Company code: Guizhou Zhenhua E-Chem Inc(688707) company abbreviation: Guizhou Zhenhua E-Chem Inc(688707) Guizhou Zhenhua E-Chem Inc(688707)
Summary of annual report 2021
Section I important tips
1 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 go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2 major risk tips
The company has described in detail the relevant risks that may be faced in the process of production and operation in this annual report. For details, please refer to the relevant contents of "IV. risk factors" in "section III Management Discussion and analysis" of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 zhongtianyun Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
The company plans to distribute profits based on the total share capital registered on the date of equity distribution, and distribute cash dividends of 2.5 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 442934810 shares. Based on this calculation, the total cash dividend to be distributed is 11073370250 yuan (including tax). The profit distribution amount accounts for 26.84% of the net profit of 41257922786 yuan attributable to shareholders of Listed Companies in the consolidated statements of 2021. In 2021, the company will not convert capital reserve into share capital and will not give bonus shares. The remaining undistributed profits are carried forward and distributed in subsequent years.
If the total share capital of the company changes from the date of disclosure of this report to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly.
The company's 2021 profit distribution plan can only be implemented after it is deliberated and approved by the company's 2021 annual general meeting of shareholders. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
A-share Shanghai Stock Exchange Guizhou Zhenhua E-Chem Inc(688707) Guizhou Zhenhua E-Chem Inc(688707) /
Scientific innovation board
Profile of the company's depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Wang Jing, Yu sisi
Office address: No. 1, Gaoqiao Road, Baiyun District, Guiyang City, Guizhou Province No. 1, Gaoqiao Road, Baiyun District, Guiyang City, Guizhou Province
Tel: 085184284089
E-mail wangjing@zh -echem. com. yusisi@zh -echem. com.
2. Introduction to the company's main business in the reporting period (I) main business, main products or services
Since its establishment, the company has focused on the R & D, production and sales of lithium-ion battery cathode materials, mainly providing lithium-ion battery cathode materials for products in the field of new energy vehicles and consumer electronics. Cathode materials used in the field of new energy vehicles, including various models of primary particle large single crystal nickel cobalt manganate lithium ternary cathode materials (NCM), including medium nickel, medium high nickel and high nickel, are the core competitive products of the company; Cathode materials for consumer electronics mainly include high voltage lithium cobalt oxide, composite ternary cathode materials and primary particle large single crystal ternary cathode materials. （2） Main business model
1. Procurement mode
The main raw materials purchased by the company include ternary precursor, lithium carbonate, cobalt oxide and lithium hydroxide. The company has a material department, which is responsible for the selection of suppliers and the purchase of materials.
2. Production mode
The company mainly produces according to orders. If the customer is expected to have a large order demand in the future according to the customer's annual purchase plan and market trend, the company will also implement stock production in order to reduce the future production pressure and make effective use of production capacity.
3. Sales model
The company mainly adopts the direct selling mode. Most of its downstream customers are large and well-known lithium-ion battery manufacturers in China. After long-term cooperation, a stable cooperative relationship has been formed.
The sales process mainly includes obtaining sample demand, technical exchange, sample certification at each stage, signing contract, delivery, payment collection and other links; Sample certification at each stage includes the production, delivery, evaluation, customer certification, improvement, specification / drawing signing and other processes of samples at different levels such as laboratory level and production line level, so as to ensure that the whole process from product performance to batch quality stability can meet customer needs. After the certification stage, the company signs a supply contract with customers for mass production, and tracks the delivery of goods and the recovery of payment for goods. If the customer puts forward further requirements for the certified products, the company will directly sign a supply contract with the customer for mass production. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
(1) Industry development stage
The company's main business is the R & D, production and sales of cathode materials for lithium-ion batteries. Lithium ion battery is composed of positive electrode, negative electrode, diaphragm and electrolyte. The positive electrode material is the decisive factor of the electrochemical performance of the battery. At the same time, it accounts for a high proportion in the cost of the whole battery material and is the core key factor affecting the performance of lithium ion battery. The upstream of the cathode material is mainly the precursor and metal raw materials such as cobalt nickel manganese lithium. The downstream of the cathode material is the power battery, 3C battery and energy storage market. Benefiting from the vigorous development of new energy vehicle industry, the steady development of consumer electronics market and the rise of energy storage market, the cathode material industry in which the company is located is currently in a rapid growth stage.
