Zhitong Financial APP learned that on December 27th, Nanjing Hanrui Cobalt Co., Ltd.$Cold Cobalt Industry (300618.SZ) $) once again submit the form to the Hong Kong Stock Exchange with China International Capital Corporation as its exclusive sponsor. It is reported that since March 6, 2017, Hanrui Cobalt's A shares have been listed on the growth Enterprise Market of Shenzhen Stock Exchange.
Company introduction
According to the Frost Sullivan report, Hanrui Cobalt is the third largest cobalt powder producer in the world and the largest in China in terms of production as of December 31, 2020. Is one of the few domestic enterprises with a complete cobalt industry chain, business covers ore acquisition, rough processing, smelting and purification, cobalt powder and cobalt compound production, including the complete industrial process. Since copper and cobalt are usually associated minerals, the company also produces electrolytic copper. The main products include cobalt compounds and other cobalt-related products in addition to cobalt powder and electrolytic copper.
As of the latest practicable date, the company operates three production facilities in Anhui and the Democratic Republic of the Congo, with a total production capacity of 11000 metal tons for cobalt-related products and 41000 metal tons for copper-related products. In addition to the existing production facilities, the company has built 10000 tons of new cobalt materials (mainly cobalt sulfate, cobalt chloride, cobalt carbonate and cobalt tetroxide) and 26000 tons of ternary precursors in Ganzhou, China.
financial status
During the track record period the company's revenue and profit fluctuated significantly. Revenue in 2019 decreased by 36.1% to 1.777 billion yuan compared with the same period last year, and net profit decreased by 98.1% to 13.6 million yuan in 2019, mainly due to a decrease in revenue from selling cobalt-related products. Revenue in 2020 increased by 26.5% to 2.247 billion yuan compared with the same period last year, and net profit in 2020 increased sharply to 334 million yuan from the same period last year, mainly due to the increase in revenue and sales of copper-related products and the decrease in the cost of sales of cobalt-related products.
Revenue for the nine months ended September 30, 2021 increased by 107.2% to 3.202 billion yuan, and net profit increased by 226.2% to 486 million yuan, mainly due to the increase in sales of cobalt-related products, mainly due to the increase in global demand for cobalt and the shortage of cobalt supply; the profit margin of cobalt-related products has increased because the average selling price of cobalt-related products has risen in line with the current market price. The increase in sales of copper-related products was mainly due to increased global demand for copper.
Production expansion plan
At present, the company is expanding the cobalt powder product line of Anhui Hanrui, and building new electrolytic copper and cobalt hydroxide products of cold metal in the Democratic Republic of the Congo and cobalt-related products and ternary precursor product lines in Ganzhou. The company believes that the expansion project will help expand the product portfolio to the upper and lower reaches of related industries, which will broaden the revenue base. As the company continues to expand its market share and revenue, it is also possible to invest in other expansion projects.
Anhui Hanrui expansion project was announced in 2020, equipment debugging has been completed, and is currently in the stage of trial production. As of September 30, 2021, the total capital expenditure incurred since the production expansion plan of Hanrui in Anhui Province is 6.8 million yuan.
The expansion project was first announced in 2018, and the expansion plan was revised in September 2021 due to changes in market demand. The current expansion plan includes a production line of 6000 metal tons of electrolytic copper, which was put into production in November 2021, and a production line of 5000 tons of cobalt hydroxide, which is expected to start production by the end of June 2022.
The Ganzhou Hanrui expansion project was announced in November 2019 and is planned to be carried out in two phases: the first phase is the production of new cobalt materials and the second phase is the production of ternary precursors. As of the last practical date, most of the construction work of the first phase has been completed and is currently in the stage of equipment installation, and trial production is scheduled to begin in the first quarter of 2022. As of September 30, 2021, the total capital expenditure generated by the Hanrui production expansion plan in Ganzhou is 204 million yuan.
