Jiangte Motor Research Minutes

1. Core points

The company owns the mining rights of 2 lithium porcelain mines and the exploration rights of 5 mines in the Yichun area. The total lithium resource reserves held or controlled are 1 More than 100 million tons, the company's existing lepidolite mining scale is about 1.8 million tons a year, of which 1.2 million tons are in the Yifeng Shiziling mining area and 600,000 tons in the Xinfang tantalum-niobium mine.

The company's existing mica ore beneficiation scale is 1.2 million tons, of which the Yifeng Shiziling mining area has a beneficiation capacity of 600,000 tons, and the Taichang Mining mineral processing capacity is 600,000 tons.

The current mining capacity in 2021 is 1.8 million tons and the mineral processing capacity is 1.2 million tons. Then we will strive to reach 3.5 million tons of mining and processing in 2022 and 6 million tons in 2023.

The company currently uses mica to produce lithium carbonate production line, with a production capacity of 15,000 tons per year, and uses spodumene to produce lithium carbonate with a production capacity of 15,000 tons per year.

The lithium carbonate production capacity plan from 2021 to 2023 is 30,000 tons in 2021 and 30,000 to 40,000 tons in 2022. In 2023, it is also planned to build a 20,000 tons lithium carbonate factory in Yifeng. By the year, there will be a total lithium carbonate scale of 55,000 tons.

In addition to Qikeng, there are 4 exploration rights. The first one is the Meijia Porcelain Stone Mine. The exploration-to-mining work has now been started, and it is expected that field work will be officially carried out in April. The second one is the archway. A detailed inspection has been completed and the reserve record has been made. The reserve record is 1.02 million tons of ore. This is an underground porcelain stone mine with an average grade of 1.4~1.5. If mining is possible, underground mining may be adopted. To get this certificate, you only need to make a development and utilization plan, and this certificate is also obtained in the city. The third one is the Yeweiling exploration rights, which are detailed exploration rights and have been changed to lithium. It turned out to be a tantalum and niobium exploration right, the same as Qikeng, but was later changed to a lithium mine. The first phase of the detailed investigation of Yewei Ridge has been completed, and the second phase of the detailed investigation is now being launched. The fourth one is Pingtou Ridge. We originally did a simple census of Pingtou Ridge, and the grade of Pingtou Ridge was also 0.3 to 0.4. The progress of the development of these resources depends on market price trends. The second most advanced development progress is the archway.

Qikeng is expected to obtain the mining license in the third quarter. We are already doing other work on three connections and one leveling, and the road is being repaired. Preparatory work such as environmental impact assessment has been started. Once the mining right certificate is obtained, these tasks can be completed in about 10 working days, thus shortening the time. We will strive to complete the city's security before December 31, which means that by the end of December, we will be able to reach a mining scale of 3 million tons. Before

we will still dig some, but if we dig some, of course we will not dig according to the full production model. Anxu allows you to verify while harvesting, and he will finally come to check and accept it after a period of time. The ore output of Qikeng is planned to be 400,000-500,000 tons in 2022, and Qikeng will reach full production in 2023.

In terms of mineral processing, the construction of the supporting mineral processing plant in Qikeng is expected to be completed in the third quarter of 2023. Prior to this, the company adopted the form of beneficiation or joint venture with a new dressing plant to meet the mineral processing needs. Yifeng Shiziling mineral processing plant will increase its production by 300,000 tons this year through some technical reforms and expansion of production.

In 2021, the output of lithium carbonate will be less than 20,000 tons, that of spodumene will be less than 10,000 tons, and that of mica will be 10,000 tons, with the outsourcing ratio of mica being about 20%. The spodumene concentrate has 20,000 tons of its own, and the rest is contracted by Tianci and Tianqi.

