Under the pressure of rising raw materials, lithium battery enterprises have seen a situation of increasing income without increasing profits. On the contrary, the performance of raw material enterprises upstream of the lithium battery industry chain has soared.
On March 30, Tianneng Battery Group Co.Ltd(688819) released the annual report of 2021. In 2021, the company achieved an operating revenue of 38.72 billion yuan, a year-on-year increase of 10.3%; The net profit attributable to shareholders of listed companies was 1.37 billion yuan, a year-on-year decrease of about 40%.
On March 30, Ganfeng Lithium Co.Ltd(002460) released its annual report, which showed that its operating revenue was 11.16 billion yuan in 2021, an increase of 102% year-on-year; The net profit attributable to shareholders of listed companies was 5.228 billion yuan, a year-on-year increase of 410%.
Tianneng Battery Group Co.Ltd(688819) the main source of income is lead-acid battery and lithium battery products. In 2021, Tianneng Battery Group Co.Ltd(688819) achieved a sales of 32.34 billion yuan of lead-acid power storage batteries for electric light vehicles, an increase of 11.3% year-on-year. The sales revenue of lithium batteries was about 1 billion yuan, a year-on-year decrease of 2.35%.
Tianneng Battery Group Co.Ltd(688819) said that in 2021, the price of raw and auxiliary materials of the company’s main products rose sharply, resulting in the gross profit margin lower than that of the same period last year.
From the perspective of quarterly income, Tianneng Battery Group Co.Ltd(688819) is obviously affected by the rise of raw material prices. In the second half of 2021, as the price of raw materials soared rapidly, Tianneng Battery Group Co.Ltd(688819) profits became significantly thinner. In the fourth quarter of 2021, the company’s revenue was about 12 billion yuan, and the deduction of non net profit was 262 million yuan; In the first quarter of 2021, its revenue was 7.26 billion yuan and the net profit deducted was 304 million yuan.
Similar to Tianneng Battery Group Co.Ltd(688819) , in 2021, some lithium battery and vehicle enterprises experienced a situation of increasing income without increasing profit. For example, the Farasis Energy (Gan Zhou) Co.Ltd(688567) performance express shows that its revenue increased by 204% year-on-year in 2021, but its net profit lost 974 million yuan. One important reason is that the price of raw materials rose, and the product price failed to rise in time with the rising trend of power battery material price.
While lithium battery related enterprises are facing the situation of increasing income without increasing profits, the income and profits of lithium battery upstream enterprises have soared one after another.
in Ganfeng Lithium Co.Ltd(002460) revenue, the revenue of lithium series products is 8.32 billion yuan, accounting for 74.6%; The revenue of lithium battery series products was 2.02 billion yuan, accounting for 18.1%.
Ganfeng Lithium Co.Ltd(002460) said that in recent years, due to the rapid development of new energy vehicles and energy storage systems and the rising demand for power batteries, the demand for lithium iron phosphate materials and ternary materials has expanded rapidly, and the demand for electric vehicles and power batteries will be released and converted into actual output, further stimulating the demand for lithium.
Ganfeng Lithium Co.Ltd(002460) annual report information display. Since 2021, the prices of battery grade lithium carbonate and battery grade lithium hydroxide have risen rapidly. Especially since August 2021, the prices of battery grade lithium carbonate and battery grade lithium hydroxide have soared sharply.
According to the annual report, the sales volume of Ganfeng Lithium Co.Ltd(002460) lithium series products in 2021 was 90700 tons, and the average selling price of lithium products in the first half of 2021 was 72300 yuan / ton, which rose to 107800 yuan / ton in the second half of 2021, with an increase of nearly 50% year-on-year.
In addition to Ganfeng Lithium Co.Ltd(002460) announcement, Tianqi Lithium Corporation(002466) announcement predicts that the net profit attributable to shareholders of listed companies will be 1.8 billion yuan to 2.4 billion yuan in 2021, with a loss of 1.83 billion yuan in the same period of last year Sichuan Yahua Industrial Group Co.Ltd(002497) performance express shows that in 2021, its operating revenue was 5.23 billion yuan, a year-on-year increase of 61%; The net profit attributable to shareholders of listed companies was 925 million yuan, a year-on-year increase of 185.5%.
Even though the price of raw materials continues to rise and the gross profit margin of lithium battery business decreases, in the face of huge market demand, a number of listed companies including Tianneng Battery Group Co.Ltd(688819) still decided to continue to increase the lithium battery business.
Although the price of raw materials soared, the power to expand production downstream is still sufficient. On March 30, Tianneng Battery Group Co.Ltd(688819) also announced a new lithium battery project investment plan. The company plans to take Zhejiang Tianneng, a wholly-owned subsidiary, as the implementation subject to implement the project, add 583 mu of land in Changxing District, South Taihu industrial cluster area, Huzhou, Zhejiang, and invest in the construction of an annual output of 15gwh energy storage and power lithium battery project. The project mainly produces lithium iron phosphate battery cells and systems for energy storage and power. It is estimated that the total investment is about 5.17 billion yuan, including 3.37 billion yuan of construction capital, which is used for the construction of plant and supporting facilities, equipment purchase and installation, and 1.8 billion yuan of working capital.
According to statistics, since this week alone, many companies have announced new lithium battery projects, including Yunnan Energy New Material Co.Ltd(002812) , Zhejiang Yongtai Technology Co .Ltd(002326) , Gpro Titanium Industry Co.Ltd(000545) , Zhuhai Cosmx Battery Co.Ltd(688772) , Nations Technologies Inc(300077) , Saic Motor Corporation Limited(600104) and many of them plan to invest more than 4 billion yuan.
