Securities code: 002312 securities abbreviation: Sichuan Development Lomon Co.Ltd(002312) Announcement No.: 2022-030
Sichuan Development Lomon Co.Ltd(002312)
With regard to the announcement of investing in the construction of Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy material project, the company and all members of the board of directors guarantee the authenticity, accuracy and completeness of the announcement, and are jointly and severally liable for false records, misleading statements or major omissions in the announcement.
Important content tips:
1. Project Name: Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy materials project, which has been listed as a key promotion project in Sichuan Province.
2. Special risk tips:
(1) Macroeconomic and policy risks. New energy materials have a broad market and development space, but they may be affected by factors such as macroeconomic fluctuations, industrial policies and changes in market environment outside China, resulting in lower than expected risks in industry development, market demand and expansion, project implementation progress and expected benefits. (2) Risk of project approval delay. In January 2022, as the main body of the project implementation, Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd. (hereinafter referred to as “Deyang Sichuan Development Lomon Co.Ltd(002312) “), a wholly-owned subsidiary of the company, completed the project filing in Mianzhu administrative examination and approval Bureau; The approval procedures such as environmental impact assessment, safety assessment, energy assessment and construction permit of the project need to be completed, and the project can be implemented only after the approval of relevant government departments. The follow-up trial production, completion acceptance and other links also involve government approval, which may lead to the extension of the project construction cycle or failure to continue the implementation due to the failure of project approval.
(3) Risk of project land approval. The relevant land use procedures involved in the project shall be handled in accordance with legal procedures, and the specific location, area, nature of land, transfer period, etc. shall be subject to the actual registration of state-owned land use certificate. The progress of relevant government filing or approval procedures involved in the project land may be delayed, resulting in the risk that the project progress is less than expected or can not continue to be implemented.
(4) There is a risk of oversupply due to more new capacity. At present, China’s major phosphorus chemical enterprises and titanium dioxide enterprises have issued construction plans for iron phosphate and lithium iron phosphate. Although the industry predicts strong downstream demand, there is still a risk of excessive product supply due to more new capacity.
(5) Risk of product technology iteration. After the project is put into operation, the company will add new products such as iron phosphate and lithium iron phosphate. Although the R & D of new products and the company’s existing core products belong to the same industrial chain, they do not belong to similar products. In addition, the product technology iteration is too fast, there may be a risk of insufficient mastery of new product technology, resulting in the risk that the company’s relevant product technology lags behind the industry development and market demand.
(6) Risk of financing. In view of the large scale of the total investment of the project and the source of funds is the self raised funds of the company, there is still uncertainty whether the later funds can be in place on time to ensure the construction progress of the project. If the funds cannot be raised in full on time, it may lead to the risk that the investment scale, investment progress and expected benefits of the project do not meet the expectations. (7) The price of some raw materials fluctuates greatly and the risk of insufficient supply. The prices of purified phosphoric acid, industrial grade monoammonium phosphate, ferrous sulfate, lithium carbonate and other products, the main raw materials of lithium iron phosphate, have increased significantly in recent years. In particular, lithium carbonate has increased greatly recently and the supply is in short supply. The industry expects that its price may continue to remain high. On the one hand, the rise in the price of raw materials has reduced the profit space of the proposed products, On the other hand, the adequacy of raw material supply affects the downstream operating rate, and there is a risk of large price fluctuation and insufficient supply of raw materials in some supply chains.
(8) Risk of insufficient personnel required for the project. The company pays full attention to the demand and training of key R & D, technology, management personnel and other talents in the field of new energy materials involved in the project, but the company may face the problem of insufficient talents.
The company especially draws the attention of investors to investment risks.
1、 Overview of foreign investment
1. In the context of the national strategy of “carbon peaking and carbon neutralization”, Sichuan Development Lomon Co.Ltd(002312) (hereinafter referred to as “the company” or ” Sichuan Development Lomon Co.Ltd(002312) “) actively distributes new energy sources and new materials in combination with the “scarce resources + core technology” multi resource green and low-carbon circular economy development strategic plan and its own industrial advantages and resource endowment, The company plans to invest 12 billion yuan in Deyang ABA Ecological Economic Industrial Park (hereinafter referred to as “de’a Industrial Park”) to build Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy material project.
