On May 23, the share price of Tianqi Lithium Corporation(002466) ( Tianqi Lithium Corporation(002466) , SZ) soared by 8.48%, and the market value exceeded 140 billion yuan. The market is not only concerned about the company’s share price, but also the annual general meeting of shareholders held on the same day.
At this highly concerned shareholders’ meeting, Jiang Weiping, chairman of Tianqi Lithium Corporation(002466) board of directors, answered the concerns of the market and expressed their views on the development of solid-state batteries, the balance of lithium resource market still needs time, and the cost of mining needs to be considered.
In the high-profile cycle of lithium resources, Tianqi Lithium Corporation(002466) also accelerates the exploitation of the resource side Tianqi Lithium Corporation(002466) made it clear to restart the mining of Caola lithium mine in Yajiang. At the shareholders’ meeting, Jiang Weiping also answered the question of the reporter of the daily economic news about the mining progress of the mine.
“Recently, we also went there to investigate. We are accelerating the preliminary project for the mining progress of Caola lithium mine in Yajiang. We have been in contact with the design unit for a long time in terms of comparison and selection and determination of investment intention. I am very confident that (Caola lithium mine) will become a very good project for Tianqi Lithium Corporation(002466) in Ganzi, and we will do very well in pollution treatment and tailings wastewater.” Jiang Weiping said.
Hong Kong stock IPO will further reduce liabilities
On the 23rd, the annual general meeting of shareholders was held in Tianqi Lithium Corporation(002466) the leader of lithium resources with a share market value exceeding 100 billion. This was a very hot shareholders’ meeting. When Jiang Weiping, chairman of Tianqi Lithium Corporation(002466) board of directors, stepped into the meeting, many investors who attended the meeting picked up their mobile phones to take photos.
Sitting on the stage were not only Jiang Weiping, but also his daughter and vice chairman Jiang Anqi. In addition, chief financial officer Zou Jun and Secretary Zhang Wenyu also attended the meeting.
At the beginning of the shareholders’ meeting, Zhang Wenyu first introduced the performance of Tianqi Lithium Corporation(002466) last year. Last year, the Tianqi Lithium Corporation(002466) revenue reached 7.663 billion yuan, a year-on-year increase of 136.56%, and the net profit was 2.079 billion yuan, a year-on-year increase of 213.37%. The production and sales of the company’s main products – lithium ore and lithium chemicals have increased compared with the previous year.
Zou Jun, chief financial officer, mainly mentioned the gradual improvement of Tianqi Lithium Corporation(002466) liabilities. By the end of 2020, the asset liability ratio of Tianqi Lithium Corporation(002466) exceeded 80%. As of March 31, 2022, the balance of the company’s M & A loans has decreased to US $1.37 billion, and the company’s asset liability ratio has further decreased to about 51.8%. The “hematopoietic” function and solvency of the company have been continuously enhanced. The company has actively and early repaid the syndicated M & A loans of US $515 million and the Chinese debt of RMB 529 million. The company’s asset liability ratio has decreased to about 58.9% by the end of 2021. “
Tianqi Lithium Corporation(002466) is currently preparing for the listing of Hong Kong stocks. Zou Jun believes that this is of great significance to optimize the company’s financial structure.
\u3000\u3000 “As far as the company’s finance is concerned, Tianqi Lithium Corporation(002466) the listing of Hong Kong stocks is very important for optimizing the financial structure. Now the whole cash flow is very strong. Even if we do not rely on any equity financing, we are very confident in the debt that is about to expire. According to our Hong Kong stock issuance plan, the asset liability ratio can be further reduced, laying a foundation for the next capacity expansion plan. In the long run, build an overseas financing platform and capital platform, This is very important for the company’s internationalization strategy. ” Zou Jun said.
“If we are listed in H shares, our market influence may be more comprehensive, especially for foreign countries. We also hope that the company’s statements will be globalized, which is of strategic significance.” Jiang Weiping supplemented this question.
Chile’s local policy is not the main concern
Tianqi Lithium Corporation(002466) overseas business is also a concern of investors. One is the current capacity status and future expansion plan of talison lithium Australia, and the other is the impact of Chilean policy direction on the production of sqm, a lithium giant held by the company.
As disclosed in the previous annual report, the third phase expansion project of chemical grade lithium concentrate under construction by greenbushes is expected to be completed in 2025. According to BDA report, after the project is fully completed and put into operation, the overall capacity of lithium concentrate in greenbushes is expected to reach 2.1 million tons / year; Another lithium concentrate processing plant in greenbushes, chemical grade 4 expansion project, is scheduled to start in 2025. In addition, the tailings reprocessing plant (TRP) in greenbushes was completed in early 2022 and is currently under commissioning. According to the BDA report, about 280000 tons of spodumene concentrate can be added every year after the commissioning of TRP is completed.
