Azure lithium battery sales target for this year to increase by 70% compared with the same period last year to promote projects under construction and preparation

Recently, in an interactive exchange with investors, Azure Lithium Core (002245) said that the company's overall production capacity of lithium battery business is about 400m, and the total capacity of the Zhangjiagang plant will reach about 700m after the completion of the second phase expansion of the Zhangjiagang plant. There are about 600 million in the first phase of Huaian factory. This year's sales target for the lithium battery business is to grow by 70% year-on-year. The four newly expanded production lines in Zhangjiagang will gradually start production in the second half of this year.

Azure lithium core has focused on the production and research and development of ternary cylindrical power lithium battery for many years, has rich technology and market precipitation in the field of power tools, and has gradually formed a mature and perfect manufacturing and R & D system, especially in the field of high-rate battery. the company has always had a leading advantage in China. At present, higher-rate batteries are also in reserve to meet the rising product requirements of international customers. The company's advantages are mainly reflected in two aspects, one is the technical performance, through the long-term service to high-end customers, it can meet the differentiated needs of different customers, and the other is the reliability and yield advantages of our products. In the field of high-end tools, big brands attach importance to their own brands, which determines their high requirements for quality and reliability.

Azure Lithium Core tool Lithium Battery serves high-end customers at home and abroad who have high requirements for quality, and the sales of overseas customers are growing rapidly. Each of the overseas tool giants has different product technical requirements. With the advantage of leading technology and stable cooperation with MAKITA, BOSCH, Stanley Black&Decker, TTI and other well-known international brand tool manufacturers, the company is not only the main domestic supplier of lithium batteries for high-end tools, but also a small power battery supplier that has entered the supply chain of global TOP5 power tools companies.

At present, the demand for tool batteries is strong. The proportion of cordless to cordless has increased in China, at the same time, the replacement of power tools is more frequent, and there is a demand for stock replacement. According to the current customer situation, the demand of power tools customers is enough to ensure the output of Zhangjiagang plant phase II project. At the same time, the company is also carrying out the development and layout of other markets. The company's overseas electric bicycle market is also expected to grow rapidly in the next few years. Relevant research shows that the overseas electric bicycle battery market will also reach 20-30 billion yuan by 2025 or so. The company is making active arrangements to strive for a better market share in a few years' time.

Azure Lithium said that at present, the company is subject to capacity bottlenecks, the main goal is to continue to increase market share, and further consolidate the company's leading position in the field of power tools lithium batteries. With the gradual commissioning of new projects in the future, with the support of the new production capacity, the company will also break through the existing field of power tools, actively face the R & D and market expansion of new application industries, and move forward to a larger market field. gradually achieve the company from the power tools industry "efficient power application field" high-performance cylindrical power battery industry leading enterprises strategic breakthrough, to support the sustained and rapid development of the company's lithium battery business in the future.

It is understood that in 2020, the business income of Azure lithium-core lithium battery business reached 1.4466211 billion yuan, an increase of 49.97% over the same period last year, and a net profit of 267.4253 million yuan, an increase of 137.87% over the same period last year.

Entering 2021, Azure Lithium Core accelerates the expansion of lithium battery production under construction and preparatory projects. On February 8th, Azure Lithium Core plans to invest more than 1.2 billion yuan in the lithium battery project, with an estimated investment of 1.256 billion yuan, an additional annual production capacity of 1 billion AH lithium-ion batteries, and an annual production capacity of more than 300 million lithium batteries. After the completion of the project, the wholly-owned subsidiary Tianpeng Power supply will have an annual capacity of 700 million lithium batteries.

On March 4th, Azure Lithium Core announced that it plans to invest in the industrialization project of high-efficiency new lithium-ion battery in Huaian Qinghe Economic Development Zone, with a total investment of 5 billion yuan to build a new 4 billion AH cylindrical lithium battery industrialization project.

The total amount of funds raised in this offering does not exceed 1.5 billion yuan, which is intended to be used for the annual production of 1 billion AH high-safety, long-life, high-energy density new lithium-ion battery expansion project and 2 billion AH annual high-efficiency new lithium-ion battery industrialization project after deducting the issue cost. The former has a total investment of 1.256 billion yuan and intends to raise 600 million yuan, with Jiangsu Tianpeng Power supply Co., Ltd., a wholly owned subsidiary of the company, as the main body of the project, while the latter has a total investment of 2.35 billion yuan and intends to raise 900 million yuan. The company or its holding subsidiary will set up a new subsidiary in Huai'an as the main body of the project.