Understand Aoyama Holdings in one article

Recently, LME nickel has skyrocketed, and the domestic Castle Peak holding Group has become the focus of market attention. This article is the introduction of Haitong International on Castle Peak Holdings.

1. Aoyama Holdings: stainless steel leading enterprise

Qingshan Holdings is a private enterprise specializing in stainless steel production, which has formed the layout of the whole industry chain from nickel mining, nickel iron smelting to stainless steel smelting, stainless steel continuous casting billet production and stainless steel plate, rod and wire rod processing. at the same time, it produces raw materials, intermediates and new energy batteries in the field of new energy, mainly used in energy storage systems and electric vehicles.

At present, the company's stainless steel production base is located in Fujian, Guangdong, Zhejiang and other major coastal areas in China, while overseas is located in Indonesia, India, the United States and Zimbabwe, with 8 major production bases.

The company's main business includes stainless steel and new energy industry chain. According to the company, its nickel equivalent production will reach 600000 tons in 2021, 850000 tons in 2022 and jump to 1.1 million tons by 2023.

2. Upstream resources: nickel-iron business layout Indonesian laterite nickel ore

Qingshan Holdings' Nickel-Iron business in China is mainly distributed through Fujian Qingtuo Group. At present, Qingtuo Group has formed an annual production capacity of 1.8 million tons of nickel alloy. Foreign business is realized through Indonesia's Castle Peak Park (IMIP) and Weidabe Industrial Park (IWIP), with a total production capacity of more than 3.5 million tons per year.

3. Downstream traditional business: stainless steel production

In 2020, Qingshan Holdings stainless steel output reached 10.8 million tons, with a production capacity of more than 10 million tons. According to the company's website, Aoyama Holdings established the world's first RKEF-AOD stainless steel integrated production line in March 2008, and then began to lay out stainless steel production bases in China. At present, the company has three major production bases in Zhejiang, Fujian and Guangdong, mainly producing stainless steel, hot rolling, cold rolling and so on. The layout of stainless steel abroad is mainly distributed in the Castle Peak Park in Indonesia, and the integrated production of stainless steel is basically realized.

4. focus of development: new energy distribution

In view of the rapid growth of the new energy vehicle industry, Qingshan Group, relying on its rich upstream resources, began to lay out the new energy industry in 2017 from two aspects: upstream nickel mining and downstream new energy product manufacturing. strive to build a "nickel-cobalt mineral resources mining-hydrometallurgy-precursors-cathode materials-battery application" new energy industry chain. At present, the company has joined hands with Huayou Cobalt and Grimme to develop nickel laterite in Indonesia to build a new energy battery nickel resource raw material manufacturing system, and join hands with Xugong Group to enter the new energy automobile industry. In addition, it also signed a high matte supply agreement with Huayou Cobalt and Zhongwei, stipulating that Qingshan will supply 60,000 tons of high matte to Huayou Cobalt and 40,000 tons of high matte to Zhongwei in one year starting from October 2021.

Castle Peak Holdings: stainless steel leading enterprise

(1) introduction of the basic situation of the company

Rooted in the stainless steel industry, and expand into the field of new energy. Qingshan Holdings is a private enterprise specializing in the production of stainless steel. it has formed the layout of the whole industry chain from nickel mining, nickel iron smelting to stainless steel smelting, stainless steel continuous casting billet production and stainless steel plate and wire rod processing. at the same time, it produces raw materials, intermediates and new energy batteries in the field of new energy, mainly used in energy storage systems and electric vehicles, and is one of the largest producers of nickel, iron and stainless steel in the world. It is also a leading enterprise of stainless steel and nickel iron resources in China.

Stainless steel production bases are all over the world. At present, the company's stainless steel production base is located in Fujian, Guangdong, Zhejiang and other major coastal areas in China, while overseas is located in Indonesia, India, the United States and Zimbabwe, with 8 major production bases. It includes Qingtian production bases in Qingtuo, Fujian, Yangjiang, Guangdong and Zhejiang, while outside China, it has (IMIP) in Morowalli Industrial Park in Indonesia, (IWIP) in Weidabe Industrial Park in Indonesia, and Aunt Stainless. in Pittsburgh, USA. LLC, Gujarat Industrial Park in India, Central Africa smelting production base in Zimbabwe.

