The blue lithium core plans to raise no more than 2.5 billion to expand the production of lithium batteries. The net profit in the first three quarters is over 497 million.

On the evening of October 8th, Azure Lithium Core (002245) issued a forecast of results for the first three quarters of 2021, and the company expects to achieve a net profit of 497 million yuan to 517 million yuan belonging to shareholders of listed companies in the first three quarters, an increase of 182.78% 194.15% over the same period last year. Among them, the net profit in the third quarter is expected to be 158 million yuan to 178 million yuan, an increase of 51.80% Rue 71.01% over the same period last year.

Azure Lithium Core said that in the first three quarters of 2021, the company's business was in good condition, especially the lithium battery business as a whole was in a state of full production and full sales, which increased significantly compared with the same period last year and was the largest source of profits for the company.

Battery network learned that Jiangsu Tianpeng Power Co., Ltd. (referred to as "Tianpeng Power"), as the development carrier of Azure lithium-core lithium battery business, has more than ten years of R & D and manufacturing experience in the field of ternary cylindrical power battery. at present, it has the top horizontal cylindrical lithium battery automatic production line at home and abroad, and has large-scale cylindrical power lithium-ion battery production capacity. The company's lithium battery products are mainly used in small power systems, especially in the field of lithium batteries for power tools.

According to the "White Paper on the Development of China Cylindrical Lithium Ion Battery Industry (2021)" issued by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute, the global shipment of high-rate lithium-ion batteries for power tools reached 2.02 billion in 2020, and this figure is expected to reach 4.93 billion in 2025. From the perspective of high-rate battery enterprises of major power tools, SDI ranked first with a market share of 36.1% in 2020. Chinese enterprises, represented by Tianpeng Power and Yiwei Lithium Energy, also increased their shipments by cutting into international giants such as TTI, Bosch and SB&D, ranking second and third in the world.

In addition to the above customers, Tianpeng Power customers also include Baide, Dongcheng tools, Dayi Technology, Anhai, Mutian, Baoshi de and other large domestic and foreign enterprises.

In the face of the booming market demand, Azure Lithium Core mentioned in its semi-annual report a few days ago that due to the superposition of the dual trends of "cordless, electrified and domestic substitution", the market demand for ternary cylindrical lithium batteries is growing much faster than expected, and the growth is sustained. As the representative of the high-quality production capacity of small power lithium batteries in the world, the company's existing capacity has been unable to ensure the security of customers' supply chain, and expanding production capacity and improving supply guarantee service capacity has become the top priority of the work in 2021.

At present, the Azure Lithium Core Zhangjiagang Phase II project has entered the equipment installation stage and is expected to be gradually put into production in October. After reaching production, the company's annual lithium battery production capacity will reach 730 million; Huai'an plant phase I project is also under construction. At present, the pile foundation project and testing have been completed, part of the foundation beam has been completed, and it is expected to be put into production in the third quarter of 2022. After reaching production, the company's annual lithium battery production capacity will reach 1.3 billion. The construction of the second phase of the Huaian plant is also under evaluation.

While stepping up the promotion of the above projects, Azure Lithium Core on the 8th once again disclosed the latest 2021 non-public offering of A-share plans. According to the plan, the number of shares to be issued by the company will not exceed 165 million shares, and the total amount of funds raised will not exceed 2.5 billion yuan (including capital). After deducting the issuance costs, it is planned to be used for the industrialization project of high-efficiency new lithium-ion battery with an annual production capacity of 2 billion AH, the industrialization project of high-efficiency new lithium-ion battery (Phase II), and supplementary working capital.

Specifically, the total investment of the industrialization project of a high-efficiency new lithium-ion battery with an annual output of 2 billion AH is 2.35 billion yuan, and it is proposed to use the raised funds to invest 1 billion yuan. The construction period is 15 months. After reaching production, the production capacity of lithium-ion battery will be increased by 2 billion AH/ years, with an average annual operating income of 3.393 billion yuan and an average annual net profit of 499 million yuan. The expected benefit of the project is good.

The industrialization project of high-efficiency new lithium-ion battery (phase II) has a total investment of 2.3 billion yuan and a planned investment of 1 billion yuan. The construction period is 15 months. After reaching production, the production capacity of lithium-ion battery will be increased by 2 billion AH/ years, with an average annual operating income of 3.379 billion yuan and an average annual net profit of 499 million yuan. The expected benefit of the project is good.

Azure Lithium Core said that after this investment project is completed and put into production, the company's production capacity will further increase, form a more obvious scale advantage, give full play to the company's advantages in the field of high-rate batteries, and expand and strengthen the company's lithium battery business. it will help the company to accelerate to become a leading international supplier of lithium batteries for small power systems.