2. On November 19, 2021, the company signed an investment framework agreement with the Management Committee of Deyang ABA eco economic industrial park. For details, please refer to the company’s announcement on China Securities News, Shanghai Securities News, securities times, securities daily and cninfo (www.cn. Info. Com. CN) on November 20, 2021 Announcement on signing the investment agreement with the Management Committee of Deyang ABA eco economic Industrial Park; On February 21, 2022, the 16th meeting of the sixth board of directors of the company considered and approved the proposal on Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd. investing in the construction of lithium new energy materials project, and agreed to invest 12 billion yuan in Deyang Sichuan Development Lomon Co.Ltd(002312) lithium new energy materials project in de’a Industrial park with Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd., a wholly-owned subsidiary, as the main body; Agree that the company and the Management Committee of Deyang ABA eco economic industrial park sign the investment agreement and supplementary agreement with effective conditions; At the same time, the general meeting of shareholders is requested to authorize the president’s office meeting of the company to handle specific matters related to the project investment in accordance with relevant laws, regulations and the company’s management system. This investment will come into effect on the date when it is deliberated and approved by the general meeting of shareholders and approved by relevant competent authorities (if necessary).
3. The investment agreement and supplementary agreement involved in this project have not been signed.
4. This project investment does not constitute a related party transaction or a major asset reorganization as stipulated in the measures for the administration of major assets of listed companies.
2、 Counterparty information
1. Subject name: Management Committee of Deyang ABA eco economic Industrial Park
2. Registered address: No. 5, Hanxia Road, Hanwang Town, Mianzhu City, Sichuan Province
3. Unified social credit Code: 11510583mb1548684a
4. Legal representative: Chen shanyong
5. Organization type: Organization
6. The Management Committee of Deyang ABA eco economic Industrial Park has no relationship with the company. After inquiry, it is not a dishonest executee.
3、 Basic information of investment projects
(I) project overview
1. Project Name: Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy material project.
2. Total investment: 12 billion yuan.
3. Investor: Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd. (see details of the company in China Securities News, Shanghai Securities News, securities times, securities daily and http://www.cn.info.com.cn. On December 11, 2021) Announcement on completing industrial and commercial registration and obtaining business license of wholly-owned subsidiaries disclosed.
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4. Construction site: Deyang ABA eco economic Industrial Park, Mianzhu City, Sichuan Province
5. Main construction content and scale: build projects with an annual output of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and supporting products.
6. Land scale: the planned land area is 800 mu (subject to the measured area of Mianzhu natural resources and Planning Bureau. If the land area cannot meet the construction needs of the project, a supplementary agreement shall be signed to agree on matters related to increasing the land area). The site is located in de’a Industrial Park, of which the three types of industrial land are not less than 400 mu, Other industrial land and 300 mu of office logistics and living facilities, and 100 mu of supporting talent Apartments (obtained according to law). 7. Construction period: the construction period of the project is planned to be from March 2022 to December 2026 (if the construction period is postponed due to land problems, it will be postponed accordingly). The project will be implemented by stages: 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.
(II) necessity and feasibility analysis of the project
1. Project necessity
(1) It is conducive to grasp the development opportunities in the market environment of high-quality development of green and low-carbon advantageous industries in Sichuan Province
On December 2, 2021, the 10th plenary meeting of the 11th CPC Sichuan Provincial Committee adopted the decision on promoting the high-quality development of green and low-carbon advantageous industries under the guidance of achieving the goal of carbon peak and carbon neutralization (hereinafter referred to as the “decision”). The decision proposes to give full play to the supporting and driving role of leading enterprises, make an overall layout of the supply and demand side of the energy chain, the upstream and downstream of the industrial chain, the front and back ends of the supply chain, build an industrial ecosystem with reasonable division of labor, complete supporting facilities and strong guarantee, and accelerate the formation of a green and low-carbon advantageous industrial development pattern with centralized layout, cluster forming a chain and intensive and efficient. Article 4 (11) Sichuan Province will accelerate the development of lithium battery material industry, build an internationally competitive lithium battery material industry base, guide industry leading enterprises to choose qualified places for rational layout, promote the coordinated development of the whole industry chain of lithium battery materials, enhance the support capacity for the development of power battery industry, and strengthen the basic lithium salt and anode and cathode materials.
As the only industrial and capital operation platform of Sichuan development (holding) Co., Ltd. in the field of mineralization integration industry, as well as China’s industrial grade monoammonium phosphate, feed grade calcium hydrogen phosphate and some fine phosphorus, the provincial Party committee and provincial government call for extending the industrial chain and vigorously developing lithium iron phosphate new energy material projects, Actively grasp the industry development opportunities brought by the high-quality development of green and low-carbon advantageous industries in our province.
(2) It is conducive to the company’s layout of incremental market and promote the sustainable and steady development of the company
In recent years, the company’s main business of stock phosphorus chemical industry has maintained sustained and steady growth. On this basis, the company has actively arranged the incremental market of new energy and new materials. 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. Through the investment and construction of this project, it can enrich the company’s product structure, better meet the market demand, help incubate new profit growth points, improve the overall profitability of the company, create benefits for all shareholders, and then promote the sustainable and steady development of the company.