Qingshan Holdings started in the 1980s and successively founded Zhejiang Ouhai Automobile door and window Manufacturing Co., Ltd., Zhejiang Qingshan Special Steel Co., Ltd., and was registered as the first largest group company in June 2003. Since then, Shanghai Dingxin Investment Group, Qingtuo Group, Yongqing Group, Yongqing Technology and other companies have been set up one after another. at present, five major group companies have been formed under the jurisdiction of more than 300 subsidiaries.

As of September 2018, the registered capital of the company was 2.8 billion yuan, and Dingxin Investment held 23.70% of the company, making it the largest shareholder of the company. Xiang Guangda and Qingshan Management held 22.30% and 11.50% respectively, and natural persons such as Xiang Guangtong held a total of 42.5%. The company actually controls the artificial natural person Xiang Guangda.

(2) the main business includes stainless steel and new energy industry chain.

Made of stainless steel. Qingshan Holdings started in the stainless steel industry, mainly engaged in nickel-chromium mining and stainless steel production business. At present, the company has formed an industrial chain running through the upper, middle and lower reaches of stainless steel, and has more than 10 million tons of stainless steel production capacity and 300000 tons of nickel equivalent Ni-Fe production capacity. According to the company, its nickel equivalent production will reach 600000 tons in 2021, 850000 tons in 2022 and jump to 1.1 million tons by 2023.

New energy battery business. Relying on the advantage of rich upstream resources, Castle Peak began to enter the new energy industry in 2017, trying to build a new energy industry chain of "nickel and cobalt mineral resources extraction-hydrometallurgy-precursors-cathode materials-battery applications". At present, the company has joined hands with Huayou Cobalt and Grimme to develop nickel laterite in Indonesia to build a new energy battery nickel resource raw material manufacturing system, and join hands with Xugong Group to enter the new energy automobile industry. In addition, it also signed a high matte supply agreement with Huayou Cobalt and Zhongwei, stipulating that Qingshan will supply 60,000 tons of high matte to Huayou Cobalt and 40,000 tons of high matte to Zhongwei in one year starting from October 2021.

II. Upstream resources: nickel-iron business layout Indonesian laterite nickel ore

Demand for nickel is expected to continue to grow. At present, in the consumption structure of nickel, stainless steel is the largest consumption area of nickel, accounting for 80%, batteries accounting for 5%, and nickel for other industries accounting for 15%. In the field of cathode materials for ternary batteries, high nickel materials have a broad market prospect because of their high energy density and low price compared with cobalt. With the rapid growth of new energy vehicle industry, it is expected to significantly promote the demand for nickel resources of high-nickel ternary materials.

Domestic project

Qingshan Holdings' Nickel-Iron business in China is mainly distributed through Fujian Qingtuo Group. Qingtuo Group is one of the five major groups of Qingshan Industry, which has 26 subsidiaries, such as Dingxin Industrial, Qingtuo Nickel, Qingtuo Industrial shares, Dingxin Technology, Qingtuo Logistics and so on. At present, Qingtuo Group has formed an annual production capacity of 1.8 million tons of nickel alloy.

(1) Qingtuo 500000 ton Ni-Cr-Fe alloy project

The Qingtuo 500000 ton Ni-Cr-Fe alloy project is one of the Qingtuo 400 series projects, with a total investment of 1.25 billion yuan and a land area of 400 mu. Construction started in May 2016, trial production was completed in November 2017, and the annual output value of 500000 tons of Ni-Cr alloy production line reached full production. The annual output value can be achieved more than 2 billion yuan. The nickel alloy of the project contains 2% nickel and 4% chromium.

