On February 27, Guanghua Technology announced that it had signed a cooperation framework agreement with the Management Committee of Dazhou High-tech Industrial Development Zone to invest in the construction of a high-performance lithium battery materials project with an annual production capacity of 100,000 tons. The total investment in the project is expected to be around 1 billion yuan, and it is planned to be built on land in the New Materials Industrial Park of Dazhou High-tech Zone. The project is planned to be carried out in two phases, with Phase I and Phase II each having an investment scale of about 500 million yuan. Phase I is expected to cover an industrial land area of about 60 acres, while Phase II will reserve an industrial land area of about 50 acres.
According to the plan, Phase I of the project will focus on the construction of high-performance lithium battery materials, mainly producing lithium iron phosphate and lithium carbonate, with an annual production capacity of 50,000 tons. Phase II will mainly expand production capacity, also focusing on lithium iron phosphate and lithium carbonate, with an additional annual capacity of 50,000 tons. Guanghua Technology stated that the signing of this cooperation framework agreement aligns with national policies and the company's long-term strategic development plan. If the project is successfully implemented, it will help leverage the company's comprehensive business advantages, enhance its capabilities in the construction and operation of lithium battery materials projects, and have a positive impact on the company's future performance.
It is understood that Guanghua Technology's main products include PCB chemicals, lithium battery materials, chemical reagents, battery recycling and reuse products, and green ring materials. Its lithium battery materials mainly consist of series products such as ternary precursors and ternary materials, lithium iron phosphate, lithium iron phosphate, and lithium manganese iron phosphate, as well as cobalt salts, nickel salts, and manganese salts. In terms of battery recycling, Guanghua Technology claims that its efficient selective lithium extraction technology for lithium iron phosphate cathodes allows for a lithium recovery rate of over 92% from retired lithium iron phosphate batteries, with iron and phosphorus recovery rates reaching 98%. Currently, Guanghua Technology has built a lithium iron phosphate battery cathode recycling production line with an annual capacity of 10,000 tons, and plans to expand it to 50,000 tons per year, with an expected launch in 2026.
It is worth noting that Guanghua Technology has already established a production line for 300 tons of lithium sulfide used in solid-state batteries and has plans for further expansion. However, the sales revenue of this product from 2024 to the present is only 1.11 million yuan, accounting for a very small proportion of the company's total income and having limited impact on its performance. In terms of financial performance, according to Guanghua Technology's 2024 annual performance forecast, the net profit attributable to shareholders of the listed company is expected to be a loss of 135 million–195 million yuan, a reduction of 68.66%–54.73% compared to the same period last year; the net profit after deducting non-recurring gains and losses is expected to be a loss of 65 million–95 million yuan, a reduction of 84.96%–78.02% compared to the same period last year.cibf2025