(3) It is of great significance to realize the strategic layout of the company’s industrial chain
The company adheres to the development strategy of “scarce resources + technological innovation” multi resource green and low-carbon circular economy, and actively extends the layout of the industrial chain. Lithium iron phosphate is the downstream product of the company’s existing phosphorus chemical product industrial monoammonium phosphate. The products involved in this project are an effective extension of the company’s original industry, which can make full use of the company’s existing phosphorus resources and further improve the added value of products. This project is a good start for the company’s development to lithium iron phosphate cathode material related industries and will become an important step for the company to improve the layout of industrial chain.
2. Project feasibility
(1) The strong support of national and local policies provides a policy basis for the implementation of the project
On October 24, 2021, the CPC Central Committee and the State Council issued the opinions on completely, accurately and comprehensively implementing the new development concept and doing a good job in carbon peak and carbon neutralization and the action plan for carbon peak before 2030, which systematically planned and overall deployed the dual carbon work, and explicitly mentioned the construction of a green and low-carbon circular economy system and vigorously promoted new energy vehicles. The decision of the CPC Sichuan Provincial Committee also proposes to accelerate the development of clean energy application industry, strengthen the basic lithium salt and anode and cathode materials, and realize the balanced, coordinated and green development of lithium battery main and auxiliary materials industry.
The planning of the project for the production of lithium iron phosphate, an important material for new energy vehicle batteries, is highly in line with the National Cooperative utilization, strive to maximize the utilization of resources, and meet the development requirements of the national, provincial Party committee and provincial government calling for the construction of a green and low-carbon circular economy system.
(2) The rapidly growing market demand provides a good guarantee for the product sales of the project
Under the background of the national strategy of “carbon peaking and carbon neutralization”, the new energy vehicle industry and energy storage industry are developing at a high speed. Lithium iron phosphate cathode material is generally favored by the market because of its safety, large capacity, discharge, fast charging and low cost. It has become one of the important development directions of cathode materials for power batteries and energy storage batteries. The proportion of lithium iron phosphate batteries in the installed capacity of power batteries has also increased. From 2016 to 2021, China’s apparent consumption of lithium iron phosphate increased from 81600 tons to 420000 tons, with a CAGR of about 38.76%. With the continuous and rapid growth of the demand for power batteries and energy storage batteries, there is a large growth space in the future in the relevant segments of the industrial chain such as lithium iron phosphate, which provides a good market guarantee for the product demand of the project.
(3) Have the guarantee of project landing elements
The project is located in de’a Industrial Park. According to the preliminary communication, de’a Industrial Park has construction land that can meet the needs of project planning; In terms of supporting elements of public works, the amount of public works required by the project can be guaranteed; In terms of energy consumption indicators, the Management Committee of Deyang ABA eco economic Industrial Park agreed to coordinate Aba Prefecture People’s government to meet the company’s production power and use the retained power of the project; In terms of resource elements, Deyang City has a good foundation of phosphate rock resources and phosphorus chemical industry, and Aba Prefecture is rich in lithium resources. The company will actively give full play to its resource integration ability and strive for more resource element guarantee for project construction.
(4) The company has certain industrial advantages required by the project
The company has some upstream mineral resources required for the implementation of the project. At present, the company is issuing shares to acquire 100% equity of Sichuan development Tianrui Mining Co., Ltd. (hereinafter referred to as “Tianrui mining”) (subject to the administrative approval of China Securities Regulatory Commission, with uncertainty). The design capacity of Tianrui mining is 2.5 million tons / year, accounting for 95.97 million tons of resource reserves, The retained resource reserves are 87.419 million tons. If Tianrui mining is successfully acquired, the company will have an annual phosphate rock production capacity of 3.65 million tons. With the help of some phosphate rock resource advantages of the company, it will effectively give play to the Industrial Synergy and improve the profitability of the project to a certain extent.
The company has the industrial foundation to implement the project. After more than 30 years of development and precipitation, the company has maintained the national leading level in the market share of fine phosphate field, especially in the subdivided field of industrial grade monoammonium phosphate and feed grade calcium hydrogen phosphate. Through the mode of “combination of fertilizer and salt and cascade development”, the company produces fertilizer grade phosphate and compound fertilizer, Maximize the benefits of fine phosphate and fertilizer phosphate. Industrial grade monoammonium phosphate has become a new energy battery (phosphoric acid
