Weihua Co., Ltd. expects full-year net profit to grow by more than 151% over the same period last year. 1.2 billion to invest in lithium hydroxide project.

SMM News: October 22, Weihua shares released the third quarter report, the company's operating income in the first three quarters was 1.479 billion yuan, down 13.54% from the same period last year; the net profit belonging to shareholders of listed companies was 50.5403 million yuan, down 34.63% from the same period last year; net profit loss of 197 million yuan after deducting non-recurring gains and losses belonging to shareholders of listed companies; and basic earnings per share of 0.0707 yuan.

In addition, Weihua shares issued a performance forecast, the company expects to belong to shareholders of listed companies from January to December 2020 net profit of 30 million to 45 million, a year-on-year change of 150.64% to 175.96%, the average net profit growth rate of the non-ferrous smelting and processing industry is-2.93%.

Weihua shares said that the company made the above forecast for the following reasons: the company's major assets were sold and recognized as a result of investment income, the above operating results are expected to be the results of preliminary calculations by the company's financial department, and the specific data of the 2020 operating results will be disclosed in detail in the company's 2020 annual report.

On the same day, Weihua also announced that through its wholly-owned subsidiary Shengxin Lithium Industry, the company plans to invest in the construction of a lithium hydroxide project with an annual production capacity of 30,000 tons in Shehong City, with a total investment of 1.2 billion yuan, of which the first phase of lithium hydroxide project started construction this year, with an investment of 850 million yuan.

According to the announcement, Weihua shares have signed the relevant investment agreement with the management committee of Sichuan Shehong Economic Development Zone on the above matters. The latter will provide Weihua shares with corresponding financial support and other support services such as policies, elements and construction land security.

Weihua said that after the implementation of the project, the company will expand the overall production capacity and production of lithium hydroxide. It will help the company to expand downstream customers, establish long-term strategic cooperation with high-quality customers, expand and strengthen the lithium salt industry, and further expand and enhance the scale of the company's lithium new energy materials business, which is in line with the company's strategic planning and business development needs.