On the evening of March 10, Yongtai Technology (002326, SZ) disclosed the 2021 performance report. The company’s operating income in 2021 was 4.542 billion yuan, a year-on-year increase of 31.65%; net profit was 284 million yuan, a year-on-year increase of 136.80%; net profit after deduction 440 million yuan, a year-on-year increase of 6014.51%.
Compared with the performance forecast, the net profit in the performance bulletin of listed companies is closer to the lower limit of the forecast. In the announcement, the listed company expects a net profit of 280 million yuan to 420 million yuan in 2021, a year-on-year increase of 133.33% to 249.99%.
On March 10, Yongtai Technology continued to rise in early trading until the daily limit. In the afternoon, the stock price fell slightly and finally closed at 30.3 yuan per share, up 8.56% throughout the day.
Great development of lithium battery materials business
Yongtai Technology‘s performance has increased significantly this time, which is inseparable from the development of lithium battery business. The listed company stated in its performance report that benefiting from the high prosperity of the downstream new energy vehicle field, the lithium battery industry has developed rapidly, which in turn drives the strong demand for lithium battery material products. The company actively grasps the development opportunities of the industry, and through various measures such as R&D innovation, project construction, technology optimization, etc., reduces costs and increases efficiency while increasing the production capacity of the company’s lithium battery materials, rapidly develops and expands the company’s lithium battery materials business, and achieves sales volume and sales. Significant year-on-year growth, operating income and profitability have also increased.
In fact, the explanation of changes in performance in the performance announcement is more detailed. The performance forecast shows that the net profit and net profit after deduction of non-existing items increased more than the same period of the previous year, mainly because the volume and price of the company’s lithium battery materials business increased during the reporting period, and the profit contributed by the company increased more than the same period last year. The supply of lithium hexafluorophosphate and other products produced by the company is tight, the price continues to rise, and the profitability of the products increases; at the same time, the production capacity of VC, FEC and other lithium battery material products increased by the company’s newly-built projects during the reporting period has been released, which has increased the company’s lithium battery business. Production and sales volume, Become the company’s new profit growth point.
It is worth mentioning that the net profit of Yongtai Technology is significantly lower than the net profit after deduction, which was also explained in the performance forecast. In 2021, the impact of non-recurring gains and losses on net profit is expected to be a loss of 100 million yuan – a loss of 140 million yuan, mainly because the company adjusted the positioning of the park where the subsidiary is located and its own industrial development plan during the reporting period, and cooperated with the requirements of the local government. The exit and disposal of the three subsidiaries was carried out, resulting in corresponding asset disposal losses.
It can be seen that the increase in the profitability of Yongtai Technology is mainly caused by the increase in the price of lithium iron hexafluorophosphate and the release of VC and FEC production capacity.
The growth in sales of new energy vehicles in 2021 has caused an imbalance in the supply and demand of some lithium battery materials. In mid-2021, the most in-demand material on the market is electrolyte, and the production bottleneck of electrolyte is limited by lithium hexafluorophosphate and VC (vinylene carbonate) materials.
Yongtai Technology not only has lithium hexafluorophosphate production capacity, but also increases VC production capacity in a timely manner, and has reached a cooperation with CATL, the largest power battery manufacturer in China.
It should be noted that in 2020, Yongtai Technology‘s lithium battery material business is still inconspicuous. According to the 2020 annual report of the listed company, the revenue of lithium batteries and other materials was 290 million yuan, accounting for 8.41% of the revenue, and the gross profit margin was 25.50%. At that time, the top three business categories of Yongtai Technology were trading, pharmaceuticals and pesticides. In terms of gross profit margin, the gross profit margins of pharmaceuticals and pesticides were 40.53% and 39.56% respectively, which were significantly higher than those of lithium batteries and other materials.
to produce electrolyte
Lithium hexafluorophosphate is the key material of the electrolyte, and VC is an important additive of the electrolyte. Both electrolyte materials can be produced in-house, and Yongtai Technology has also begun to expand the electrolyte business.
On the evening of February 14, Yongtai Technology announced that it plans to invest in a construction project with an annual output of 150,000 tons of electrolyte, with a total investment of 400 million yuan. The construction site of the project is No. 11, Donghai Fifth Avenue, Toumengang Economic Development Zone, Linhai City, Taizhou City, Zhejiang Province. The construction period is one year.
In this regard, Yongtai Technology said that the company has deployed lithium salt lithium hexafluorophosphate, lithium bisfluorosulfonimide and additives VC, FEC and other electrolyte core raw materials in two production bases in Fujian and Inner Mongolia respectively. The implementation of the project provides a solid guarantee of raw materials.
In addition, the listed company also believes that the construction and implementation of this project is conducive to further integrating the company’s lithium battery material industry chain, and the coordinated development of various subsidiaries will also deepen the company’s cost advantage and consolidate the company’s industry position and market share.
According to the investor relations activity record sheet disclosed on February 17, Yongtai Technology will form 8,000 tons/year solid lithium hexafluorophosphate, 67,000 tons/year liquid lithium hexafluorophosphate, and 900 tons/year solid lithium bisfluorosulfonimide in the next three years. , 67,000 tons/year of liquid lithium bisfluorosulfonimide, 30,000 tons/year of VC, 8,000 tons/year of FEC capacity, and 150,000 tons of electrolyte capacity.
Yongtai Technology said that at present, the company’s lithium battery material sector is mainly composed of electrolyte lithium salt, additives and electrolyte. Wuhai, Inner Mongolia is mainly responsible for the production of organic chemicals, mainly responsible for the production of additive products (VC, FEC). Mainly inorganic chemicals, mainly responsible for the production of lithium salt products (lithium hexafluorophosphate, lithium bisfluorosulfonimide), including horizontal diversification and vertical integration of business layout; Zhejiang Taizhou mainly downstream electrolytes.
Regarding the judgment on the supply and demand relationship and price trend of lithium battery materials in the future, Yongtai Technology believes that due to the rapid development of the downstream new energy industry, the current supply and demand of lithium battery materials products are tight. condition. As the price of products is affected by the relationship between supply and demand, there will be a certain decline in the price of lithium battery materials in the future. But in the short term, its supply and demand situation will not change much.
Source of cover image: Photo by Liu Guomei of Daily Economic News