Net profit soared by 623%! "Lithium King" 3 billion "take-all" industrial chain

On the evening of March 30th, the "Lithium King" Ganfeng Lithium Industry (002460) issued a number of gratifying announcements that the performance rose sharply in 2021, overseas mining equity acquisitions were finalized, and a number of new plans were about to start in 2022, and everything was moving forward for the better.

Non-net profit skyrocketed by 623%

According to the annual report, Ganfeng Lithium achieved an operating income of 11.162 billion yuan in 2021, an increase of 102.07% over the same period last year, a net profit of 5.228 billion yuan, an increase of 410.26%, and a non-net profit of 2.907 billion yuan, an increase of 622.76% over the same period last year.

The announcement shows that due to the impact of the low lithium price in 2020, lithium resource companies have cut capital expenditure and slowed down the progress of project expansion in 2020, so the new supply of lithium resources in 2021 is limited, and the market is still in a tight balance between supply and demand.

Vike Lithium noted that there is another important reason for the surge in performance, that is, Ganfeng Lithium products mainly use direct sales model, sell products directly to customers, and the products are self-pricing.

In addition, it is worth mentioning that while Ganfeng lithium industry has made a lot of money, the company's employees' wages have also gone up by 30%. In 2021, the salary payable by Ganfeng Lithium Industry is 110100022.94 yuan, and the number of employees is 1216. According to this calculation, the average annual salary of the staff and workers is about 90542 yuan. In 2020, the salary payable will be 79053831.36 yuan, with a workforce of 1163, with an average of about 67974 yuan.

In addition, the annual salary of Li Liangbin, chairman and president, and Wang Xiaoshen, vice chairman and vice president, also increased from 870400 yuan and 824400 yuan to 933500 yuan and 958100 yuan.

In 2022, the overall performance of Ganfeng lithium industry continues to ride the wind. The report shows that Ganfeng Lithium has both greatly increased its revenue and net profit in the first two months of 2022.

From January to February 2022, Ganfeng Lithium Industry is expected to achieve operating income of about 3.6 billion yuan, an increase of about 260% over the same period last year; net profit of about 1.4 billion yuan, an increase of about 300% over the same period last year; and non-net profit of about 1.8 billion yuan, an increase of about 1000% over the same period last year.

Based on the deducted non-net profit of 1.8 billion yuan, it means that Ganfeng Lithium's deducted non-net profit in the first two months of this year accounted for 62% of the total deducted non-net profit in 2021. In addition, according to the above operating data, Guojin Securities estimates that the net profit per ton of lithium salt in Ganfeng Lithium Industry from January to February is expected to reach more than 100000 yuan.

Global Lithium King

Ganfeng Lithium Industry said that the company is the only company in the global lithium industry that has industrial technologies of "extracting lithium from brine", "extracting lithium from ore" and "recovering lithium". It has the production capacity of more than 40 lithium compounds and metal lithium products in five categories. It is one of the manufacturers with the most complete supply of lithium products.

Zhejiang Securities Research News pointed out that Ganfeng Lithium Industry is currently the world's only complete industry chain lithium leader, the world's third largest and China's largest lithium compound manufacturer, as well as the world's largest lithium metal producer.

The strong self-sufficiency rate of resources is the foundation for Ganfeng lithium industry to maintain its leading edge. At present, Ganfeng lithium industry is continuing to distribute resources around the world, forming a stable, high-quality and diversified raw material supply system. It controls a number of high-quality lithium ore resources in Australia, Argentina, Mexico, Ireland, Africa, Qinghai, Jiangxi and other places, and lays out laterite nickel ore in Indonesia.

In 2021, Ganfeng Lithium made an offer to acquire and control the UK-listed company Bacanora; acquired 100 per cent of the property of Yili Hongda and indirectly held 49 per cent of the Qinghai-Liping Salt Lake project; and acquired 50 per cent of the spodumene project of Goulamina, Mali.

Up to now, the lithium resources of Ganfeng lithium industry can be divided into three resource types and nine major projects. First, spodumene resources, including Australia Mount Marion project, Pilbara Pilgangoora tantalum lithium project, Ireland Avalonia mine, Jiangxi Ningdu Heyuan mine, Africa Mali Goulamina spodumene project.

Among them, the Australian Mount Marion project is one of the main sources of lithium raw materials currently used in Ganfeng lithium industry. the project has an existing capacity of 450000-480000 tons / year of lithium concentrate and plans to carry out technical upgrading in the second half of 2022. It is expected that the annual production capacity will increase by 20-30% upon completion.

