1.2 billion! Xiang Fenghua plans to build a project with an annual output of 60,000 tons of lithium anode materials in Suining.

At noon on June 7th, Xiang Fenghua (300890) issued an announcement, based on the strategic planning of focusing on the main business of new energy and the need to further improve the layout of the company, recently, the company and the people's Government of Pengxi County of Suining City (hereinafter referred to as "Pengxi County Government"), in order to actively respond to General Secretary Xi Jinping's major new energy security strategy of "four revolutions and one cooperation" and promote the development of Suining's new energy industry. The Investment Agreement on the Construction of an Integrated production Base for High-end artificial Graphite anode Materials with an annual production capacity of 60,000 tons was signed.

According to the announcement, Xiang Fenghua will set up a holding subsidiary in Pengxi County, Suining City, to produce graphite anode materials with an annual production scale of 60,000 tons. The construction project of the integrated production base of high-end artificial graphite anode materials with an annual output of 60,000 tons, mainly produces high-end artificial graphite anode materials, with a planned investment of about 1.2 billion yuan in two phases, with a planned investment of 600 million yuan in the first phase. the second phase plans to invest 600 million yuan, and the construction cycle of the first phase is about 20 months. The second phase of the project will be completed and put into production within 16 months after obtaining the construction permit approval procedures.

Xiang Fenghua said that this cooperation will help the two sides to further strengthen cooperation in the field of new energy and expand the company's layout in the field of new energy, which is in line with the company's long-term development strategy and the interests of all shareholders.

It is understood that Xiang Fenghua was founded on June 12, 2009. its main products are divided into two categories: natural graphite and artificial graphite, which are used in lithium batteries including power (electric vehicles, such as new energy vehicles, electric bicycles, etc.), 3C consumer electronics and industrial energy storage. In July 2020, the company's gem IPO successfully held a meeting. At that time, according to the company's plan, in the next three years, The company will form an annual production capacity of 60,000 tons of lithium battery anode materials.

According to the Bank of China Securities report, by the end of 2020, Xiang Fenghua has completed a production capacity of 30, 000 tons, is under construction (fund-raising projects), and has an actual effective production capacity of 25470 tons in 2020. In 2020, output was 17400 tons, down 2.20 percent from the same period last year; sales were 14500 tons, down 10.56 percent from the same period last year.

In terms of performance, Xiang Fenghua achieved operating income of 416 million yuan last year, down 35.55% from the same period last year, and net profit belonging to shareholders of listed companies was 45.45 million yuan, down 26.32% from the same period last year. In the first quarter of this year, the company achieved operating income of 156 million yuan, an increase of 179.02% over the same period last year, and the net profit belonging to shareholders of listed companies was 20.11 million yuan, an increase of 455.95% over the same period last year.