SMM survey: what kind of metal do you like most in 2022?
On December 28, Zhongwei issued an announcement that the company signed a "Strategic Cooperation Framework Agreement" with Xiamen Xiangyu and decided to establish long-term close cooperation in the fields of raw material supply guarantee, nickel resources development cooperation and supply chain guarantee cooperation. Among them, in terms of raw material supply guarantee, the two sides are expected to realize cooperation in the supply of nickel and cobalt raw materials of about 80,000 tons of nickel metal and 15000 tons of cobalt metal during the five-year period from 2022 to 2027. Xiamen Xiangyu and its associated enterprises give priority to the supply of high-quality products to Zhongwei and its affiliated enterprises.
Xiamen Xiangyu State-owned Enterprise Group Xiangyu Group focuses on the market of new energy materials and their raw materials such as nickel, cobalt and lithium, and strives to become a world-class new energy supply chain service operator. After years of deep ploughing, Xiangyu has now completed the strategic layout of the Indonesian nickel resources section and the Congo gold and cobalt resources section, and has built and continued to operate a base from laterite nickel smelting to stainless steel output in Indonesia. It has successful and rich experience in the development of Indonesian laterite nickel resources and overseas project investment / operation.
Zhongwei said that the signing of a strategic cooperation agreement with Xiamen Xiangyu will help both sides give full play to their respective advantages in resources, capital and technology, and give full play to their business synergy. We will carry out in-depth cooperation in the areas of nickel and cobalt raw material supply, nickel resources development and supply chain guarantee. This cooperation is in line with the company's development strategy, is an important measure of the company's industrial chain cooperation, and provides a strong guarantee for the company's supply chain security.
Data show that Zhongwei shares is the leader of the global precursor, with a market share of 26% and 25% of ternary precursors and cobalt tetroxide in the first half of 2021, ranking first in the industry. The company's products are strong, and it has comprehensively entered the world's leading new energy vehicle enterprises and lithium-ion battery industry chain, including Tesla, LGC, CATL, Samsung SDI, ATL, Bertrand, Bamo, Dangsheng, Xiamen Tungsten, etc., building strong customer barriers and technical barriers.
Recently, Zhongwei has continuously signed investment agreements on Finnish precursor projects with Finnish Mining and its subsidiaries, signed a "Strategic Cooperation Framework Agreement" with Dangsheng Technology, and signed an investment agreement on lithium iron phosphate integration project with the Kaiyang county government.
Huaxin Securities Research report shows that Zhongwei's performance has shown rapid growth in recent years, with revenue rising from 3.1 billion yuan in 2018 to 13.9 billion yuan in the first three quarters of 2021, and net profit from 63 million yuan to 765 million yuan. The rapid growth of the company's performance benefited from volume and profit. The sales volume of precursors increased from 28100 tons in 2018 to about 130000 tons in the first three quarters of 2021, and the profit of deducting non-unit tons increased from 1600 yuan / ton to about 5500 yuan / ton.
At the same time of the outstanding performance, Zhongwei also actively increased the layout of production capacity, with the company's capital expenditure reaching 3.2 billion yuan in the first three quarters of 2021, about three times that of 2020. The company's global production capacity is distributed in Hunan, Guizhou, Guangxi, Indonesia, Finland and other places. Huaxin Securities expects the company's precursor production capacity to exceed 200000 tons / 350000 tons / 500000 tons in 2021 / 2022 / 2023.
