935 million! Tianci material plans to put into construction the first phase of lithium-ion battery material with an annual output of 41000 tons.

On the evening of September 28th, Tianshi material (002709) announced that the company intends to set up a wholly-owned subsidiary Zhejiang Tianzhi High-tech Materials Co., Ltd. to invest in the construction of the "annual output of 41000 tons of lithium-ion battery material project (first phase)". The total investment of the project is 935 million yuan, of which the construction investment is 876 million yuan and the working capital is 58.6909 million yuan. The company can, according to the actual implementation of the project, Within the scope of the total investment quota, make appropriate adjustments to the specific project investment content and cost details.

According to the announcement, after the project with an annual output of 41000 tons of lithium-ion battery materials (phase I) reaches production, it is expected to achieve an average annual operating income of 1.969 billion yuan and an average annual net profit of 237 million yuan.

With the outbreak of downstream demand for new energy vehicles, the demand for additive vinylidene carbonate (VC) continues to increase this year. Tianci said that through the implementation of the first phase of the project, the company will be able to effectively improve the overall production capacity of lithium-ion battery electrolyte additive VC, meet the future production capacity demand formed by the growth of power battery electrolyte market, improve the company's layout in terms of core raw materials, further enhance the company's market competitiveness of lithium-ion battery materials and support the company's integrated strategic layout advantage.

It is understood that Tianci material electrolyte can produce upstream material lithium hexafluorophosphate and additives, with cost advantages, customers including CATL, ATL, BYD, LG and other battery giants.

In terms of customer development, Divine Materials has frequently received large orders for electrolyte business this year. On July 22nd, Jiujiang Tianzhi, a wholly owned subsidiary of LG, signed an agreement with LG New Energy to purchase an estimated total of 55000 tons of electrolyte products from Jiujiang Tianzhi from the second half of 2021 to the end of 2023.

On May 27th, Ningde Kaixin, a wholly-owned subsidiary of Tianci Materials, signed a "material supply Framework Agreement" with Ningde Times, which agreed that within the validity period of the agreement (from the effective date of the agreement to June 30, 2022), Ningde Kaixin will supply Ningde Times with a corresponding quantity of electrolyte products with an estimated use of lithium hexafluorophosphate of 15000 tons.

In terms of performance, in the first half of this year, Tianzhi achieved a total operating income of 3.699 billion yuan, an increase of 132.27% over the same period last year, and the net profit of shareholders belonging to the parent company was 783 million yuan, an increase of 151.13% over the same period last Among them, the operating income of the company's lithium-ion battery materials business reached 3.142 billion yuan in the first half of the year, an increase of 282.06% over the same period last year. In addition, benefiting from the strong market demand for lithium-ion battery material electrolyte products and a large increase in sales and prices, the company also expects a profit of 1.4 billion yuan to 1.6 billion yuan in the first three quarters, an increase of 170.08% and 208.66% over the same period last year; the net profit in the third quarter is expected to be 620 million yuan to 820 million yuan, an increase of 198.65% and 295.40% over the same period last year.

Since the beginning of this year, Tianci material has achieved good performance and good order performance. In order to effectively improve the overall production capacity of lithium-ion battery electrolyte and electrolyte materials, and to meet the future capacity demand formed by the growth of power battery electrolyte market, the company has also launched a series of production expansion plans.

In June, Tianci material issued three investment announcements in succession, agreeing to the company's wholly-owned grandson company Chizhou Tianzhi to use self-raised funds to invest in the construction of a new lithium electricity material project with an annual production capacity of 152000 tons. It is agreed that the wholly-owned subsidiary of the company will use self-raised funds to invest in the construction of an annual production capacity of 62000 tons of electrolyte basic materials; it is proposed to invest in the construction of an annual production capacity of 300000 tons of iron phosphate project (phase I) through the establishment of a joint venture subsidiary.

In August, Divine material issued a number of investment announcements one after another. Among them, the announcements related to battery new energy are: Jiujiang Tianzhi, a subsidiary, plans to invest 1.56 billion yuan in the construction of an annual output of 95000 tons of lithium basic materials and 100000 tons of dichloropropanol projects, and plans to invest 1.403 billion yuan in the construction of an annual production capacity of 200000 tons of lithium materials. It is proposed to invest 551 million yuan in the construction of waste lithium battery recycling projects through the establishment of a wholly-owned subsidiary. It is planned to increase the capital of the wholly-owned subsidiary Tianchi New Power by 197 million yuan, and the subsidiary Nantong Tianzhi plans to invest 1.77 billion yuan to build an annual output of 350000 tons of lithium electricity and fluorine-containing new materials (phase I).

Western Securities said that due to the leading production expansion speed and scale of Tianci materials, high-quality customers at home and abroad, and obvious cost advantages under the vertical integration layout, the company's market share will increase steadily. Western Securities expects the market share of the company's domestic sales of electrolytes to increase to 35%, 40%, 46%, respectively, from 2021 to 2023. At the same time, considering that the shortage of lithium hexafluorophosphate is expected to be alleviated in the second half of next year, the demand for cost reduction of superimposed new energy vehicles is still very urgent. It is estimated that the average price of the company's electrolyte products from 2021 to 2023 is 7.58pm 7.24 / 61500 yuan / ton. It is expected that the electrolyte gross profit margin will decline slightly from 2021 to 2023, but still maintain more than 30%, which is 41.2%, 38.2% and 34.1%, respectively.