(2) Fujian Qingtuo production Base: Qingtuo Series projects in Fu'an City

Qingtuo Group settled in Fuan Wanwu Peninsula, Ningde City, Fujian Province in 2008. The leading industries of Wanwu Industrial and Trade concentration Zone in Fu'an City include stainless steel industry, port logistics industry, equipment manufacturing industry and energy industry. At present, Fu'an Qingtuo series projects have formed an annual production capacity of 1.3 million tons of nickel and iron, the main production units include Fujian Dingxin Industry and Fujian Dingxin Nickel.

1. Fujian Dingxin Industrial Co., Ltd.

Fujian Qingtuo Group established Fujian Dingxin Industrial Co., Ltd. in Fu'an City in June 2008. Fujian Dingxin Industrial Co., Ltd. built 300000 tons of nickel-iron alloy with an annual output of 11% in Wanwu Peninsula Industrial concentration area of Fu'an City and supporting deep processing projects. The project is divided into three phases: the first phase is the crude Ni-Fe alloy construction project with an annual output of 100000 tons; the second phase is the annual output of 200000 tons of crude Ni-Fe alloy, while the first phase capacity is refined into 500000 tons of refined Ni-Fe alloy construction project; the third phase of the project is 800000 tons of stainless steel coil hot rolling, annealing, pickling project and high nickel ore pretreatment project.

2. Fujian Dingxin Nickel Co., Ltd.

Fujian Dingxin Nickel Co., Ltd. has an annual output of 1 million tons of crude Ni-Fe alloy and deep processing supporting projects. the overall project production capacity is as follows: 1 million tons of crude Ni-Fe alloy and 3 million tons of refined Ni-Fe alloy (1 million tons of refined Ni-Fe alloy, 1 million tons of Ni-4% refined Ni-Fe alloy, 700000 tons of Ni-1% refined Ni-Fe alloy, 300000 tons of Ni-0.5% refined Ni-Fe alloy).

The project is divided into two phases: the first phase produces 500000 tons of crude Ni-Fe alloy and refined into 1 million tons of Ni-Fe alloy; the second phase produces 500000 tons of crude Ni-Fe alloy and 2 million tons of refined Ni-Fe alloy.

China Indonesia Comprehensive Industrial Park Qingshan Park (IMIP)

The Castle Peak Park is located in Morovari County, Central Sulawesi Province, Indonesia, covering an area of more than 2000 hectares, close to the interprovincial highway, about 1 km from the coast, 60 km from the car dealership in Morovari County and 260km from the car dealership in Kendari City.

The landowner and manager of the park is Qingshan Park Development Co., Ltd., Indonesia's economic and trade cooperation zone, which is a joint venture between Shanghai Dingxin Investment (Group) Co., Ltd. and Indonesia eight Star Group, with shares of 66.25% and 33.75%, respectively.

Qingshan Park in Indonesia is an industrial park dominated by nickel mining and smelting, stainless steel deep processing and steel rolling production, supplemented by thermal power generation. The goal of the park is to build an industrial park for the comprehensive development and utilization of nickel, chromium and iron ore resources with the integration of "nickel iron + stainless steel" as the main body, gradually forming a complete industrial chain from nickel mining, nickel iron smelting and stainless steel smelting upstream of stainless steel. to downstream bar and plate processing, steel pipe manufacturing, fine line processing and wharf transportation, international trade and other complete industrial chain.

As of October 2020, 16 enterprises have settled in the Castle Peak Industrial Park in Indonesia.

(1) SMI of Sulawesi Mining Investment Co., Ltd.

Sulawesi Mining Investment Co., Ltd. was established in October 2009. it is a joint venture between Shanghai Dingxin Investment (Group) Co., Ltd. and Indonesia eight Star Investment Co., Ltd. the main business is the development of nearly 47000 hectares of nickel laterite in Morawali County, Sulawesi Island, Indonesia.

At the same time of mining development, the company has also prepared to build a ferronickel smelter project, that is, the SMI annual production capacity of 300000 tons of nickel 10% Murray 11% nickel smelting and supporting 2x65MW thermal power project ("SMI project"), which is the first project to enter the Castle Peak Park in Indonesia.

