Securities code: Cngr Advanced Material Co.Ltd(300919) securities abbreviation: Cngr Advanced Material Co.Ltd(300919) Announcement No.: 2022012 Cngr Advanced Material Co.Ltd(300919) summary of 2021 Annual Report
1、 Important tips
The summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC.
All the reports of the board of directors have been considered.
The audit opinion of Tianzhi International Certified Public Accountants (special general partnership) on the company’s financial report this year is: standard unqualified opinion.
Changes of accounting firm during the reporting period: the accounting firm of the company has not changed this year and is Tianzhi international accounting firm (special general partnership). Tips on non-standard audit opinions □ applicable √ not applicable the company was not profitable at the time of listing and is not profitable at present □ applicable √ not applicable to the profit distribution plan of common stock or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable
The company’s profit distribution plan for ordinary shares reviewed and approved by the board of directors is: take 605673053 as the base, distribute cash dividend of 1.68 yuan (including tax) to all shareholders for every 10 shares, give bonus shares of 0 shares (including tax), and transfer capital reserve to all shareholders for every 10 shares.
Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation Cngr Advanced Material Co.Ltd(300919) stock code Cngr Advanced Material Co.Ltd(300919)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Liao Xingxing, Zeng gaojun
Office address: No. 567, Changsha Avenue, Yuhua District, Changsha City, Hunan Province; No. 567, Changsha Avenue, Yuhua District, Changsha City, Hunan Province
Fax: 08563238558
Tel: 08563238558
E-mail [email protected]. [email protected].
2. Introduction to main business or products during the reporting period
(I) main business and industry of the company
The company is a professional comprehensive service provider of lithium battery new energy materials. It is mainly engaged in the R & D, production, processing and sales of lithium battery cathode material precursors. It belongs to the field of new materials and new energy in the national strategic emerging industry. The company is recognized as the national enterprise technology center and national high-tech enterprise, and has won the titles of “national intelligent manufacturing”, “green manufacturing factory” and other demonstration projects. The company has reached strategic cooperation with dozens of well-known enterprises at home and abroad. Its core products have successfully ranked among the high-end supply chains of many world top 500 enterprises, and its products are widely used in 3C field, power field and energy storage field.
(II) industry
1. The position of the company’s industry in the industrial chain
The upstream industry of the company is the non-ferrous metal smelting industry, which provides raw materials such as nickel sulfate, cobalt sulfate, manganese sulfate, cobalt chloride, nickel beans, nickel powder, crude nickel sulfate, crude cobalt hydroxide and nickel cobalt intermediates for the production of precursors. With the industrial integration layout of the company, the company is gradually supporting some raw materials required for precursor production, and gradually develops from a single production link of precursor to an integrated enterprise of raw material processing and material production. The direct downstream industry of the company is mainly the cathode material industry, and the main application fields include new energy vehicles, energy storage and consumer electronics. Since its establishment, the company has focused on the R & D, production, processing and sales of lithium battery cathode material precursors, and has established a long-term and close cooperative relationship with well-known companies in the upstream and downstream of the new energy battery industry, so as to effectively ensure the supply of raw materials for the company’s main products and the continuous and stable growth of sales scale.
2. Development overview of ternary precursor industry
Ternary lithium batteries are mainly used in new energy vehicles, energy storage and consumer electronics. The rapid growth of downstream applications forms a huge demand for ternary precursors of upstream key materials.
As Xi Jinping General Secretary announced at the general debate of the 75th UN General Assembly that China’s carbon dioxide emissions will reach the peak by 2030 and strive to achieve carbon neutrality by 2060. On October 24, 2021, the opinions of the CPC Central Committee and the State Council on fully and accurately implementing the new development concept and doing a good job in carbon peak and carbon neutralization were officially released, further clarifying the principles, objectives and key tasks of carbon peak and carbon neutralization. On October 26, 2021, the State Council issued the action plan for carbon peak by 2030, which established the road map and construction map of green and low-carbon transformation of energy. In particular, with the support of China’s policies for the new energy industry, the new energy vehicle market showed a trend of rapid development in 2021. According to the statistics of China Automobile Industry Association, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in 2021 was 3.521 million, with a year-on-year increase of 158%. In the stage of rapid increase in the demand of the industry, China’s industrial chains developed rapidly and the market scale expanded day by day, The overall growth rate exceeded that of the international. According to the sales forecast of new energy vehicles in 2022 released by the passenger Federation, the original expected sales of 4.8 million new energy passenger vehicles should be adjusted to more than 5.5 million, which is expected to exceed 6 million.
