Benefiting from the rising prices of potassium chloride and lithium carbonate, zangge mining ( Zangge Holding Company Limited(000408) ) ushered in a bumper harvest in 2021.
On March 10, the company released its annual report. In 2021, the company achieved a revenue of 3.623 billion yuan, a year-on-year increase of 90.31%, and a net profit of 1.427 billion yuan, a year-on-year increase of 523.06%. Both of them set the highest records since listing.
By product category, potassium chloride and lithium carbonate contributed the majority of revenue, accounting for 99.58% of the total revenue. Among them, potassium chloride achieved a revenue of 2.661 billion yuan, a year-on-year increase of 45.71%; Lithium carbonate was 946 million yuan, a year-on-year increase of 13.89 times. In terms of gross profit margin performance, both products have achieved significant improvement. The gross profit margin of potassium chloride was 58.67%, up 24.93 percentage points year-on-year; The gross profit margin of lithium carbonate reached 59.76%, reversing the dilemma of negative gross profit margin in one fell swoop, with a year-on-year increase of 63.33 percentage points.
Zangge mining has a mining right of 724.35 square kilometers in Qinghai Chaerhan Salt Lake, and uses the intercrystalline brine of kaichaerhan Salt Lake as raw material to produce potassium chloride. At present, it is the second largest production enterprise in China’s potassium chloride industry, with an annual sales volume of 1077800 tons and 1068100 tons respectively in 2021; In 2018, the company invested in the lithium carbonate project in Chaerhan Salt Lake. The first phase of the project has an annual output of 10000 tons. The lithium carbonate project was completed and put into operation in 2019, with an annual sales volume of 755306 tons and 11000 tons in 2021. It is reported that conge mining is one of the three companies that master the lithium extraction technology of 10000 ton industrial adsorption + membrane process combination, and has broken through the worldwide problem of extracting lithium from ultra-low concentration brine and large-scale industrial production.
In 2021, Zangger mining continued to reserve lithium resources through equity acquisition. In October last year, Jiangsu Tibetan youth new energy industry fund (limited partnership), the company’s main limited partner, acquired 51% equity of Tibet Ali mamico mining, whose lithium resources were equivalent to about 2.18 million tons of lithium carbonate; It has also obtained the pre exploration right of jianshishan potash mine of Mangya Xingwei, Qinghai Province and the detailed exploration right of the eastern section of deep brine potash mine in Xiaoliangshan Dafengshan area, with an exploration area of 675.61 square kilometers and 516.59 square kilometers respectively.
In the past year, driven by downstream demand, the price of lithium carbonate continued to soar, from less than 50000 yuan / ton to 500000 yuan / ton today. At present, 66% of the world’s lithium resources come from salt lake brine, while 51.4% of lithium carbonate is used in new energy vehicles. China is the world’s largest lithium consumer, but 70% of the upstream raw materials of lithium salt depend on imports. According to the prediction of Zangger mining, based on the 40-50kg lithium carbonate required for each electric vehicle, tens of thousands of tons of new demand are added every year, and the lithium industry is seriously in short supply.
Based on the above judgment, Zangger mining has formulated the development strategic plan for the next five years. The first stage is 20222024. It is positioned to go nationwide. On the basis of maintaining the stable output of potassium chloride and lithium carbonate in Qarhan Salt Lake, it has completed and put into operation the mamico Salt Lake Lithium project, added 1-2 Salt Lake Lithium projects with one million tons of lithium carbonate reserves, and landed in the overseas capital market at the right time; The second stage is 20252027, which is positioned to go global. The lithium project in mamico Salt Lake is stable and expanded at an appropriate time; A new salt lake lithium mine will be built, and the main economic indicators and benefits will reach 10 billion.