The SMI project uses rotary kiln-mine thermal furnace process (RKEF), to build four RKEF production lines, using Indonesian laterite nickel with a nickel content of 1.8-2.0% to produce 10% Ferro-nickel with a nickel content of 11%. The production capacity can reach 300000 tons per year, and the nickel metal content can reach 30, 000 tons. Construction of the project started in July 2013, completed trial production in January 2015, and was officially put into production in May 2015.

(2) GCNS of Indonesia Guangqing Nickel Co., Ltd.

Indonesia Guangqing Nickel Industry Co., Ltd. is the second project in Qingshan Park, China-Indonesia Comprehensive Industrial Park. In August 2014, it was jointly established by Guangdong Guangxin holding Group Co., Ltd., Guangdong Jirui Science and Technology Group Co., Ltd., and Qingshan Park Development Co., Ltd., Indonesia Economic and Trade Cooperation Zone.

The company has invested and built an annual output of 600000 tons of ferronickel, 1 million tons of stainless steel, 2 million tons of stainless steel hot rolling and its supporting 2x150MW thermal power generation project in Maowali County, Central Sulawesi Province, Indonesia, with a total investment of 1.035 billion US dollars.

For the annual production capacity of 600000 tons of nickel iron smelting and its supporting 2x150MW thermal power generation project, the company has built 8 RKEF nickel iron smelting production lines with a land area of 86 hectares, with a total investment of more than 1 billion US dollars, and an annual output of 600000 tons of nickel iron alloy with a nickel equivalent of 60, 000 tons.

The project started on May 2, 2014, and the iron was put into trial production on December 5, 2015. The ferronickel project was put into production in April 2016, and the ferronickel refining project was put into trial production in June 2016, and has met the expected design requirements.

(3) ITSS of Qingshan stainless Steel Co., Ltd.

Indonesia Qingshan stainless Steel Co., Ltd. was established in December 2014 by Qingshan holding Group Co., Ltd., Ruipu Technology Group Co., Ltd., Indonesia Economic and Trade Cooperation Zone Qingshan Park Development Co., Ltd., etc.

The company has invested in the construction of an annual production capacity of 600000 tons of ferronickel, 1 million tons of stainless steel smelter and 2 × 350MW coal-fired power plant in Maowali County, Central Sulawesi Province, Indonesia.

The company's annual production capacity of 600000 tons of nickel iron project has 8 RKEF nickel iron smelting production lines, with a nickel metal volume of 60, 000 tons, which is divided into two phases of construction. The first phase of the 300000-ton Ferro-nickel project has been put into trial production in December 2016. Another 300000 tons of the project was completed and put into production in April 2017.

(4) IRNC of Ruipu Ni-Cr Alloy Co., Ltd.

Indonesia Ruipu Ni-Cr Alloy Co., Ltd. was jointly established in Indonesia by Qingshan holding Group Co., Ltd., Ruipu Technology Group Co., Ltd., and Qingshan Park Development Co., Ltd., Indonesia's economic and trade cooperation zone, with an annual output of 600000 tons of ferrochromium (matching heat recovery coking) and 700000 tons of stainless steel cold rolling project (IRNC project).

The IRNC project covers an area of 40 hectares, using the optimized shaft furnace / rotary kiln oxidation pellet-closed ferrochrome furnace smelting ferrochromium with South African chromium ore, with an annual production capacity of 600000 tons of ferrochromium and 60, 000 tons of nickel metal. The project also adopts a clean heat recovery horizontal coking process with 600000 tons of heat recovery coking to meet the demand for high quality carbonaceous reductants in the smelting project in Qingshan Park.

The project, with a total investment of US $460 million, started construction in May 2016 and completed trial production in the second quarter of 2018.

(5) TSI of Aoyama Iron and Steel Co., Ltd.

Indonesia Qingshan Iron and Steel Co., Ltd. was established in December 2016 as a joint venture between Shanghai Dingxin Investment (Group) Co., Ltd. (80%) and Indonesia Baxing Mining Co., Ltd., with an annual production capacity of 500000 tons of nickel-iron project (TSI project).

