Draw a pie​?

China Nuclear Titanium Dioxide's planned lithium iron phosphate production capacity is more than three times more than domestic shipments in 2020, and the company's capacity digestion issue is worthy of attention

Recently, China Nuclear Titanium Dioxide (002145.

In the plan, CNNC Titanium Dioxide stated that through the implementation of the fund-raising investment project, the company will complete the green recycling industry layout coating online coatingol.

"Cross-border" lithium iron phosphate

As of the close of June 2nd, the total market capitalization of China Nuclear Titanium Dioxide secondary market was 26.

Public information shows that in February 2021, China Nuclear Titanium Dioxide issued a series of foreign investment plans in the form of announcements

Among the fixed-increasing investment projects, the planned total investment of the 500,000 tons of lithium iron phosphate project is 3.

As one of the cathode materials, lithium iron phosphate is widely used in new energy vehicles, energy storage and other fields

China Nuclear Titanium Dioxide stated that in the process of producing crude titanium dioxide, a large amount of waste acid, acidic wastewater, ferrous sulfate and other by-products will be produced.

The "question" of capacity resolution

Statistics from the Advanced Industrial Research Institute of Lithium Battery Research (GGII) show that in 2020, China’s domestic shipments of lithium iron phosphate cathode materials will be approximately 124,000 tons

According to data from the China Automobile Association, in 2020, China's cumulative output of power batteries is about 83.

In terms of installed capacity, in 2020, China's power battery installed capacity will total 63.

In 2020, China's new energy vehicle production and sales will be 1.

According to the disclosures of many listed companies during the survey, under normal circumstances, 1GWh of lithium batteries (lithium iron phosphate path) requires about 1,900 to 2,500 tons of lithium iron phosphate, an average of 2,200 tons, and the installed capacity of 1GWh lithium batteries corresponds to The output of new energy vehicles is approximately 21,500

Based on the above data calculation, after the 500,000 tons of lithium iron phosphate project of China Nuclear Titanium Dioxide is put into operation, the company will be able to meet the installed demand of more than 200GWh of lithium iron phosphate cathode material batteries, and the corresponding installed capacity of new energy vehicles will exceed 4 million

The “About Printing and Distributing the Development Plan for the New Energy Vehicle Industry (2021-2035)” previously issued by the General Office of the State Council pointed out that by 2025, China’s new energy vehicle market will be significantly more competitive, and the sales of new energy vehicles will reach the total sales of new vehicles.

Through the comparison of the above information, it can be found that if China Nuclear Titanium Dioxide's 500,000 tons of lithium iron phosphate production capacity is fully released before 2025, the company's lithium iron phosphate must cover 80% of the market demand for new energy vehicles to completely eliminate the planned production capacity

It should be pointed out that, according to statistics from the China Battery Industry Association, as of the end of 2020, the total production capacity of China's domestic lithium iron phosphate cathode materials has been close to 260,000 tons
.
In terms of shipments, in 2020, the average capacity utilization rate of lithium iron phosphate is about 47.
69%
.
Among them, in 2020, Defang Nano (300769.
SZ) ranked first in the industry with a sales volume of 30,700 tons of lithium iron phosphate, with a market share of more than 20%
.
As of the end of 2020, Defang Nano has a production capacity of 80,000 tons of lithium iron phosphate; in December 2020, Defang Nano raised funds (net) 1.
182 billion yuan through a fixed increase method, of which 850 million yuan was used for 40,000 tons of nano phosphoric acid For the lithium iron project, the company estimates that the production capacity of lithium iron phosphate is expected to reach 120,000 tons by the end of 2021
.
In January 2021, German Nano announced that it plans to cooperate with CATL (300750.
SZ) to invest about 1.
8 billion yuan to build a lithium iron phosphate project with an annual output of 80,000 tons; in March, German Nano announced again that it plans to be in Qujing.
The Economic and Technological Development Zone invests in the construction of a lithium iron phosphate production base project with an annual output of 150,000 tons.
The project with an annual output of 100,000 tons of lithium iron phosphate is jointly constructed with Yiwei Lithium Energy (300014.
SZ).
The remaining capacity of 50,000 tons of lithium iron phosphate is The company implements it independently
.

If this fixed increase plan is fully implemented, in the future, the production capacity of China Nuclear Titanium Dioxide will be 1.
35 times the planned production capacity of German Nano and 16.
29 times the company's sales in 2020
.

