Longchuan Technology made a net profit of 203 million yuan last year to actively distribute lithium iron phosphate battery materials.

On March 16, Longyi Technology (603906) disclosed its annual report for 2020 that the company achieved operating income of 1.915 billion yuan in 2020, an increase of 11.77% over the same period last year, a net profit of 203 million yuan, an increase of 59.2% over the same period last year, and a weighted average return on net assets of 10.54%. Basic earnings per share is 0.6700 yuan per share.

Longyi Technology is mainly engaged in the research, development, production and sales of automotive environmental protection fine chemicals, and its main products include lubricating oil, engine coolant, diesel engine exhaust treatment liquid, vehicle care products and so on. The products are widely used in automotive manufacturing, automotive aftermarket, construction machinery and other fields.

In 2020, on the basis of the existing business mainly used in the field of traditional fuel vehicles, Dragon Technology will keep pace with the development of the industry, grasp the future trend, and actively carry out the extended layout of the new energy field. In the field of new energy, in May, the company invested 100 million yuan to set up a wholly-owned subsidiary Jiangsu Platinum Tan hydrogen Energy Technology Co., Ltd., to distribute the hydrogen fuel cell catalyst business through technical cooperation with Dalian Chemical Institute. In August, the company invested 100 million yuan to set up Jiangsu Lithium Source Battery material Co., Ltd., a wholly-owned subsidiary. In October, it set up Sichuan Lithium Source New material Co., Ltd in Sichuan base, and planned to build lithium iron phosphate battery materials. production capacity of ternary cathode materials, anode materials and other products.

On the same day, Longyi Technology also announced that Sichuan Liyuan New Materials Co., Ltd. (referred to as Sichuan Liyuan New Materials Co., Ltd.), the company's wholly owned grandson, due to the needs of business development, It is proposed to jointly invest with Guangzhou Penghui Energy Technology Co., Ltd., Hangzhou Rushan Huiyou Venture Capital Partnership (Limited Partnership), Hunan Hongyue Battery material Co., Ltd., Changsha an Liangneng Enterprise Management Consulting Partnership (Limited Partnership) to establish Sichuan Yingda Lithium New Materials Co., Ltd. (referred to as "Yingda Lithium", the final name is subject to the approval document of the registration authority). Sichuan Liyuan plans to contribute 23 million yuan and hold a 19.09 per cent stake in Yingda Lithium Power.

According to the announcement, Yingda Lithium Power is registered in Pengxi Economic Development Zone, Sichuan Province. Its main business scope is research and development, production and sales of lithium iron phosphate precursors. The overall registered capital will reach 120 million yuan.

The Battery Network noted that on March 22, at the start ceremony of the project concentration in the first quarter of 2021 in Pengxi County, Sichuan Province, the production base project of Longchuan Technology Sichuan Suining Industrial Park was officially started. It is understood that the Suining Industrial Park project, which Longchuan Science and Technology has started to build in Pengxi, Sichuan Province, is one of the company's important strategic measures to distribute the southwest market. The first phase of the project plans to build 200000 tons of engine exhaust treatment liquid and 25000 tons of lithium iron phosphate battery materials, which are expected to be completed and put into production by the end of this year.

In order to further expand the company's business system, on December 25 last year, Dragon Technology and Beitre (835185) issued an announcement at the same time, the two sides jointly signed a "Framework Agreement on the acquisition of Lithium Iron Phosphate-related assets and Business of Beitre New Materials Group Co., Ltd.". Longyi Technology intends to acquire lithium iron phosphate-related assets and businesses within the scope of the consolidated statements by itself or its subsidiaries, mainly in order to further expand the company's business system by making use of the technical and market advantages owned by Beit.

According to the research data of SMM, the price of iron and lithium goes up with the price of upstream raw materials recently. at the same time, there is a serious capacity shortage in the iron-lithium industry, the seller's market characteristics are obvious, and the order is much higher than the actual production capacity of the iron-lithium plant. Therefore, for the consideration of production capacity and future material prices, the iron lithium plant is more cautious in signing new orders and signing fewer long orders, generally to ensure the quantity of old customers. The prices of some manufacturers have risen to 50,000 yuan / ton. The price of SMM lithium iron phosphate (power type) is 4.6-50, 000 yuan / ton this week, an average price of 500 yuan / ton higher than last week. The price of SMM lithium iron phosphate (energy storage type) is 4-44000 yuan / ton, the average price is 500 yuan / ton higher than last week.