TSI project adopts mature blast furnace smelting process, which has the characteristics of low cost, low energy consumption, high output, mature process and low technical risk. The ferronickel products produced by the project will be directly supplied to the existing stainless steel smelting project in Qingshan Park to produce 200 series of stainless steel, thus forming a more complete industrial chain.

The TSI project, with an annual production capacity of 500000 tons and a total investment of about US $119 million, began construction in December 2016 and was put into production in the second quarter of 2018.

(6) HNI of Hengjia Nickel Industry, Indonesia

Indonesia's Hengjia Nickel was established in January 2018 as a joint venture between Nickel Mines Limited ((80 per cent) and Shanghai Dingxin (20 per cent).

Hengjia Nickel Construction in Indonesia has an annual production capacity of 150000 tons of Nickel-Iron project, a legal mining right of 6249 hectares of nickel mine located in Morowali County, Central Sulawesi Province, Indonesia, and two 42000kva production lines. The first production line is the cooperative construction of Qingshan Park in Indonesia signed by the company (60%) in 2017 with Shanghai Dingxin (20%) and Shanghai Wanlu (20%) with a total investment of 200 million US dollars. The second production line is an investment project in the construction of a smelter in cooperation between NML and Shanghai Dingxin re-signed by MoU in June 2018.

The company's annual production capacity of 150000 tons of nickel-iron project began construction on February 10, 2018, and officially put into production and reached production in March 2019.

(7) Indonesia Renjia Nickel RNI

Indonesia's Renjia Nickel was established in August 2018 as a joint venture between Nickel Mines Limited ((80 per cent) and Shanghai Dingxin (20 per cent). The company has an annual production capacity of 150000 tons of ferronickel project, which was officially put into production and reached production in June 2019.

(8) WNII of Indonesia Huaxin Nickel Co., Ltd.

Indonesia Huaxin Nickel Co., Ltd. is jointly established by Huaxin Lihua (50% shareholding), Indonesia NEWHono Investment Private Co., Ltd., Perlux Investment Private Co., Ltd., and has built a nickel pig iron project with an annual production capacity of 3-36000 tons of nickel in Castle Peak Park.

The total investment of the project is US $500 million, of which the cost of building the plant is US $350 million and the annual production capacity is 300-36000 tons of nickel. In July 2021, four electric furnaces located in Qingshan Park, Indonesia were successfully put into operation, which means that all four electric furnaces of Huaxin Nickel Industry in Indonesia have been completed and put into production successfully.

(IWIP) of Weidabe Industrial Park

Weidabe Industrial Park is located in Weida County, Central Hamahera region, North Maluku Province, Indonesia. it is the second industrial park built by Castle Peak Group in Indonesia after the Castle Peak Morowali Industrial Park in Indonesia. The first phase of the industrial park will begin operation in the first quarter of 2020.

Weidabe Industrial Park strives to build an industrial cluster dominated by the nickel-iron industrial chain, which is the first comprehensive industrial zone in Indonesia aimed at using minerals to produce and process raw materials for electric vehicle batteries.

(1) WBN of Weidabe Nickel Co., Ltd.

Weidabe Nickel is a joint venture between Castle Peak Group and Eramet, which has a 57 per cent stake. The Qingshan Group will take over the construction and operation of the processing infrastructure, and Eramet will be responsible for the mining business. The joint venture has a nickel ore refining processing plant, using pyrometallurgical / RKEF technology, with an annual production capacity of 3 million tons of nickel and iron.

The nickel mine of the Weidabe project is expected to have a life span of up to 50 years and will begin operation in October 2019. The first phase of Weidabei Nickel Project was fully put into production in May 2020 and produced 3.4 million wet tons of nickel ore in 2020, of which the equity output of Castle Peak Group was 1.9 million wet tons. According to production guidelines, the project plans to produce more than 6 million wet tons of nickel ore in 2021.

(2) Yashi Indonesia Investment Co., Ltd.

