The plan to increase holdings is abruptly terminated! 50 billion lithium mining giant received regulatory letter from Shenzhen Stock Exchange just grabbed an African lithium mine at the beginning of this month.

In response to the "announcement on the termination of the holding increase plan by the controlling shareholder" disclosed by Shengxin LiNeng on November 17, the Shenzhen Stock Exchange issued a regulatory letter on November 22. The re-supervision letter pointed out that Shengxin LiNeng and its actors accumulatively increased their holdings of Shengxin LiNeng shares by 162.2491 million yuan, with a completion rate of 54.08%, and did not complete the plan to increase their holdings.

This behavior violates the relevant regulations of the Shenzhen Stock Exchange on the listing of stocks and the standardized operation of listed companies. To this end, the Shenzhen Stock Exchange reminds the company to pay full attention to the above problems and draw lessons to prevent the recurrence of such problems.

The source of the matter can be traced back to February 12, 2018, when Shengxin LiNeng disclosed the "announcement on the company's controlling shareholders and their concerted actors' plan to increase their shareholdings in the company." the company and the concerted actors plan to increase their holdings of Shengxin LiNeng shares within 6 months from the date of the announcement of the plan, with an increase of not less than 300 million yuan. But in the end, the proportion of the plan to increase the holdings was only 54.08%.

As for the reasons for the termination of this plan, Shengxin LiNeng mentioned in the announcement that it was mainly due to the changes in the development of the industry and the financial market environment at that time, the high proportion of pledge of Shengtun Group, the limited financing channels, and the reason that Shengtun Group, as the obligor of the employee stock ownership plan of the first phase of the company, added a large amount of position compensation funds to the employee stock ownership plan.

However, Shengtun Group also continued to increase the number of its shares in the company through non-public offerings and never took the initiative to reduce its shares.

It is worth mentioning that at the end of the announcement, Shengtun Group is optimistic about the development prospects of the lithium new energy industry and the company for a long time, and will continue to support the company to become bigger and stronger, promote the company's sustained, stable and healthy development and safeguard the interests of its shareholders.

As we all know, the popularity of lithium mining continues to rise recently, and Shengxin Lithium, as a well-known enterprise engaged in the production, research, development and sales of lithium carbonate and lithium batteries, its control of lithium mining has naturally attracted the attention of investors. On November 7, Sheng Xin LiNeng replied on the interactive platform that in terms of lithium ore, the company Sun Oyino Mining Company has the mining rights of the Yelonggou spodumene mine in Jinchuan County, Sichuan Province and the detailed exploration rights of the Taiyang Hekou lithium polymetallic mine, of which the former has proven Li2O resources of 111500 tons. In addition, the company has acquired a 51% stake in Max Mind, and its wholly-owned grandson has mining warrants for a total of 40 rare metal blocks in the Sabixing lithium-tantalum project in Zimbabwe; not only that, the company has also acquired a 100% stake in Argentina's SESA, which operates the Argentine SDLA project through the UT consortium; the company has also taken a stake in Huitong Mining, Yajiang County, Sichuan Province, with a total stake of 25.19%, which has been proved to have 642900 tons of Li2O resources.

In addition, the company's own mine Oyino Mining raw ore production scale of 405000 tons / year, can provide lithium ore raw materials for the company's lithium salt production. At the same time, the start-up of the Sabixing lithium mine in Zimbabwe will greatly increase the company's self-sufficiency in lithium ore supply.

As for the production capacity of lithium products, Shengxin Lithium Energy said that its subsidiary Zhiyuan Lithium Industry has built 40,000 tons of lithium salt production capacity; subsidiary Suining Shengxin 30,000 tons of lithium hydroxide project, which started construction at the end of 2020, is making good progress; the Indonesian project plans to build 60,000 tons of lithium salt capacity, and preparatory work has begun at present. The first phase of the 600-ton lithium metal project of Shengwei Lithium Industry has completed the first group of 150 tons of production capacity, and the remaining capacity is also under active construction.

On November 18, Citic Securities pointed out that the tight situation of lithium supply in 2022 may not be alleviated, lithium prices are expected to maintain an upward trend, and the logic of plate allocation has shifted from "rising prices" to "performance". For this reason, CITIC Securities recommends companies with high self-sufficiency rate of lithium ore and continuous landing of lithium resources, Shengxin Lithium Energy is impressively listed.

According to the historical price of SMM, since the fourth quarter of 2020, with the explosive growth of new energy vehicles, lithium resources are in short supply, and the price of spodumene concentrate is also rising. As of November 22, the average price of spodumene concentrate (6% SMM CIF China) was $1800 / ton, up 331.1% from the beginning of the year, according to spot prices from CIF.

"Click here to view the spot price of SMM new energy products.

At the same time, the performance of lithium salt is also very eye-catching. According to the spot price of SMM, the price of domestic battery-grade lithium carbonate has risen by more than 275.5% since the beginning of the year.

For its future trend, SMM believes that the fundamentals of the lithium carbonate market are relatively scarce in the early New year, but some downstream may have cleared inventory before the festival, procurement demand has weakened compared with the third quarter, the price upward range is limited; near the Lunar New year, purchasing sentiment increased, it is expected that the price upward may accelerate. "View details

As of press time, Shengxin LiNeng rose 2.3% to 57.75 yuan per share, with a market capitalization of about 50 billion yuan.