The old real estate enterprise Sundy Land Investment Co.Ltd(600077) officially took a step in the cross-border lithium industry.
On March 13, Sundy Land Investment Co.Ltd(600077) announced that the holding subsidiary Zhejiang Songdu lithium Technology Co., Ltd. (hereinafter referred to as “Songdu lithium technology”) signed a consortium agreement with tus Qingyuan (Shanghai) new material technology Co., Ltd. (hereinafter referred to as “tus Qingyuan”), Jointly participated in the implementation of Tibet Summit Resources Co.Ltd(600338) ( Tibet Summit Resources Co.Ltd(600338) . SH) “equipment, operation and technical services of 50000 tons / year lithium carbonate salt lake lithium extraction construction project of Argentina lithium potassium Co., Ltd.” and signed a cooperation agreement with Tibet Summit Resources Co.Ltd(600338) .
It is reported that the equipment procurement amount involved under the relevant contracts is 1.6 billion yuan, and Songdu lithium will advance all contract equipment funds. At the same time, the project is located in Argentina. Due to the epidemic situation, the company has temporarily failed to conduct on-site investigation. At present, the cooperative parties have provided the mineral right certificate of the project, Party A’s credit investigation report, project mine construction design, procurement and construction (EPC) framework agreement and other relevant ownership, qualification and other supporting documents.
According to the announcement, Sundy Land Investment Co.Ltd(600077) three independent directors abstained from voting. That night, the Shanghai Stock Exchange issued an inquiry letter to Sundy Land Investment Co.Ltd(600077) asking the company to explain the purpose of the proposed advance of 1.6 billion yuan to participate in the projects related to Tibet Summit Resources Co.Ltd(600338) Salt Lake Lithium extraction and the abstention of three independent directors.
Sundy Land Investment Co.Ltd(600077) cross border disputes
It is reported that among the 1.6 billion yuan of equipment procurement involved in the project, Songdu lithium has the right to charge an annual interest rate of 8% according to the advance amount Tibet Summit Resources Co.Ltd(600338) shall be repaid in three phases within three years after the completion acceptance of the membrane process section of the project or within three years from March 31, 2024, whichever is earlier.
At the same time, during the cooperative operation period, Tibet Summit Resources Co.Ltd(600338) shall calculate the product processing fee and operation reward and pay it to Songdu lithium and tus Qingyuan every month according to the agreement. The unit price of product processing fee is tentatively set at 19800 yuan / ton (lithium chloride products). The two parties shall negotiate separately according to the actual operation consumption cost.
In fact, on the evening of January 4, 2022, Sundy Land Investment Co.Ltd(600077) announced the establishment of a lithium subsidiary, which triggered a dispute about whether the company can really participate in the lithium battery industry chain. The official step of cross-border has been taken this time, and some “differences” have also emerged within the board of directors of the company.
According to the announcement of the resolution of the board of directors, Sundy Land Investment Co.Ltd(600077) three independent directors abstained because the company’s diversified operation can disperse risks, but at the same time entering unfamiliar fields increases certain unknown risks. The company should make detailed due diligence in combination with its own cash flow, and consider the current international situation and future trend Economic risks and industry research, and make prudent decisions.
That night, the Shanghai Stock Exchange issued an inquiry letter to Sundy Land Investment Co.Ltd(600077) asking the company to explain the purpose of the proposed advance of RMB 1.6 billion to participate in the projects related to Tibet Summit Resources Co.Ltd(600338) salt lake lithium extraction and the abstention of three independent directors.
An Guangyong, an expert of the credit management committee of the all union M & A Association, told the Securities Daily that for the real estate industry, it is difficult to find a new blue ocean market with development prospects in the real estate value chain; When there is no place to invest in the real estate industry chain, cross-border is also a direction. Of course, the relevant risks are relatively large.
As for the signing of the cooperation agreement, Sundy Land Investment Co.Ltd(600077) six internal directors believed that “it is in line with the current industrial direction of carbon neutralization and carbon peak. The listed company participates in medium and long-term operation and output through appropriate advance funds in the early stage, and forms a team with the consortium unit during the period to accumulate technical level, which is in line with the overall business plan.”
Sundy Land Investment Co.Ltd(600077) internal directors stressed that in the process of innovative business development, the company will put risk control in the first place, actively explore and innovate in new fields, establish its own technical team and strive to create a new situation for the development of the company.
lithium resources are increasingly being seized
The development of new energy industry has promoted the rapid rise in the demand for lithium resources, which ushered in a large number of intensive layout of companies. Sundy Land Investment Co.Ltd(600077) is not the only listed company in the “cross-border” lithium battery industry.
Tibet Urban Development And Investment Co.Ltd(600773) , which is mainly engaged in real estate business, has attracted much market attention because of its two salt lake lithium mines. According to public data, the lithium carbonate reserves of the two salt lakes, Ali Longmucuo and Jieze Chaka in Tibet, invested and developed by Tibet Urban Development And Investment Co.Ltd(600773) belong to large lithium resources, with a total of 3.9 million tons.
Qi Haizhen, President of Beijing Teyi sunshine new energy, said in an interview with Securities Daily: “The global scramble for lithium resources has become increasingly fierce. Seizing and locking mines has become a must choice for many large enterprises with capital strength. Under the circumstances of relatively limited lithium resources and less synchronous and smooth mining cycle, facing the strong demand of the downstream, price increases and production expansion at all levels have become the new normal for the development of the industry.”
Bank Of China Limited(601988) Research Institute researcher Wang Meiting analyzed to the reporter of Securities Daily: “Since 2021, lithium ore prices have reached record highs. Due to the sharp rise in the new energy vehicle market and energy storage market, it is expected that lithium ore will still be an extremely important strategic resource for some time in the future. If sufficient lithium production capacity cannot be obtained, the market will be greatly affected. At present, the division of lithium resources in China is basically completed, and it is a better way to obtain overseas increment.”
Wang Meiting added that since 2021, lithium, cobalt, nickel and other related shares have led the whole market. Under the current valuation model, a larger market share means greater profits and a exponentially expanded valuation.
But, Qi Haiyu also said: “This continuous price rise phenomenon is not long-term and sustainable. The price rise has led to a severe squeeze on the profit space of downstream battery manufacturers. The Ministry of industry and information technology recently stated that it is necessary to moderately accelerate the development of lithium and other resources, so that the industry can rationally, orderly and rhythmically promote the national new energy development strategy under the concept of healthy and sustainable development.”