Established in 2018, Yashi Indonesia Investment Co., Ltd. is a joint venture between Zhenshi holding Group Co., Ltd., Shanghai Dingxin Investment (Group) Co., Ltd. and Zhejiang Huajun Investment Co., Ltd. The main construction has an annual output of 300000 tons of nickel-iron project.

The first phase of Yashi project consists of four nickel-iron smelting production lines, which can achieve an annual output of 35000 tons of nickel metal equivalent after full production. The project officially started on March 15, 2019, and in October 2020, Yashi Indonesia has an annual production capacity of 300000 tons of nickel-iron project.

The second phase of the Yashi project of Zhenshi Group mainly completes the annual production line of 35000 tons of nickel metal and the supporting construction of 1X250MW coal-fired power plant. At present, the project has been put on record in government departments.

(3) Indonesia Youshan Nickel Co., Ltd.

Indonesia Youshan Nickel Co., Ltd. is a joint venture between Huayou Group, Qingshan Group and Shengtun Mining Co., Ltd. Qingshan Group owns a 17.85% stake in Youshan Nickel through Hengtong Asia Technology Co., Ltd., a subsidiary established in Hong Kong.

Youshan Nickel Co., Ltd. has built a high nickel matte project with an annual output of 34000 tons in Weidabei Industrial Zone, which is located in the south of the provincial highway and nickel ore transportation wharf, and the transportation is convenient. The project is a pyrometallurgical system, with 4 dry rotary kilns, 4 roasting rotary kilns and 4 mine thermal furnaces, with an estimated annual output of 43590 tons of high nickel matte and a nickel content of 34000 tons. According to the feasibility study of the project, the construction period of the project is two years, and it will be put into production in September 2020, reaching 70% in the first year after it is put into production, and reaching the design capacity in the second year, with a production period of 16 years.

(4) Huake Nickel Indonesia Co., Ltd.

Huake Nickel Indonesia Co., Ltd. is a joint venture between Qingshan Group and Huayou Cobalt Co., Ltd., in which Qingshan Group holds a 30% stake. Huake Nickel has built a high nickel matte project with an annual output of 45000 tons of nickel.

The construction of the high matte project includes 4 drying kilns, 4 roasting rotary kilns, 4 mine thermal furnaces, 4 Pmurs converters and supporting facilities, supporting the construction of 250MW coal-fired power plant. In March 2021, the first column of Huake Nickel Furnace in Huake Nickel Power Plant of Weidabei 6 × 250MW thermal power project in Indonesia began to be hoisted, indicating that the boiler steel structure of Huake Nickel Power Plant has entered the installation stage.

Downstream traditional business: stainless steel production

Aoyama holding stainless steel has a market share of more than 1pm 3.

Domestic

According to the company's website, Aoyama Holdings established the world's first RKEF-AOD stainless steel integrated production line in March 2008, and then began to lay out stainless steel production bases in China. At present, Qingshan Holdings has three major production bases in Zhejiang, Fujian and Guangdong, mainly producing stainless steel, hot rolling, cold rolling and so on.

(1) Zhejiang production base

Qingshan Industrial production Base in Zhejiang Province is located in Qingtian County, Lishui City, Zhejiang Province, is Qingshan Industrial stainless steel production base. The main production unit of the base is Ruipu Technology Group, which has an annual stainless steel steelmaking capacity of 500000 tons and two advanced hot continuous rolling production lines with an annual rolling capacity of 800000 tons.

(2) Fujian Qingtuo production Base

In terms of stainless steel production, Qingtuo Group has formed an annual production capacity of 4.7 million tons of stainless steel, 800000 tons of stainless steel hot rolling and 300000 tons of cold rolling.

Among them, the project with an annual output of 300000 tons of stainless steel cold-rolled sheet is built by Fujian Qingtuo Shangke stainless Steel Co., Ltd. Fujian Qingtuo Shangke stainless Steel Co., Ltd. was established in August 2016 by Qingtuo Group and Shanghai Krupp stainless Steel Co., Ltd. Construction of the project began in September 2016, and the first production line was completed and put into trial production in September 2017, and was fully completed and reached production by the end of July 2018.

