Chuanjinnuo Redirects Over 450 Million Yuan to Egypt Project Amid Fierce Market Competition

On the evening of June 24, Chuanjinnuo announced a major adjustment to its investment strategy. The company plans to redirect 454.76 million yuan of unutilized funds from its two lithium iron phosphate (LFP) cathode material projects to its "Chuanjinnuo (Egypt) Suez Phosphorus Chemical Project." This decision reflects changes in investment location, implementation methods, and primary stakeholders.

Chuanjinnuo emphasized its long-standing research efforts in battery materials, including lithium iron phosphate and precursors, which have led to key technological breakthroughs. This foundation had initially driven the company to launch ambitious projects in Guangxi, targeting an annual capacity of 50,000 tons of battery-grade LFP precursors and a supporting 600,000-ton sulfuric acid facility, as well as a 10,000-ton LFP cathode material project through Guangxi Chuanjinnuo New Energy Co., Ltd.

However, intense competition in the burgeoning new energy market prompted the company to reassess its strategy. While Chuanjinnuo has considerable expertise in traditional phosphorus chemical products, it acknowledged its limited competitive edge in the LFP sector, which remains a new business segment.

To optimize fund utilization, the company has shifted its focus to the Suez Phosphorus Chemical Project in Egypt. This project will involve constructing facilities for 800,000 tons/year sulfuric acid, 300,000 tons/year industrial wet-process crude phosphoric acid, 150,000 tons/year 52% phosphoric acid, 300,000 tons/year monoammonium phosphate (MAP), and 20,000 tons/year sodium fluorosilicate. The original Guangxi projects will resume when market conditions become more favorable, using the company's own funds at an appropriate time.

Chuanjinnuo’s expertise in the phosphorus chemical industry provides a strong foundation for this shift. The company’s subsidiary, Guangxi Chuanjinnuo Chemical Co., Ltd., successfully launched a 100,000-ton purified phosphoric acid project in March 2022. This material serves as a critical precursor for LFP and MAP production, offering a competitive edge in international markets.

In Q1 2025, Chuanjinnuo reported revenue of 721 million yuan and a net profit attributable to shareholders of 72.02 million yuan, reflecting its strong financial performance despite market challenges.