Last year, Enjie made a net profit of 2.718 billion yuan and shipped more than 3 billion yen of lithium diaphragm.

On the evening of April 11, Enjie shares (002812) released its annual report that the company achieved revenue of 7.982 billion yuan in 2021, an increase of 86.37% over the same period last year, and a net profit of 2.718 billion yuan, an increase of 143.60% over the same period last year.

Enjie's main accounting data and financial indicators

Enjie's main products can be divided into three categories: first, film products; second, packaging and printing products; third, paper product packaging. According to the annual report, benefiting from the rapid growth of the market in the field of new energy vehicles and energy storage, the income scale and profitability of Enjie's lithium battery diaphragm business have increased significantly. The company's lithium battery diaphragm shipments exceeded 3 billion square meters in 2021, maintaining a leading market share. Shanghai Enjie's operating income in 2021 was 6.437 billion yuan, and the net profit attributed to listed companies was 2.452 billion yuan.

According to the white paper on the development of China's lithium-ion battery diaphragm industry (2022) jointly released by research institute EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute, shipments of lithium-ion battery diaphragms in China reached 8.06 billion square meters in 2021, a sharp increase of 108.3% over the same period last year. From the perspective of enterprise competition, Shanghai Enjie still ranks first, and its market share is further increased compared with 2020.

In terms of capacity layout, Enjie has laid out diaphragm production bases in Shanghai, Wuxi, Jiangxi, Zhuhai, Suzhou and other places, with a production capacity of 5 billion square meters, and has begun to build the first overseas lithium battery diaphragm production base in Hungary. In 2021, the company continued to promote the construction speed of the production line, including 16 high-performance lithium-ion battery microporous diaphragm projects in Chongqing Enjie. Jiangsu Enjie Power vehicle 16 lithium battery separator industrialization project and Suzhou Jie Li battery coating diaphragm project, etc., the company continues to increase production capacity to meet the needs of global middle and high-end lithium battery customers for the company's high-consistency and safe wet separator products and services. At present, the construction of the company's new projects is being carried out in an orderly manner. as of the date disclosed in this report, three production lines of Chongqing Enjie lithium battery diaphragm project (phase I) have been put into production, and other production lines have been implemented as planned. Suzhou Jie Li coating membrane project has completed the foundation construction and the foundation steel frame structure construction, is carrying on the follow-up construction, and is expected to be put into production by December 2022. Jiangsu Jintan diaphragm project has obtained the project record and environmental assessment approval documents, and is currently in the civil construction preparation stage; the Hungarian wet lithium battery separator project is advancing in an orderly manner, after the project is put into production, it will form a local supply capacity of 400 million square meters of wet lithium battery separator, which can quickly respond to the needs of the European market and customers. With the implementation of the company's new projects, the company's production capacity will be gradually released, and the global market share is expected to be further increased in the future.

In terms of customer development, Enjie shares continue to maintain a leading market position in the wet diaphragm market in 2021. At present, the company has entered the supply chain system of most mainstream lithium battery manufacturers in the world, including overseas lithium battery production giants: Panasonic, LGES, Samsung, as well as domestic mainstream lithium battery companies such as Ningde era, BYD, Guoxuan, Funeng, Lishen and so on.

Enjie said that downstream customers have increasing requirements for the production capacity of diaphragm enterprises. With the rapid growth of the market for new energy vehicles and energy storage, the capacity and output of lithium battery manufacturers continue to expand. According to the announcement and public information of the company's main downstream customers, the company's existing major customers will have a production capacity of 1396GWh by 2025, an increase of more than 1000GWh compared with the end of 2020, corresponding to an increase of more than 15 billion square meters per year. Lithium battery separator is an indispensable raw material for lithium battery manufacturing. Stable and reliable production capacity has become an important prerequisite for separator enterprises to undertake large-scale orders from downstream customers. Therefore, the diaphragm manufacturers with the advantage of production capacity can constantly deepen their cooperation with important customers, which is conducive to further increase market share.

In terms of strategic cooperation, Enjie Lithium Battery diaphragm products have good stability and high consistency, and there are more than 110 kinds of products, which can meet the customized and diversified needs of customized. has entered the supply chain system of most mainstream lithium battery manufacturers in the world. Based on the strong demand for the diaphragm market brought about by the rapid growth of the new energy industry, the company actively develops markets at home and abroad by virtue of its own competitive advantages in products, technology and cost, and deeply strengthens its cooperation with downstream strategic customers. In 2021, the company cooperated with Ningde Times, the leader of the global lithium battery industry, to jointly invest in the wet and dry separation membrane project of lithium battery, with a total planned investment of 8 billion yuan. The company signed a joint venture agreement with Yiwei LiNeng, a leading company in the lithium battery industry, to jointly build a 1.6 billion square meter wet lithium battery isolation membrane project in Jingmen, Hubei Province, with a total planned investment of 5.2 billion yuan. In addition, the company has signed diaphragm supply agreements with a number of high-end customers at home and abroad, such as Ningde Times, China New Airlines and a large overseas car company, to continuously deepen long-term cooperation with important customers and enhance the company's market competitiveness.