Globally, according to the statistics of SNE research, the total installed capacity of global power batteries in 2021 was 296.8gwh, with a year-on-year increase of 102.3%, of which the installed capacity of ternary lithium battery was about 217 GWH, accounting for 73.1%, and the installed capacity of lithium iron phosphate battery was about 79.8 GWH, accounting for 26.9%.
The whole new energy vehicle industry has become one of the industries with the fastest development of new energy in 2021 under the double addition of policy and market; The energy storage market also grew rapidly in 2021, with an annual installed capacity of about 53gwh, a year-on-year increase of 85.96%.
With the rapid development of the book volume of global power lithium batteries and energy storage lithium-ion batteries, and the gradual replacement of ternary lithium batteries in some power tools and consumer electronics, the global shipment of ternary precursors has accelerated. According to the statistics of ICC xinlune consulting, the global total output of ternary precursor materials reached 747500 tons in 2021, with a year-on-year increase of 79.4%; The total output of ternary precursors in China reached 620600 tons, with a year-on-year increase of 82.3%. It is expected that the global output of ternary precursors will reach 1035600 tons in 2022, of which the output in China is expected to reach 857800 tons.
3. Development overview of Co3O4 industry
The lithium cobalt oxide battery, which is finally manufactured with cobalt trioxide as the precursor material, is mainly used in consumer electronics fields such as smart phones, tablet computers, smart wearable devices and so on. In recent years, with the application and deep coverage of 5g communication technology and the rapid development of wearable, electronic cigarette, UAV and other markets, the subdivided fields of lithium cobaltate have been further expanded, the wave of 5g smart phones and the sales growth of home, remote office, flat board and notebook brought about by the epidemic, The demand for lithium cobalt oxide cathode materials will continue to grow in 2021. According to the statistics of ICC Xinlu information, the total output of lithium cobaltate in China in 2021 was 91700 tons, an increase of 24.3% over the same period in 2020. Benefiting from the steady growth of lithium cobaltate batteries and lithium cobaltate cathode materials, the shipment of Co3O4 shows a steady growth trend.
4. Future development trend of the industry
(1) The demand for end products is growing, and the company’s products have a broad market space
① Market supply and demand are strengthened, new energy vehicles are developing rapidly, and the market space of cathode material precursors is broad
In 2021, according to canalys statistics, the global sales volume of electric vehicles (EVS) reached 6.5 million, with a year-on-year increase of 109%, accounting for 9% of all passenger vehicle sales; Among them, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in China is 3521000, with a year-on-year increase of 1.6 times, accounting for 13.4% of the sales volume of passenger vehicles in China, showing an upward trend as a whole. Various data and statistics institutions have correspondingly raised the market demand expectation for subsequent years. Shanxi Guoxin Energy Corporation Limited(600617) vehicles have entered a new stage of development. With the successive implementation of new energy industry policies, the market demand of new energy automobile industry will continue to increase.
The global sales of new energy vehicles continue to increase, but only 4% of the new vehicles sold in the United States in 2021 are electric vehicles. With the implementation of the executive order of the United States on “strengthening the leadership of the United States in the field of clean vehicles” in the future, the demand of overseas markets will usher in new growth points. At the same time, traditional fuel vehicles such as Volkswagen, Audi, BMW and Mercedes Benz will increase their preference for the new energy vehicle industry, and the overall demand of the downstream market will continue to be strong in the future. Benefiting from this, major global lithium-ion battery manufacturers such as LG Chemical, Samsung SDI, Contemporary Amperex Technology Co.Limited(300750) and others have accelerated the layout of production bases worldwide to meet the rapidly growing needs of downstream vehicle manufacturers.
In the future, with the successive implementation of industrial policies around the world, the capacity expansion of major lithium-ion manufacturers around the world and the batch implementation of new energy vehicles and supporting facilities, the midstream lithium-ion battery industry will develop rapidly and the demand for upstream cathode material precursor materials will expand day by day.
