The company has focused on copper processing for 36 years. It is one of the most complete, diverse and large-scale copper and copper alloy material manufacturers in China. The output of copper processing products reached 1.15 million tons in 2021. At the same time, the company is actively expanding its rare earth permanent magnet materials business, and the production of finished magnetic materials reached 3,279 tons in 2021. The copper sector accounted for about 80% of net profit in 2021, and the net profit of magnetic materials accounted for about 20%.
The company's production capacity and output have been steadily increased, and the product structure has been gradually optimized. From 2017 to 2021, the company's copper processing output CAGR reached 16%, and the magnetic material production CAGR reached 28%. After completing the initial expansion of production capacity, the company's strategic focus will be on increasing the proportion of high-margin products. In a dual carbon context, downstream customers are paying more attention to energy conversion efficiency and carbon emissions throughout the product life cycle, new energy-related products have ushered in development opportunities, and products in the new energy sector have great heterogeneity and enjoy high gross profit.
The new energy business is gradually starting to expand. The company's products are widely used in the field of new energy. Typical products are as follows: 1) With their excellent performance, flat wire motors will become the mainstream choice for future drive motors. The company deepened cooperation with car companies such as BYD and NIO in the field of flat wires for new energy vehicles to achieve mass production of new energy flat wires. In addition, the 800V high-voltage flat wire has been certified by some car companies, and the company plans to increase the annual production capacity of new energy flat wire products to 20,000 tons in 2022; 2) Actively exploiting its technological advantages in the field of recycled copper and promoting carbon reduction projects in consumer electronics and other fields, now with some 500 parts of the world Strong enterprises have formed cooperation; 3) The Baotou base's “High-end Manufacturing High-Performance Rare Earth Permanent Magnetic Materials and Devices Project with an Annual Output of 8,000 Tons” is progressing in an orderly manner as planned. The company expects the first phase of 4,000 tons to be put into operation in 2023. After it is fully completed and put into operation, the company's total magnetic production capacity will reach 13,000 tons.
risks
The expansion of the new energy business fell short of expectations