haktutscoinmasterfreespins2019| At a price of 1 yuan, Anda Technology withdrew from Ganfeng Lithium Industry's joint venture lithium iron phosphate project

Interface News reporter | Zhuang Jian

Ganfeng Lithium Industry (002460Haktutscoinmasterfreespins2019(.SZ) the lithium iron phosphate cathode material project jointly built by Anda Technology (830809.BJ) has changed.

On the evening of May ninthHaktutscoinmasterfreespins2019Ganfeng Lithium Industry and Anda Technology also announced that the two sides recently signed an agreement to transfer their 60% stake in Inner Mongolia Autonomous region Anda New Energy Technology Co., Ltd. (hereinafter referred to as Inner Mongolia Anda) to Ganfeng Lithium Industry at a transaction price of 1 yuan.

After the completion of the deal, Anda Technology will no longer hold a stake in Inner Mongolia Anda, and Ganfeng Lithium will become the sole shareholder of the company.

The above equity transfer has now been completed, and the industrial and commercial change registration procedure was completed on May 8, and the joint venture company was renamed Inner Mongolia Ganfeng New Materials Co., Ltd. (hereinafter referred to as Inner Mongolia Ganfeng).

In October last year, Ganfeng Lithium and Anda Technology reached a strategic cooperation and decided to carry out cooperation in various fields, including a joint venture in Inner Mongolia Anda.

The two sides plan to use the joint venture company as the platform to build a project with an annual output of 20,000 tons of lithium iron phosphate cathode materials. Lithium iron phosphate is a key raw material for the production of lithium batteries.

Ganfeng Lithium said that the acquisition of a 60 per cent stake in Inner Mongolia Anda is based on the equity structure adjustment made by the development strategies of both sides.

On May 10, the company told Interface News that it will continue to seek more suitable cooperation opportunities with Anda Technology in the future to strengthen cooperation between the upstream and downstream of the industrial chain.

Ganfeng lithium industry also mentioned in the announcement that it will continue to adhere to the development strategy of the integration of upstream and downstream of lithium power, cooperate with the company's industrial layout in Inner Mongolia, and give full play to the synergy between the upstream and downstream of the industrial chain.

Ganfeng Lithium has a 12% interest in the Velasto Lithium Mine project in Inner Mongolia and is expected to produce lithium mica concentrate this year. Ganfeng Lithium is also planning to build a local lithium carbonate production project, which is the main raw material of lithium iron phosphate.

However, Ganfeng Lithium did not respond to whether it would build a lithium iron phosphate project in Inner Mongolia as planned.

In response to the withdrawal of equity in the joint venture, Anda Technology said that the move is to further optimize the allocation of resources and reduce operating and management costs. Interface News contacted Anda Technology on the matter and received no further response.

Zhang Jinhui, a senior researcher at Xin spinulosa Consulting, said to the interface news that in the case of relative excess capacity of domestic lithium iron phosphate cathode materials, the construction of new capacity is of little significance.

EVTank statistics show that by the end of last year, China's lithium iron phosphate production capacity reached 3.417 million tons, with the overall capacity utilization rate of less than 50 per cent. The agency analysis said that as the industry capacity utilization continues to decline, a large number of planned capacity of lithium iron phosphate will be gradually abandoned.

Anda Technology, located in the middle reaches of the lithium battery industry, focuses on lithium iron phosphate cathode materials, which contributed 80% of the company's revenue last year.

Its current production capacity of lithium iron phosphate is 150000 tons / year. In addition to the Inner Mongolia project, last year, Anda Technology also set up a wholly-owned subsidiary in Nanning, Guangxi, and plans to build a new lithium iron phosphate project with an annual production capacity of 200000 tons.

Raw material lithium carbonate price fluctuations, resulting in a sharp drop in the price of lithium iron phosphate, coupled with a decline in the utilization of lithium iron phosphate capacity caused by slowing downstream demand, Anda Technology lost a lot of money last year. In 2023, its revenue was 2.96 billion yuan, down 54.8%; its loss was 630 million yuan, and its net profit in 2022 was 810 million yuan.

The price of lithium iron phosphate fell from 166000 yuan / ton to 46000 yuan / ton last year, down 72.29 percent for the whole year, according to data cited by Anda Technology.

Liu Jianbo, chairman and general manager of Anda Technology, said that the supply and demand structure of lithium iron phosphate industry has a periodic mismatch, the whole industry has encountered unprecedented competitive pressure, price war is inevitable, and most enterprises are losing money.

Among the leading enterprises of lithium iron phosphate, German Nano (300769.SZ) and Wanrun Xinneng (688275.SH) lost 1.636 billion yuan and 1.504 billion yuan respectively last year. Hunan 301358.SZ still made a profit last year, but net profit fell 47.44% year-on-year to 1.581 billion yuan.

Last month, Hunan Yuneng predicted in a public document that from 2023 to the next few years, the lithium iron phosphate industry will be in the development stage of clearing excess and backward production capacity. After a large loss in 2023, the operating pressure on low-end backward production capacity has further increased and is facing elimination.

In the first quarter of this year, Anda Technology continued to lose 160 million yuan, while revenue fell 75.82 percent to 221 million yuan. Anda Technology said that the decline in product sales and unit prices compared with the same period last year, as well as underemployment are the main reasons for the decline.

Liu Jianbo, chairman and general manager of Anda Technology, disclosed at the end of April that he had decided to give up the salary he should receive in 2024, receive only 1 yuan, and return the salary he actually received in the first quarter of this year. Liu Jianbo, one of the actual controllers of Anda Technology, received a pre-tax salary of 1.2843 million yuan from the company last year.