On March 10, Zhejiang Yongtai Technology Co .Ltd(002326) ( Zhejiang Yongtai Technology Co .Ltd(002326) , SZ) disclosed the performance express of 2021. The company’s operating revenue in 2021 was 4.542 billion yuan, an increase of 31.65% year-on-year; The net profit was 284 million yuan, a year-on-year increase of 136.80%; The net profit after deducting non-profit was 440 million yuan, with a year-on-year increase of 601451%.
Compared with the performance forecast, the net profit in the performance express of listed companies is closer to the lower limit of the forecast. In the forecast, the listed company expects the net profit in 2021 to be 280420 million yuan, with a year-on-year increase of 133.33% – 249.99%.
On March 10, Zhejiang Yongtai Technology Co .Ltd(002326) continued to rise in the morning trading until the limit rose. The share price fell slightly in the afternoon and finally closed at 30.3 yuan / share, up 8.56% throughout the day.
lithium battery material business development
Zhejiang Yongtai Technology Co .Ltd(002326) this performance increase is inseparable from the development of lithium battery business. In the performance express, the listed company said that benefiting from the high boom in the downstream new energy vehicle field, the lithium battery industry has developed rapidly, which drives the strong demand for lithium battery material products. The company actively grasped the development opportunities of the industry. Through R & D and innovation, project construction, technical optimization and other measures, while improving the production capacity of the company’s lithium battery material products, the company reduced costs and increased efficiency, rapidly developed and expanded the company’s lithium battery material business, achieved a significant year-on-year increase in sales and sales, and increased operating revenue and profitability.
In fact, the explanation of performance changes in the performance forecast is more detailed. The performance forecast shows that the net profit and net profit after deduction increased significantly compared with the same period of the previous year, mainly due to the simultaneous rise in volume and price of the company’s lithium battery material business during the reporting period, and the profit contributed increased more year-on-year. The supply of lithium hexafluorophosphate and other products produced by the company is tight, the price continues to rise, and the profitability of products is improved; At the same time, the capacity of lithium battery material products such as VC and FEC increased by the company’s new projects put into operation during the reporting period has been released, which has increased the production and sales volume of the company’s lithium battery business and become a new profit growth point of the company.
It is worth mentioning that the Zhejiang Yongtai Technology Co .Ltd(002326) net profit is significantly lower than the net profit after deduction, which was also explained in the performance forecast. In 2021, the impact of non recurring profit and loss on net profit is expected to be a loss of 100 million yuan – 140 million yuan, which is mainly due to the loss of asset disposal caused by the company’s withdrawal and disposal of three subsidiaries in accordance with the positioning adjustment of the park where the subsidiaries are located and its own industrial development plan and the requirements of the local government.
It can be seen that the increase of Zhejiang Yongtai Technology Co .Ltd(002326) profit level is mainly caused by the increase of lithium iron hexafluorophosphate price and the release of VC and FEC capacity.
The growth of sales volume of new energy vehicles in 2021 has caused the imbalance between supply and demand of some lithium battery materials. In the middle of 2021, the most popular material on the market is electrolyte, and the production bottleneck of electrolyte is subject to lithium hexafluorophosphate and VC (vinyl carbonate) materials.
Zhejiang Yongtai Technology Co .Ltd(002326) not only has the capacity of lithium hexafluorophosphate, but also increases the capacity of VC in due time, and has reached cooperation with Contemporary Amperex Technology Co.Limited(300750) which is the largest power battery manufacturer in China.
It should be noted that the lithium battery material business of Zhejiang Yongtai Technology Co .Ltd(002326) in 2020 is not outstanding. According to the 2020 annual report of listed companies, the revenue of lithium batteries and other materials is 290 million yuan, accounting for 8.41% of the revenue and 25.50% of the gross profit margin. At that time, Zhejiang Yongtai Technology Co .Ltd(002326) the top three business categories were trade, medicine and pesticide. 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.
also wants to produce electrolyte
Lithium hexafluorophosphate is the key material of electrolyte, and VC is an important additive of electrolyte. Both electrolyte materials can be produced by ourselves, and Zhejiang Yongtai Technology Co .Ltd(002326) also began to expand electrolyte business.
On February 14, Zhejiang Yongtai Technology Co .Ltd(002326) announced that it plans to invest in the construction of a 150000 ton electrolyte production project 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, Zhejiang Yongtai Technology Co .Ltd(002326) said that the company has arranged lithium salt lithium hexafluorophosphate, lithium difluorosulfimide and additives VC, FEC and other core electrolyte raw materials in two production bases in Fujian and Inner Mongolia, providing a solid raw material guarantee for the implementation of Yongtai new energy electrolyte project.
In addition, the listed company also believes that the construction and implementation of the project is conducive to the further integration of 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 record of investor relations activities disclosed on February 17, Zhejiang Yongtai Technology Co .Ltd(002326) in the next three years, 8000 tons / year of solid lithium hexafluorophosphate, 67000 tons / year of liquid lithium hexafluorophosphate, 900 tons / year of solid lithium bifluorosulfonate, 67000 tons / year of liquid lithium bifluorosulfonate, 30000 tons / year of VC, 8000 tons / year of FEC and 150000 tons of electrolyte capacity will be formed.
Zhejiang Yongtai Technology Co .Ltd(002326) said that at present, the lithium battery material sector of the company is mainly composed of electrolyte lithium salt, additive and electrolyte. Wuhai in Inner Mongolia is mainly organic chemicals, mainly responsible for the production of additive products (VC and FEC). Shaowu in Fujian is mainly inorganic chemicals, mainly responsible for the production of lithium salt products (lithium hexafluorophosphate and lithium difluorosulfimide), Including horizontal diversification and vertical integration of business layout; Zhejiang Taizhou is dominated by downstream tourism.
For the judgment of the supply-demand relationship and price trend of lithium battery materials in the future, Zhejiang Yongtai Technology Co .Ltd(002326) believes that due to the rapid development of the downstream new energy industry, the supply and demand of lithium battery materials products are tight at present. With the acceleration of the production expansion rhythm of the upstream industry, the supply and demand will gradually reach a relatively balanced state. As the product price is affected by the relationship between supply and demand, the price of lithium battery materials will fall in the future. But in the short term, its supply and demand situation will not change much.
