On April 12, Sichuan Development Lomon Co.Ltd(002312) ( Sichuan Development Lomon Co.Ltd(002312) ) officially released the 2021 annual report, which brought a beautiful “report card” to investors, and the revenue and net profit reached a new high.
According to the disclosure of the annual report, in 2021, Sichuan Development Lomon Co.Ltd(002312) achieved an operating revenue of 6.645 billion yuan, a year-on-year increase of 28.28%; The net profit was 1.016 billion yuan, a year-on-year increase of 51.94%; The net profit deducted from non profit was 673 million yuan, an increase of 103.1% year-on-year. For 2022, Sichuan Development Lomon Co.Ltd(002312) it is estimated that the operating revenue will be no less than 7.6 billion yuan.
industrial grade monoammonium phosphate accounts for 13% of the national output
In 2021, the phosphorus chemical industry ushered in a strong business cycle. The sales prices of Sichuan Development Lomon Co.Ltd(002312) main products such as industrial grade monoammonium phosphate, feed grade calcium hydrogen phosphate and fertilizer grade monoammonium phosphate increased significantly year-on-year and remained at a high level.
At present, Sichuan Development Lomon Co.Ltd(002312) main product industrial grade monoammonium phosphate has the largest production and sales volume in the world and the largest export volume in China, exceeding 50% of China’s total export volume; In addition, the production and sales of feed grade dicalcium phosphate, fertilizer grade monoammonium phosphate and compound fertilizer are also in the forefront of the country. The Sichuan Development Lomon Co.Ltd(002312) phosphogypsum comprehensive utilization project is gradually put into operation, and the output of gypsum building materials is in the forefront of the country.
In 2021, the continuation of the global epidemic prompted countries around the world to pay more attention to food security. Many countries have successively issued industrial policies to encourage food planting, and the global demand for chemical fertilizer is growing. Last year, China’s grain output reached 1.3 trillion Jin, and the national grain sowing area was 1.76 billion mu, which better supported China’s demand for fertilizer.
On the supply side, due to the decline in the output of overseas mainstream phosphate fertilizer production areas and the impact of the epidemic, the commencement of some production areas is limited, resulting in insufficient market supply of the chemical fertilizer industry, and the market pattern maintains a tight balance between supply and demand. Meanwhile, with the economic recovery of major countries and regions, the phosphorus chemical industry will continue a high business cycle in 2021.
According to the annual report, the sales prices of Sichuan Development Lomon Co.Ltd(002312) monoammonium phosphate, feed grade calcium hydrogen phosphate, fertilizer grade monoammonium phosphate and other products have increased year-on-year, maintained a relatively high level for a long time, and the main business has achieved rapid growth.
In 2021, Sichuan Development Lomon Co.Ltd(002312) produced 269800 tons of industrial grade monoammonium phosphate, accounting for 12.97% of the total output of the whole industry in China (China produced about 2.08 million tons of water-soluble ammonium phosphate that year) Sichuan Development Lomon Co.Ltd(002312) pointed out that with the further promotion of the management strategy of cascade utilization of phosphorus resources of listed companies and the continuous growth of downstream demand, as the largest manufacturer of industrial grade monoammonium phosphate in the subdivided industry, Sichuan Development Lomon Co.Ltd(002312) competitive advantage will be further consolidated and expanded.
after purchasing Tianrui mining, the phosphorus mineral can reach 3.65 million tons / year
In terms of incremental business, benefiting from the increase in the production and sales of new energy vehicles and the increase in the installed capacity of lithium iron phosphate batteries, the market demand for lithium iron phosphate cathode materials is strong, and the product price continues to rise.
Sichuan Development Lomon Co.Ltd(002312) said that listed companies adhere to the development model of “scarce resources + technological innovation + industrial chain integration”, and combine their own industrial and resource advantages to layout the field of new energy materials.
In order to seize the development opportunity of lithium battery new energy materials industry, Sichuan Development Lomon Co.Ltd(002312) invested 12 billion yuan in Deyang ABA Ecological Economic Industrial Park to build Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy materials project, which has been listed as a key promotion project in Sichuan Province. As of the disclosure date of the annual report in 2021, the project has been officially started, and the approval of some project land and environmental impact assessment has been obtained. The safety assessment, job assessment and stability assessment have been filed, and the approval of energy assessment and construction permit are being promoted in an orderly manner; At the same time, the company orderly promoted lithium new energy material projects in Panzhihua, Hubei and other places.
It is worth noting that in 2021, Sichuan Development Lomon Co.Ltd(002312) promoted the acquisition of 100% equity of Tianrui mining, improved the phosphorus chemical industry chain, and further improved the guarantee capacity of upstream phosphate rock resources of the company’s main production base.
In August 2021, Sichuan Development Lomon Co.Ltd(002312) issued an announcement to purchase all the equity of Tianrui mining; After the completion of this transaction, Tianrui mining will become a wholly-owned subsidiary of Sichuan Development Lomon Co.Ltd(002312) and directly obtain high-quality and scarce phosphate rock resources in Sichuan Province, so as to reduce the dependence on purchased phosphate rock and reduce the adverse impact of phosphate rock price fluctuation on the profitability of the company.
According to the data, the design capacity of Tianrui mining is 2.5 million tons / year. After the acquisition of Tianrui mining, Sichuan Development Lomon Co.Ltd(002312) will have an annual phosphate rock production capacity of 3.65 million tons Sichuan Development Lomon Co.Ltd(002312) believes that after the acquisition, the self-sufficiency of phosphate rock of listed companies will be significantly improved, and the economic benefits and integration advantages will be further highlighted.
