The high-rate lithium battery market is in great demand. Changhong Energy made a net profit of 256 million last year.

On the evening of February 24th, Changhong Energy (836239) released its performance KuaiBao. In 2021, the company achieved operating income of 3.069 billion yuan, an increase of 57.24% over the same period last year, and its mother's net profit was 256 million yuan, an increase of 58.19% over the same period last year.

Main Financial data and indicators of Changhong Energy in 2021 (unit: yuan)

Changhong Energy said that in 2021, the market demand for high-rate lithium power is strong, the company's new lithium power production capacity is released, realizing the rapid growth of lithium power business, and the alkali power business is growing steadily. Lithium electricity + alkali electricity two-wheel drive, business income, profits are greater growth than the same period last year.

In addition, in 2021, in terms of customer development, Changhong Energy has actively expanded sales channels, made great breakthroughs in the expansion of international high-end customers, and further optimized product structure and enhanced profitability.

In terms of technological research and development, in 2021, Changhong Energy will continue to increase the development of lithium-ion battery and alkaline manganese battery technology, speed up the transformation of technological achievements, enhance core technological capability and innovation capability, and at the same time continue to deepen fine management and control, reduce costs and improve efficiency, increase revenue and reduce expenditure, and enhance the comprehensive competitiveness and profitability of products.

It is worth noting that Changhong Energy announced on the evening of February 8 that it planned to jointly issue shares to Yang Qingxin, Zhao Xuedong and Zhongjie and pay cash to buy its total 33.17% stake in Changhong Sanjie. Before this transaction, Changhong Energy held a 66.83% stake in Changhong Sanjie. After the completion of this transaction, the company will hold a 100% stake in Changhong Sanjie.

It is reported that Changhong Energy was founded in October 2006, listed the new third board in March 2016, and landed on the selected floor in February 2021. The actual controller of the company is Mianyang State-owned assets Supervision and Administration Commission. In April 2018, Changhong Energy formed the dual product layout of "Alkali electricity + Lithium electricity" by acquiring the shares of Changhong Sanjie.

Changhong Sanjie is mainly responsible for the lithium electricity plate business of Changhong Energy, mainly engaged in the research and development, design, production and sales of lithium ion batteries. The products are mainly used in power tools, garden tools, vacuum cleaners, smart homes and so on. As of February 8, Sanjie Changhong has established manufacturing bases for high-rate cylindrical lithium-ion batteries in Taixing and Mianyang, leading the industry in production scale.

Zheshang Securities previously issued a research report that lithium power has gradually become the focus of Changhong energy business, and the acquisition of the stake in Changhong Sanjie is intended to continuously increase the layout of lithium power through wholly-owned holding and include high-quality lithium power assets.