Zhang Guangyu introduced that after repeated debugging and optimization, the first batch of lithium hydroxide products have been produced in the first phase of the lithium hydroxide project in quinana, Australia. “Please refer to the company’s recent announcement (referring to that” the first batch of about 10 tons of lithium hydroxide products have passed the sampling and testing in the company’s internal laboratory, and all parameters have been confirmed to meet the battery grade lithium hydroxide standard on May 19, 2022). We hope to achieve production by the end of the year. “
Sqm, an important associate of the company, recently disclosed its financial report, and its net profit in the first quarter of this year greatly exceeded market expectations Tianqi Lithium Corporation(002466) it is estimated that the net profit of the company in the first half of this year is expected to increase according to the contribution of sqm.
Sqm has global high-quality salt lake resources. At the moment when countries strengthen the strategic position of lithium resources, Zhang Wenyu said at the shareholders’ meeting about the impact of relevant national policies in Chile on sqm: “after so many months of local observation, these are not the main concerns.”
optimistic about the development of solid state batteries
From the contents disclosed in Tianqi Lithium Corporation(002466) annual report, Tianqi Lithium Corporation(002466) defines the trend of cooperation with downstream battery field Tianqi Lithium Corporation(002466) annual report said that it will continue to strategically arrange new energy materials and next-generation battery technology manufacturers including solid-state batteries in the new energy value chain, and carry out more in-depth cooperation with them, such as cooperation in precursor production, battery recycling and other businesses, so as to prepare for the future trend of better utilization of lithium in the application of new batteries.
In early May, Tianqi Lithium Corporation(002466) signed a strategic cooperation agreement with China Innovation Aviation Technology Co., Ltd. (hereinafter referred to as China Innovation aviation), a Chinese battery head enterprise. On the evening of May 20, Tianqi Lithium Corporation(002466) announced the signing of a cooperation agreement with Beijing Weilan New Energy Technology Co., Ltd., a Chinese enterprise engaged in solid-state battery research and development.
“When we choose partners in the battery field, we should first look at its characteristics in this industry. When we cooperate with satellite blue, we see the development direction of semi-solid battery and solid battery industry. This corresponds to the change of material demand.
This is the original intention of the cooperation. Our cooperation can make the process of solid-state battery and semi-solid-state battery advance faster. ” At the meeting, Jiang Weiping told the media including the reporter of the daily economic news and investors.
Jiang Weiping also said when talking about the cooperation with China Innovation Airlines: “It has a strong development trend, which is very close to our development philosophy. We resolve the material problem through consultation, and both sides come up with advantages for supporting development. We hope that the upstream and downstream will be a harmonious, win-win and mutually beneficial relationship, which we can share in good times and undertake together in bad times. Cooperating with each other should be beneficial to all walks of life and contribute to the country and industry. Now is a step down.”
Jiang Anqi also stressed that Tianqi Lithium Corporation(002466) will not do anything that is not good at, “we will come up with appropriate ways to make the lithium industry grow more stably from upstream to downstream.”
lithium market needs time to balance supply and demand
From the past year to this year, the lithium market has ushered in the strongest commodity bull market in history. The price of lithium carbonate once exceeded 500000 yuan per ton from less than 100000 yuan per ton. This round of high-profile lithium market makes Tianqi Lithium Corporation(002466) usher in a simultaneous increase in volume and price. In terms of gross profit margin, in 2021, Tianqi Lithium Corporation(002466) the gross profit margin of lithium ores, lithium compounds and derivatives exceeded 60%, reaching 62.10% and 61.89% respectively.
Under the high climate, China’s foreign lithium companies have announced large-scale capacity expansion plans. On the one hand, lithium electric heating causes new and old players to compete for layout on the resource side. On the other hand, the high lithium price makes downstream cathode materials and battery manufacturers complain. Jiang Weiping also expressed his views on the contradiction between supply and demand in the upstream and downstream and the market pattern of lithium resources.
“Upstream, downstream, individual enterprises, investors and various ministries and commissions of the state are all concerned. This is related to whether China’s electric vehicles and energy storage can continue to maintain its advantages in the world and the adjustment of energy structure. We feel that with the support of the state and local governments and the stimulation of market demand, the downstream (battery) production expansion is very smooth.” Jiang Weiping said, but relatively speaking, the development of upstream lithium resources is much slower, because not everyone can do what they want.
He concluded that lithium resources have regional characteristics and non replicable particularity. There is great uncertainty in upstream expansion and development, which involves climate, reserves, environmental protection and other reasons. These uncertainties will make investors very careful. “It also has periodicity. Upstream exploration, mining, beneficiation, infrastructure, environmental protection and other links involve a long cycle. This is the difference between upstream and downstream. The market pattern in previous years was taken for granted, ‘I want, you have to give’. With the development of the market, the contradiction between upstream and downstream appeared.”
