Jiuwu Hi-Tech Won the Bid for Minmetals' Salt Lake Lithium Project, with a Proposed Contract Value Exceeding 93.99 Million Yuan!

SMM, December 24: On December 23, Jiuwu Hi-Tech announced that the company recently received a "Notice of Award" from Minmetals International Tendering Co., Ltd., confirming the company as the successful bidder for the adsorbent supply, loading, and related services procurement project of the Phase III technological transformation and supporting engineering project for the lithium project of China MCC Minmetals Salt Lake Co., Ltd. The awarded amount for this project is approximately 125 million yuan. According to the bid evaluation principles outlined in the tender documents, the company ranked first among the successful candidates and is expected to sign an adsorbent procurement contract for 75% of the total supply, loading, and related services, with a proposed contract value of 93.9948 million yuan.

This awarded project involves the adsorbent supply, loading, and related services procurement for the Phase III technological transformation and supporting engineering project of the lithium project of China MCC Minmetals Salt Lake Co., Ltd. Based on the bid evaluation principles in the tender documents, the proposed contract value is 93.9948 million yuan, accounting for 12.42% of the company's audited operating revenue from the previous year. Upon signing the formal contract and its successful execution, the project is expected to positively impact the company's future operating performance.

Meanwhile, the company issued a risk warning, stating that as of the date of this announcement, the company has received the "Notice of Award" for the project but has not yet signed a formal contract. The total contract amount, execution period, and other specific details of the project will be subject to the final signed contract. The company will fulfill its information disclosure obligations in a timely manner based on the subsequent contract details and reminds investors to be aware of investment risks.

On November 6, the company also announced that it had received the "Notice of Award" for the "40,000 mt/year Basic Lithium Chemicals Integrated Project Adsorption Lithium Extraction Unit Aluminum-Based Adsorbent (Re-Tender) Section I" project. Jiuwu Hi-Tech subsequently signed the "Procurement Contract for Section I of the Aluminum-Based Adsorbent for the 40,000 mt/year Basic Lithium Chemicals Integrated Project Adsorption Lithium Extraction Unit" with Qinghai Salt Lake Industry Co., Ltd.

According to the contract, the total contract value, including tax, is approximately 195.6 million yuan. Jiuwu Hi-Tech stated that the signing of this contract fully demonstrates the market competitiveness of the company's lithium adsorbent materials and will further enhance its market position in the salt lake lithium extraction business. If the project is successfully implemented, it is expected to positively impact the company's future performance. The total contract value, including tax, accounts for 25.84% of the company's audited operating revenue for 2023. The execution of this project will not affect the company's operational independence.

Previously, Jiuwu Hi-Tech released its first three quarters' performance report, stating that the company achieved approximately 300 million yuan in revenue during this period, a YoY decrease of 37.85% compared to the first three quarters of 2023. The net profit attributable to shareholders of the publicly listed firm was 16.026 million yuan, a YoY increase of 75.91%.

Public information shows that Jiuwu Hi-Tech is a high-tech enterprise specializing in the R&D and application of separation materials and technologies such as ceramic membranes, organic membranes, and lithium adsorbents. The company has achieved multiple technological breakthroughs in these fields and has actively engaged in industrial research on the resource utilization of salt lakes. It has proactively developed the "Adsorption + Membrane" salt lake lithium extraction technology and sells its products in over 40 countries and regions worldwide, gaining widespread recognition from domestic and international customers.

Although China's membrane industry started relatively late, it has gained increasing attention from national and local governments in recent years. With government support, the compound annual growth rate of China's membrane industry reached 24.77% from 2009 to 2021, with a total output value of 323 billion yuan in 2021. It is expected to reach 500 billion yuan by 2025. In recent years, the NEV market has developed rapidly, and in the long term, the demand for lithium remains optimistic. Salt lake lithium extraction, with its significant cost advantages, is in a phase of continuous development, driving the demand for "adsorbent + membrane" and related services. Dongwu Securities stated that the replacement cycle for membranes and adsorbents is 3–5 years, making them consumables with cumulative demand. Dongwu Securities forecasts that by 2025, salt lake lithium extraction will bring nearly 10 billion yuan of market growth for "adsorbent + membrane" and related services.