At the same time, in 2020, Hunan Yuneng and Beterui ranked second and third in lithium iron phosphate shipments
.
According to Xiangtan Electrochemical (002125.
SZ) disclosure, Hunan Yuneng currently has a production capacity of 50,000 tons of lithium iron phosphate
.
In 2020, Hunan Yuneng established a wholly-owned subsidiary Sichuan Yuneng New Energy Battery Materials Co.
, Ltd.
to carry out the investment and construction project of lithium iron phosphate production line with an annual output of 20,000 tons; Beiterui (835185.
NQ) has 42,000 tons of phosphoric acid The production capacity of iron and lithium, the company's capacity under construction is 15,000 tons
.

According to statistics from the China Battery Industry Association, as of the end of 2020, the planned new capacity of domestic lithium iron phosphate is about 332,000 tons/year, and the production period is basically concentrated from 2021 to 2023
.

So far, how can China Nuclear Titanium Dioxide, which has no lithium iron phosphate products sold, catch up in the fierce production capacity competition?

The "mystery" of supplementing liquidity

According to the fixed increase plan, China Nuclear Titanium Dioxide's second largest fixed increase project is to raise 2.
127 billion yuan to supplement working capital
.

In the plan, China Nuclear Titanium Dioxide stated that by using the funds raised this time to supplement working capital, it will help supplement the company's future business development needs for working capital and further optimize the company's capital structure
.

It should be pointed out that in September 2020, China Nuclear Titanium Dioxide has just completed a non-public offering of 1.
6 billion yuan, including 1.
37 billion yuan in supplementary liquidity projects
.

At the end of the first quarter of 2021, the book value of China Nuclear Titanium Dioxide’s monetary funds was approximately 2.
226 billion yuan, the book value of transactional financial assets was 960 million yuan, short-term loans and long-term loans were 517 million yuan and 113 million yuan, respectively.
The company’s asset-liability ratio was approximately It is 33.
78%
.

Regardless of its asset-liability structure or currency and capital holdings, China Nuclear Titanium Dioxide does not show a lack of funds
.

Since 2013, China Nuclear Titanium Dioxide has conducted five non-public issuances, and the accumulated net funds raised are 3.
536 billion yuan
.
Among them, about 2.
357 billion yuan is used to supplement working capital
.
Since its listing, the company has realized a cumulative net profit of 1.
405 billion yuan, and a cumulative dividend of only 175 million yuan, which is still less than 5% of the raised funds
.

China Nuclear Titanium Dioxide stated that with the steady development of the company's titanium dioxide business and the completion of future fund-raising projects, the company's business scale will be further expanded and the demand for working capital will increase accordingly
.

According to the fixed increase plan, CNNC Titanium Dioxide also plans to invest 979 million yuan in the deep processing project of recycled titanium dioxide
.
The project will increase the company's annual production capacity of 300,000 tons of titanium dioxide finished products, with an estimated annual profit of 320 million yuan
.

According to annual report data, as of the end of 2020, China Nuclear Titanium Dioxide's finished titanium dioxide production capacity is about 400,000 tons/year
.
In 2020, China Nuclear Titanium Dioxide has produced a total of 317,600 tons of titanium dioxide and sold a total of 319,900 tons
.
Based on the above data, after this fixed-increasing project is put into production, the production capacity of China Nuclear Titanium Dioxide's finished titanium dioxide will increase by 75%
.

It is worth mentioning that, according to the annual report data, in 2020, the comprehensive capacity utilization rate of the finished titanium dioxide of China Nuclear Titanium Dioxide is about 79.
4%
.
Public information shows that in 2020, China's domestic titanium dioxide production capacity will total about 4.
03 million tons, and the country is expected to produce 3.
48 million tons of titanium dioxide products during the year, and the overall industry capacity utilization rate will be about 86.
35%
.
Compared with industry data, China Nuclear's titanium dioxide capacity utilization rate is relatively low
.

After the large-scale fundraising, whether China Nuclear Titanium Dioxide can smoothly digest and expand its production capacity and whether the company will change its fundraising projects should be focused on by investors
.

In response to the issues involved in the article, the reporter has sent an interview letter to China Nuclear Titanium Dioxide, but as of the time of publication, the company has not received a reply
.