Zhongruishilian asset appraisal group Co., Ltd
Reply to the letter of concern about Anshan Heavy Duty Mining Machinery Co.Ltd(002667) the first Department of listed company management of Shenzhen Stock Exchange:
According to the requirements of the letter of concern on Anshan Heavy Duty Mining Machinery Co.Ltd(002667) issued by your department on December 20, 2021 (hereinafter referred to as the “letter of concern”), our replies to the relevant issues involving the subject asset appraiser in the announcement are as follows one by one (unless otherwise specified, there are differences in the mantissa in this reply, which are caused by rounding):
3. According to the announcement, the book value of all shareholders’ equity of Jinhui regeneration evaluated by asset-based method is 88.6138 million yuan, with an evaluation appreciation rate of 131.93%, and the value evaluated by income method is 330 million yuan, with an evaluation appreciation rate of 767.21%. The acquisition adopts the income method as the final conclusion of the evaluation.
Please your company:
(1) In combination with the revenue realized in the reporting period of Jinhui regeneration, the expected revenue in future years, the distribution and proportion of revenue recognized in future years for on-hand and intentional orders, market development trend, industry competition pattern, competitive advantage, expected customer expansion and basis, explain whether the realizability of revenue in the prediction period of Jinhui regeneration is consistent with that in historical years Whether the realized income is quite different and in line with the historical trend;
(2) Explain whether there is a large difference between each cost rate and its prediction basis in the prediction period under the income method and the historical year. If so, please explain the reasons;
(3) Explain the calculation process and basis of the discount rate under the income method, as well as the sensitivity analysis of the evaluation results to the operating income, gross profit margin and discount rate;
Answer: question (1)
1、 Realized income and future predicted income during the reporting period
(i) The revenue realized by Jinhui regeneration in the reporting period is as follows:
Reply of zhongruishilian asset appraisal group Co., Ltd. on 1 / 13
S / n project historical data (10000 yuan)
2019 2020 January October 2021
I. main business income: 8168.328637.5010951.62
II. Other business income fifty thousand one hundred and one point zero four
III. total 8172.698685.0011052.66
（2） Expected revenue in future years
No. project future data forecast (10000 yuan)
November December 2021 2022 2023 2024 2025 2026
— line 587.82881 seventy-two
Second line 809.3110261.7710223.0510185.1110147.9310111.49
III. expansion production line -11485.1815274.2315235.6815197.9015160.87
IV. total 1397.1322628.6725497.2925420.7925345.8325272.37
Note: due to the small proportion of other business income, no prediction will be made in the future years.
2、 Distribution and proportion of revenue recognized from on hand and intentional orders in future years
(i) In hand and intended orders
Jinhui regeneration’s orders are mainly in two aspects:
1. The orders of lithium feldspar powder products in hand continued until the end of 2022, with 6 contracted customers. The orders of the above customers accounted for 65% of the total sales volume of lithium feldspar powder products (current capacity).
2. There are 2 orders in hand for lithium mica products. The order customers are state-owned enterprises and listed companies. They have cooperated for many years and have stability (the business model is to supply lithium ore resources to Jinhui regeneration and purchase lithium mica concentrate).
（2） Distribution and proportion of revenue recognized in future years
Future data forecast (10000 yuan)
No. project 2021 2022 2023 2024 2025 November December 2026
— line 587.82881 seventy-two
Second line 809.3110261.7710223.0510185.1110147.9310111.49
III. expansion production line -11485.1815274.2315235.6815197.9015160.87
IV. total 1397.1322628.6725497.2925420.7925345.8325272.37
The proportion of the fifth front line is 42.07% 3.90% 0.00% 0.00% 0.00% 0.00%
Sixth and second tier accounts for 57.93% 45.35% 40.09% 40.07% 40.04% 40.01%
VII. Expanded production line accounts for 0.00% 50.75% 59.91% 59.93% 59.96% 59.99%
Note: according to the company’s expanded production line planning, relevant technical transformation filing documents and engineering transformation progress, the company is expected to expand production in April 2022
The line can be produced normally, with an additional annual processing capacity of 400000 tons.
Reply of zhongruishilian asset appraisal group Co., Ltd. on 2 / 13
3、 Forecast revenue realizability
(i) Market development trend
Battery grade lithium carbonate is the core raw material for preparing lithium electronic batteries. Battery grade lithium carbonate is prepared from lithium mica. With the rapid growth of the demand for lithium-ion batteries, the production and sales of battery grade lithium carbonate are booming.
In November 2020, The general office of the State Council issued the new energy vehicle industry development plan (2021-2035), which proposed to “promote the development of the whole value chain of power batteries and encourage enterprises to improve the guarantee capacity of lithium and other key resources” 。 Under the background that major countries in the world have reached a consensus on carbon neutralization strategy, the demand for lithium deep-processing products in various application scenarios is growing rapidly, the strategic value of lithium has been fully recognized, and the resource has become the key point of competition in the new energy industry in the future. China’s lithium resources mainly depend on imports. In 2020, China’s lithium resource output accounted for only 24% of the world’s total, while the basic lithium salt smelting capacity reached 69% of the world’s total. The self supply capacity of lithium resources could not meet the smelting demand, and the self supply rate of raw materials was only 32%. Therefore, accelerating the development of China’s lithium resources is conducive to reducing the external dependence and import dependence of raw materials, It is of great significance to the stable supply of China’s lithium industry.
