On March 29, Shanghai Putailai New Energy Technology Co.Ltd(603659) ( Shanghai Putailai New Energy Technology Co.Ltd(603659) . SH) rose by 9.14% to close at 142 yuan / share.
On March 28, the company released its annual report for 2021, which showed that last year, it achieved an operating revenue of 9 billion yuan, a year-on-year increase of 70.36%; The net profit attributable to shareholders of listed companies was 1.749 billion yuan, a year-on-year increase of 161.93%.
In 2021, Shanghai Putailai New Energy Technology Co.Ltd(603659) all asset impairment reserves included in the current profit and loss totaled 170 million yuan, including 60 million yuan of long-term equity investment impairment reserves, 491777 million yuan of inventory depreciation reserves included in the current profit and loss, and 459315 million yuan of accounts receivable bad debt reserves included in the current profit and loss.
As a supplier of key materials and automation process equipment for lithium-ion batteries, Shanghai Putailai New Energy Technology Co.Ltd(603659) main business covers negative electrode materials and graphitization processing, diaphragm and coating processing, automation equipment, PVDF and binder, aluminum plastic packaging film and optical film, nano alumina and boehmite, etc.
Among them, the company’s main business income of cathode materials was 5.129 billion yuan, a year-on-year increase of 41.38%; The annual sales volume was 97242 tons, with a year-on-year increase of 54.48%; Graphitization processing achieved an operating revenue of 1.009 billion yuan (including internal sales), a year-on-year increase of 24.6%. According to Shanghai Putailai New Energy Technology Co.Ltd(603659) introduction, by the end of last year, the 60000 ton pre process capacity expansion project of Jiangxi Zichen had been completed and put into operation, the 50000 ton graphitization capacity of Inner Mongolia Zichen Xingfeng phase II had been electrified and put into trial production, and the 200000 ton negative electrode material integration project of Sichuan Zichen had been started, of which 100000 tons of phase I had entered the substantive construction stage. The company said, “in 2022, the company’s cathode materials are expected to continue to show a pattern of booming production and sales”.
Image source: Shanghai Putailai New Energy Technology Co.Ltd(603659) 2021 Annual Report
At the same time, the diaphragm and coating processing business of Shanghai Putailai New Energy Technology Co.Ltd(603659) subsidiary achieved a main business income of 2.195 billion yuan last year, with a year-on-year increase of 171.07%; The business of aluminum plastic packaging film and optical film realized an operating revenue of 141 million yuan, a year-on-year increase of 50.38%; PVDF products achieved an operating revenue of 447 million yuan (including internal sales). In terms of splitting, in 2021, the company’s Coated diaphragm and processing volume (sales volume) reached 2.171 billion m2, accounting for 35.19% of China’s wet diaphragm shipments in the same period, an increase of 8.51 percentage points over the same period last year; While expanding the production of the original plants in Ningde, Fujian and Liyang, Jiangsu, the company accelerated the expansion of production by acquiring the mature plants in Ali, Ningde and Tanyuan Technology Co.Ltd(603133) of Jiangsu, and started the construction of relevant production capacity in Qionglai, Sichuan and Zhaoqing, Guangdong. In addition, in terms of diaphragm base membrane, the 400 million m2 project of Sichuan zhuoqin base membrane and coating integration project of the company last year has completed equipment selection and ordering; In terms of ceramic coating materials, up to now, an annual production capacity of 8000 tons of nano alumina and boehmite has been formed. Last year, the company’s shipments of aluminum-plastic packaging film products reached 11.48 million square meters, a year-on-year increase of 51.4%.
In 2021, Shanghai Putailai New Energy Technology Co.Ltd(603659) its lithium battery automation equipment business realized a main business revenue (including internal sales) of 1.368 billion yuan, a year-on-year increase of 109.24%. By the end of last year, the company’s orders for coating machines (excluding internal orders) exceeded 4 billion yuan (including tax), a year-on-year increase of 170.33%; Orders for new products in its automation equipment business exceed 1.1 billion yuan (including tax).
