Two Core Businesses Help High-Quality Development, Shanshan’s Net Profit Increases 23 Times in 2021_Oriental Fortune

April 20,Shanshan SharesDisclosure of the 2021 Annual Report. In 2021, the company will continue to implement the focus strategy, divest non-core businesses in an orderly manner, and vigorously develop lithiumBatteryThe two core advantageous businesses of negative electrode materials and polarizers have achievedOperating income20.699 billion yuan, a year-on-year increase of 151.95%;net profit3.340 billion yuan, a year-on-year increase of 2320.00%; net profit attributable to the parent after deduction is 1.885 billion yuan, turning losses into profits year-on-year.The company intends toshareholderA cash dividend of 3.3 yuan (tax included) will be distributed for every 10 shares.

During the reporting period, the company’s lithium battery materials segment benefited from the continuous improvement of the new energy vehicle industry’s prosperity and strong demand from downstream customers, and the overall sales volume and profitability increased significantly year-on-year. Among them, the core business of anode materials achieved main business income of 4.140 billion yuan, a year-on-year increase of 64.42%; net profit was 601 million yuan, a year-on-year increase of 182.87%. With the full production of the first phase of the Baotou integration project in Inner Mongolia, at the end of the reporting period, the production capacity of the company’s anode material finished products increased to 120,000 tons, and the graphitization capacity increased to 42,000 tons. The annual sales of anode materials exceeded 100,000 tons, a year-on-year increase of 71.27%. According to Xinyu Lithium Battery data, the company’s artificial graphite shipments ranked first in the world.At the same time, relying on the advantages of local electricity prices and integrated production lines in Inner Mongolia, the unit profitability of the company’s anode products has grown against the trend, with a 65% year-on-year increase in net profit per ton.interest rateincreased to 28.62%.The electrolyte business benefited from the increase in the price of lithium hexafluorophosphate and the company’s self-provided part of the lithium hexafluorophosphate production capacity.interest rateA substantial increase, an increase of 37.02 percentage points year-on-year. In the whole year, the electrolyte business achieved main business revenue of 1.370 billion yuan, a year-on-year increase of 149.59%; net profit was 434 million yuan, a year-on-year increase of 439 million yuan.

The polarizer business has shown a good development trend since it was officially incorporated into the company on February 1, 2021. The Nanjing production base and the Guangzhou production base have maintained full production. The company has accelerated the production line by improving equipment and processes, effectively increasing the production line capacity and significantly improving operational efficiency. From February to December 2021, polarizers achieved a sales volume of 110 million square meters, a main business income of 9.943 billion yuan, and a net profit of 1.197 billion yuan. At the same time, the company has made further breakthroughs in the field of high-end products. The world‘s largest production line with a width of 2600 mm and the world‘s largest 110-inch product developed independently have achieved mass production, and nearly 50 high-end TV product models have been developed and certified.

In order to effectively alleviate the shortage of production capacity of main products, during the reporting period, the company accelerated the improvement of production capacity layout and increased production capacity. In terms of anode materials, the company has accelerated the expansion of the second phase of Baotou, Inner Mongolia, and the integrated base in Meishan, Sichuan. It is expected that the production capacity of anode products will reach 200,000 tons by the end of 2022, and the graphitization capacity will exceed 100,000 tons. In terms of electrolytes, the company has started to build 2000 Lithium hexafluorophosphate production capacity project per ton; in terms of polarizer, the company has promoted the expansion plan of the front-end production line of polarizer in Guangzhou, Zhangjiagang and Mianyang, Sichuan in an orderly manner. Among them, the Mianyang production line in Sichuan will become the first front-end engineering production line of polarizer in western China.

(Article source: ShanghaisecuritiesNewspaper Chinasecuritiesnetwork)

Article source: Shanghai Securities News China Securities Network

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Original title: Two core businesses help high-quality development of Shanshan shares to increase net profit by 23 times in 2021