② The rapid growth of energy storage market drives the development of material technology and market side by side
In 2021, the biggest change in the whole energy storage market is the rise of large power stations, in addition to maintaining the high popularity of 5g base station backup power supply and household energy storage. For example, Huawei signed the 1300mwh energy storage project of Saudi red sea new town and Sungrow Power Supply Co.Ltd(300274) signed the 430mwh energy storage project of Israel, which are typical representatives. At the same time, with overseas energy storage system integrators such as Tesla Several large-scale energy storage projects of powin energy have started construction. According to the statistical data of ICC Xinlu information, the output of energy storage batteries in China in 2021 was 58.2gwh, a year-on-year increase of 252.73%. The global output of energy storage battery was 87.2gwh, with a year-on-year increase of 149.14%.
Looking ahead to China’s energy storage market in 2022, with the guidance on accelerating the development of new energy storage issued by the national development and Reform Commission and the national energy administration, which defines the development goal of China’s energy storage with an installed capacity of more than 30 million KW by 2025, China’s large-scale power rationing and blackout and time-of-use electricity price policies have been issued and implemented in the second half of 2021, It will push the development of lithium battery energy storage in China to a new height in 2022.
In the future, the energy storage field will become another growth point to drive the demand for lithium-ion batteries, and the demand of the energy storage market will tend to combine cost and technology, which will drive the new development requirements and technology matching degree of the energy storage industry.
③ Consumer electronics showed diversified demand, driving the steady growth of the core material Co3O4 market
In recent years, with the gradual increase in the popularity of smart phones, tablets and other products, the corresponding consumer electronics market tends to be saturated. With the gradual acceleration of the global 5g commercialization process, the market is expected to maintain stable growth. Although the development speed of traditional consumer electronics has slowed down, a variety of new electronic products in recent years have increased the demand for consumer batteries. Emerging electronic products such as wearable devices, e-cigarettes and wireless Bluetooth speakers have broad market prospects and will become a new growth pole of consumer batteries. Taking wearable devices as an example, according to IDC data, the global shipments of wearable devices reached 396 million units in 2020, an increase of about 14.5% over 345.9 million units in 2019. According to IDC’s prediction, the CAGR (compound annual growth rate) of global wearable device shipments in the next five years will be 12.4%, and the shipments will reach 637.1 million units by 2024. Under the comprehensive influence of the above factors, all links of the consumer electronics industry chain will maintain stable development in the future, and the demand for upstream core material Co3O4 will continue to grow. (2) The development trend of high nickel of ternary lithium battery is becoming more and more obvious
In 2021, the shipment volume of high nickel ternary precursor products showed a certain increase compared with that in 2020. The trend of high nickel is more obvious than that in 2020. High nickel ternary will continue to grow into the mainstream technology of long-life vehicles in the future. The capacity density of high nickel ternary lithium battery will gradually increase, the difficulty of process control and quality control will increase, and the reduction of unit cost caused by the increase of energy density will also be conducive to the popularization of new energy vehicles. With the development of relevant technologies and the integration of vehicle platform functions, new energy vehicles will continue to develop towards higher energy density and longer mileage in the future, and the development trend of high nickel ternary lithium battery is becoming more and more obvious.
(3) Lithium cobalt oxide battery has formed a high-voltage development trend
From the perspective of the future market demand of lithium cobaltate, the promotion of 5g technology has become the development trend of the global new generation information revolution. It is expected that by 2023, the global market share of 5g mobile phones will reach 26% and the compound annual growth rate will reach 23.90%. With the acceleration of commercialization of 5g technology and the increase of application scenarios, the single machine charging capacity of mobile devices such as smart phones will increase significantly. With the increasing popularity of 5g terminal products, smart phones will usher in the demand for upgrading and promote the growth of demand for lithium cobalt oxide cathode materials. At the same time, with the further application of technological innovation, a number of new products have emerged in the field of consumer electronics, such as wearable devices, AR / VR, consumer UAVs and other emerging consumer electronics, which are developing rapidly and applied to the fields of health care, game entertainment, personal safety and so on. The continuous emergence of new products provides new demand growth space for lithium cobalt oxide cathode materials.
According to ICC Xin
