Zhongke Electric plans to increase the production of lithium electric materials by 2.2 billion by selling 23545 tons of negative materials in the first half of the year.

On the evening of August 24th, China Science Electric (300035) released its semi-annual report for 2021, saying that the company's operating income in the first half of the year was 823 million yuan, an increase of 125.67% over the same period last year; the net profit belonging to shareholders of listed companies was 160 million yuan, up 166.61% from the same period last year.

Zhongke Electric said that the broad prospect of the lithium-ion battery industry in the power and energy storage market has led to the explosive growth of the market demand for lithium-ion batteries, which has brought great opportunities for the development of the lithium-ion battery anode material industry. In the first half of the year, the company's lithium anode plate achieved business income of 701 million yuan, an increase of 153.35% over the same period last year, and sales of negative materials reached 23545 tons, an increase of 211.05% over the same period last year.

It is understood that Zhongke Electric's main business is lithium negative electrode business and magnetoelectric equipment business, in which lithium negative electrode business is the company's main source of revenue, which is operated and sold by Zhongke Xingcheng, a subsidiary of the company. There are Zhongke Xingcheng Ningxiang Lithium Ion Battery anode material production Base in Changsha, Hunan Province, Guizhou Tongret Lithium Ion Battery anode material and graphitization integrated production base, and Sichuan Ya'an New material graphitization processing Base.

On the same day, Zhongke Electric also disclosed a fixed increase plan that the total amount of funds to be raised by the company to issue shares to specific targets will not exceed 2.206 billion yuan. After deducting the issuance costs, the net funds raised will be used for Hunan Zhongke Xingcheng Graphite Co., Ltd. to produce 50, 000 tons of lithium battery anode materials, 30, 000 tons of lithium battery anode materials and 45000 tons of graphitized processing construction projects to supplement working capital.

Specifically, the project of a production base with an annual output of 50,000 tons of lithium battery anode materials plans to invest 800 million yuan, and the main implementation body is China Science and Technology City, a subsidiary of the company. the main construction contents of the project include: production plant, warehouse and living, office and other supporting facilities for the production of 50,000 tons of artificial graphite anode materials per year; introduction of advanced production and environmental protection equipment and facilities. After the project is completed and put into production, the production capacity of the company's negative materials will be effectively expanded, which will help the company to continuously enhance its market competitiveness and consolidate its leading position in the industry.

The construction project with an annual output of 30, 000 tons of lithium battery anode materials and 45000 tons of graphitization processing, with a planned investment of 1 billion yuan, is mainly implemented by Gretel, a wholly-owned subsidiary of the company. the main contents of the project include: the construction of the production plant and supporting facilities for the annual output of 30, 000 tons of lithium battery anode materials and 45000 tons of graphitization processing production line, and the introduction of advanced production equipment, environmental protection equipment and supporting equipment and facilities After the project is completed and put into production, the company's negative materials and graphitized production capacity will be effectively expanded, which will help the company to continuously enhance its market competitiveness and consolidate its leading position in the industry.

China Science Electric said that thanks to the increase in the output of lithium-ion batteries brought about by the demand for new energy vehicles, consumer electronics and energy storage batteries, artificial graphite anode materials, as the main anode materials for lithium-ion batteries, will maintain a high growth rate. it is the main growth point of the anode material industry in the future. However, the production site and production capacity of the company can not meet the future business demand, forming a capacity bottleneck. After the completion of the fund-raising project, the production capacity of graphite anode material for lithium-ion battery will be increased by 50,000 tons / year, and the graphitization capacity will be increased by 45000 tons / year. Business scale will be greatly increased, which will help to further consolidate the company's industry position, enhance the company's core competitiveness, expand revenue scale and enhance profitability.