On the whole, the gross profit margin of Shanghai Putailai New Energy Technology Co.Ltd(603659) 2021 increased by 4.06 percentage points to 35.54% over the same period of last year. Among them, last year, the gross profit margin of the company’s cathode materials and graphitization increased by 4.18 and 1.31 percentage points to 29.49% and 34.46% respectively compared with the previous year. However, at the same time, Shanghai Putailai New Energy Technology Co.Ltd(603659) the gross profit margin of lithium battery equipment, diaphragm and coating processing decreased by 5.84 percentage points and 0.61 percentage points to 26.53% and 39.85% respectively.
It should be pointed out that Shanghai Putailai New Energy Technology Co.Ltd(603659) frankly said that there were new customers or heavily dependent on a few customers among the top five customers. It is reported that the company’s top five customers have sales of 6.492 billion yuan, accounting for 72.36% of the total annual sales; The proportion of sales to individual customers exceeds 50% of the total.
On March 28, the company also announced that according to Ernst & Young Huaming certified public accountants, in 2021, the net profit after deducting non recurring profits and losses corresponding to Shandong Xingfeng and Inner Mongolia Zichen Xingfeng graphitization phase I and supporting projects was 186 million yuan, with a completion rate of 103%. According to the agreement signed by the company with Li Qingmin and Liu Guangtao, Li Qingmin and Liu Guangtao promise that the net profit after deduction corresponding to 100% equity of Shandong Xingfeng will not be less than 150 million yuan, 180 million yuan and 220 million yuan respectively in 2020, 2021 and 2022.
For 2022, Shanghai Putailai New Energy Technology Co.Ltd(603659) said that the company would accelerate the construction of the 200000 ton negative electrode material integration project in Sichuan to ensure the shipment of more than 150000 tons of negative electrode materials and more than 4 billion square meters of coating processing in 2022.
According to the assessment management measures for the implementation of stock option and restricted stock incentive plan in 2022 announced by Shanghai Putailai New Energy Technology Co.Ltd(603659) on March 22 this year, the annual performance assessment objectives of the stock option are to achieve a net profit of no less than 2.6 billion yuan, 4 billion yuan and 5.4 billion yuan in the three fiscal years from 2022 to 2024. At the same time, the annual performance assessment target of the company’s restricted shares is that its operating revenue from 2022 to 2024 will not be less than 12.5 billion yuan, 16.5 billion yuan and 21.5 billion yuan respectively.
On March 28, Shanghai Putailai New Energy Technology Co.Ltd(603659) issued a dividend plan, saying that the company plans to distribute cash dividends of 5.04 yuan (including tax) for every 10 shares to all shareholders, with a total of about 350 million yuan (including tax); At the same time, it is proposed to increase 10 shares with capital reserve for every 10 shares to all shareholders. After the increase, the total share capital of the company will be increased to 1388767078 shares.
In contrast, the company’s cash dividend in 2021 accounted for 20.01% of its net profit attributable to the parent company, less than 30%. “It comprehensively considers the capital needs to ensure the company’s production capacity construction progress, production operation and R & D investment, and takes into account the long-term and stable cash return mechanism for the company’s shareholders.” Shanghai Putailai New Energy Technology Co.Ltd(603659) said that the market demand of the company’s new energy lithium-ion battery industry has increased explosively. The company has built new production bases in Sichuan, Guangdong and other places, and expanded its production capacity in the fields of negative electrode materials and graphitization processing, membrane materials and coating, automation equipment and so on.
The conversion of capital reserve into share capital is the need of Shanghai Putailai New Energy Technology Co.Ltd(603659) business expansion. According to its explanation, first of all, the net profit of the company in the last two years is positive and has achieved continuous growth, with a compound growth rate of 63.89%, and the basic earnings per share of the company from 2019 to 2021 are higher than 1.0 yuan, which is in line with the relevant provisions of the implementation of high transfer; Secondly, when the downstream customers of the company select suppliers, the scale of registered capital is one of the important considerations, and the registered capital of the company at this stage is 694 million yuan, which is far less than the scale of net assets attributable to the parent company of the company of 10.487 billion yuan. As of December 31, 2021, the balance of capital reserve in the consolidated statement is 5.924 billion yuan, and the balance of capital reserve in the parent company’s statement is 6.761 billion yuan, which can meet the implementation conditions for the conversion of capital reserve.
