Mido Energy is working hard to develop new energy industry

On May 3, Mido Energy released its 2017 annual report. The annual operating income was 6.482 billion Yuan, a year-on-year increase of 46.61%; the net profit was 57.89 million Yuan, a year-on-year decrease of 61.18%.

The report said that the company is in the transition stage and plans to gradually withdraw from the real estate development business and enter the energy industry. Mido Energy's current energy business mainly includes: exploration, development, production and sales of crude oil and natural gas; new energy business includes research and development and production of lithium carbonate, cathode materials and lithium batteries upstream of the new energy automobile industry chain. Cultivate the industrial application of graphene emerging materials.

In 2017, Mido Energy has formed a “three-dimensional cathode material for lithium carbonate-lithium battery-three- dimensional power lithium battery -new energy vehicle” through the acquisition of mature enterprises in the fields of lithium carbonate, lithium hydroxide, ternary materials and lithium batteries. The industry chain of services will continue to pay close attention to the graphene industry and continuously implement and improve the layout of the new energy industry.

According to the report, Mido Energy's new energy business in 2017 is as follows.

Lithium battery material business

Mido Energy's lithium battery business mainly includes R&D, production and sales of new lithium battery materials such as lithium carbonate, lithium hydroxide and lithium metal; production and sales of ternary battery cathode materials and precursor products.

Subsidiary Ruifu Lithium has a 25,000 ton/year battery-grade lithium carbonate production line and a 3,000 ton/year high-purity lithium carbonate production line, while 10,000 tons/year of battery-grade lithium hydroxide is being implemented. In the second half of 2018, Ruifu Lithium will have a production capacity of 38,000 tons/year of lithium salt.

Ruifu Lithium's lithium extraction process, the ore conversion rate can reach 98%, the acidification rate can reach 98%. The lithium leaching rate can reach 99%. The final extraction rate of lithium can reach 87%, the residual lithium in the waste residue 0.5% or less.

Subsidiary Meidu Haichuang currently has a precursor production capacity of 12,000 tons and a positive electrode material capacity of 6,000 tons. Another 20,000 tons of ternary precursor project and 20,000 tons of ternary cathode materials are under construction. As of the disclosure date of this report, Meidu Haichuang has started construction of a new energy lithium battery material project with an annual output of 50,000 tons. After the completion of the project, the annual production capacity of ternary precursors will be 54,000 tons, the annual output of ternary cathode materials will be 50,000 tons, and the joint production of 80,000 tons of anhydrous sulfuric acid.

Lithium battery production business

Mido Energy's lithium battery business mainly produces and sells ternary power lithium batteries for new energy vehicles. The products cover ternary power batteries, lithium iron phosphate batteries, polymer batteries and electric bicycle battery components.

The participating company Delangeng's 2600mah and 3200mah 18650 model lithium-ion batteries, which were put into production in 2017, have high energy density and can provide more power for new energy vehicles in the same volume of battery modules, thus improving endurance. By the end of 2017, Delang can own three production bases in Zhangjiagang, Shanghai and Ningbo, with a total capacity of 2.5Gwh.

Net car operation business

Mido Energy's new energy vehicle service business is mainly for new energy vehicle battery charging and replacement services and network car operation business.

The “Blue Avenue” plan is a system solution provided by Hangzhou Yaoding, a participating subsidiary, for the new energyization of urban transportation. The program has been verified by 100 million kilometers. The plan focuses on high-frequency travel scenarios, replacing new large-capacity taxis and network-receiving vehicles with new energy vehicles, and simultaneously building supporting facilities to provide a scientific operation management model, which will ultimately drive the overall development of the city's new energy industry.

Graphene industry

As of the disclosure date of the report, the subsidiary Medocene has obtained a patent for a graphene composite electrode material and a preparation method. Two graphene-related patents have entered the substantive review stage, and three other graphene-related patents have been received notice of qualification for the Initial Examination of Invention Patent Applications by the State Intellectual Property Office.

Mido Energy said that the company's new energy business is mainly located in the upstream production of the new energy automobile industry chain, but the business integration between the subsidiaries will take time. According to the report, the company is making every effort to develop new energy industry. The investment amount of each industrial project is large. The initial investment in the project requires a large amount of liquidity. In 2017, it is not planned to make profit distribution, nor will it be converted into share capital by public reserve.

The page contains the contents of the machine translation.