Chengxin Lithium(SZ:002240) Xin Lang Cai Jing·2025-09-02 12:17Core Viewpoint - The company held an online performance briefing on September 2, 2025, to discuss the development progress of the Muzhong lithium mine and the capacity utilization of its Indonesian project, revealing important operational updates and market conditions [1][2]. Group 1: Muzhong Lithium Mine Development - The Muzhong lithium mine's construction project has received land pre-examination and site selection opinions, as well as approval from the provincial development and reform commission, indicating orderly progress [3]. - The company is leveraging its experience in high-altitude lithium mining in western Sichuan to expedite the project and increase lithium resource supply [3]. Group 2: Indonesian Project Capacity Utilization - The Indonesian 60,000-ton lithium salt project has commenced bulk supply, with the company increasing supply volume based on customer certification progress to enhance capacity utilization [3]. - The company aims to achieve full production as soon as possible [3]. Group 3: Market Conditions and Performance Impact - Since July, lithium salt prices have rebounded due to supply concerns from "anti-involution" and mining rights issues, coupled with unexpected demand, leading to market recovery and improved company operations [3]. - The company plans to strengthen management, optimize costs, and enhance operational efficiency to improve performance in the second half of the year [3]. Group 4: Energy Storage Market Opportunities - The transition of the energy storage market towards market mechanisms, driven by domestic electricity market reforms and the removal of mandatory storage policies, is expected to create new opportunities for the energy storage industry [3]. Group 5: International Business and Profit Margins - The gross margin of overseas business has improved due to contributions from overseas factories, and the company will continue to expand its overseas market presence and enhance production capacity [3]. - The company’s main customers include leading industry players like BYD, ensuring stable order fulfillment despite a year-on-year decline in lithium salt sales due to market conditions [3]. Group 6: Financial Performance and Challenges - The lithium salt industry faced a downturn in the first half of the year, with product prices dropping from 75,000 yuan/ton at the beginning of the year to 61,000 yuan/ton by the end of June, negatively impacting the company's performance [3]. - The company recorded asset impairment provisions and foreign exchange losses, but saw a rebound in lithium salt prices starting in July, leading to improved business conditions [3]. Group 7: Solid-State Battery and Cost Reduction Initiatives - The company is developing key materials for solid-state batteries, with a planned capacity of 3,000 tons, of which 500 tons have been completed, and a new 2,500-ton project is in the preparation stage [3]. - The company is investing in multiple salt lake exploration projects in Argentina to improve production processes and conduct research and development [3]. Group 8: International Strategy - Internationalization is a core strategy for the company, with established domestic and overseas industrial chain layouts [3]. - The Indonesian 60,000-ton lithium salt project is the largest overseas lithium extraction project, which has begun bulk supply [3].