Driven by the high downstream demand, the production and sales of Hunan Changyuan Lico Co.Ltd(688779) (688779. SH) are booming, and the net profit increased by more than five times in 2021. People from the Securities Department of the company told the financial associated press that the downstream demand is relatively strong, and the company’s products are in short supply. At present, 40000 tons of ternary cathode material and 60000 tons of lithium iron phosphate projects in phase II are under construction, and are expected to be put into operation at the end of this year and early next year respectively.
On February 16, the company released the performance express, which realized a revenue of 6.84 billion yuan in 2021, a year-on-year increase of 240.25%; The net profit was 700.6396 million yuan, a year-on-year increase of 538.17%. The net profit data has exceeded the upper limit of the previous pre increase of 519.37% – 537.58%.
The above company said that the performance express will be more detailed than the forecast, which is more than 600000 yuan, which is still within a reasonable range. With regard to the fact that the growth rate of net profit was higher than that of revenue, she said that the strong demand for new energy vehicles last year led to a surge in the installed capacity of power batteries. The company’s production line operated at full capacity. With the significant improvement of capacity utilization, cost reduction and efficiency increase were realized under large-scale production.
The performance express shows that the company raised the product price last year. The above-mentioned person of the company said that if the price of upstream raw materials rises, it means an increase in the cost side for the company. Now the price of lithium carbonate exceeds 400000 yuan per ton, which still accounts for a relatively high proportion of the cost of raw materials in the company. In order to ensure that the profit of the company is within a reasonable range, we must adjust the price of products and raise the price a little. In addition, due to the strong demand in the downstream, it is also acceptable to adjust the product price in the downstream when the product is in short supply.
The reporter noted that the company was recruiting on the eve of the Spring Festival and planned to recruit 200 front-line operators, as well as R & D engineers, production supervisors and equipment supervisors. According to the above-mentioned person, the company’s products have entered the supplier system of mainstream lithium battery manufacturers such as Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , Eve Energy Co.Ltd(300014) , Sunwoda Electronic Co.Ltd(300207) , and are conducting new customer import certification of a variety of products. In order to ensure the timely delivery of orders, the production line of the company has not stopped working during the Spring Festival and has been producing continuously.
She also said that the 40000 ton phase II project currently under construction by the company is expected to be put into operation by the end of this year, and the other 60000 ton lithium iron phosphate project is already under plant construction and is expected to be put into operation at the beginning of 2023. The 40000 ton phase I of the company has been put into operation in 2021, but it does not meet the conditions for full production. It is expected to bring performance increment to the company this year. However, the new capacity depends on the annual capacity utilization rate and the market situation and product prices this year, which are still uncertain.
It is reported that the company currently has a production capacity of 30000 tons of precursors, and the self supply proportion of precursors is high. However, with the release of the production capacity of some ternary cathode materials this year, the self supply ratio of precursors will decline, and the self-sufficiency rate of precursors will be further improved in the future. In addition, the company has reached cooperation with a number of lithium salt suppliers, which can ensure the lithium salt required by the company’s current and new production capacity.
