The profitability of lithium power business improves the net profit of Yongxing Materials in the first three quarters is expected to exceed 534 million yuan.

On the evening of October 13, Yongxing material (002756) disclosed its performance forecast that the company expects to achieve a net profit of 534 million yuan to 559 million yuan belonging to shareholders of listed companies in the first three quarters of 2021, an increase of 110% over the same period last year. Among them, the net profit of shareholders belonging to listed companies in the third quarter is expected to be 231 million yuan to 256 million yuan, an increase of 154.47% Mu 182.48% over the same period last year.

Yongxing material said that during the reporting period, on the basis of the steady development of the special steel new materials business, with the rapid development of new energy vehicles and energy storage industry, the prosperity of the lithium salt industry continued to rise, and the price of lithium salt materials also continued to rise. the company's lithium new energy business production and marketing situation is good, profitability has been greatly improved and enhanced, which is the main growth point of the company's profits in the reporting period.

It is reported that 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 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.