Lithium hexafluorophosphate performance greatly increased Tianji shares are expected to make a net profit of more than 440 million in the first three quarters.

After trading on Sept. 14, Skyline (002759) issued a forecast of its results for the first three quarters. The company expects the net profit attributed to shareholders of listed companies to be 440 million yuan to 460 million yuan in the first three quarters, compared with a loss of 43.7527 million yuan in the same period last year and a year-on-year return to profit. Among them, the net profit attributed to shareholders of listed companies in the third quarter is expected to be 240 million yuan to 260 million yuan.

Tianji shares said that in the first three quarters, the company's lithium hexafluorophosphate products production and sales boom, coupled with the increase in sales prices, lithium hexafluorophosphate performance increased significantly compared with the same period last year.

On the same day, Skyline announced that the company's stock trading price for three consecutive trading days (September 10, 2021, September 13, 2021, September 14, 2021) closed by a cumulative deviation of more than 20%.

Behind the performance of Tianji shares and the rise in stock prices is the rise in the volume and price of lithium hexafluorophosphate. In the first half of this year, Tianji Lithium material (Lithium hexafluorophosphate) sales reached 616 million yuan, accounting for a further increase in the company's total sales to 81.79%. The company said that in the first half of the year, the production and sales of lithium hexafluorophosphate products of Xintai Materials, a wholly-owned subsidiary, were booming, and the company was at full capacity, with sales up 189.78% year-on-year and output up 172.64% over the same period last year.

In terms of orders, on July 18 and 25, BYD and Cathay Huarong signed long-term supply contracts with Xintai Materials, a subsidiary of Skyline, and lithium hexafluorophosphate products, which will supply not less than 21500 tons of lithium hexafluorophosphate to the two enterprises.

In a recent exchange with investors, Tianji said that the company had in-depth communication with electrolyte and battery factories, and they asked the company to continue to expand its production capacity, and the demand of several core customers would exceed 50,000 tons by 2023. The company's current production capacity can not meet the needs of customers, and the company will timely launch an expansion plan for new capacity according to the changes and needs of the market.

In terms of production capacity, Tianji shares has an annual production capacity of 8160 tons of lithium hexafluorophosphate. According to the relevant regulations of Jiangsu Province, the design capacity submitted for approval is not a major adjustment within the range of not more than 30%. The company's existing production capacity can reach 10, 000 tons after technological transformation.

In addition, on July 12, Skyline issued an announcement that Xintai Materials, a wholly-owned subsidiary, planned to jointly invest in lithium hexafluorophosphate, battery electrolyte additives and other product production projects with the company's second largest shareholder, Changshu Xinhua Chemical Co., Ltd., with a total investment of 600 million yuan. Among them, Xintai Materials contributed in currency, accounting for 51% of the total investment; Xinhua Chemical used its asset evaluation as the price and currency to contribute, accounting for 49% of the total investment.

The main products of this joint investment project are 10, 000 tons of lithium hexafluorophosphate, 76000 tons of by-product hydrochloric acid, 500 tons of new battery electrolyte additives, 47000 tons of fluoride salt, etc.

On the evening of August 20, Skyline announced that Jiangsu Xintai Materials Technology Co., Ltd. (hereinafter referred to as "Xintai Materials"), a wholly owned subsidiary of the company, recently signed a "letter of intent for Project Investment" (hereinafter referred to as "letter of intent") with Jiangsu Changshu New Materials Industry Park and Jiangsu Ruitai New Energy Materials Co., Ltd. (hereinafter referred to as "Ruitai New Materials").

According to the letter of intent, Xintai Materials and Ruitai New Materials jointly invested 1 billion yuan to set up a new company in Jiangsu Changshu New material Industrial Park to build a production and sales project with an annual output of 30, 000 tons of lithium materials such as lithium hexafluorophosphate and calcium chloride. The total investment of the project is expected to be 3 billion yuan, and the total planned land is about 203mu.

In terms of price, due to tight supply, rising raw material costs and other factors, relevant data show that the price of lithium hexafluorophosphate has risen all the way from the lowest of less than 70,000 yuan / ton in July last year to more than 400000 yuan / ton in July this year. In a recent exchange with investors, Dofurdo said that some peer prices have been sold to 470000.

China Merchants Securities expects that after this round of production expansion, the total capacity concentration of Tianzhi Materials, Polyfluoroduo and Xintai Materials next year will be close to 70%, an increase of 15-20 percentage points over 2019-2020. If the actual shipments are taken into account, the share of the three enterprises will be higher, the industry structure will be more orderly, and the industry advantages will be further concentrated to the leading enterprises.