(3) Guangdong production base

Qingshan Industrial Guangdong production Base, located in Qingyuan City and Yangjiang City, Guangdong Province, is the main narrow strip production base of Qingshan Industry and a large stainless steel steelmaking base with Ni-Fe / stainless steel production technology. The main production units are Qingyuan base and Yangjiang base.

China Indonesia Comprehensive Industrial Park Qingshan Park (IMIP)

(1) Indonesia Guangqing Nickel Co., Ltd. GCNS

The GCNS project of Indonesia Guangqing Nickel Co., Ltd. adopts the "RKEF+AOD integrated process", that is, the RKEF technology is used to produce nickel-iron hot metal, and the nickel-iron hot metal is sent directly to the AOD furnace to smelt stainless steel, thus realizing the continuous integrated production of stainless steel.

The GCNS project includes two stainless steel production projects, which produce stainless steel continuous casting billet and stainless steel hot rolling respectively.

Among them, the project with an annual output of 1 million tons of stainless steel continuous casting billet has a total investment of US $120 million and a land area of 9 hectares. construction began in March 2015, was completed and put into trial production in June 2016, and was officially put into production on July 6, 2017.

The other project is the 1780 hot rolling project. The project covers an area of about 10 hectares and has an annual output of 3 million tons of hot-rolled black steel coils. Construction began on December 18, 2015 and was officially put into production on July 9, 2017.

(2) ITSS of Qingshan stainless Steel Co., Ltd.

Indonesia Qingshan stainless Steel Co., Ltd. not only has an annual output of 600000 tons of nickel-iron project, but also has an annual production capacity of 1 million tons of stainless steel project. The project, which adopts the integrated process of RKEF+AOD, started construction in July 2015 and was put into production in June 2016.

(3) IRNC of Ruipu Ni-Cr Alloy Co., Ltd.

Combined with the long-term development strategy of Qingshan Park and the trend of upstream and downstream integration, Indonesia Ruipu Ni-Cr Alloy Co., Ltd. has a 700000-ton stainless steel cold rolling project. The project ferrochrome products are sent to other projects in Qingshan Park to directly smelt stainless steel, which greatly reduces the production cost.

IV. Focus of development: new energy distribution

New energy vehicles are the main demand for nickel downstream in the future.

Upstream

(1) HYNC of Huayue Nickel and Cobalt (Indonesia) Co., Ltd.

Huayue Nickel and Cobalt (Indonesia) Co., Ltd. was established in December 2018 as a joint venture between Huayou Cobalt, Qingchuang International, Woyuan Holdings and LONG SINCERE in Indonesia. The joint venture company has a project with an annual output of 60,000 tons of nickel and cobalt hydroxide.

Huayue Nickel-Cobalt (Indonesia) Wet process Project, located in Qingshan Industrial Park, Molowari County, Sulawesi Island, Indonesia, uses the most advanced third-generation high-pressure acid leaching process to extract nickel and cobalt hydroxide from laterite ore. The construction of the project was started in March 2020 and will be implemented in two stages by the overseas general contract construction of China Chemical Engineering. The first stage is the construction of a laterite nickel ore wet smelting project with an annual output of 30,000 tons of nickel metal, and the second stage is a laterite nickel ore wet smelting project with an annual output of 60,000 tons of nickel metal. The total planned investment of the project is 1.28 billion US dollars, and the project is expected to be completed for trial production by the end of 2021.

(2) QMB of Qingmeibang New Energy Materials Co., Ltd.

Qingmeibang New Energy Materials Co., Ltd. was established in January 2019 by a joint venture among Greenmei, Ningbo Bangpu, IMIP, Osaka and Societe Generale, in which IMIP holds a 10% stake. Qingmeibang has built an Indonesian laterite nickel mine project with an annual output of 50,000 tons of battery-grade nickel chemicals (nickel sulfate crystals) in Qingshan Park.

