Zhenhua new materials business revenue of lithium cathode materials in the first two months of this year is about 1.626 billion.

On the evening of March 10th, Zhenhua New Materials (688707) announced that since 2022, the company's lithium-ion battery cathode material business has a good momentum of development, with rapid growth in production and sales. According to the preliminary calculation, from January to February 2022, the company's operating income of cathode materials for lithium-ion batteries was about 1.626 billion yuan, an increase of about 180 percent over the same period last year.

According to the 2021 results disclosed by Zhenhua Xincai last month, KuaiBao. Due to the simultaneous increase in three-yuan positive volume prices, in 2021, the company's total operating income reached 5.515 billion yuan, an increase of 432.07% over the same period last year; the net profit belonging to the owner of the parent company was 413 million yuan, turning losses into profits.

According to the data, Zhenhua New material was founded in April 2004, moved from Shenzhen to Guiyang, Guizhou Province in 2018, and listed on Sept. 14, 2021. The company's main business premises are located in Guiyang High-tech Zone of Guizhou Province and Yilong New District of Qianxinan Prefecture. The controlling shareholder is China Zhenhua Electronics Group Co., Ltd., and the actual controller is China Electronic Information Industry Group Co., Ltd.

In terms of production capacity, Zhenhua Xincai said in a survey conducted by the reception organization in February this year that at present Yilong has achieved a production capacity of 40,000 tons, while Guiyang has an existing production capacity of 10,000 tons. In 2022, it plans to carry out technical transformation of the existing Shawen Phase I in Guiyang. After the technological transformation, the production capacity will reach 16000 tons. At the same time, speed up the construction and expansion of the second phase of the fund-raising project with an annual output of 12000 tons, and the company's production capacity is expected to increase significantly in 2022 compared with 2021.

In addition, recently, research institutions EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute jointly issued the "White Paper on the Development of China's Ternary cathode material Industry (2022)". According to the white paper, shipments of ternary cathode materials in China reached 422000 tons in 2021, an increase of 79.6 percent over the same period last year. In 2021, global shipments of ternary cathode materials reached 718000 tons, an increase of 70.9 percent over the same period last year. Among them, Zhenhua New Materials ranks fifth among the Top10 enterprises in China in 2021 in terms of shipments of ternary cathode materials.