[special topic on SMM] Cobalt and Lithium Enterprises perform strongly in the first quarter and the net profit of Divine Gift Materials soars by 591%.

SMM April 25: recently, a number of companies in the lithium field have disclosed their first-quarter results. Taken together, the vast majority of lithium power companies performed strongly in the first quarter of 2021, and Ganfeng Lithium Industry issued a forecast of first-quarter net profit of 450 million to 510 million yuan, an increase of 5709.4% to 6484% compared with the same period last year. The following are the specific data of the major lithium companies that have released their first-quarter results:

Divine materials:

In the first quarter of 2021, Tianci achieved a total operating income of 1.562 billion yuan, an increase of 197.47% over the same period last year, while the net profit of 287 million yuan surged 591.15% over the previous year. Among them, lithium battery materials alone account for 65% of the total revenue.

Recently, the prices of raw materials in the upper reaches have been rising continuously, and the prices of electrolyte products of divine materials are facing a certain upward pressure. The company said in a research activity on April 20 that at present, the price transmission of the company's electrolyte is relatively smooth, and the company will also make timely adjustments to the prices of electrolyte products according to the price of raw materials in the future market.

Huayou Cobalt Industry:

In the first quarter of 2021, Huayou Cobalt's revenue was about 6.424 billion yuan, an increase of 45.2% over the same period last year, and its net profit was about 654 million yuan, up 256.50% from the same period last year. The net profit after deducting non-recurring gains and losses belonging to shareholders of listed companies was 659 million yuan, an increase of 398.35% over the same period last year.

Prior to this, Huayou Cobalt issued an announcement that the board of directors agreed to take Quzhou, a wholly-owned subsidiary of New Energy, to absorb and merge its wholly-owned subsidiary Huahai New Energy on December 31, 2020. After the completion of the absorption and merger, Quzhou, as the absorbing and merging party, continues to operate and acquires all the assets, liabilities and personnel of Huahai New Energy, and Huahai New Energy is cancelled according to law as the merging party. The absorption and merger will help the company to reduce operating and management costs and improve operational efficiency. The addition of Huahai New Energy will contribute to the new energy business of Huayou Cobalt to a certain extent.

Sheng Xin Lithium Energy:

In the first quarter of 2021, the company achieved a total operating income of 530 million, an increase of 121.2% over the same period last year, and a net profit of 100 million yuan, compared with-57.214 million yuan in the same period last year. During the reporting period, the company's gross profit margin was 29.5%, an increase of 20.8 percentage points over the same period last year, and a net profit margin of 20.9%, an increase of 46.2 percentage points over the same period last year.

It is reported that Shengxin LiNeng previously said that with regard to the supply of spodumene raw materials, on the one hand, the company will make every effort to ensure the production of its own mine Oinuo Mining, on the other hand, the company has signed an off-take agreement with overseas lithium resources enterprises such as Galaxy Lithium Industry. At the same time, the company is also continuing to strengthen its attention and cooperation on mining resources at home and abroad, and continue to maintain and deepen its strategic cooperative relationship with international first-class lithium resources companies. Multi-channel and omni-directional guarantee of raw material supply.

According to SMM research, the price of lithium cobalt rose slightly month-on-month in March. For the future forecast, SMM believes that the price of lithium cobalt may be adjusted in the future. Take lithium carbonate, an important part of lithium battery, as an example, SMM expects lithium carbonate to continue to release volume in the smelter in April, downstream gradually into the consumption off-season, raw material procurement tends to be cautious, the price will fall. "View details

The historical price of SMM shows that as of April 23, the average price of domestic battery-grade lithium carbonate was 90000 yuan per ton, up 125% from the low of September 17, 2020.

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