Sheng Xin LiNeng: net profit in the first quarter is expected to increase by 765.24% compared with the same period last year. Mi 957.52%

Shengxin Lithium Energy announced that it is expected to make a net profit of 900 million yuan to 1.1 billion yuan in the first quarter, an increase of 765.24% and 957.52% over the same period last year. This is mainly due to the rapid development of the new energy industry during the reporting period, the strong growth of downstream customers' demand for lithium salt, the continuous rise in the price of lithium salt products, and the sharp increase in the company's lithium salt business profit compared with the same period last year. The company pays close attention to the opportunity of the rapid development of the market, on the one hand, does a good job in production and operation, and achieves full production and sales throughout the year through scientific organization and deployment, improving production line efficiency, strengthening quality management and improving the level of craftsmanship. the production and sales of major products increased by a large margin compared with last year, and the business performance increased greatly.

On the other hand, the company also makes efforts in capacity expansion and resource reserves, and actively responds to the national "Belt and Road Initiative" policy to carry out double-cycle layout at home and abroad. Increase the domestic shareholding in Huitong Mining, Yajiang County, Sichuan Province; plan to build a new 60, 000-ton lithium salt project in Indonesia, acquire a 51% stake in the Zinbab Visa star lithium-tantalum project, SESA of Argentina (obtain the right to operate the SDLA salt lake project), and participate in a number of initial salt lake exploration projects in Agentin through equity participation.

During the reporting period, the production line of Lithium Carbonate and Lithium hydroxide in Zhiyuan Lithium Industry, a subsidiary of the company, was in good operation, the product quality was stable, and was recognized by more and more high-quality customers. Suining Shengxin invested and built a lithium hydroxide project with an annual output of 30,000 tons in Shehong, Sichuan Province, which was completed and put into production in January 2022. At present, the pilot production phase of the project is relatively smooth, and the company actively promotes the project to reach production according to plan. The project with an annual production capacity of 60,000 tons of lithium salt invested by Indonesia Shengtuo in Indonesia's Central Sulawesi Province is currently under construction and is expected to be completed and put into production in 2023. During the reporting period, the company produced 40200 tons of lithium products, an increase of 90.10% over the same period last year, and sales of 42000 tons, an increase of 108.54% over the same period last year. At present, the company's main customers include Ningde Times, BYD, China New Airlines, Ruipu Energy, LG Chemistry, SKO, Posco Chemistry, Samsung SDI, Xiamen Tungsten Xineng, BASF Sequoia, German Nano, Rongbai Technology, Beitre and other industry leading companies. During the reporting period, the production operation of the company's subsidiary Shengwei Lithium Industry is good. Up to now, 400 tons of capacity has been built in the first phase of the 600-ton lithium metal project, and the remaining capacity is also under active construction. During the reporting period, the company's sales revenue of lithium products was 2.7854697 billion yuan, an increase of 301.46% over the same period last year.

During the reporting period, with the rapid growth of the demand for lithium salt, the demand for lithium ore resources also increased significantly. On the one hand, the company focuses on ensuring the production and operation of the Oino mine project, producing 41800 tons of lithium concentrate in the whole year, which provides a certain resource guarantee for the development of the company's lithium salt business. At the same time, the company will actively promote the production of the Oyino mine project. On the other hand, the company vigorously laid out the upstream lithium resources project and acquired a 51% stake in Max Mind Hong Kong. its subsidiary Zimbabwe Sun Company has mining warrants for a total of 40 rare metal blocks located in the Sabixing Lithium-Tantalum Mine Project in Zimbabwe. According to preliminary planning, the Sabixing Lithium-Tantalum Mine Project has a production scale of 900000 tons per year, equivalent to about 200000 tons of lithium concentrate, and is expected to be completed and put into production by the end of 2022. The company acquired a 100% stake in Sichuan Liuxin Survey Planning and Design Co., Ltd., and increased its shareholding in Huitong Mining to 25.19%. The company acquired SESA of Argentina, which has the right to operate the UT consortium through SESA, and the UT consortium operates the SDLA Salt Lake project in Argentina. This is the first time the company has set foot in the field of extracting lithium from salt lakes. Following the SDLA Salt Lake Project, the company has also participated in a number of early salt lake exploration projects in Argentina through equity participation. In addition to the above projects, the company continues to actively look for suitable lithium resource projects at home and abroad.

During the reporting period, the company jointly participated in and invested in the new energy industry fund through its subordinate partnership Shengxin OneWorld and the central enterprise Rural Industry Investment Fund Co., Ltd., and indirectly held 16.66% of the new energy industry fund. The target raising scale of the new energy industry fund is 3 billion yuan, and the main investment directions include high-quality enterprises such as upstream lithium resources, lithium materials, mid-stream batteries and downstream new energy vehicles. This participation in investing in the new energy industry fund provides solid support for the company's acquisition of upstream lithium resources and the expansion and cooperation of the downstream industry chain. The company participates in 1.04% of Xiamen Haichen New Energy Technology Co., Ltd. Haichen New Energy is mainly engaged in the research, development, production and sales of lithium battery core materials, lithium iron phosphate energy storage battery and system, lithium iron phosphate commercial power battery and system. This investment strengthens the company's layout and business expansion of the lithium battery industry.

