain area, the surrounding road of water and electricity facilities, and close port, mining obstacle is small, rolled up the grid plot has won JORC standard exploration report, still has a history of 25 has not yet been tested pegmatite ore and several large-scale pegmatite targets for drilling.

Resources guaranteed, but the financial, it seems, are still not ready. Although, elegance group asset-liability ratio is low, but its solvency generally ten (see table), cash is not enough to complete yoann expansion of the project, is bound to leverage, this or a negative impact on its construction projects.

Jiang, the expectations of the machine

For to create from lithium - lithium carbonate - cathode material - new energy motor - new energy vehicles is relatively complete Jiangte motor of lithium-ion battery of new energy industry chain, developing of lithium industry is imperative.

In 2017, jiang motor achieve business income is 3.365 billion Yuan, up 12.75% from a year earlier. Profit total 329 million Yuan, up 39.06%;Belong to the parent company net profit of 281 million Yuan, up 42.58%;Among them, the lithium acquisition is 100 million Yuan, lithium carbonate is 163 million Yuan, the amount is small, but its gross margin is the highest (see chart 11).Obviously, the business capacity lithium amplification can help enterprises enhance profitability.

So, whether strategic needs, or profit, overweight lithium capacity is imperative.

Jiangte motor announced recently, subsidiary company yearly produces 5000 tons of silver lithium lithium carbonate production line has reached the design requirements, successfully reaches producing lithium mica production 10000 tons of lithium carbonate and application of lithium concentrate to produce 15000 tons of lithium carbonate production line will be completed plan in the first half of this year, built after the company lithium carbonate production capacity will reach 30000 tons.

According to the results, jiang motor mastered the rich lithium resources, in terms of lithium porcelain stone, with 5 to 8 from the mining right, the right of exploration; As Australia Tawana single largest shareholder of listed companies, the company has western Australia balder mountain (Bald Hill) project 50% interest, the project field area of 800 square kilometers, has exploration and high grade lithium resources of nearly 20 million tons, the resource is abundant.

Although, lithium capacity expansion will increase its financial pressure (see table 12);But, for the sake of tomorrow, jiang motors have to fight.

China shares of follow up

Wei hua co (high) density fiber board in traditional headquarter located in production and sales, planting trees and sales. In 2016, the company increased by controlling the zhiYuan Lithium industry and Wan Hong high, our business extends to the lithium salt and rare earth products and other new energy materials, the resulting new energy materials business and man-made board pattern of the development of the business in hand. ZhiYuan Lithium industry based lithium products mainly engaged in research and development, production and sales, design production capacity of annual output of 40000 tons battery grade lithium carbonate, single water lithium hydroxide and lithium chloride.

According to the results, zhiYuan Lithium industry in 2017 at the stage of construction, influence on wei hua stock performance is small (see table 13).

Early evening on March 29th, China shares announcement said, a wholly owned subsidiary company zhiYuan Lithium industry 40000 tons of lithium project was inaugurated the first 13000 tons of production line, the first phase of 13000 tons, including 8000 tons of lithium carbonate battery and 5000 tons of lithium hydroxide; The remaining 27000 tons of production capacity will be built at the end of the year.

On lithium resources, in addition to the United States and guaranteed supply of lithium, wei China shares with another Australian companies also signed a long single supply cooperation, at the same time promote the jinchuan mining into Mr Ino, in order to get the related resources.

Obviously, as a new entrants, wei hua shares have enough emerging business, such as financial conditions to develop Lithium industry but also at a greater risk of uncertainty.

More than China shares, there are more enterprises continuously into the field of lithium carbonate: yongxing special steel in jiangxi yifeng investment construction annual capacity of 30000 tons of li-ion battery materials, battery grade lithium carbonate and lithium hydroxide), annual capacity of 2.4 million tons of mining, mineral processing project; Appropriate to participate in the construction of the new sea yearly produces 40000 tons of lithium carbonate battery projects; Gold and silver river investment construction of lithium carbonate lithium mica batteries and comprehensive utilization of high value-added by-products project (phase I) and so on.

Lithium carbonate, lithium resources demand and high prices rising drew out to share points. First entrants occupies more quality lithium resources (lithium and salt lake), with stronger competitiveness; While the new entrants have greater passion but occupy more uncertainty. The next two to three years, as the design capacity, such as lithium carbonate tight balance between supply and demand will be broken, volatile prices will face more fierce, only with a lot of high quality lithium resources, higher gross margin and healthier financial structure of enterprises, such as: day qi feng Lithium industry Lithium industry, gan, only makes it easier for firms to win in the fierce competition and development.

The page contains the contents of the machine translation.