On June 28th, GeLongHui reported that Hunan Yuneng (301358.SZ) plans to invest in a 500,000-ton/year copper smelting project, 300,000 tons/year cathode material production project with ultra-long cycle and ultra-high energy density phosphate and 300,000 tons/year phosphate iron project in Shuanglong Park, Fuquan City, Guizhou Province, in order to continuously improve the integrated layout and create a circular economy. The company plans to sign a Strategic Cooperation Agreement with the People's Government of Qiannan Buyi and Miao Autonomous Prefecture, Guizhou Province, and a Project Investment Contract with the People's Government of Fuquan City, Guizhou Province, for the specific matters of the project. The rolling investment of this project is expected to be 15 billion yuan.
The project will be built in multiple phases, of which the first phase will invest 3.5 billion yuan to build a 200,000-ton/year copper smelting and 800,000-ton/year sulfuric acid, and 800,000-ton/year steam project (sulfuric acid and steam are by-products); the follow-up project construction will be carried out in stages according to the development of the first phase project and market demand.The company plans to introduce an employee shareholding platform and a third-party jointly established holding subsidiary (hereinafter referred to as the "joint venture company") to implement the copper smelting and supporting projects in this investment project.
According to calculation, after the project is completed and put into production, the annual sales revenue is expected to reach 12.3 billion yuan, with a net profit of about 470 million yuan and an average pre-tax profit of about 663 million yuan per year; the pre-tax internal rate of return of the project investment is 24% and the after-tax is 18%.