Xingyuan material sold nearly 700 million lithium diaphragms last year. Revenue exceeded 420 million in the first quarter of this year.

On the evening of April 27th, Xingyuan material (300568) released its annual report for 2020 and quarterly report for 2021. According to the performance report, the total operating income of Xingyuan material reached 967 million yuan in 2020, an increase of 61.17% over the same period last year. The net profit belonging to shareholders of listed companies was 121 million yuan, down 11.01% from the same period last year. The net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 88.4771 million yuan, an increase of 94.08% over the same period last year.

In the first quarter of 2021, Xingyuan material achieved a total operating income of 420 million, an increase of 238.5% over the same period last year; a net profit of 61.8306 million yuan, an increase of 287.93% over the same period last year, and a net profit of 413.56% deducted from the same period last year. The company said that the performance growth was mainly due to the further release of diaphragm production capacity in the first quarter, centering on the strategic positioning of the board of directors, based on the forefront of the market, constantly meeting customer needs, relying on technical strength, excellent product quality and quality service, in-depth strengthening strategic cooperation with existing customers, vigorously promoting the development of new customers and new markets, sufficient business orders and increased product sales revenue.

In 2020, the sales of lithium-ion battery diaphragms made of Xingyuan material were nearly 700 million square meters, an increase of 102.20% over the same period last year. It further increased cooperation with foreign lithium-ion battery manufacturers such as South Korea's LG Chemical, Samsung SDI, Japan's Murata and SAFT, and supplied lithium-ion battery separators in bulk to mainstream lithium-ion battery manufacturers such as Ningde Times, BYD, Hefei Guoxuan, AVIC Lithium, Yiwei Lithium, Tianjin Lishen, Xinwangda, and Funeng Technology. The company continues to expand the company's market share by continuously improving the production capacity and output of dry-wet diaphragm and coated diaphragm. In addition, with the improvement of production capacity, process technology and the continuous promotion of cost control, the cost of finished products per unit of the company also continues to decline. However, affected by the epidemic, the company and upstream and downstream enterprises were delayed to resume work, and the company's sales volume did not meet expectations; at the same time, due to the influence of the market environment, the price of diaphragm products dropped, affecting the company's overall profit level in 2020.

In terms of new capacity construction, Xingyuan material set up a wholly-owned subsidiary Changzhou Xingyuan in Changzhou, Jiangsu Province to implement the "wet separator project with an annual output of 360 million square meters of lithium-ion battery". The construction period of the project is 33 months. the construction is divided into two phases: the first phase and the second phase each have an annual capacity of 180 million square meters of lithium-ion battery wet separator. Up to now, the "annual output of 360 million square meters of lithium-ion battery wet diaphragm project" has been completed and supplied to customers in large quantities.

Xingyuan material also set up a wholly-owned subsidiary Jiangsu Xingyuan to implement the "Super coating Factory" project in Changzhou, Jiangsu Province. the total construction period of the project is 36 months and is divided into two phases. among them, the first phase of the project plans to build 8 dry diaphragm production lines and 30 coated diaphragm production lines, with an annual production capacity of 400 million square meters for lithium-ion batteries and an annual processing capacity of 600 million square meters for high-performance lithium-ion batteries. In the second phase of the project, 20 new coated diaphragm production lines will be built to form a high-performance lithium-ion battery coated diaphragm with an annual processing capacity of 400 million square meters. So far, the construction of the "Super coating Factory" project has progressed smoothly and has been supplied to customers.

In addition, in September 2020, Xingyuan material announced that it planned to set up a wholly-owned subsidiary Xingyuan material (Europe) Co., Ltd. in Sweden and carry out the construction of the first phase of the European factory. The investment of the first phase of the European factory is about 130 million yuan, with four new production lines of coated diaphragm, with an annual output of about 90 million square meters.

After trading on March 31 this year, Xingyuan material announced that the company plans to invest no more than 2 billion yuan to build a production plant in Svista Industrial Zone in Eskilstuna, Sweden. when the new factory is completed in 2025, it will become the European headquarters of Xingyuan material. The plant will be one of the largest of its kind in Europe, and the plant in Eskilstuna will provide a diaphragm for Northvolt's superfactory in Skellefte and later for other European battery manufacturers.

Just a week earlier, Xingyuan material announced that the company planned to sign a supply contract with Northvolt, agreeing that the company would supply lithium-ion battery diaphragms to Northvolt with a contract amount of no more than 3.34 billion yuan.

While expanding and optimizing the company's industrial layout, Xingyuan material also makes full use of the multi-level and diversified financing channels of the capital market to further enhance the company's core competitiveness and continue to consolidate the company's dominant position in the lithium-ion battery separator industry.

On March 31 this year, Xingyuan material convertible bonds were listed. The total amount of convertible bonds issued by the company is 1 billion yuan, with a period of 6 years from the date of issuance. The funds raised are mainly used for Changzhou Xingyuan "wet separator project with an annual output of 200 million square meters of lithium ion battery" and Jiangsu Xingyuan "super coating factory project" and the company's supplementary working capital.