YONGXING MATERIALS(SZ:002756)2024-11-27 12:41Company Overview - Yongxing Materials focuses on "special steel new materials + lithium battery new energy" as its dual core business model, with production bases in Huzhou, Zhejiang and Yichun, Jiangxi [2] - The lithium battery new energy business relies on domestic lithium mica mineral resources, integrating mining, selection, and smelting to produce battery-grade lithium carbonate [2] - The special steel new materials business primarily produces high-quality stainless steel bars and special alloy materials, serving high-end manufacturing industries such as petroleum extraction, power equipment, and transportation [2] Financial Performance - In the first three quarters of 2024, the company achieved operating revenue of 6.231 billion CNY and a net profit attributable to shareholders of 971 million CNY, both showing a decline due to falling lithium carbonate prices [3] - As of September 30, 2024, total assets amounted to 13.915 billion CNY, with net assets of 12.549 billion CNY [3] Lithium Carbonate Business Model - The company employs a "production-based sales" strategy, primarily using long-term contracts while also engaging in flexible sales through spot contracts [3] - A proposal for futures hedging business was approved, allowing for a maximum margin of 200 million CNY for lithium carbonate futures hedging within twelve months [3] Project Development - The company completed the mining license change for the Chashan porcelain stone mine in January 2024, increasing the production capacity from 3 million tons/year to 9 million tons/year [3] - The lithium ore efficient selection and comprehensive utilization project has been largely completed, with some production lines already operational [3] Future Financial Plans - The company plans to utilize its ample cash reserves for shareholder returns, construction of lithium carbonate projects, and potential investments in lithium resources [4] Competitive Advantages in Special Steel - The special steel new materials business emphasizes six core competitive advantages: product quality, R&D and technology, certification, refined management, circular economy, and geographical location [5] - The company aims to increase the proportion of high-value-added products in sectors such as new energy, nuclear power, and high-end equipment manufacturing, while maintaining a leading market share in stainless steel bars [5]