Yongxing Materials reported a net profit of 108 million from lithium power new energy business and 5448 tons of lithium carbonate sales.

On the evening of August 2, Yongxing material (002756) disclosed its semi-annual report that the company's operating income for the first half of 2021 was 3.047 billion yuan, an increase of 36.39 percent over the same period last year; net profit was 303 million yuan, an increase of 85.31 percent over the same period last year; and basic earnings per share was 0.76 yuan.

Yongxing material said that the company adheres to the double main business development strategy of "special steel new materials + lithium power new energy", carries out all kinds of work in a down-to-earth manner, the special steel new material business develops steadily, and the lithium power new energy business has become a new profit growth point of the company. the advantage of two-wheel drive is gradually emerging.

Among them, Yongxing material lithium electricity new energy plate has built a new energy industry chain covering mining, mineral processing and lithium carbonate processing, using lithium porcelain stone as the main raw material to produce battery-grade lithium carbonate.

In the first half of the year, Yongxing Lithium Power New Energy business operated well, achieved sales of 5448 tons of lithium carbonate, fully released production capacity, realized operating income of 385 million yuan, and belonged to shareholders of listed companies with a net profit of 108 million yuan. The contribution of lithium new energy business to the company's semi-annual performance has reached 35.68%, which has become a new profit growth point of the company.

In terms of resource reserves, Yongxing material has the advantage of upstream high-quality lithium ore resources, which can lock in the cost of upstream raw materials and provide reliable and high-quality lithium resources for lithium salt production. The Huashan porcelain stone mine owned by Huaqiao Mining, a subsidiary of the company, covers an area of 1.8714 square kilometers and has a cumulative economic resource of 45.073 million tons, which is the main guarantee channel for the company's lithium mica and lithium carbonate production raw materials.

In addition, Huali Mining, a joint venture company of Yongxing Materials, has a mining right area of 0.7614 square kilometers of Baishuidong Kaolin Mine and a total of 7.3074 million tons of economic resources controlled, and the company has signed a "long-term cooperation agreement" with Huali Mine. it also provides a resource guarantee for the long-term development of the company's lithium materials business.

In terms of project promotion, Yongxing material 1.2 million tons / year lithium ore efficient mineral processing and comprehensive utilization project reached production in the first half of the year, providing raw material guarantee for lithium carbonate production. We will solidly promote the second phase of lithium electricity with an annual output of 20,000 tons of battery-grade lithium carbonate and supporting mining, mineral processing and comprehensive utilization projects, so as to enhance the company's market competitiveness and profitability with economies of scale. at present, the preparatory work related to the 20,000 tons of battery-grade lithium carbonate project has been completed, and the selection and purchase of equipment is under way. The 1.8 million t / a lithium ore high efficiency mineral processing and comprehensive utilization project has completed the establishment of the project, the preparation of the feasibility study report, and the preparation for construction; the comprehensive utilization projects such as the extraction of high-grade mica from low-grade raw ore, the separation of feldspar and quartz from the raw ore and the research project on the resource utilization of building materials as by-products of lithium extraction from lithium mica have been carried out. The establishment of the technical team of the ultra-wide temperature zone ultra-long-life lithium-ion battery project has been basically completed, and the construction of the plant and the purchase of equipment have been promoted in an orderly manner, the laboratory has been put into operation, and laboratory samples have been produced.

In terms of customers, at present, Yongxing Materials has achieved batch supply to leading customers in application fields such as lithium iron phosphate, ternary materials, lithium manganate, etc. Customers include Xiamen Xiamen Tungsten New Energy Materials Co., Ltd., Hunan Yuneng New Energy Battery Materials Co., Ltd., Shenzhen Defang Nanotechnology Co., Ltd., etc. Other leading enterprises in the industry have also carried out sample certification, factory review and long-term cooperation negotiations.

Pacific Securities said that in the context of "carbon neutralization", the growth of the new energy industry chain confirms that the demand for lithium carbonate is expected to maintain a high boom, especially in the case of the rapid development of lithium iron phosphate, the demand for lithium salt is expected to exceed 1 million tons in 2025. Mica lithium as a domestic resource, compared with the safe and stable supply of spodumene, it is expected to obtain the long-term strategic allocation of downstream customers if the quality is qualified.