Our plan for mica in 2022 is 15,000 to 20,000 tons. For spodumene, it depends on the condition of the raw materials, which is not very certain, and the OEM is not certain either. At present, we have less than 2,000 tons of self-owned lithium concentrate, and we also have more than 20,000 tons of raw ore from wodgina. We also plan to use them all in March, adding up to 5,000 tons of concentrate. It has more than 600 tons of lithium carbonate. It is planned to burn all this part in March, and then add mica in April. Spodumene will initially plan to produce 5,000 to 8,000 tons of lithium carbonate in 2022.

In 2023, the output of mica should be between 40,000 and 50,000 tons. Including Shiziling and Xinfang, 40,000 tons are self-supplied lepidolite concentrates. The market price of lepidolite concentrate around 3.0 is already 1,340, compared with 1,340 in the same period last year, a 10-fold increase, but it is still profitable to make lithium salts.

2. Company Introduction

Jiangte Motor is a high-tech enterprise that integrates the selection and deep processing of lithium carbonate products, as well as the R&D, production and sales of special electrical products. It is one of the top 100 enterprises in Jiangxi Province. The company's current registered capital is 1.706 billion yuan, with about 3,000 employees, and its industries are located in Jiangxi, Tianjin, Zhejiang and Germany. The company encountered difficulties for a period of time in the past two years, and its financial situation was not very good, but it has improved sharply since last year. Starting from the third quarter of last year, from the first half of the year to the third quarter, revenue and profits increased sharply. Last year’s full-year profit forecast was about 350 to 450 million.

The company's entire industrial sector layout is mainly divided into three parts. In the first part we see the lithium industry sector, mainly our mining company and silver lithium company, that is, mining and mineral processing as well as lithium carbonate processing related industries. The motor industry is distributed in Tianjin, Shanghai, Hangzhou, Jiangxi, Jiangsu and Germany, which basically includes our motor industry. Other industries are some idle assets of the company, which are not large in size. They will be liquidated and disposed of assets later, and some cash will be generated.

Then the industrial layout is currently focusing on two directions. The first direction is the lithium industry sector, and the second direction is the motor sector. So what are our advantages in the lithium industry compared with several other listed companies?

The first advantage is our resource advantage. The company owns the mining rights of 2 lithium porcelain mines and the exploration rights of 5 mines in the Yichun area. The total lithium resource reserves held or controlled are 100 million. tons or more, the company's existing lepidolite mining scale is about 1.8 million tons a year, of which 1.2 million tons are in the Yifeng Shiziling mining area and 600,000 tons in the Xinfang tantalum-niobium mine.

The second advantage is the comprehensive utilization of our flotation processing. The company’s existing mica ore beneficiation scale is 1.2 million tons, of which the Yifeng Shiziling Mining Area has a beneficiation capacity of 600,000 tons. Taichang Mining’s beneficiation capacity It’s 600,000 tons. The company has achieved comprehensive utilization of lithium ore mining by mining its own lithium chinastone ore, extracting the main product mica from the lithium chinastone ore, and extracting by-products such as feldspar powder, tantalum and niobium.

Then the third advantage is the production capacity advantage of lithium salt processing. We currently use mica to prepare lithium carbonate production line, which has a production capacity of 15,000 tons/year. We use spodumene to produce carbonic acid. Lithium is 15,000 tons/year. At present, we have two lines for producing lithium carbonate from spodumene, one of which is already undergoing technical modification for compatibility. In the future, both mica and spodumene can be burned to increase the utilization rate of production capacity.

The fourth lithium hydroxide production line using spodumene with an annual output of 10,000 tons and a lithium carbonate production line of 5,000 tons is currently under construction.

The fifth technology we have is the academician workstation we established, which has 8 invention patents and 8 utility model patents. It is the drafting unit of domestic industry standards for the preparation of lithium carbonate from lepidolite.

The above is the lithium sector. Our motor sector is a sector that we have been involved in for many years since we were listed on the market.

It is mainly divided into four categories. One is Jiangxi Jiangte, which is where we are now the parent company. The second one is Hangzhou MiG, which was acquired that year and mainly produces servo motors. The third one is Tianjin Huaxing, and the fourth one is Weier from Germany.

