The Most Noteworthy Chinese Phosphorus Chemical Company in the Lithium Iron Phosphate Industry

In recent years, with the rapid growth of the new energy vehicle market and the state's support for the energy storage industry, China's lithium iron phosphate battery market has developed rapidly and become one of the largest markets in the world.

At the same time, China emphasizes chemical industry safety and sustainable development, and phosphate mining and production expansion are restricted. Therefore, since the traditional method of production expansion can no longer support the long-term development of enterprises, upstream leaders are looking for ways to expand to the middle and lower reaches of the industrial chain.

The technical threshold for the production of lithium iron phosphate is not high for upstream leaders with many years of experience in chemical synthesis and process production. Several phosphorus chemical companies with phosphate rock resources have decided to enter the industry.

According to the planned production capacity of phosphorus chemical companies and other companies in other fields to switch to lithium iron phosphate production across borders, in the future, as the demand for lithium iron phosphate continues to grow strongly, there is the possibility of drastic changes in the lithium iron phosphate industry structure. So which Chinese companies deserve the most attention?

Yihua group

The company is mainly engaged in the production and sales of chemical fertilizers and chlor-alkali products. Its main products include the two major fields of fertilizer and chemical industry and more than ten sub-categories. It has an annual production capacity of 1.56 million tons of urea, 1.26 million tons of diammonium phosphate, and 840,000 tons of polyvinyl chloride, as well as the production ability of pentaerythritol and Sodium Hydrosulfite, etc.

Yihua group is one of the companies with core phosphate ore resources in China. The company obtained the mining license for the Jiangjiadun mining area issued by the Hubei Provincial Department of Land and Resources in December 2011, with a mining area of approximately 1.1361 square kilometers and an annual production capacity of 300,000 tons. At the same time, the company is currently applying for exploration-to-mining work in the east mining section of Jiangjiadun. The mining area of the east mining section is about 7.57 square kilometers. After the mining rights are granted, the company will build a phosphate ore production capacity of 1.5 million tons.

The main products continued to be prosperous, and the company's performance increased significantly. In the first half of 2021, the company achieved operating income of 9.35 billion yuan, a year-on-year increase of approximately 52.2%, and net profit attributable to the parent company of 730 million yuan, a year-on-year increase of approximately 367.9%.

Yonfer group

The company is one of the leading enterprises in China's phosphate and compound fertilizer industry, with production bases all over the country, including Jingmen, Zhongxiang, Yichang in Hubei, Heze in Shandong, Leibo in Sichuan, etc. At present, the company has a production capacity of about 8 million tons of various high-concentration phosphate fertilizers. At the same time, in terms of integration, the company has a low-grade phosphate ore washing capacity of 3.2 million tons, as well as a production capacity of 2.8 million tons of sulfuric acid, 150,000 tons of synthetic ammonia, and 150,000 tons of nitric acid. The company's controlling shareholder made a commitment in 2015 to inject mining assets into listed companies. In July 2021, the company issued an announcement on its proposed acquisition of 100% equity of Leibo Yonfer Mining Co., Ltd. After the completion of the acquisition, the company added phosphorus Mineral production capacity is 700,000 tons.

In terms of performance, the company achieved operating income of 10.07 billion yuan in 2020, a year-on-year increase of approximately 8.0%; net profit attributable to the parent company was 950 million yuan, a year-on-year increase of approximately 46.6%; in the first half of 2021, the company achieved operating income of 6.70 billion yuan, a year-on-year increase of approximately 24.6%, achieving net profit attributable to the parent company of 700 million yuan, a year-on-year increase of approximately 39.3%.

Hubei Xingfa Chemicals Group

Hubei Xingfa Chemicals Group is a leading enterprise in the domestic phosphorus chemical industry. The company's main business includes phosphate rock, yellow phosphorus, phosphate fertilizer, glyphosate, etc. The company has been continuously exploring the field of fine chemicals for many years, and currently has 15 series and 591 varieties of food grade, pharmaceutical grade and other products. It is one of the companies with the widest range of fine phosphorus product categories in China.

In terms of integration, the company currently has phosphate rock reserves of 446 million tons and has mining rights. At the same time, the company owns 32 hydropower stations with a total installed capacity of 177,500 kilowatts. Its own ore reserves and power generation capacity have brought great advantages to the company on the upstream cost side.

In terms of performance, the company achieved operating income of 18.32 billion yuan in 2020, a year-on-year increase of approximately 1.5%; net profit attributable to the parent company was 620 million yuan, a year-on-year increase of approximately 106.3%; in the first half of 2021, the company achieved operating income of 9.85 billion yuan, a year-on-year increase of approximately 5.5%, achieving net profit attributable to the parent company of 1.14 billion yuan, a year-on-year increase of approximately 730.0%.

Yuntianhua group

Yuntianhua group is one of the largest phosphate mining and processing companies in China. The company's main businesses include fertilizers and modern agriculture, phosphate mining, fine chemicals, and trade logistics. In 2020, the company's total fertilizer production capacity was approximately 8.81 million tons, of which basic phosphate fertilizer production capacity reached 5.55 million tons, compound fertilizer production capacity reached 1.26 million tons, and nitrogen fertilizer production capacity reached 2 million tons. In terms of phosphate ore mining and dressing, the company has a raw ore production capacity of 14.5 million tons.

In terms of performance, the company achieved operating income of 52.11 billion yuan in 2020, a year-on-year decrease of approximately 3.5%; net profit attributable to the parent company was 270 million yuan, a year-on-year increase of approximately 79.1%; in the first half of 2021, the company achieved operating income of 30.93 billion yuan, a year-on-year increase of approximately 20.56%, achieving net profit attributable to the parent company of 1.57 billion yuan, turning a loss into a profit compared with the same period last year.