Masan High-Tech Materials' Tungsten production hits record highs
HANOI, VIETNAM - Media OutReach - 25 April 2022 - Masan High-Tech Materials Corporation (HNX-UpCOM: MSR, 'Masan High-Tech Materials', 'MHT' or 'Company') successfully organized its 2022 Annual General Meeting of Shareholders with the theme of 'Growth though Sustainability' at the Melia Hanoi Hotel.
In 2021, MHT's total Tungsten production increased by a record 97% compared to 2020, 26% of production came from recycling of tungsten scraps with 74% coming from primary supply sources including MHT's Nui Phao in Thai Nguyen. Net Revenues were up 86% year on year at VND13,564 billion. Tungsten revenues were significantly higher due to the consolidation of H.C. Starck Tungsten Powders ('H.C. Starck') and the higher APT price for FY2021 ($286/mtu) as compared to the same period last year ($222/mtu). EBITDA increased by 114% for 12M2021 at VND3,070 billion. Our forward order book is the strongest it has been in many years, which is positive for both sales volumes and prices.
Speaking at the meeting, Mr. Craig Richard Bradshaw, CEO of Masan High-Tech Materials said 'Masan High-Tech Materials performed strongly in 2021 despite the challenges of the global Covid-19 pandemic and its subsequent impact on global supply chains and transport systems. We achieved record revenue for the year along with record tungsten production and recycling rates'.
2021 witnessed results of the successful integration with the tungsten business platform of H.C. Starck operating in Germany, Canada and China when Masan High-Tech Materials robustly carried out technology transfer, leveraging more than 100 years of experience of H.C. Starck, while at the same time promoting global business restructuring with the goal of improving operational efficiency and expanding the business and product portfolio. The HCS business contributed significantly to the overall MHT result with an EBITDA of VND 746 billion whilst the Vietnam-based businesses (Nui Phao Mining and Masan Tungsten Company) contributed VND 2,324 billion to the overall result. This result vindicates the decision to acquire the HCS business in the early stages of the Covid-19 pandemic in 2020 and sets MHT up well for the future.
Our ongoing investment in innovation and development is also delivering value with new customer-centric products specifically tailored for the electric mobility and 3D printing segments coming into the market soon. Beyond these new product ranges the team have also developed new analytical equipment which is now in prototyping stage having been patented in late 2021. In recycling, we have filed additional patent applications for a new recycling process for cobalt bearing sludges and battery black mass. This new process will enable the recycling of various hard cutting tool sludges and battery black mass with a lower environmental footprint than current recycling processes. We see this as a potential game changer for environmentally sustainable recycling of Copper, Cobalt, Nickel, Manganese, Lithium etc. from these materials.
With a strong commitment to investment in technology and innovation across all processing chains, Masan High-Tech Materials continues to dominate the high-tech materials manufacturing industry, while gaining further acclaim at both national and international levels, with 16 domestic patents, 87 international patents, 54 application patents, 40 ongoing scientific projects and 32 projects in the ideation stage.
Mr. Danny Le - Chairman of Masan High-Tech Materials shared the company's strategic vision for 2022-2025 'In the very near future, Masan High-Tech Materials will be more than a supplier of strategic high-tech materials, partnering with disruptive consumer technology platforms to create direct-to-consumer products where tungsten is a key element. Most importantly, we envision a circular platform where we can recycle these products to drive sustainability and productivity'.
In 2022, the Company will continue to focus on recycling raw materials, implementing carbon neutrality initiatives and promoting the benefits of the circular economy. In the context of the global economic recovery after Covid-19, positive signals in the tungsten market and the shift from gasoline to electric vehicles, Tungsten prices will be likely to go up in 2022. The company expects to achieve 2022 revenue of about VND 14,500-15,000 billion, pre-allocated net profit to shareholders is about VND 300 billion to 500 billion.
At the meeting the shareholders also approved the issuance of new shares under the employee stock ownership program (ESOP) at the price of VND20,000 /share, which is expected to take place in the second quarter of 2022. This incentive policy aims to recognize contributions of outstanding employees to the company. Proceeds from the issuance will be used to improve capital conditions, fund business activities, and replenish the company's working capital.
Towards building a long-term sustainable business for Masan people and the community, Masan High-Tech Materials remains committed to 'Growth through Sustainability', striving to affirm its position and brand in the domestic market and area. In the future, Masan High-Tech Materials will not only be a supplier of strategic high-tech materials. We focus on research and development and cooperate with the world's leading innovative businesses to create strategic and high-tech advanced materials. We also strive for steady improvement of our processes to meet the ever-changing needs of high-tech industry customers. Our ambitions remain on going downstream and building a global consumer business. 'Instead of just supplying key materials to make smartphones, cars, planes, and submarines, Masan High-Tech Materials may one day create practical consumer products for these critical industries', Bradshaw said.
ABOUT MASAN HIGH-TECH MATERIALS
Masan High-Tech Materials is the global leader in providing advanced tungsten materials used in key industries such as electronics, chemical, automotive, aviation and aerospace, energy and pharmaceuticals with production facilities in Vietnam, Germany, Canada and China, servicing the world. As the largest manufacturer of mid-stream tungsten products outside of China, the company has two research and development centers in Germany and Vietnam, and it is currently operating the Nui Phao polymetallic mine and a state-of-the art processing plant in Thai Nguyen province. Masan High-Tech Materials is also a globally significant producer of fluorspar and bismuth.
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