Securities code: 002340 securities abbreviation: Gem Co.Ltd(002340) Announcement No.: 2022-004 Gem Co.Ltd(002340)
Announcement on the strategic supply guarantee of nickel resources of the company
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview
Gem Co.Ltd(002340) (hereinafter referred to as “the company” or ” Gem Co.Ltd(002340) “) is the world’s leading core supplier of high nickel ternary precursor products for power batteries for new energy vehicles. The company has established a multi-channel nickel resource supply guarantee system to ensure the strategic supply of nickel resources and the needs of nickel resources for the company’s precursor orders in 2022: first, based on circular economy, Obtain nickel resources through recycling, and establish a directional and circular cooperation relationship with Eve Energy Co.Ltd(300014) , Farasis Energy (Gan Zhou) Co.Ltd(688567) to ensure the strategic supply of nickel raw materials; In 2022, the company plans to recover more than 20000 tons of metal nickel from nickel resources, becoming the main supply to ensure the needs of nickel resources in 2022; Second, with Trafigura Pte.Ltd. (hereinafter referred to as “Trafigura”), metal Corp trading Ag (hereinafter referred to as “first quantum”), Yongqing Group Co., Ltd. (hereinafter referred to as “Yongqing”) and mingdaholdingpte Ltd. (hereinafter referred to as “Mingda”), Shanghai ranyulian Trading Co., Ltd. (hereinafter referred to as “ranyulian”) and other nickel resource supply companies signed medium and long-term supply and procurement agreements for MSP, MHP (intermediate products of nickel hydrometallurgy), high matte nickel and nickel beans to establish a global green supply chain of nickel resources; In 2022, the company has signed contracts with Trafigura, first quantum, Yongqing, Mingda, ran Yulian and other companies with a total nickel supply of more than 30000 tons of metal nickel, ensuring the sufficient demand of nickel resources for the company’s precursor orders in 2022; The third is the self built Indonesian nickel resource project, which is designed to produce 60000 tons of metal nickel per year. The first phase of the project is expected to be put into operation in the first half of this year. At that time, the company’s own nickel resources will further ensure the safety of the company’s nickel resource supply and effectively reduce the comprehensive cost of the company’s nickel resources.
2、 Impact on the company
With the rapid development of the global new energy vehicle industry, high nickel and low cobalt materials have become the general trend of vehicle power battery manufacturing. As the key raw material of vehicle power battery, nickel resources have become a global shortage of resources. In particular, China’s nickel resources are scarce, and China’s nickel resources can not meet the huge demand for nickel resources in the development of Shanxi Guoxin Energy Corporation Limited(600617) industry. The company obtains nickel resources through various channels such as self built nickel resources, recycling nickel resources and directional circulation of nickel resources in the market chain, which will effectively ensure the strategic demand of the company’s market orders in 2022 and future development for nickel resources. By focusing on the directional circulation mode of key new energy raw materials, including nickel resources, to promote the direct cooperation between the company and new energy battery plant and new energy vehicle plant, open up the green supply chain cooperation channel with new energy battery plant and new energy vehicle plant, and through the cooperation in resources, recycling, technology and market chain, Realize the directional recycling of key raw materials of new energy such as nickel resources, establish a deep cooperative relationship between power battery recycling and directional recycling of nickel and other resources, and continuously improve Gem Co.Ltd(002340) market share in power battery recycling and nickel and other resources recycling. At the same time, the global green supply chain of nickel resources has been established by signing nickel resource supply and procurement agreements with nickel resource suppliers such as Trafigura, first quantum, Yongqing and Mingda. In addition, the company accelerated the construction of self built nickel resources project in Indonesia, fully guaranteed the safety of nickel raw material supply system and enjoyed the advantage of low-cost nickel resources. The company’s multi-channel nickel resource supply system will ensure the stable and safe supply of nickel resources in the future, comprehensively consolidate the company’s core position in the global new energy material industry, and promote the low-carbon development of power batteries in the world.
3、 Risk tips
The company’s nickel resource supply guarantee system is conducive to ensuring the strategic demand for nickel resources for the company’s future development, but does not rule out the possible market risks in the implementation process. Please invest rationally and pay attention to the investment risks.
It is hereby announced
Gem Co.Ltd(002340) board of directors February 8, 2002
