The revenue of Yunhai Metal increased by more than 40% in the first half of the year. Magnesium price rise + sales increase is good for performance.

Yunhai Metal released a semi-annual report that in the first half of 2021, the company achieved operating income of 3.5982051 billion yuan, an increase of 42.70% over the same period last year, mainly due to the increase in sales volume of main products and higher sales prices. The company realized a net profit of 142.2686 million yuan belonging to the parent company, an increase of 46.68% over the same period last year, mainly due to an increase in sales of main products, an increase in magnesium prices, and an increase in government subsidies compared with the same period last year. In the first half of 2021, the company realized a net profit of 111.0588 million yuan after deducting non-recurring gains and losses, an increase of 25.04 percent over the same period last year, mainly due to the increase in sales of main products and the increase in magnesium prices.

The company's main business is magnesium, aluminum alloy materials and deep processing products business, mainly used in the automotive and consumer electronics fields. In order to improve the energy saving level of passenger vehicles and alleviate the pressure of energy and environment, the state has issued a package of policies, which has injected strong power into the improvement of automobile lightweight level. There are three main methods of automobile lightweight: (1) structural optimization design; (2) the use of lightweight new materials; and (3) lightweight forming process optimization. At present, lightweight materials including aluminum alloy, magnesium alloy, carbon fiber and high strength steel have been used in the field of traditional fuel vehicles or energy-saving and new energy vehicles. The company's main products are magnesium alloy, aluminum alloy and their deep processing products, customer demand-oriented, provide lightweight products and design solutions, is the leading enterprise of automotive lightweight materials. In recent years, the company has improved the rational layout of raw materials, and the original magnesium plant is built in areas close to raw materials, such as Wutai in Shanxi, Chaohu in Anhui and Chizhou in Anhui; deep processing is based on the principle of being close to the market and is distributed separately in the Yangtze River Delta, southwest and north. In the future, we are ready to enter the international market and become the leader in lightweight raw materials and products for automobiles.

The company is a leading enterprise in the magnesium industry, and the market share of magnesium alloy in the world is more than 35%. At the same time, the share of magnesium die castings for automobile has gradually increased in the subdivision field, and new customers and new projects have also achieved results in the past two years. In addition to steering wheel, dashboard bracket, seat bracket, central control bracket, etc., the leading products are also cultivating new products such as bicycle wheels and front forks, magnesium alloy building templates, etc. The company's aluminum alloy products are mainly high-performance aluminum alloy bars and recycled aluminum alloys, which have been transformed and upgraded in the past two years, gradually increasing the development of deeply processed aluminum alloy products and improving the self-conversion rate of aluminum alloy materials. the development of new energy automobile aluminum body structure extruded profile products, to Tesla, Ningde era and other customers of deep processing products sales significantly, so as to gradually improve the profit margin of the products. The construction of new projects will be carried out in an orderly manner in the first half of 2021.

In the second half of 2021, Shandong Yunxin Project, Chongqing Boao expansion Project, Nanjing Dongping Project and Chaohu Yunhai Precision Die casting Project will be completed and put into production one after another. The company's production capacity will increase significantly with the commissioning of the new project by the end of 2021 to meet market demand.