The second is the salt lake resources, including the Cauchari-Olaroz, Salta Province, and Qinghai-Liping Lithium Salt Lake Project, and the third is the Sonora lithium clay lithium extraction project located in Mexico.

"take all" industrial chain

Ganfeng lithium industry started from the manufacture of lithium compounds and metal lithium in the middle reaches, and successfully expanded to the upper and lower reaches of the industrial value chain. At present, a vertically integrated business model has been formed, which runs through upstream lithium resource development, mid-stream lithium salt deep processing and metal lithium smelting, downstream lithium battery manufacturing and comprehensive recycling of decommissioned lithium batteries.

Since 2021, Ganfeng lithium industry has been strengthening its advantages, making up for its shortcomings, "taking all" industrial chain links, and building a moat of the whole industry.

Solid advantage, that is, to speed up the development and reserve of lithium products. First, lithium raw materials. In addition to the four major lithium resource projects acquired at home and abroad in 2021, Ganfeng Lithium Industry is planning and building five lithium product projects in 2022, as shown in the following figure.

The second is lithium compound products. According to the 2021 annual report, Ganfeng Lithium Carbonate has a design capacity of 43000 tons with an effective capacity of 28000 tons; Lithium hydroxide has a design capacity of 81000 tons with an effective production capacity of 70, 000 tons; and lithium metal design and effective production capacity are both 2150 tons.

According to the Ganfeng lithium industry plan, the company will form a lithium product supply capacity with a total annual production capacity of 300000 tons of LCE in 2025, and a lithium product supply capacity of no less than 600000 tons of LCE in the future, as well as a more competitive lithium resource project reserve.

To make up for the deficiency is to strengthen the new route and broaden the industrial path. In recent years, Ganfeng Lithium Industry has frequently laid out the downstream industrial chain, and announced on the same day that it will use its own funds of no more than 3 billion yuan to invest in industries related to the upstream and downstream of new energy.

In fact, Ganfeng Lithium Industry acted much faster than the announcement.

In terms of lithium battery business, Ganfeng Lithium subsidiary Ganfeng Lithium Power Phase II 10GWh new lithium battery project has been put into production, including lithium iron phosphate square hard shell cell, soft package cell and solid-state battery production line. In addition, in January this year, Ganfeng Lithium Power has completed the delivery of solid-state batteries for 50 Dongfeng E70 electric vehicles.

In terms of battery recycling business, the annual report shows that the subsidiary recycling technology has formed a recycling capacity of 34000 tons / year for decommissioned lithium batteries and comprehensive metal recovery. The recycling of retired lithium iron phosphate battery ranks first in the domestic market share, and the recovery of retired ternary lithium battery ranks among the top three in the domestic market share. In the future, Ganfeng Lithium Industry will build a large-scale comprehensive facility that can recycle 100000 tons of decommissioned lithium batteries every year.

In terms of industrial investment, Ganfeng lithium industry is "wonderful" from January to March, whether it is the old industry or the new field.

Invest in Dupu new energy and change power in January; set up Ganzhou Ganfeng Renewable Resources Co., Ltd. and Sichuan Ganfeng Mining Co., Ltd., aiming at waste batteries and mineral mining; lock in the supply of PIM spodumene in February; invest 315 million yuan in convertible bonds in Shanghai Jujingui in March and will hold a total 80% stake in Xinyu Ganfeng Mining Co., Ltd. 96 million yuan is wholly owned by Tianyuan Lithium material Company, which plans to build an annual output of 12000 tons of lithium carbonate in Hebei Cangzhou Lingang Economic and technological Development Zone.

Summary

Whether it is a solid advantage or a deficiency, it will help Ganfeng lithium industry to broaden its resource channels, further enhance its resource self-sufficiency rate and enrich its product matrix.

And the new energy vehicle market will undoubtedly usher in vigorous development in 2022, superimposed by the current background of tight supply of lithium raw materials, Ganfeng Lithium Industry, which has a lot of high-quality resources, will naturally be able to catch the ride of rising lithium prices. From a comprehensive point of view of various factors, the 2022 performance of Ganfeng Lithium Industry is expected to continue to grow.

In the secondary market, as of March 31, Ganfeng Lithium Industry closed at 125.65 yuan, down 3.09%, with a total market capitalization of 180.6 billion.