On April 8, Jiangsu Lopal Tech.Co.Ltd(603906) ( Jiangsu Lopal Tech.Co.Ltd(603906) , SH) released its 2021 annual report. Last year, the company achieved an operating revenue of 4.054 billion yuan, an increase of 111.72% year-on-year. The net profit attributable to shareholders of listed companies was 351 million yuan, an increase of 72.98% year-on-year. The basic earnings per share was 0.73 yuan / share, an increase of 52.08% year-on-year.
According to the annual report, in 2021, Jiangsu Lopal Tech.Co.Ltd(603906) the output of lithium iron phosphate cathode material was 31100 tons, the sales volume was 30500 tons, and the operating revenue was 1.877 billion yuan. Among them, the output of lithium iron phosphate cathode material includes 583966 tons of outsourced processing.
On April 8, Jiangsu Lopal Tech.Co.Ltd(603906) closed at 25.22 yuan / share, down 3.48%.
Half of the net profit comes from lithium iron phosphate business
Jiangsu Lopal Tech.Co.Ltd(603906) main businesses include lubricating oil, diesel engine tail gas treatment fluid, engine coolant and vehicle maintenance products of vehicle environmental protection fine chemicals business, and acquired lithium iron phosphate related assets under the name of beiteri through Changzhou lithium source, a holding subsidiary, and expanded to the field of lithium iron phosphate cathode materials.
According to the annual report of 2021, Jiangsu Lopal Tech.Co.Ltd(603906) achieved an operating revenue of 4.054 billion yuan and a net profit attributable to shareholders of listed companies of 351 million yuan, mainly due to the growth of lithium iron phosphate business. During the reporting period, the operating revenue of Changzhou lithium source was 1.895 billion yuan and the net profit was 225 million yuan, of which the net profit attributable to the parent was 176 million yuan.
According to the introduction, Changzhou lithium source and its subordinate enterprises have profound accumulation in the research and development of lithium iron phosphate cathode materials, focus on the research and innovation of lithium iron phosphate, form core technologies such as high-power spherical LFP preparation technology and spherical LFP densification technology, solve the problems of low ionic conductivity, low electronic conductivity and significant decline of electrochemical performance at low temperature, and make the lithium iron phosphate products produced have high-voltage, solid High capacity, long cycle and other advantages.
Jiangsu Lopal Tech.Co.Ltd(603906) said that at present, with the rapid development of the downstream application market of the lithium battery industry, the leading enterprises in the industry are in the stage of increasing production and capacity expansion, and the demand for lithium iron phosphate cathode materials is rising. On the existing basis, the company will deepen cooperation with customers and provide them with lithium iron phosphate cathode materials with good performance, which will help customers meet their growing demand for lithium iron phosphate cathode materials and ensure the stable supply of raw materials.
In addition, Jiangsu Lopal Tech.Co.Ltd(603906) ‘s lubricating oil realized an operating revenue of 844 million yuan, a year-on-year increase of 10.91%; The operating income of diesel engine exhaust treatment fluid was 791 million yuan, a year-on-year increase of 23.17%; The operating income of engine coolant was 404 million yuan, a year-on-year increase of 8.33%; The operating income of vehicle maintenance products was 619547 million yuan, a year-on-year increase of 13%.
It is worth noting that in 2021, except for lithium iron phosphate cathode material and lubricating oil, Jiangsu Lopal Tech.Co.Ltd(603906) the gross profit margin of diesel engine exhaust treatment fluid, engine coolant and vehicle maintenance products decreased, and the gross profit margin of the above three products were 24.45%, 25.41% and 28.17% respectively, with a year-on-year decrease of 7.27%, 1.58% and 9.85% respectively.
It is proposed to expand the capacity of lithium iron phosphate
On April 8, Jiangsu Lopal Tech.Co.Ltd(603906) also announced that according to the needs of business development, the company plans to sign the investment contract with Xiangcheng District People’s Government of Xiangyang City, and plans to invest 1.9 billion yuan to build a lithium iron phosphate cathode material production base project in Xiangcheng District.
The announcement shows that Jiangsu Lopal Tech.Co.Ltd(603906) the first phase of the expansion will build a project with an annual output of 50000 tons of lithium iron phosphate and 25000 tons of iron phosphate, with a construction period of six months. In phase II, additional projects with an annual output of 50000 tons of lithium iron phosphate and 25000 tons of iron phosphate will be constructed. The equipment installation, commissioning and operation will be completed within 24 months after the phase I project is put into operation. After the phase I project is completed and put into operation, the annual tax shall not be less than 40 million yuan in the first three years and 60 million yuan after the completion of the project. The tax indicators of phase II refer to phase I.
The announcement also disclosed that Xiangcheng District People’s Government of Xiangyang City, as Party A, in order to support the development of the project and speed up the implementation of the project, agreed to give support policies such as rent subsidy, project support, enterprise senior management talent subsidy, new equipment purchase subsidy, logistics subsidy, plant subsidy, personnel recruitment and training, etc.
Among them, Xiangcheng District People’s Government of Xiangyang City will be responsible for setting up a special working class led by district leaders to provide secretarial services for the project, timely coordinate the problems of Jiangsu Lopal Tech.Co.Ltd(603906) in the process of project construction and operation, and assist Jiangsu Lopal Tech.Co.Ltd(603906) in the procedures of project initiation, safety assessment, environmental assessment, energy assessment, health assessment and stability assessment. The relevant expenses shall be borne by Jiangsu Lopal Tech.Co.Ltd(603906) at its own expense.
Jiangsu Lopal Tech.Co.Ltd(603906) said that the project products involved in this investment are mainly the strategic layout of the company based on the needs of future development, focus on the company’s current customers and market institutions, realize the reasonable and appropriate extension of the company’s business, actively give play to synergy, promote the stable and healthy development of the company and continuously improve the company’s comprehensive competitiveness.
Jiangsu Lopal Tech.Co.Ltd(603906) also pointed out that the implementation of relevant projects still needs to go through the pre-approval work such as project filing, environmental assessment approval, construction planning permit and construction permit with the relevant competent government departments. In case of changes in the implementation conditions such as national or local policy adjustment and project approval, the implementation of the project may have the risk of change, extension, suspension or termination. After the project is completed and fully put into operation, the actual achievement situation and time are affected by national policies, laws and regulations, industry macro environment, market development, operation management, production capacity and utilization, and there are still uncertainties.