Jiang Weiping also mentioned that the development of upstream resources is also accelerating and has received corresponding opportunities and support, “but it takes time to solve this contradiction, and it still takes time to achieve a real balance between supply and demand. Ultimately, it depends on the market.”
Jiang Weiping said that the active expansion of production inside and outside the industry proves that everyone is optimistic about this field Tianqi Lithium Corporation(002466) will develop calmly according to our own rhythm and development plan. “The plans we announce now are all expected or ongoing development plans. But they will also be adjusted according to market conditions. In short, our development is calm and stable according to our own plan.”p align=”center” style=”text-align:center;”> Image source: screenshot of web page
confident to make the Cuola lithium mine project better
There are two ways to enter lithium resources: one is to acquire the exploration right of lithium resources mines and enter the upstream through self built mining yards; the other is to acquire companies with difficult operation and enter through equity acquisition.
Not long ago, the starting price was 3.3529 million yuan and the transaction price was 2 billion yuan. A lithium enterprise auction delayed 3418 times shocked both inside and outside the market. At the end of the auction, 542857% of the equity of snowway mining was bought by a mysterious natural person.
The reporter of “daily economic news” also asked Jiang Weiping about the hot news in the industry of snowway auction.
“The auction of 2 billion yuan will also bear the debt. It is only the exploration right. I dare not say whether it is right or wrong. It can only be said that it is far beyond imagination. I may feel a little desperate for lithium, but I hope it (for the industry) is a good thing.” When answering a reporter’s question, Jiang Weiping said that lithium mine has become the object of everyone’s pursuit. It’s meaningless for the company to evaluate it. It can only be said that there is a 2 billion auction. I dare not say whether it is right or wrong. It’s far beyond imagination. It’s a little rare to increase the price by 55000 in a few days and nights. He said: “we need to consider some practical situations. We should know that the complexity of the mountain environment is completely different from that of the plain”.
“Lithium ore comes from a variety of sources. Whether it is salt lake or lithium ore, economy should be considered in mining. Especially in the downward cycle, whether there is corresponding support for products.” Jiang Anqi, vice chairman of the company, told reporters that Tianqi Lithium Corporation(002466) holds a relatively calm attitude and will also look at new projects, but will not be crazy and desperate. “We will look at it in multiple dimensions and have a good return in the upward or downward cycle.”
The auction of snowway also has the expectation of accelerating the exploitation of lithium ore in Western Sichuan. The high-quality lithium mines concentrated in Ganzi include the delanongba lithium mine in snowy, the methyl carbamate lithium mine in Youngy Co.Ltd(002192) and the Yajiang Cuola lithium mine in Tianqi Lithium Corporation(002466) Tianqi Lithium Corporation(002466) itself indicates that Yajiang Cuola lithium mine should be restarted as soon as possible.
“Recently, we also went there to inspect the mining progress of the Caola lithium mine in Yajiang. We are accelerating the advance of the preliminary project, the comparison and selection of design units, and the determination of investment intention. I am very confident that (Caola lithium mine) will become a very good project for Tianqi Lithium Corporation(002466) in Ganzi, and we will do very well in pollution treatment and tailings wastewater treatment.” Jiang Weiping told reporters.
This involves another problem of capital entering lithium resources – whether capital intensive investment alone is enough and whether it can maintain lasting competitiveness.
“It’s not just a mine. It depends on whether there are cost advantages, technical advantages and production advantages. In the end, the competition is nothing more than these points.” This is Jiang Weiping’s view. The most important thing for Chinese enterprises to do is to take good care of the mining environment and whether they are responsible to the society in the long term.
management emphasizes internationalization more
Jiang Anqi, 35, attended the general meeting of shareholders for the first time this year as Tianqi Lithium Corporation(002466) vice chairman. At the annual general meeting of shareholders, the senior management of the company inevitably talked about the problems of management and successors.
However, compared with the consideration of successors, Jiang Weiping pays more attention to the construction of the management team.
“Now the management team is completely different from that in previous years. It pays more attention to internationalization. From management ability to salary, it should match internationalization.” Jiang Weiping said that the whole management team should stand up internationally and truly achieve output management, not just output funds.
This internationalization trend is also clearly seen from the resumes of Tianqi Lithium Corporation(002466) executives. For example, President Xia Juncheng worked in overseas enterprises such as Italian olip shoe manufacturing group, Swarovski (Austria) tool manufacturing company and so on.
Jiang Weiping also commented on Jiang Anqi: “in the process of internationalization, ANQI is also growing slowly. Especially in the most difficult years of 2019 and 2020, everyone’s responsibility is far beyond what they should have undertaken. In this test, she has matured, grown slowly and withstood the test. In a few years, I believe this team is very harmonious, capable and outstanding.”
Jiang Anqi also talked about the future of Tianqi Lithium Corporation(002466) . She said that next, she would have a closer cooperative relationship with the management of listed companies. “The new team will focus more on internationalization, not only speaking English and going out, but more open cooperation in ideas”.
