A few days ago, Lizhong Stone Light Alloy Group Co., Ltd. (“Lizhong Group”) introduced the company’s performance in the recycled aluminum alloy market, the research and development and cooperation of heat-free materials, and the company’s performance under the epidemic situation. Happening.
Continue to expand the recycled aluminum alloy business
With the gradual implementation of national policies such as “dual carbon and dual control” and utilization of renewable resources, the secondary aluminum industry has ushered in new opportunities for development. Faced with such an opportunity, Lizhong Group has strong secondary aluminum processing and utilization capabilities, a professional and standardized secondary aluminum recycling platform, a leading production capacity scale and the advantage of molten aluminum supply close to users.
Lizhong Group said that during the reporting period, the company made full use of the platform advantages of 18 domestic factories and recycled aluminum recycling transactions to further expand and strengthen the domestic recycled aluminum recycling market. At the same time, the company will also speed up the construction of secondary aluminum recycling and production capacity in Thailand, so as to realize the dual-cycle development of domestic and foreign secondary aluminum resources. In 2021, the company purchased 549,100 tons of recycled aluminum raw materials, a year-on-year increase of 28.42%. In the future, the company will continue to promote the development of the secondary aluminum business in accordance with the target of 1.2 million tons of recycled aluminum consumption and 80% of the proportion. At the same time, along with the introduction of relevant policies to support the development of renewable resource enterprises, recycled aluminum has also provided strategic support for the company’s “zero carbon” development of auto parts such as aluminum alloy wheels and heat-free alloys.
Master the preparation technology of heat-free materials and obtain invention patents
In terms of research and development of heat-free alloy materials, Lizhong Group applied for and successively obtained national invention patent certificates for heat-free alloy materials in 2020. Lizhong Group said that through the comprehensive control of material composition ratio, process route design, performance index setting, process guarantee and other aspects, the company’s heat-free alloys have shown good tensile strength, yield strength and elongation. And balanced mechanical properties, on the basis of maintaining high strength and good casting performance, the elongation is more than 5 times higher than that of traditional die casting materials, which can be better applied to the production of high strength, high toughness, and super large integrated die casting parts. .
Lizhong Group also stated that the company’s heat-free alloys have excellent comprehensive performance compared with similar foreign products, which solves the problem of poor fluidity caused by low silicon content in foreign products, resulting in a higher scrap rate of subsequent integrated die-casting parts. high question. At the same time, the company adopts a unique low-Mo metamorphic technology, and the Mo content is only 1/5-1/7 of the same metamorphic content in the world, which solves the problem of partial rarefaction in the integration process. At the same time, the price of similar materials in foreign countries can be reduced by 15%-20%, which further enhances the competitiveness of domestic materials in the international market.
Strong cooperation with Wencan Group in heat treatment-free materials
Lizhong Group introduced the “Strategic Cooperation Framework Agreement” signed with Wencan Group Co., Ltd. According to reports, the two parties have established a strategic partnership in the field of material development and process application of large-scale integrated body structures for new energy vehicles, integrated cast battery boxes and other products. Jointly develop heat-free materials suitable for large-scale integrated aluminum castings. The company is responsible for the research and development of material formulas, and Wencan Group is responsible for the research and development of the best application process conditions for materials.
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According to the agreement, in the process of new project research and development and project mass production, if the company has advantages in performance, cost, stability, and delivery, and on the premise that the company can meet the production capacity needs of Wencan Group, priority will be given to Wencan Group customers. It is recommended to use the company’s materials to produce Wencan Group’s products, and the company should cooperate with Wencan Group to pass the customer’s certification of the company’s materials. The two parties will sign the “Technical and Business Cooperation Confidentiality and Exclusive Product Supply Agreement” on the heat-free materials jointly developed, and Wencan Group will exclusively purchase the heat-free materials jointly developed within the scope of the agreement from the company.
Steady growth in performance under the epidemic
In terms of performance, Lizhong Group said that the continuous and repeated outbreak of the epidemic in 2021 has brought uncertainty to the global economy. Under the influence of the macroeconomic situation and adverse factors in the external market, all segments of the company have overcome external pressure, and both production and sales are maintained steady growth. Driven by both sales and prices, the net profit attributable to shareholders of listed companies was 450 million yuan, an increase of 4.04% over the same period last year. Among them, the net profit attributable to shareholders of listed companies in the functional intermediate alloy new material segment in 2021 will be 108 million yuan, a year-on-year increase of 62.02%; the annual net profit attributable to shareholders of listed companies will be 220 million yuan for the recycled cast aluminum alloy segment. , an increase of 79.71% year-on-year; in 2021, the profitability of the aluminum alloy wheel segment will decline due to factors such as upside-down aluminum prices at home and abroad, rising metal silicon prices, and rising sea freight rates. The net profit attributable to shareholders of listed companies for the whole year was 122 million yuan, a year-on-year decrease of 49.87%.
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The main business of Lizhong Group is new functional alloy materials, recycled cast aluminum alloys and aluminum alloy wheels. The main products include cast aluminum alloys, deformed aluminum alloys, aluminum alloy wheels, new functional alloy materials, precision molds, automatic melting equipment and lithium New materials and products for sodium batteries are widely used in automobiles, high-speed rail, aerospace, military industry, electrical appliances, 5G communication equipment, new energy batteries, consumer electronics industry and architectural aluminum profiles.