In terms of strategic layout, in 2021, in order to further improve the strategic layout of the diaphragm field, Enjie completed the integration of Numi Technology and launched the Suzhou Jie Li 200 million square meter coating membrane project. increase the supply of consumer diaphragm capacity and actively open up the consumer battery market In addition, the energy storage sector has broad market prospects and plays a significant role in promoting "carbon peak" and "carbon neutralization" in the energy storage sector. In order to meet the needs of the future energy storage market, the company continues to promote the construction of dry process lithium battery separator project with Celgard, which will gradually form production capacity in 2022 and bring more cost-effective products to the market. At the same time, after years of R & D investment and technology accumulation, the company has also launched eight aluminum-plastic film production lines in Jiangsu Ruijie, with a planned investment of 1.6 billion yuan and an annual production capacity of about 280 million square meters. Aluminum-plastic film products are mainly used in the packaging materials of flexible batteries. The implementation of the aluminum-plastic film project will further enrich the company's product line and further strengthen the layout of the new energy materials industry chain on the basis of diaphragms. It will help to enhance the company's position in the new energy industry and its ability of sustainable development. In 2021, the company also cooperated with Beijing Weilan New Energy Technology Co., Ltd., Liyang Tianmu pilot Battery material Technology Co., Ltd. to develop coating diaphragm and special customized coating diaphragm projects for the layout of semi-solid and solid-state batteries.

In terms of technological innovation, by the end of 2021, Enjie and its subsidiaries have obtained a total of 459 patents, including 362 utility model patents, 86 invention patents (including 13 international patents) and 11 design patents. The company attaches importance to the layout of overseas patents, 56 international patents are being registered and accepted, and 191 domestic patents are being registered and accepted.

On the 11th, Enjie also issued a forecast of first-quarter results in 2022, and the company expects first-quarter net profit to be 865 million yuan to 950 million yuan, an increase of 100.19% Rue 119.86% over the same period last year. Enjie said that in the first quarter of this year, the company benefited from the continuous increase in the production capacity of the wet lithium battery separator, the continuous consolidation of its competitive advantage, and the company seized the development opportunities of the lithium battery separator business and continued to open up markets at home and abroad. the output and sales volume of the wet lithium battery separator continued to grow steadily, and the superposition company further strengthened its internal management, effectively improved the efficiency of operation and management, reduced costs and increased efficiency. The overall profit level of the company has improved significantly.

The Soochow Securities Research report shows that in 2022, the supply of the diaphragm industry falls short of demand, the capacity utilization rate of the industry remains high, Enjie shares are in the lead in capacity expansion and production scheduling continues to rise, and the company's production capacity reached 5 billion square meters by the end of 2021. Chongqing Enjie 16 lines, Jiangsu Enjie 16 lines and Suzhou Jieli 200 million square meters of production capacity are under construction, and in the construction of Yiwei and Ningde joint venture plants, the Hungarian basement membrane production line of 400m square meters is being promoted in an orderly manner. The company expects to add 25 new lines in 2022, and the master coil production capacity is expected to reach about 7.5 billion square meters by the end of 2022. Considering the acceleration of the company's production capacity release, shipments for the whole year of 2022 were revised up to about 5.5 billion square meters, an increase of 80% over the same period last year. From a customer point of view, Ningde era demand is expected to more than double in 2022, overseas customers LG, new North American customers are also significantly increased, the proportion of overseas customers is expected to further increase to about 30% in 2022, and with the online coating on the ground, the coating film into the major customer supply chain, the coating ratio is expected to further increase to about 40% in 2022. In addition, the company continues to promote the joint venture with Celgard to build dry-process lithium battery diaphragm project, which will gradually form production capacity in 2022. At the same time, the company launched Jiangsu Ruijie 8 aluminum-plastic film production line project, with a planned investment of 1.6 billion yuan and an annual production capacity of about 280 million square meters. It is expected that dry-process separator and aluminum-plastic membrane will gradually contribute to profit increment from 2022 to 2023.