Then Jiangxi Jiangte has accumulated more than 60 years of motor business experience. The special motor R&D center has accumulated nearly 180 awards, undertaken 12 national key projects, and was approved as a provincial technology center in Jiangxi Province. Provincial Special Electrical Engineering Technology R&D Center. The products have high technical content and complete varieties and specifications. We have successfully developed nearly 50 series and more than 3,000 models and specifications of motor products.

It is at the forefront in various fields such as construction machinery motors, lifting metallurgical motors, military motors, new energy vehicle motors, and wind power supporting motors. It is either the top three in the industry or even the first in the industry. .

Hangzhou MiG is the leader in domestic servo motors, with an annual output of 1 million units, ranking first in domestic servo motor shipments. Products are widely used in automation and intelligent control fields, such as industrial robots.

Tianjin Huaxing was established in 1985. Its main products are used in elevator motors, escalator motors, escalator drive hosts, and motor components. The company is a gold medal supplier of Otis elevators.

Germany Weier Drive and New Energy Technology Co., Ltd. was founded in 1945. It is the company's base for research and development and expansion of the European market.

Specializing in the production and sales of generators, electric motors and drive system engineering solutions.

We have so many industries. Our strategic policy is to build the core competitiveness of the lithium industry and continue to develop the smart motor industry. Our strategic goal is to become a large global supplier of lithium carbonate products and a first-class smart motor integration service provider. With such ambitious policies and goals, we will have many plans in the company's corporate culture and brand planning, risk control, human resources information planning, investment planning, including investor relations, media relations, regulatory relations, etc., and capital operations. Such a repositioning and planning will strive to satisfy customers, employees, shareholders, the government and society.

Our future outlook is that the current mining capacity in 2021 is 1.8 million tons and the mineral processing capacity is 1.2 million tons. Then we will strive to reach 3.5 million tons in 2022 and 6 million tons in 2023. The lithium carbonate production capacity plan from 2021 to 2023 is 30,000 tons in 2021, 30,000 to 40,000 tons in 2022, and 40,000 to 50,000 tons in 23. There is a basic assumption based on the success of our exploration-to-production operation in Qiankeng. Down. Then increase technological innovation, pool resources, and fill in the gaps.

As for the motor industry, one is to continue to consolidate and develop the number one position in the construction machinery motor industry, stabilize the market share of wind power supporting motors, rank first in domestic output value, and rank first in market share. The third is to expand the automation application fields of high-end servo electrical appliances and supporting products, and continue to maintain its top position in domestic shipments. The fourth is to make a comprehensive layout in the field of military motors, strengthen cooperation with military colleges and universities, achieve mass production of high-tech products, speed up the launch of new energy traditional vehicle motors, and aim to become a supplier of global new energy automobile brands. We made a new addition to this strategy last Friday. We may focus on the field of electronic control in the near future or in the future.

The team building plan relies on the academician workstation and cooperates with relevant universities to establish and construct joint research institutes for lithium mining and separation, lithium carbonate deep processing and special motor research and development, to expand the scale of the industry and improve the core benefits of the product. After that, we will introduce high-end talents, formulate long-term development strategies, increase the combination of external introduction and internal introduction, and introduce high-level, innovative management and technical talents through talent incentives, performance incentives, equity incentives, etc. In terms of incentives, we have already started to implement them in the early stage. One is the employee stock ownership plan, and the second is a buy-back plan. Then, through the repurchased shares, we retain existing talents and introduce future talents, which is an incentive treasury stock reserve. It's already being implemented.

As an old listed company, the company has strong brand awareness and high product recognition. The company not only has a good track for new energy, but also has free and abundant flowing resources. It also has the basic brand of a stable and winning special motor. It is hoped that with the company's efforts, it will achieve faster, better and more stable development through accumulated accumulation.