(2) Basic characteristics of the industry
At this stage, the cathode material industry of lithium ion battery has the following basic characteristics:
① The demand for power batteries broke out, and the shipment of ternary cathode materials increased rapidly
Looking back on 2021, although new energy vehicles faced challenges such as the impact of the epidemic, product "lack of core" and soaring raw material prices, the new energy passenger vehicle market maintained explosive and rapid growth.
According to the data of China Automobile Industry Association, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in the middle of 2021 was 3.521 million, with a market penetration rate of 13.4%, 8 percentage points higher than the penetration rate of 5.4% in 2020.
Benefiting from the rapid development of new energy industry outside China, the demand side of power battery market will pick up strongly in 2021, driving the output of cathode material enterprises to increase. According to the research of advanced lithium battery (GGII), the shipment of China Shipbuilding Industry Group Power Co.Ltd(600482) battery in 2021 was 220gwh, an increase of 175% compared with 2020. According to the statistics of ICC xinlune information, the total output of ternary materials in China in 2021 was 398100 tons, a year-on-year increase of 89.5%. The total output of ternary materials worldwide was 729700 tons, a year-on-year increase of 79.3%.
② "Double carbon target" injects development power into the energy storage market, and the market space of cathode materials is further opened
On January 29, 2022, in order to promote the large-scale, industrialized and market-oriented development of new energy storage, the national development and Reform Commission and the National Energy Administration issued the implementation plan for the development of new energy storage in the 14th five year plan, which proposed to promote the development of diversified technologies and carry out key core technologies such as sodium ion batteries and new lithium-ion batteries. New energy storage is an important equipment foundation and key supporting technology to promote the green and low-carbon transformation of energy, and an important support to achieve the goal of carbon peak and carbon neutralization. Since the 13th five year plan, China has made great progress in technological innovation such as electrochemical energy storage and compressed air energy storage. By the end of 2021, the cumulative installed capacity of new energy storage exceeded 4 million KW. According to the guidance on accelerating the development of new energy storage jointly issued by the national development and Reform Commission and the national energy administration, the installed capacity of new energy storage will reach more than 30 million KW by 2025.
(3) Main technical threshold:
① Industry standard barriers
In 2018, the Ministry of industry and Commerce revised the specification for lithium ion battery industry, and came into effect in February 15, 2019. It has made strict demands on R & D capability, advanced technology, quality inspection and intelligent manufacturing capabilities of manufacturing enterprises. At the same time, it has strengthened corporate social responsibility, strictly standardized resource utilization, environmental protection and safety production capacity, and encouraged enterprises to build green manufacturing industry chain. Generally, it is difficult for industrial enterprises to meet the requirements of relevant industry specifications in a short time through investment.
② Quality certification barriers
Because the cathode material is one of the most important raw materials in the power battery, which has a great impact on the core performance and safety performance of the power battery. Based on the perspective of product stability and safety, the certification and test procedures of vehicle enterprises and power battery enterprises for cathode material products are more complex, which requires not only long-term product performance test, but also detailed evaluation of the manufacturer's comprehensive supply capacity, The overall certification cycle time is generally about 1-2 years. At present, China Shipbuilding Industry Group Power Co.Ltd(600482) battery market is highly concentrated. Power battery manufacturers have established a long-term cooperative relationship with cathode material manufacturers, with strong cooperation viscosity. Once cathode material manufacturers enter the customer's supplier system, they will not be easily replaced.
