Ronghui lithium industry (837358) released March 21st Annual Report of 2016, during the reporting period the company achieved operating income of 565 million yuan, an increase of 100.97%; net profit attributable to shareholders of the listed company for 138 million yuan, an increase of 3299.65%. Lithium carbonate business revenue 562 million yuan, an increase of 102.73%.
Ronghui Li said, during the reporting period, the company operating results increased mainly with lithium new energy automobile sales broke out, lithium battery demand remains strong, industry development opportunities, downstream manufacturers of lithium battery materials, lithium carbonate for substantial growth in demand, leading to price rise caused by lithium carbonate.
Statistics show that Li Rong lithium industry based on lithium products industry, mainly to the lithium-ion battery materials manufacturing industry to provide the battery grade lithium carbonate based grade lithium carbonate products used as lithium-ion battery materials. With the new energy lithium car sales growth broke out, demand for lithium batteries was downstream of lithium battery materials for lithium carbonate manufacturers substantial growth in demand, the company highlights the development opportunities.
In December 12, 2016, Rong Hui Li industry intends to issue stock raising not more than 440 million yuan to 56 million yuan to raise funds for investment in Jiujiang to increase the exchange capacity, to be used for an annual output of 8000 tons of lithium hydroxide monohydrate and 8000 tons of lithium carbonate project construction; 200 million yuan to support the Tibet Ronghui project construction.
Announcement shows that the current capacity of Tibet civil construction and installation work has been completed, trial production time is August 2016. Currently, high purity lithium carbonate has been normal production, lithium iron phosphate was also put into operation in the fourth quarter of 2016. During the reporting period, Tibet Rong Hui achieved operating income of 285 million yuan, net profit of $94 million 734 thousand and 900.
At present domestic battery level lithium carbonate to almost all spodumene as the core raw materials, to ensure the battery grade lithium carbonate product quality and product homogeneity and stability of spodumene raw materials at present domestic battery lithium carbonate production enterprises in the mining of tailisen, a single source of raw materials. Although in recent years the domestic part of spodumene and gradually put into production, but subject to the instability of product quality and lower grade factors, still cannot replace the tailisen ore.
In recent years, taking into account the raw material supply bottlenecks, lithium products manufacturing enterprises have begun to try to replace the original materials of battery grade lithium carbonate, but subject to the process and technical limitations, has not yet formed a large-scale production capacity.
In order to cope with the market environment, in February 2016, Rock Wood and Li Ronghui signed the "framework agreement", the agreement is valid for three years, from January 1, 2016 to December 31, 2018, 2016 as the initial agreement agreement. Rock in the initial period of validity of the agreement to buy lithium carbonate from the company, while the supply of lithium to the company. Announcement shows that as of December 31, 2016, there are 1558.44 tons of lithium carbonate has not yet implemented under the initial agreement period.
Ronghui Li said that the next few years new energy industry demand for lithium carbonate will still maintain a rapid growth trend, according to the current production capacity of lithium carbonate and lithium carbonate reserves mainly supplier capacity expansion plans, lithium carbonate production capacity situation will continue, lithium carbonate market will still be long-term in the state of supply.