The company issued a performance forecast and expected to make a profit of 285 million yuan to 360 million yuan in 2022, an increase of 350% to 469% over the previous year. The reasons for this performance change are as follows: 1. The company actively carries out all kinds of work in accordance with the annual business plan, constantly enhances its core competitiveness, organizes product production scientifically under the guidance of market, further strengthens market sales and promotion work, and greatly increases its operating income and gross profit. Business performance has achieved a good growth trend. 2. The company continues to implement measures to reduce costs and increase efficiency, strengthen cost control, optimize organizational structure, and strengthen supply chain integration, which further enhance the overall profitability of the company; 3. It is estimated that the impact of non-recurrent profits and losses on the net profits of shareholders belonging to listed companies is about 7.5 million-9.5 million yuan.

The company signed a strategic cooperation agreement on the industrialization of sodium ion batteries. On January 6, 2023, the company signed a strategic cooperation agreement with Cube New Energy and colorful Chemistry to jointly improve the technical indicators to promote the industrialization of Rushland (white) material sodium ion batteries. The first cooperation period is 10 years. On January 4, 2023, the company and Qicai Chemical jointly invested in the establishment of Meilai New Materials. Wachovia New Materials holds a 51% stake in the company, and Qicai Chemical holds a 49% stake.

In September 2022, the company and colorful Chemistry signed a "Strategic Cooperation Agreement" on the joint investment of 2.5 billion yuan in the construction of the "annual production capacity of 180000 tons of battery-grade Prussian blue (white) project". At present, 50 tons of pilot production line of Prussian Blue (White) project has been put into production. The follow-up project will be divided into three phases according to the original plan, and the company expects to complete the first phase of the project by the end of 2023.

Anhui Meixin won 12 million yuan of lithium battery diaphragm order. In December 2022, Anhui Meixin, a holding subsidiary, signed a "sales contract" with Nanmu Nano, agreeing that Anhui Meixin sold 1000 million m3 lithium battery separators to Nanmu Nano, with a contract amount of RMB 12 million (including tax). The company expects diaphragm shipments of about 30 million m3 in 2022. At present, the annual production capacity of the diaphragm is 300 million tons, and the company expects that the 5th and 6th production lines of the project will be put into production in the fourth quarter of 2023, when the annual production capacity will be 700 million tons. In 2023, the company is expected to strive for production and sales volume of 400 million m3.

It is planned to invest 10 billion yuan to build a new production line to enhance the production capacity of color masterbatch and lithium diaphragm. In November 2022, the company plans to increase 450 million yuan in capital to Sichuan Wachovia, a wholly-owned subsidiary, and take it as the main body to invest 10 billion yuan to build a "construction project with an annual output of 2.3 million tons of new energy and polymer materials industrialization". The construction of the project is divided into three phases, and the construction period is expected to be 60 months. after all the project has been put into production, the estimated annual output value is 16 billion yuan and the annual tax is 1 billion yuan. After the first phase is put into production, there will be a production capacity of 300000 tons of high-end plastic color masterbatches. at present, the project is under preparation, and the company expects to complete and put into production the first phase of the project from the end of 2024 to early 2025. The first two phases of this construction project have the construction of sulfuric acid plant and titanium dioxide plant, which can produce titanium dioxide and by-product ferrous sulfate (ferrous sulfate is an intermediate raw material for the production of new energy materials lithium iron phosphate and Prussian blue). And titanium dioxide is directly used as raw material to produce white masterbatch.

Set up a joint venture company Meinan New Materials to promote the development and growth of battery diaphragm business. The company announced that Anhui Meixin, a holding subsidiary of the company, signed an Investment Agreement with Meyatt Technology on August 23, 2022, agreeing to jointly contribute to the establishment of Meinan New material, with a registered capital of 15 million yuan, of which Anhui Meishi contributed 13.2 million yuan, accounting for 88% of the registered capital of the underlying company. The joint venture company will focus on the application of new diaphragm materials for sodium ion batteries, semi-solid diaphragm materials for lithium ion batteries, diaphragm coating materials for lithium ion batteries and conductive carbon black in lithium / sodium ion batteries. According to the company announcement, the establishment of the joint venture company will help to enhance Anhui Meixin's sustainable development ability and battery diaphragm project operation ability, further promote the development and growth of the company's battery diaphragm business, and speed up the large-scale development of the company. promote the transformation and upgrading of the company and enhance the comprehensive strength of the company.

Investment advice: considering the uncertainty of the new project, the rating will not be discussed for the time being.

Risk tips: the progress of project construction is not as expected, the prices of raw materials and products fluctuate greatly, and the macro-economy goes down.