YOUNGY(SZ:002192)2022-12-08 02:22Group 1: Company Overview and Strategic Initiatives - The company is collaborating with Huaxun Fangzhou to establish Rongjie Fangzhou, focusing on the smart electronic backpack business to seek new profit growth points and provide cash flow support before the lithium mine expansion and lithium salt project reach production [1] - Rongjie Fangzhou's positioning is as a hardware integration manufacturer for smart electronic backpack terminal products [1] - The smart electronic backpack project is expected to become a cash flow positive project [2] - Partial production of the smart electronic backpack business is targeted for the end of 2015 [2] - The project is considered a reserve project for shareholders, with prior resource, technology, and channel preparations made [2] Group 2: Project Funding and Features - The land and factory for the Rongjie Fangzhou project are provided by the local government, with funding aimed to apply for interest-free loans from the local government [2] - The smart electronic backpack is designed to replace traditional textbooks and exercise books, featuring E-ink technology, which offers benefits such as eye safety, long battery life, and lightweight design [2] - The company has advantages in terminal market access, stable procurement channels for raw materials, and technical resources from shareholders [2] Group 3: Financial Performance and Market Position - Dongguan Derui achieved revenue of over 90 million and a net profit of over 22 million last year [2] - The revenue of Dongguan Derui shows seasonal variations, with the lithium equipment products experiencing cyclical order production [2] - Dongguan Derui ranks among the top three in the industry based on revenue, technology level, and product development capabilities [2] Group 4: Production Plans and Challenges - Dongguan Derui plans to extend its product line in lithium battery equipment and increase the sales revenue proportion of power battery equipment [3] - The main challenge for expanding production is the shortage of skilled technical workers [3] - The lithium mine is currently on hold due to land acquisition issues, with efforts ongoing to coordinate with local government for resumption by the end of Q2 [3] - Upon resumption, the processing capacity of the mine is expected to increase to 450,000 tons per year [3] - The price of lithium concentrate is currently between $420 and $450, with predictions of further increases in Q3 [3] Group 5: Future Investments and Production Capacity - The lithium salt plant is designed for an annual production capacity of 22,000 tons, with a construction period of 2 years [4] - Future investments will focus on the lithium industry chain, particularly on mine expansion and lithium salt plant construction [4] - The company is considering independent financing for its subsidiaries in the future [4]