YOUNGY(SZ:002192)2022-12-08 02:24Group 1: Company Operations and Challenges - The lithium mine is currently in a shutdown state due to land acquisition issues and complex social environments, with local government efforts focused on steady progress [2] - The company has optimized its construction and land use plans to minimize land acquisition area and is actively assisting local government coordination to resume operations by the end of Q2 [2] - After resuming operations, the ore processing capacity is expected to increase to 450,000 tons per year [2][3] - The target for reaching full capacity of 450,000 tons per year is set for the end of Q2 or July [2] Group 2: Market and Pricing Insights - The current price of lithium concentrate ranges between $420 and $450 per ton (excluding tax), showing a stable increase since 2013, with predictions of further price rises in Q3 [3] - Pricing for lithium concentrate is based on Australian import prices, adjusted according to actual grade [3] Group 3: Business Development and Future Plans - The company has no current plans for acquiring additional mines or expanding mining rights, focusing instead on resuming operations and increasing production at existing sites [3] - Orders from Dongguan Derui are expected to see a certain increase this year, with specific revenue dependent on delivery conditions [3] - Dongguan Derui's main business model is non-standard single machine manufacturing, primarily producing fully automated lithium battery equipment, with a focus on expanding its customer base [3] - The company plans to extend its product line in lithium battery equipment and increase the sales revenue proportion from power battery production lines [3] Group 4: New Business Ventures - The company is exploring new business opportunities with the launch of the Rongjie Ark smart electronic backpack, aimed at finding new profit growth points and providing cash flow support before lithium mine expansion and lithium salt projects reach production [4] - The smart electronic backpack project is expected to partially commence production by the end of 2015 [4] - The company has no plans to extend into online education systems or content areas [4] Group 5: Financial Outlook and Investment Plans - The company aims to turn a profit in 2015, supported by favorable lithium resource conditions and rising lithium prices, with stable operations at Dongguan Derui [4] - Future investments will focus on expanding lithium mining and lithium salt plant construction, with subsidiaries potentially seeking independent financing [4] - The company’s non-public offering has been approved and will proceed once formal approval is received from the China Securities Regulatory Commission [4]