Qingmeibang project adopts wet chemical smelting technology for nickel laterite, and the core process is high-pressure acid leaching (HPAL). In May 2021, three 560m ³high pressure reactors (core equipment for high pressure acid leaching) were delivered. The project is scheduled to be completed in 2021 and put into operation in early 2022. After the completion of the Nickel Resources Qingmei Bang project in Indonesia, the "Power Battery Ternary cathode material Project" will first be configured to require nickel and cobalt raw materials for the nickel resources project.

(3) Zhongwei shares

Zhongwei and Qingshan Holdings completed the relevant strategic cooperation agreement on November 26th, 2020, and introduced Shanghai Jingmao Investment Co., Ltd., the holding subsidiary of Qingshan Holdings, to participate in the strategic placement of the company's IPO. Qingshan Holdings selected Zhongwei as the partner of the nickel resources development project, sales and production expansion plan of the Indonesian industrial park. These projects are expected to supply a total of 30-1 million tons of nickel metal equivalent from 2021 to 2030, accounting for about 10% of the average annual nickel consumption of Zhongwei in the future, helping Zhongwei to further improve its industrial chain.

In March 2021, Qingshan Industry signed a high nickel supply agreement with Huayou Cobalt and Zhongwei. The three parties jointly agreed that Qingshan Industries will supply 60,000 tons of high matte nickel to Huayou Cobalt Industry and 40,000 tons of high matte nickel to Zhongwei shares within one year from October 2021.

Downstream

(1) New energy production projects

Qingshan Group joined hands with Greenmei to build a ternary power battery material project. Fu'an Qingmei Energy Materials Co., Ltd. is a joint venture between Yongqing Technology and Green Mei, in which Yongqing Technology owns a 40% stake. The joint venture company has the Fu'an Qingmei three-way power battery material project.

The initial goal of the project is to produce 50,000 tons of ternary precursor materials for power batteries and 20,000 tons of ternary cathode materials for power batteries. In the future, the product structure will be adjusted and the production scale will be expanded according to the needs of the global market. According to the company's announcement, 20,000 tons of production capacity has been put into operation in July 2021, and the next 30,000 tons will be put into operation by the end of this year.

Build Xugong Qingshan new energy industry base and join the new energy vehicle. In December 2020, Qingshan Group signed a project with Xugong Group to jointly build Xugong Qingshan New Energy Industry Base. With a total investment of about 5.5 billion yuan, the base is mainly engaged in the R & D, production, sales and service of new energy vehicles, power batteries (cells, battery packs), motor electronic control systems and other spare parts.

(2) Ruipu Energy Co., Ltd.

Founded in 2017, Ruipu Energy Co., Ltd. is the first company for Castle Peak Holdings to invest in the new energy sector with its own rich mineral resources, and it is also the only lithium battery company it owns.

Ruipu Energy is mainly based on VDA and MEB standard size square aluminum shell ternary lithium battery and iron lithium battery, and its products cover the fields of power and energy storage. Cooperative enterprises include SAIC GM Wuling, Sany, Dongfeng and so on.

At present, Ruipu Energy has built two major bases, Wenzhou Manufacturing Base and Shanghai R & D Center, among which Wenzhou Manufacturing Base is located in Binhai Park, Longwan District, Wenzhou City. Four mass production lines and one pilot line have been built, with a total annual production capacity of 6GWh. The second phase of Wenzhou 20GWh plant will be put into production in 2021, and the third phase of 20GWh is expected to be put into production in 2022, with a total annual production capacity of 46GWh.

On April 23, 2021, Ruipu Energy plans to invest more than 30 billion yuan to build a Ruipu new energy industry base project in Beiwan District of Wenzhou. The investment of the project will be completed in 2026 and will be fully put into production in 2027. The annual production capacity of all the projects will reach 100GWh.

In order to further expand its production capacity, Qingshan Holdings invested 10.3 billion on March 31, 2021 to build a power and energy storage lithium-ion battery and system manufacturing base in Nanhai District of Foshan City, with an annual production capacity of 30GWH, making it the largest local lithium-ion battery production base.

The current capacity planning of Ruipu Energy has reached 176GWH, and its goal is to reach the capacity of 200GWh by 2025.