Last year's performance increased by more than five times, Zangge Mining "dipped in lithium on fire", what is the solution to the crisis of tens of billions of debts in Zangge?

Reporter | Chen Huidong

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On January 11, Zangge Mining (000408. SZ) announced that it expects to achieve a net profit attributable to shareholders of listed companies of 1.4 billion yuan to 1.45 billion yuan in 2021, an increase of 511.65% to 533.5% year-on-year; and is expected to achieve a net profit of 1.34 billion yuan to 1.39 billion yuan, an increase of 589.81% to 615.55% year-on-year.

In terms of the reasons for the change in performance, Zangge Mining said that the sales price of potassium chloride of the company's subsidiary, Golmud Zangge Potash Fertilizer Co., Ltd., increased compared with the same period last year; the sales volume and sales price of lithium carbonate of the company's second-level subsidiary, Golmud Zangge Lithium Co., Ltd., increased significantly compared with the same period last year; and the company's long-term equity investment recognized investment income of 242 million yuan (including the expected credit loss of Tibet Julong Copper Co., Ltd. guaranteed).

In a single quarter, in the fourth quarter, the company achieved a net profit attributable to the mother of 575 million yuan to 625 million yuan in the quarter, compared with a net profit attributable to the mother of 184 million yuan in the same period last year.

Looking back at the performance of the first three quarters of this year, in the first three quarters of this year, the company's single-quarter net profit attributable to the mother was 253 million yuan, 192 million yuan and 380 million yuan, respectively. From this point of view, the single-quarter performance of Zangge Mining this year has shown an upward trend.

Founded in June 1996, Zangge Mining was mainly engaged in the production and sales of potassium chloride, with a mining area of 724.3493 square kilometers of Qarhan Salt Lake, with an annual production capacity of 2 million tons, which is the second largest production enterprise in the domestic potassium chloride industry and one of the 30 key enterprises in Qinghai Province.

In 2016, Zangge Mining successfully borrowed Jinguyuan, and the actual controller Xiao Yongming took this opportunity to become the richest man in Qinghai Province. In August 2017, Zangge Mining entered the new energy industry, and the first phase of the battery-grade lithium carbonate project (with an annual output of 10,000 tons of lithium carbonate) has been successfully completed and reached production, and the company's lithium carbonate sales revenue has increased significantly since 2021.

According to interface news previously reported, Zangge mining is full of problems. On the one hand, the Zangge department of Xiao Yongming, the actual controller of Zangge Mining, the former chairman and the former richest man in Qinghai Province, has a debt crisis of tens of billions of yuan (Xiao Yongming and his control of Tibet Zangge Venture Capital Group Co., Ltd., Sichuan Yonghong Industrial Co., Ltd., Qinghai Zhonghao Natural Gas Chemical Co., Ltd., etc.). According to the judicial auction network platform, as of the beginning of December 2021, a total of 350 million shares of listed companies have been listed on the judicial auction network platform, with a starting price of 19.27 yuan per share.

On the other hand, since the beginning of this year, the performance of Zangge Mining has attracted people's attention, but the company's financial data in the first three quarters has been questioned about profit adjustment. The company's third quarter revenue and tax data, industry seasonal characteristics, sales prices of main products can not match.

Zangge Mining had a precedent of financial fraud and was named by the CSRC in April 2020. The claim conditions disclosed by a number of stock claim teams show that Zangge Holdings has been punished by the China Securities Regulatory Commission for misrepresentation and is now in litigation, and investors who bought between April 28, 2018 and June 21, 2019 (inclusive) and sold or held on or after June 22, 2019 and lost money can claim compensation by litigation.

In terms of stock price, since the beginning of this year, the A-share "lithium on fire" market has directly driven Zangge Mining from 8 yuan / share to a maximum of 35.55 yuan / share, setting a new high for stock prices in the past six years. On January 4, the company's stock price rose to 41.77 yuan / share, a new high. As of the close of trading on January 11, the company's stock price was reported at 34.25 yuan / share.