③ Technological barriers
The process technology of ternary cathode material is complex, the production process is strictly controlled, the research and development is difficult, the cycle is long, and the process technology experience is important. All major manufacturers in China have formed their own process technology, such as raw material selection, proportion of various materials, application of auxiliary materials and production technology, which require years of technology and experience accumulation. Technological barriers not only refer to the higher R & D technical threshold, but also include finer production management and lower cost mass production.
From a technical point of view, ternary cathode materials are mainly divided into primary particle large single crystal technology system and secondary particle aggregate technology system. Manufacturers of different technical routes have differences in sintering times, sintering kiln design, temperature control, doping coating elements and other production processes. After long-term experience accumulation, they form their own process and technical barriers.
From the perspective of the development trend of cobalt industry and NCM industry, the development trend of nickel / NCM industry is based on the demand of low cost performance. In view of the scarcity of cobalt resources, high price and large fluctuation, cobalt removal is the current mainstream trend. The development of low cobalt / cobalt free materials, including the selection of precursors, sintering process, doping and coating technology, determines the difference of material cost performance and comprehensive competitiveness. Compared with conventional ternary materials, the technical barrier for the production of high nickel ternary cathode materials is higher. The production of high nickel ternary cathode materials not only needs technical modification such as doping and coating, but also needs to be calcined in oxygen atmosphere, which puts forward more stringent requirements for the humidity control of the production environment, the corrosion resistance and automation level of the equipment.
④ Production scale and Capital Barrier
Large ternary material production enterprises have scale advantages in raw material procurement and production operation. At the same time, the market concentration of the power battery industry is high, and the mainstream power battery manufacturers have high requirements for the supply quality, quantity and timeliness of cathode material suppliers. It is difficult for small enterprises to enter the qualified supplier system of lithium battery enterprises.
Ternary materials are capital intensive industries. Ternary materials have high requirements for production environment and production equipment, and large capital investment is required for new production lines. In addition, the production cost of ternary materials accounts for a relatively high proportion of the purchase cost of raw materials, and a large amount of working capital is required for daily business activities. New entrants to the industry face certain scale and capital barriers. 2. Analysis of the company's industry position and its changes
According to the catalogue of the classification of strategic emerging industries (2018) issued by the National Bureau of statistics, the company's main products belong to the "nickel cobalt manganese / nickel cobalt aluminum ternary material" in the "manufacturing of secondary battery materials" in the catalogue of key products and services. Meanwhile, nickel cobalt lithium manganate ternary materials belong to the field of "energy saving and new energy vehicles" encouraged by made in China 2025.
The main products sold by the company include ternary materials, lithium cobalt oxide and composite ternary materials, of which ternary materials are the core products of the company. As an enterprise that completed the R & D and production of single crystal ternary materials earlier outside China, after years of R & D and cultivation, the company has realized the industrialized production and sales of large single crystal ternary materials covering medium nickel, medium high nickel and high nickel primary particles. A number of core technologies such as the synthesis technology of large single crystal materials with medium high nickel and low cobalt primary particles and the synthesis technology of large single crystal materials with high nickel primary particles developed and stored by the company in the early stage comply with the development direction of high cost performance and high energy density of new energy vehicles. At present, mass production has been successfully realized.
According to xinlune information, in 2021, the company's ternary material shipments accounted for 8% of the Chinese market share, ranked fifth in the Chinese market share, and accounted for 5% of the global ternary material market share.
According to the microscopic morphology, ternary materials are usually divided into secondary particle aggregates and primary particle large single crystals. Compared with conventional secondary particle aggregate ternary materials, primary particle large single crystal ternary materials have better high temperature cycle stability and safety performance. According to the data of xinlune lithium battery, the penetration rate of single crystal ternary materials continued to rise in 2021, and the output and proportion of single crystal products with high nickel type increased significantly driven by the strong demand of markets outside China. Different from the competition pattern of China's ternary material market, there are few enterprises that can produce large-scale single crystal ternary materials in China due to high technical barriers. According to xinlune information data, in the ranking of China's single crystal ternary material output from January to November 2021, the company ranked first with 26% market share.
Ternary materials can be classified into medium nickel according to the proportion of constituent elements（
