2 to 20 billion market value only 8 years, hidden unicorn head, how to start the butterfly change road

2022-06-06 0 By

Since 2020, the international trade environment has changed dramatically as the COVID-19 pandemic has spread across the globe.Therefore, some experts predict that in the future, the price of bulk commodities in the international economy will be greatly shaken, and the light metal processing industry and mining service industry will be greatly impacted in the short term.However, with the rapid control of the epidemic in China, the impact of the epidemic on China’s economy is relatively small.After that, China’s new energy market has gained a certain position in the international market, which makes China’s rare metal business and mineral resources have been developed.This period also provided an opportunity for a company, arguably a hidden unicorn, to increase its market value from 2 million yuan to 20 billion yuan in just eight years.Which company is this?What did they experience?Founded in 1999, China Mineral Resources is a state-owned enterprise initiated by China’s Bureau of Non-ferrous Metals Industry and General Bureau of Geological Survey.China Mineral Resources Co., Ltd. was established in accordance with the construction standards of modern enterprises.The core business of the company includes international engineering services, geological exploration technology and mining investment.It is the core supplier of battery grade lithium fluoride in China, as well as the world’s largest producer and supplier of cesium and rubidium salt.China Mineral Resources is one of the first “go out” commercial comprehensive geological exploration technology service companies in China, after years of exploration and development, formed a unique geological exploration, technical services, mining rights development and mineral trade business model.With its own development advantages and superb exploration technology, it has obtained a large number of high-quality mineral rights and minerals.Successfully created a whole industry chain of lithium, rubidium and cesium.According to China Mineral Resources, the financial results in 2021 can be understood.Last year, the cumulative revenue of China Mineral Resources in the first three quarters reached 1.377 billion yuan, and the net profit from the first to the third quarter was 70.77 million yuan, 73.48 million yuan and 128.3 million yuan respectively, the profit increased by 223%, 153% and 456% year on year, realizing several times the growth in the single quarter.At present, the total market value of China Mineral Resources companies has reached 22.86 billion yuan, slightly higher than the average market value of similar metal industry companies, but the net assets are lower than the industry average.So we can see that the medium mineral resources are still in the process of development.When the company went public in 2014, its market value was only about 2 million yuan, but now it has reached 20 billion yuan.How on earth did such a growing metals company achieve a tenfold increase in assets in eight years?If you want to know how to open the road of transformation of mineral resources, we must understand the road of development of mineral resources.Since its establishment in 1999, China Mineral Resources has been focusing its business on geological survey services worldwide.Due to the development of the company compared with some geological exploration units late development, the competition is more intense.So the chairman of the company, Wang Pingwei, transformed the company’s business into the overseas market.In 2004, China Mineral Resources gave up the domestic market and set up its own resource brand in the international market.In the development of the international market is not plain sailing, because the geological survey service of China Mineral resources, compared with other geological survey companies, so it is very difficult to open the international market at the beginning.For this reason, China Mineral Resources constantly improve their geological survey services, and gradually obtained dozens of exploration rights and mining rights in Zambia, Zimbabwe and other countries, including gold, silver, copper, cobalt, lead, zinc and other minerals, the total area of mining rights reached 1123 square kilometers.To become a global resource-based mining company.In 2010, In order to make itself bigger and stronger, China Mineral Resources realized that it needed the support of the capital market.In 2014, it was successfully listed on the Growth Enterprise Market in Shenzhen, becoming China’s first geological survey stock.After that, China Mineral Resources realized that it was very difficult for the company to gain market share in bulk metals, but there were not many companies in copper, rubidium, lithium and other materials, so it paid $134 million for Cbot in 2019.That makes It the world’s number one producer of cesium products.In addition, the company started the industry by targeting at lithium, magnesium and other resources, which also enabled the rapid development of China Mineral Resources.In the case of global warming, countries around the world put forward a “ban on burning” in 2018 to reduce the harm of automobile exhaust to the earth’s air and global warming. Each country said that it would gradually ban the sale of fuel cars after 2025.The proposal of this policy makes new energy vehicles become a new mainstream.This also provides the second butterfly change opportunity for medium mineral resources.Let’s take a look at a set of data. In 2021, China’s sales of new energy vehicles reached 2.98 million.This means that China’s new energy vehicle related industries will be developed.As the power lithium battery of new energy vehicles, sales are also increasing year by year.Lithium battery materials, currently has an annual capacity of 3,000 tons of battery grade lithium fluoride.According to China Mineral Resources’ financial statement, last year, China Mineral Resources’ project of 15,000 tons of lithium hydroxide and 10,000 tons of battery grade lithium carbonate is also smoothly put into production.The cesium and rubidium mineral resources of medium mineral resources will continue to expand, and the development of new energy vehicles and lithium minerals in the future will also continue to bring more benefits to medium mineral resources.We can understand that the development of China Mineral Resources, on the one hand, is due to its own transformation according to the market situation, so that the company’s business is gradually growing.On the other hand, through the change of The Times, seize the wind and in a short period of time, let the company to achieve the status of today.Conclusion The new energy vehicle market drives the development of lithium battery and lithium salt business, and rare light metals play a very important role in the defense industry, aerospace and high-precision equipment.The United States, Japan and other countries have listed minor metals as key minerals.China Mineral resources with this “east wind” in the market to occupy a certain position.It also provides a long-term and stable supply of goods to China’s aviation, military and other industries.With the development of China’s environmental protection, energy and technology industries, lithium salt and cesium rubidium salt will become the main mineral resources in the future.Medium mineral resources will also become an important enterprise in China, with its own advantages and national policy support, IT is believed that medium mineral resources will achieve more brilliant achievements in the future.So what do you think about the future of the new energy industry?What kind of view do you have on the development of medium mineral resources in the future?