On February 21, Guangdong Tonze Electric Co.Ltd(002759) (002759) disclosed the annual report of 2021. The company achieved a revenue of 2.253 billion yuan in 2021, an increase of 203.24% year-on-year after adjustment; The net profit was 745 million yuan, with a loss of 10.7799 million yuan in the same period of last year; The basic earnings per share is 1.85 yuan. The company plans to distribute a cash dividend of 3.80 yuan (including tax) to all shareholders for every 10 shares.
In 2021, Guangdong Tonze Electric Co.Ltd(002759) was still mainly engaged in lithium hexafluorophosphate and small household appliances. Among them, the proportion of lithium hexafluorophosphate in total revenue continued to rise, accounting for more than 80%; The proportion of small household appliances in total revenue continued to decline, accounting for less than 20%.
During the reporting period, Guangdong Tonze Electric Co.Ltd(002759) lithium battery business achieved an annual sales revenue of 1.89 billion yuan. The production capacity of lithium hexafluorophosphate of Xintai materials, the core subsidiary, is 8160 tons, ranking in the forefront of the industry.
In 2021, Guangdong Tonze Electric Co.Ltd(002759) seized the good market opportunity of lithium hexafluorophosphate in short supply, tapped the potential of production units, completed the actual output of 9364 tons with the design capacity of 8160 tons, doubled the actual output of 4602 tons last year, and the net profit reached the best performance of the company since its listing.
According to the annual report, Guangdong Tonze Electric Co.Ltd(002759) is optimistic about the future development of lithium hexafluorophosphate industry. The completed lithium hexafluorophosphate is currently in full load operation, and the capacity utilization rate in 2021 is 114.5%. The holding company Jiangsu Taiji Material Technology Co., Ltd., which holds 51% of the company’s shares, is accelerating the construction progress of the project. It is expected that the project will be put into trial production in the second quarter of 2022.
In addition, Guangdong Tonze Electric Co.Ltd(002759) Jiangsu Teri LIANTENG Material Technology Co., Ltd. (the company accounts for 75%) jointly established with important partners in the industrial chain plans to build a production unit with an annual output of 30000 tons of lithium hexafluorophosphate. The project is currently in the preliminary preparation stage. The project will open up new space for the future development of the company and is being actively promoted. After the completion of the above projects, the production capacity and market share of lithium fluoride will be improved.
In recent years, with the sustained and rapid growth of the new energy vehicle market, the market demand for lithium batteries has increased, driving the increasing market demand for electrolyte materials. Lithium hexafluorophosphate is a kind of lithium-ion battery electrolyte and an important component of lithium-ion battery electrolyte. Since the second half of 2020, while the market demand has increased rapidly, the supply of lithium hexafluorophosphate is relatively tight. Up to now, the price of lithium hexafluorophosphate has increased from about 95000 yuan / ton in November 2020 to about 550000 yuan / ton.
Guangdong Tonze Electric Co.Ltd(002759) said that although many enterprises in the market have accelerated the pace of production expansion, the lithium hexafluorophosphate project has high investment intensity and long production expansion cycle. It will take at least two years to improve the effective capacity. It is expected that the supply of lithium hexafluorophosphate will still be in short supply in the next two years.
It is worth mentioning that in 2017, the oversupply of lithium hexafluorophosphate and the decline in price triggered the first round of industry reshuffle. Some small and medium-sized enterprises had low capacity utilization and could not achieve profit and loss balance. The low-end backward capacity was eliminated, and the industry concentration gradually increased. From 2018 to 2020, the industry concentration remained basically stable, and the top three industries including Guangdong Tonze Electric Co.Ltd(002759) accounted for about 50%. In 2021, under the background of good downstream demand, the leading manufacturers increased their capacity expansion. Guangdong Tonze Electric Co.Ltd(002759) said that due to the expansion efficiency and capital advantages of the head manufacturers, it is expected that the industry concentration will be further improved in the future. As the head enterprise in the industry, the company will obtain new market growth space.
At the same time, affected by the tight supply of the new energy vehicle industry chain, the prices of three main raw materials of Guangdong Tonze Electric Co.Ltd(002759) lithium hexafluorophosphate in 2021 increased significantly compared with that in 2020, resulting in an increase in the company’s procurement expenditure of more than 300 million yuan. However, due to the increase in the market sales price of the company’s lithium hexafluorophosphate products, the adverse impact of the price rise of main raw materials was digested.
In addition, in terms of small household appliance business, the small household appliance business of Guangdong Tonze Electric Co.Ltd(002759) in 2021 is still difficult to operate and in a state of loss. However, the company has taken effective rectification measures, adjusted the operation and management team and re established the incentive mechanism. At present, the rectification measures have achieved initial results. The operating efficiency has improved in January 2022 and is expected to turn around the loss throughout the year.
