Increase the annual output of 90, 000 tons of LiPF6 devices! Tianci material plans to increase funding for lithium battery material reconstruction and expansion project

On March 2nd, Tianci material (002709) issued an announcement, and the company's board of directors examined and approved the "motion on additional investment in the reconstruction and expansion project with an annual output of 150000 tons of lithium materials". It is agreed that the company will make additional investment in the reconstruction and expansion project with an annual output of 150000 tons of lithium materials, with a total investment of 332 million yuan, including 209 million yuan in construction investment and 124 million yuan in liquidity at the bottom of the project.

According to the announcement, the above project is a reconstruction and expansion project with an annual output of 150000 tons of lithium materials in 2020. After the completion of the reconstruction and expansion project, an additional 90, 000 tons of liquid lithium hexafluorophosphate will be added annually. As of March 2, the civil engineering and equipment procurement of the reconstruction and expansion project has entered the final stage and entered the stage of installation, which is expected to be completed on June 30, 2022.

For the reasons for this additional investment, Divine material explained that this reconstruction and expansion project is designed to cope with the continuous increase in downstream demand in the future. In the course of the implementation of the project, due to the substantial increase in the prices of some construction materials, and considering the improvement of logistics and transportation, safety and environmental protection requirements brought about by the expansion of the project capacity, the company plans to upgrade the process technology and safety and environmental protection equipment of the project, therefore, additional investment is needed in the project. At the same time, the setting of the bottom fund was not taken into account when the original project was established, and Synchronize increased when this additional investment.

Tianci material said that the lithium hexafluorophosphate plant, which is revamped this time, is one of the main raw materials for the company's future electrolyte products. After the completion of the technical transformation, it will provide raw material guarantee for the company's future electrolyte products to continue to release, and lay a solid foundation for the company to continue to increase its market share in the future.

According to the information introduced in the research activity a few days ago, the output of the electrolyte will be based on the actual output of lithium hexafluorophosphate, and the company currently has a production capacity of 32000 tons of lithium hexafluorophosphate. The planned capacity of lithium hexafluorophosphate has basically covered the demand for 2024.

It is worth noting that on the investor interactive platform, Tianshi material once said that 1 ton of high-purity lithium carbonate can produce about 4 tons of lithium hexafluorophosphate and 1 ton of lithium hexafluorophosphate can produce about 8 tons of electrolyte. In view of the price fluctuation of lithium carbonate, the company has taken corresponding mitigation measures, such as price transmission, signing long orders, increasing the source of lithium carbonate supply through recycling business, and so on.

Tianci also introduced that as a leading electrolyte supplier in the world, the company has maintained a leading market share in recent years, and the strategic layout advantage of the integrated industrial chain has become increasingly prominent. Under the background of limited raw material supply in the past year, the company has made every effort to increase product supply and continuously improve its product research and development strength, manufacturing strength and customer service capacity by signing long-term supply agreements with strategic customers such as Ningde Times, LG, Tesla, etc., through customizing and providing product technical services and solutions for customers, enhance the synergy with customers and achieve steady growth in performance. At the same time, through the production capacity expansion of major raw materials and new additives, the company's core competitiveness and future market share will be further consolidated.

In terms of shipments, Soochow Securities recently reported that Heavenly Materials shipped 51000-52000 tons in the fourth quarter of 2021, an increase of 35% month-on-month. Shipments for the whole of 2021 are expected to be nearly 150000 tons, double the figure over the same period last year. In terms of profitability, the price of lithium hexafluorophosphate rose all the way to 500000 / ton + in the fourth quarter of 2021, and the profit per ton of electrolyte is expected to drop by 20% to 14000 / ton compared with the previous quarter. The profit per ton of electrolyte business contributed about 700 million yuan, which increased slightly compared with the previous quarter. It is expected that the profit per ton will recover in the first quarter of 2021. Downstream demand is strong in 2022, lithium hexafluorophosphate shortage is expected to maintain until mid-2022, the company is expected to ship 300000-350000 tons, more than double the same period last year.

In terms of capacity expansion, according to statistics from Soochow Securities, Tianci Materials has built 150000 tons of electrolyte production capacity in Ningde, Guangzhou and Jiujiang bases, and the company's production capacity is expected to reach 1.4 million tons + after all production capacity is completed.

In addition, Tianci accelerated LIFSI capacity layout, and the company took the lead in mass production of 6000 tons of new lithium salt. At the same time, the annual production of 20, 000 tons of electrolyte basic materials and 5800 tons of new lithium electrolyte project completed the installation of production equipment at the end of December 2021, and obtained a trial production license. Among them, the equipment with an annual output of 20, 000 tons of electrolyte basic materials and an annual capacity of 4000 tons of LiFSI has reached a stable production state. In addition, Soochow Securities Research report shows that the company also has VC, lithium difluorophosphate, DTD and other new additives production capacity will be gradually released in 2022-2023 to strengthen the company's integrated competitiveness and increase profits.

In terms of performance, Tianci estimates that the company's net profit attributable to shareholders of listed companies in 2021 is 2.1 billion yuan to 2.3 billion yuan, an increase of 294.09% Murray 331.62% over the same period last year; basic earnings per share 2.23 yuan-2.44 yuan.