（2） Industry competition pattern
The China Shipbuilding Industry Group Power Co.Ltd(600482) lithium battery industry has developed rapidly from scratch and from small to large. The China Shipbuilding Industry Group Power Co.Ltd(600482) lithium battery industry has entered a key stage of industrialization construction, promotion and application, and the industrialization process of power lithium battery has been in an international leading position.
At present, the main enterprises in the China Shipbuilding Industry Group Power Co.Ltd(600482) lithium battery industry include Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , Farasis Energy (Gan Zhou) Co.Ltd(688567) , Eve Energy Co.Ltd(300014) , Gotion High-Tech Co.Ltd(002074) , Tianjin Lishen, AVIC lithium battery, etc.
（3） Competitive advantage
At present, Jinhui regeneration has developed into a national high-tech enterprise integrating R & D, production and sales. It is specialized in the treatment of non-metallic tantalum niobium lithium ore and waste rock (tailings). The reply of ruishilian asset appraisal group Co., Ltd. on 3 / 13
Combined separation, extraction and comprehensive utilization to realize the productivity, environmental protection and science and technology of circular economy. Jinhui regeneration mainly produces tantalum niobium refined powder, lithium mica refined powder, lithium feldspar powder, etc. the company’s downstream industries are mainly building ceramics industry, glass industry, metal smelting industry, lithium battery new energy industry, national defense industry, aerospace industry, etc. Through the comprehensive treatment and utilization of tailings, Jinhui regeneration provides basic raw materials for the above downstream enterprises, and realizes the comprehensive utilization rate of waste ore, waste residue and waste rock at 100%, realizing zero discharge of solid waste, which is in line with the industrial plan of the state to vigorously encourage and support the development of circular economy.
1. Policy advantages
The production base of Jinhui regeneration is located in zebu village, Xinfang Town, Yuanzhou District, Yichun City, Jiangxi Province. With full consideration of environmental protection, it makes full use of the local tantalum niobium lithium tail waste ore resources to carry out tailings free deep processing, so as to select and recover valuable metals and useful minerals, and use the independently developed process to achieve no waste residue and no discharge of harmful and toxic substances in the production process. Jinhui regeneration has obtained the cleaner production audit record of Jiangxi cleaner production enterprise audit (ggxgjzz [2015] No. 120) in 2015, which has obvious policy advantages.
2. Resource advantages
The main raw materials used in Jinhui regeneration production are black spot ore, slope ore and other tailings produced during the mining of tantalum and niobium ore in Yichun, Jiangxi Province. At present, Jinhui regeneration has signed an agreement on comprehensive utilization of mine tailings resources with Yichun Mining Co., Ltd. for 10 years. At the same time, the company signed an entrusted processing agreement with Yichun Tantalum Niobium Mine Co., Ltd., and the above businesses ensured the resource supply for the company’s production and operation.
3. Market position advantages of lithium feldspar powder
At present, the main customers of Jinhui regeneration lithium feldspar powder products are stable and occupy a large share in the middle-end market. At present, lithium feldspar powder products have been sold to Guangdong, Hunan, Hubei, Shandong and other places, laying a market position for the sales of lithium feldspar powder expanded by Jinhui reproduction line in the future.
Reply of Zhongrui Shilian asset appraisal group Co., Ltd. on 4 / 13
4. Technological production advantages
With more than ten years of continuous research and development by core technicians, Jinhui regeneration has developed a new process of “weak magnetic iron removal magnetic separation re flotation combination” through many years of research. This technology has won many awards. The company has 38 patents with independent intellectual property rights, including 7 invention patents (2 in the substantive examination stage) and 31 utility model patents.
5. Advantages of standardized management and strong management experience
At present, the company’s management team has rich market practice ability and profound experience accumulation. 6、 Customer development
Jinhui regeneration’s customers are mainly direct sales of lithium feldspar powder products. Through the signed contracts, it has been determined that there are 6 customers, all of which are large-scale production enterprises, including 2 building ceramics enterprises as industry star enterprises and 1 special cement white cement production enterprise. As for lithium mica products, through the signed intention orders and extended contracts, the main cooperative customers are Yichun Tantalum niobium mine, jiangte, Yinli, Nanshi lithium and other lithium battery material leading enterprises. In conclusion, with the increase of Jinhui reproduction line, the market share will continue to improve and the competitive field will be more stable. The core competitive advantage of leading enterprises in the industry has been obvious. The income in the forecast period is realizable. The difference from the income realized in the historical year is mainly reflected in the fact that the company’s expanded production line was officially put into operation in April 2022, which is in line with the historical trend.
Question (2)
1、 Main business cost
The details of main business costs in historical and future years are as follows:
Historical data (10000 yuan) future data forecast (10000 yuan)
Project 2019 2020 2021 2021 2022 2023 2024 2025 2026
January October November December
Main operating cost 4641.946241.537397.73911 0113,269.2315,681.9815,92
