On the evening of April 11th, Xin Yangfeng (000902) announced that the company's wholly-owned subsidiary Yangfeng Chuyuan New Energy Technology Co., Ltd. (referred to as "Yangfeng Chuyuan") plans to invest in the construction of a comprehensive utilization project of phosphorus chemical industry and phosphate rock associated fluorine and silicon resources in Ruichang City, Jiangxi Province. the total investment of the project is 6 billion yuan, and the project is funded by the company's own funds.
From the point of view of the construction content, the comprehensive utilization projects of phosphorus chemical industry and phosphate rock associated fluorine and silicon resources include phosphorus chemical industry project, fluorosilicon chemical project and new energy material project. Among them, phosphorus chemical projects include 1.5 million tons of mineral processing, 300000 tons of phosphoric acid, 250000 tons of purified phosphoric acid, 900000 tons of sulfuric acid, 100000 tons of high-grade flame retardants, 100000 tons of potassium dihydrogen phosphate, 200000 tons of slag acid fertilizer and 1.5 million tons of phosphogypsum; fluorosilicon chemical projects include 30, 000 tons of anhydrous hydrogen fluoride, 20, 000 tons of silica, and 10, 000 tons of lithium hexafluorophosphate as new energy materials.
Xin Yangfeng said that the company's investment in the comprehensive utilization project of phosphorus chemical industry and phosphate rock-associated fluorine and silicon resources can not only extend the phosphorus chemical industry chain and strengthen the strategic layout and competitive advantage of the company's industrial chain integration, but also help the company grasp the important development opportunities of the lithium power new energy industry, develop new products and markets, enrich industrial layout, and improve profitability and risk resistance. At the same time, this project is in line with the market development needs of the company's products and the strategic goal of continuing to expand and strengthen the main industry of phosphate and compound fertilizer, which will help to consolidate the company's leading advantage in the phosphorus chemical industry.
The battery network noted that the lithium hexafluorophosphate product in the above project is the first layout of Xinyangfeng. At present, it is an important opportunity period for the development of lithium electricity new energy industry. with the higher-than-expected demand for downstream new energy vehicles, the market price of lithium hexafluorophosphate has risen to 590000 yuan / ton in the past two years and adjusted back to 535000 yuan / ton in March 2022. According to relevant statistics and market forecasts, the demand for lithium hexafluorophosphate will be approximately 80800 tons in 2021 and will increase to 284000 tons in 2025, an increase of nearly 3.5 times in five years.
Xin Yangfeng pointed out that the layout of lithium hexafluorophosphate project can enrich the company's product structure in the field of new energy and new materials. At the same time, according to the raw material cost composition of lithium hexafluorophosphate and according to the current market price, the company's lithium hexafluorophosphate uses self-produced hydrofluoric acid, and the raw material cost will be about 6% lower than that of outsourcing, which has a certain advantage in production cost.
It is worth noting that before the layout of lithium hexafluorophosphate, New Yangfeng has made some moves in the field of new energy materials. According to the 2021 annual report released by Xinyangfeng on the same day, the company's revenue in 2021 was 11.802 billion yuan, an increase of 17.21 percent over the same period last year, while the net profit belonging to shareholders of listed companies was 1.21 billion yuan, up 28.22 percent from the same period last year. At the same time, since entering the new energy field in 2021, the company has relied on its own sufficient production capacity of monoammonium phosphate to continuously increase the related production capacity of iron phosphate and lithium iron phosphate.
According to reports, in 2021, Xin Yangfeng set up a wholly-owned subsidiary Yangfeng Chuyuan to successively build iron phosphate production bases in Zhongxiang and Yidu, Hubei Province, with an estimated investment of 6 billion yuan to build 300000 tons of iron phosphate, 150000 tons of lithium iron phosphate and related supporting projects. Among them, the investment of 25-3 billion yuan is to set up joint ventures with subsidiaries of Longyi Technology and Grimm to build 200000 tons of iron phosphate and related supporting projects respectively, and it is proposed to invest in the lithium iron phosphate project of not less than 100000 tons per year led by Grimmei in the form of equity participation. In addition, it has signed an investment of 3 billion yuan with the Yidu people's Government to build an annual production line with an annual output of 100000 tons of ferric phosphate, 50, 000 tons of lithium iron phosphate and 100000 tons of refined phosphoric acid.
Driven by the high demand for lithium iron phosphate from downstream new energy vehicles and energy storage batteries, the demand for iron phosphate upstream continues to rise, and the industry operating rate remains high. According to statistics, since November 2021, the operating rate of iron phosphate enterprises has been maintained at more than 90%. It is expected that the tension at the supply end of iron phosphate will not be alleviated throughout 2022, and the high economic cycle will continue.
Industrial grade monoammonium phosphate and high purity phosphoric acid are needed to produce iron phosphate and lithium iron phosphate. With the rapid growth of demand for lithium iron phosphate and iron phosphate from terminal to upstream, the demand of industrial monoammonium phosphate-high purity phosphoric acid-yellow phosphorus / phosphate fertilizer-phosphate ore industry chain is increasing. It is estimated that the demand for lithium iron phosphate in China will reach more than 2 million tons in 2025, and the total demand for industrial grade phosphoric acid / monoammonium phosphate will be more than 1.5 million tons. Industrial-grade monoammonium phosphate will fully benefit from the outbreak of downstream demand. At the same time, at the beginning of 2022, the price of industrial-grade monoammonium phosphate rose steadily, reaching a maximum of 6000 yuan / ton. driven by the demand for lithium iron phosphate battery, the resource scarcity of monoammonium phosphate is becoming more and more prominent.
For Xinyangfeng, the leader of phosphate fertilizer, at present, the company has a phosphate rock production capacity of 900000 tons / year, of which monoammonium phosphate production capacity is 1.85 million tons / year (including industrial monoammonium phosphate capacity of 150000 tons / year). Matching production of sulfuric acid 2.7 million tons / year, synthetic ammonia 150000 tons / year, nitric acid 150000 tons / year.
Xin Yangfeng stressed in the annual report that relying on the rich phosphate rock resources of the enterprise and the production accumulation engaged in the phosphorus chemical industry in the past 40 years, rapidly seizing the development highland of the transformation and upgrading of the industry will not only help to consolidate the leading position of the main fertilizer industry, but also help to build the new energy industry into the second main industry after the main fertilizer industry, open the second growth curve and broaden the profit space in the future. The transformation and upgrading to new energy and fine phosphorus chemical industry has become an important layout for the company to enhance its competitive advantage in an all-round way.
In 2022, Xin Yangfeng said that it will continue to promote the progress of iron phosphate projects in the two bases of Zhongxiang and Yidu, Hubei, and strive to put into production on schedule, so as to obtain the benefits brought by the high business cycle of short supply in the industry, and at the same time, further expand the purification of phosphoric acid and deep processing of fine phosphorus chemical products to realize the cascade development and utilization of phosphorus resources.
