Azure lithium core made a net profit of 674 million last year, and revenue from lithium battery business increased by 85% compared with the same period last year.

At noon on March 9, Azure Lithium Core (002245) released its annual results KuaiBao. The company's total operating income in 2021 was 6.68 billion yuan, an increase of 57.20% over the same period last year; its operating profit was about 832 million yuan, an increase of 133.85% over the same period last year; the total profit was about 840 million yuan, an increase of 135.35% over the same period last year; and the net profit belonging to shareholders of listed companies was 674 million yuan, an increase of 142.50% over the same period last year. After deducting non-recurring profits and losses, the net profit belonging to shareholders of listed companies was 587 million yuan, an increase of 217.24% over the same period last year, and basic earnings per share was 0.6546 yuan, an increase of 131.14% over the same period last year.

Azure Lithium Core 2021 main Financial data and indicators (Unit: yuan)

According to the announcement, in 2021, all the businesses of Azure Lithium Core were in good condition, with growth in all three businesses, of which the operating income of lithium battery business increased by about 85% compared with the same period last year, and the operating income of metal logistics business also increased by more than 40% compared with the same period last year.

As for the reasons for the sharp increase in performance, Azure Lithium Core Analysis said that the company's core business lithium battery business continued to maintain rapid growth in 2021 and continued to be in short supply. Although the raw material price of lithium battery represented by lithium carbonate continues to rise, the company has maintained a relatively stable gross profit margin by increasing the sales price to conduct cost transmission, improving production efficiency to reduce unit cost, improving product structure and other measures. it also makes the operating performance continue to grow, which is the largest source of profit for the company.

In addition, Tianpeng Power, a wholly-owned subsidiary of Azure Lithium Core, recently received a major order from Stanley Black to supply 120 million, 240 million and 280 million ternary cylindrical lithium batteries from 2022 to 2024, respectively. Among them, for 2022, with the agreement of both parties, it can be increased to a maximum of no more than 200 million.

In terms of customers, according to the research report released by Zhejiang Securities, Tianpeng power products are mainly used in power tools, electric bicycles, floor sweepers / vacuum cleaners, downstream demand is high, cost transmission is relatively easy, customers include Bosch, Bates, TTI, Metabo and other international well-known brands and Glibo, Dongcheng, Dayi and other domestic first-tier tool manufacturers.

In terms of production capacity, public data show that the 300 million new production capacity of Azure Lithium Core Zhangjiagang II is expected to climb to about 90% by March 2022, and the 600 million units of the first phase of the Huaian plant are expected to be gradually put into production by the end of 2022, when the company's production capacity will reach 1.3 billion, an increase of 82% over the same period last year.

It is worth noting that a few days ago, the CSRC approved the blue lithium core non-public offering, according to the plan, the company will raise no more than 2.5 billion yuan, according to the degree of priority to invest in the annual production of 2 billion AH efficient new lithium-ion battery industrialization project, efficient new lithium-ion battery industrialization project (phase II), supplementary liquidity and other projects, it is expected that the capacity of raising and putting into production will be gradually released in 2023.