On February 21, China’s phosphorus chemical giant Sichuan Development Lomon Co.Ltd(002312) (002312, hereinafter referred to as Sichuan Development Lomon Co.Ltd(002312) ) announced that it plans to invest 12 billion yuan to build Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy material project in Mianyang, Sichuan. At present, the project has been listed as a key promotion project in Sichuan Province.
According to the announcement, the project plans to use 800 mu of land, and the main construction content is to build projects with an annual output of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and supporting products. The construction period of the project is planned to be from March 2022 to December 2026, which is divided into two phases. Phase I project is tentatively scheduled to be completed and put into operation in December 2024, and phase II project is tentatively scheduled to be completed and put into operation in December 2026.
On November 19, 2021, Sichuan Development Lomon Co.Ltd(002312) signed an investment framework agreement with the Management Committee of Deyang ABA eco economic industrial park. On February 21, 2022, after deliberation and approval at the 16th meeting of the sixth board of directors of the company, it was agreed to invest 12 billion yuan in Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy materials project in de’a Industrial Park, Mianzhu City, Sichuan Province, with Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd., a wholly-owned subsidiary, as the main body.
Sichuan Development Lomon Co.Ltd(002312) was founded in 1997, formerly known as Chengdu Santai Holding Group Co., Ltd. and its main business is phosphorus chemical industry. It is a leading manufacturer of industrial grade monoammonium phosphate and feed grade calcium hydrogen phosphate in China.
According to the official website of Sichuan Development Lomon Co.Ltd(002312) , the controlling shareholder of the company is Sichuan Advanced Material Industry Investment Group Co., Ltd., a wholly-owned subsidiary of Sichuan development (holding) Co., Ltd., and the actual controller is the state owned assets supervision and Administration Commission of Sichuan provincial government.
For the reasons for the construction of lithium battery new energy materials project, Sichuan Development Lomon Co.Ltd(002312) said in the announcement that lithium iron phosphate is the downstream product of the company’s existing phosphorus chemical product industrial grade monoammonium phosphate. The project is a good start for the company to develop lithium iron phosphate cathode material related industries, and will become an important step for the company to improve the layout of the industrial chain.
Benefiting from the increase in the production and sales of new energy vehicles and the increase in the installed capacity of lithium iron phosphate batteries, the market demand for lithium iron phosphate is strong, the market demand is growing rapidly, and the product price continues to rise. Under the policy background of China’s carbon neutral and long-term strategic goal, it is expected that the production and sales of new energy vehicles will continue to increase, the shipment of lithium iron phosphate batteries will continue to grow, and the industry expects the market demand of lithium iron phosphate to continue to grow at a high speed.
According to the announcement, the output of Sichuan Development Lomon Co.Ltd(002312) industrial grade monoammonium phosphate is more than 360000 tons, which is the largest industrial grade monoammonium phosphate production enterprise in the world.
In terms of upstream mineral resources, Sichuan Development Lomon Co.Ltd(002312) also has a layout for a long time. Sichuan Hefa Mining Co., Ltd. announced that it plans to acquire the shares of Sichuan Hefa Mining Co., Ltd. at a price of 12.19 billion yuan, and Sichuan Hefa Mining Co., Ltd. plans to acquire 12.1 billion yuan. The design capacity of Tianrui mining is 2.5 million tons / year, with 95.97 million tons of resource reserves and 87.419 million tons of resource reserves. If Tianrui mining is successfully acquired, Sichuan Development Lomon Co.Ltd(002312) will have an annual phosphate production capacity of 3.65 million tons.
On January 21, Sichuan Development Lomon Co.Ltd(002312) disclosed the performance forecast for 2021. It is estimated that the net profit attributable to the shareholders of the listed company in 2021 will be RMB 900 million-1.1 billion, with a year-on-year increase of 34.58% – 64.49%; It is estimated that in 2021, the net profit after deduction attributable to the shareholders of the listed company will be RMB 600 million-750 million, with a year-on-year increase of 81.04% – 126.30%.
As of the closing on February 21, Sichuan Development Lomon Co.Ltd(002312) shares rose 2.27% to 12.17 yuan / share, with a total market value of about 21.5 billion yuan.
