Cunninghamia lanceolata shares 120 million yuan acquisition of part of Altura Mining shares continue to increase the number of new energy business

SMM6, 25 June: Cunninghamia lanceolata shares (600884.SH) announced that the company recently signed a "share sale agreement" through its wholly owned subsidiary Yongsui International and Fry Holdings Limited. Yongshan International intends to buy and sell shares at A $0.1 per share, with a total price of about A $25.1361 million, equivalent to about RMB 120 million. The total AlturaMiningLimited, held by Fry Holdings accounts for 11.83% of its issued shares. A few days ago, the transfer of shares has completed the registration procedures for the transfer of shares.

Cunninghamia lanceolata said that benefiting from the continued rapid growth in demand for power batteries such as the downstream new energy vehicle industry, driving the rapid growth of demand for lithium battery materials, the company, as the world's largest manufacturer of lithium ion battery materials, is also growing rapidly. In recent years, with the gradual expansion of the production and marketing scale of the positive material business of the company, the consumption of upstream raw material lithium carbonate has also increased.

SMM understands that the shortage of raw materials in the upstream market and price fluctuations have a growing impact on the business development of lithium battery cathode materials, and is expected to continue to rise with the demand for lithium battery materials in the new energy industry. At the same time, in order to stabilize the supply of raw materials upstream of the company's lithium battery cathode materials business, reduce the production costs and operating risks of the company's lithium battery cathode materials business, and accelerate the development of the company's lithium battery materials business, so plan and implement the equity acquisition.

Cunninghamia lanceolata shares are mainly engaged in the research and development, production and sales of lithium ion battery cathode materials, negative electrode materials and electrolytes. The main products of cathode materials are lithium cobalt, ternary materials (lithium nickel cobalt manganate and lithium nickel cobalt aluminate), lithium manganate and ternary precursors (internal supply). Among them, lithium cobalt acid is mainly used in high-end consumer electronics products, such as smart phones, high-end tablet computers and so on. Ternary materials are mainly used in pure electric vehicles, plug-in hybrid vehicles, start-stop power supplies and cost-sensitive consumer electronics products. Lithium manganate is mainly used in plug-in hybrid electric buses and mixed with high capacity cathode materials. Negative electrode materials and electrolytes can be used in consumer electronic products, new energy vehicles and energy storage industries.

Cunninghamia lanceolata stock is the only lithium battery material manufacturer covering positive electrode, negative electrode and electrolyte. According to the enterprise report, the output of lithium cobalt acid ranked second in China in 2018, and the output of ternary materials ranked fifth in the country. 2018 negative material production ranked second in the country; 2018 electrolyte shipment ranked fourth in China. At present, the production capacity scale, technical level, customer quality and market share of Cunninghamia lanceolata shares are all in the leading level of the industry.

In 2018, Cunninghamia lanceolata shares lithium battery materials business achieved main business revenue of 7.0054347 billion yuan, an increase of 16.06% over the same period last year; net profit attributable to shareholders of listed companies was 441.165 million yuan, down 21.67% from the same period last year.

The following picture shows the basic financial position of Shanshan Co., Ltd., in the first quarter of 2019.

AlturaMiningLimited is a (ASX) listed company on the Australian Stock Exchange. Altura's 100% owned Pilgangoora project is a world-class hard rock lithium mining project in the Pilbala region of western Australia. Altura owns the exploration and mining rights of the hard rock lithium ore of the Pilgangoora project in the Pilbala region of western Australia (the current expiration date of mining rights is August 25, 2037). The lithium mine development potential of the project is huge. Its spodumene mining technology has been very mature, can meet the needs of power battery, mining purity, in line with the vehicle power battery material consistency requirements.

SMM believes that the Ningbo Cunninghamia lanceolata shares through the Yongshan International acquisition of AlturaMining11.83% shares, to achieve a grasp of the supply of lithium raw materials. Earlier, AlturaMining said in its announcement on June 20 that it had sold about 11.8 per cent of its stake. We believe that for Cunninghamia lanceolata shares, which do not have smelting conversion capacity for the time being, we will seek cooperation with lithium salt smelting enterprises to realize the conversion and utilization of spodumene concentrate.

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