During the reporting period, according to the development strategy, the company sold 51% stake in rare earth business subsidiary Wanhong Hi-tech, 45% stake in Guangdong Willie Bond, a wood-based panel business participation company, and 21.43% stake in Taishan Willie Bond. After the completion of the transaction, the company no longer holds shares in Wanhong Hi-Tech, Guangdong Willie Bond and Taishan Willie Bond. At present, the company still has a small amount of forest business, and the follow-up company will divest it in time according to the development strategy, and continue to transfer the remaining wood-based panel business shares in the company.

The company has four major lithium production bases around the world: (1) Zhiyuan Lithium Industry is located in Mianzhu Dea Ecological Economic production Park, Deyang City, Sichuan Province, with an annual production capacity of 40, 000 tons of lithium salt (including 25000 tons of lithium carbonate and 15000 tons of lithium hydroxide). (2) Suining Shengxin is located in the Lithium Power Industry Park of Sichuan Shehong Economic Development Zone, and the project with an annual output of 30,000 tons of lithium salt (all lithium hydroxide) was completed and put into production in January 2022. (3) the (IMIP), design capacity of Inney Shengtuo is located in Morowali County, Morowali County, Central Sulawesi Province, Indonesia, with an annual production capacity of 60,000 tons of lithium salt, which is currently under construction and is expected to be completed and put into production in 2023. (4) Shengwei Lithium Industry is located in the Lithium Power Industry Park of Sichuan Shehong Economic Development Zone, with an annual production capacity of 1000 tons. The company's lithium products are advanced in business technology, and the products are mainly used in lithium-ion power batteries, energy storage, petrochemical, pharmaceutical and other fields. With the rapid development of the global new energy vehicle and energy storage industry, the market demand for lithium products is strong, which provides the company with huge market space and development opportunities.

In order to ensure the raw material supply of the company's lithium production, the company has successively laid out lithium resource projects around the world, including both hard rock mining projects and salt lake lithium extraction projects: (1) Oyino Mining has the mining rights of Yelonggou spodumene mine and Taiyang Hekou lithium polymetallic deposit in Jinchuan County, western Sichuan, among which Yelonggou spodumene deposit has been proved to have 111500 tons of Li2O resources, with an average grade of 1.30%. The project was put into production in November 2019, with a raw ore production scale of 405000 tons per year, and the Taiyang Hekou lithium polymetallic deposit is currently in the stage of exploration rights. (2) the company has acquired 51% stake in Max Mind Hong Kong, and its subsidiary Zimbabwe Sun Company has mining warrants for a total of 40 rare metal blocks located in the Sabixing Lithium-Tantalum Mine Project in Zimbabwe, of which 5 mining rights have Li2O resources of 88500 tons, with an average grade of 1.98%. The other 35 mining rights are in the preparatory stage of exploration, according to the preliminary plan. The designed raw ore production scale of Sabixing Lithium Tantalum Mine is 900000 tons per year, equivalent to about 200000 tons of lithium concentrate, which is expected to be completed and put into production by the end of 2022. (3) the company has a total stake of 25.19% in Huitong Mining, Yajiang County, Sichuan Province. Huitong Mining currently has one exploration right, and by the end of December 2020, it has proved 642900 tons of Li2O resources, with an average grade of 1.63%. (4) the company acquired 100% of the shares of SESA in Argentina, SESA has the right to operate the UT complex, and the UT consortium operates the Argentine SDLA project, which has an annual production capacity of 2500 tons of lithium carbonate equivalent.

According to the company's development strategy of "committed to becoming a global leader in lithium power new energy materials", in order to make the main business and development strategy clearer, focus management resources more, and improve management efficiency, during the reporting period, the company sold 51% stake in rare earth business subsidiary Wanhong Hi-tech, 45% stake in Guangdong Willie Bond and 21.43% stake in Taishan Willie Bond. After the transaction was completed, The company no longer holds shares in Wanhong Hi-Tech, Guangdong Willie Bond and Taishan Willie Bond. At present, the company still has a small amount of forest business, and the follow-up company will timely divest it according to the development strategy, and continue to transfer the remaining shares in the wood-based panel business, and the company will focus on the development of new energy materials for lithium electricity.

During the reporting period, Yelonggou spodumene Mine continued to carry out supplementary production exploration in order to expand the resource scale of the mining area. The exploration area of Taiyang estuary lithium polymetallic deposit is 12.99 square kilometers, including 3 lithium ore bodies and 8 granite pegmatite dikes, which has a good prospecting prospect. At present, the Taiyanghekou lithium polymetallic deposit is still in the exploration stage. During the reporting period, the expenditure on mining exploration in Oyino Mining was 9.1073 million yuan.