As a leading domestic waste incineration treatment company, Weiming Environmental Protection (603568) has been active in the new material business field since 2022.

Weiming Environmental Protection announced on the evening of April 25th that on April 24th, the company signed the "Strategic Cooperation Framework Agreement on Lithium Battery New Materials Project" with Shengtun Mining and Qingshan Holdings. , High-nickel ternary precursor production, high-nickel cathode material production and related supporting projects.

On April 25, Weiming Environmental Protection, Shengtun Mining, and Tsingshan Holdings also signed the "Wenzhou Lithium Battery New Material Industry Base Project Investment Agreement" with the People's Government of Longwan District, Wenzhou City.

The framework agreement stipulates that the three parties will cooperate to jointly plan and invest in the development of the above-mentioned projects in Wenzhou City, with an annual output of 200,000 tons of high-nickel ternary cathode materials, and the project will be constructed in phases.

The three parties intend to set up one or more joint ventures as soon as possible to invest in new lithium battery material projects directly or through affiliated companies; the equity structure of the joint venture is that Weiminghuan maintains 51% of the shares. Shengtun Mining holds 30% and Tsingshan Holdings holds 19%.

According to the project investment agreement, Weiming Environmental Protection plans to set up a joint venture project company in Longwan District, Wenzhou City, Zhejiang Province, build a lithium battery new material industry base, cooperate to promote the high-end industrial base of lithium battery new materials and modernize the industrial chain, and create an international influence. Power's iconic industrial chain of 100 billion lithium battery new energy. The base is expected to use about 1,500 mu of land.

As a non-ferrous metal mining and dressing enterprise focusing on nickel, cobalt, copper and zinc metal products, Shengtun Mining has continuously improved its layout in the field of energy metals in recent years, and has continuously injected high-quality assets and expanded its business scale around energy metals nickel, cobalt and copper.

The company's 2021 annual report disclosed on the evening of April 25th showed that during the period, it achieved operating income of 45.237 billion yuan, net profit of 1.031 billion yuan, a year-on-year increase of 1645.62%, and deducted non-net profit of 651 million yuan, a year-on-year increase of 378.03%.

In 2021, Shengtun Mining will invest in the construction of a new energy material project with an annual output of 300,000 tons of battery-grade nickel sulfate, 300,000 tons of battery-grade iron phosphate and 10,000 metal tons of battery-grade cobalt products in Fuquan City, Qiannan Prefecture, Guizhou Province. Shengtun Energy Metal Chemical (Guizhou) Co., Ltd., a wholly-owned subsidiary of the company, has a total investment of 6.193 billion yuan.

In addition, Hongsheng International, a wholly-owned subsidiary of the company, signed a joint venture agreement with Extension to set up Shengmai Nickel in Indonesia, and Hongsheng International holds a 70% stake in Shengmai Nickel. Shengmai Nickel Industry plans to build a high nickel matte project with an annual output of 40,000 tons of nickel metal in Indonesia Weidabe Industrial Park (IWIP), with a total investment of 350 million US dollars. According to the company's shareholding ratio, the foreign investment amount this time is 245 million US dollars, equivalent to 1.566 billion yuan.

Compared with Shengtun Mining, Weiming Environmental's investment in the field of new materials is obvious.

In January 2022, Weiming Environmental Protection announced that it will cooperate with Merit, a wholly-owned subsidiary of Indigo Company, to invest in the development and construction of a laterite nickel ore smelting project with an annual output of 40,000 tons of high nickel matte nickel-containing metal in Indonesia. The total investment of the project does not exceed 390 million US dollars. Calculated based on the company's shareholding ratio, the amount of this foreign investment will not exceed 273 million US dollars.

At that time, Weiming Environmental Protection said that it will cooperate with Merit in the fields of new environmental protection materials and new energy, and plan to develop low-grade nickel ore or tailings utilization technology, lay out the new energy industry chain, and build an international leading environmental protection energy enterprise, which is in line with the company's long-term development strategy.

Regarding the cooperation between Shengtun Mining and Tsingshan Holdings this time, Weiming Environmental Protection said that the signing of this agreement will help the company to strengthen cooperation with enterprises in the new material industry chain, actively develop new processes and technologies in the field of new energy, and develop new layouts. The energy new material industry chain will help expand the company's future business development space and conform to the company's long-term development strategy. The signing and performance of this agreement will not have a significant impact on the company's operating performance in 2022, but it will have a positive effect on the company's future expansion of new materials business.