SMM: on the afternoon of July 30th, the general meeting of shareholders of Xiamen tungsten industry approved the motion of listing from Xiamen Tungsten Xinneng to Kechuang Board by nearly unanimous approval. A person close to the company said in an exclusive interview with the Financial Associated Press that Xiamen Tungsten Xineng will move closer to the leading enterprises in the future, and the worried net profit, which is greatly affected by raw materials, has been improved in a number of strategies such as strengthening inventory management implemented last year.
Xiamen Tungsten Xinneng, formerly the Battery Materials Division of Xiamen Tungsten Industry, began the research and development of cathode materials for lithium-ion batteries in 2005 and established a company to operate independently in December 2016. Xiamen Tungsten Xinneng specializes in the research, development, production and sales of lithium ion battery cathode materials such as lithium cobalt oxide and lithium nickel cobalt manganate ternary materials. Related products are mainly used in 3C electronic products and new energy vehicles and other fields.
KuaiBao, the performance of Xiamen tungsten industry, showed that in the first half of 2020, the company's business of new energy battery materials (including lithium cathode materials and hydrogen storage alloys) achieved revenue of 3.155 billion yuan, down 7.30 percent from the same period last year; the total profit was 94 million yuan, turning losses into profits over the same period last year, and profits increased by 138 million yuan.
Previously, Science and Technology Innovation Board Daily reported that Xiamen Tungsten Xinneng has shown a downward trend in deducting non-net profit in the past three years. People close to the company said that since the second half of 2018, the price of cobalt raw materials has fallen rapidly, and in the process, Xiamen tungsten Xinneng suffered a loss in the same period last year due to factors such as high cobalt raw material stocks at the beginning of the digestion period. The person further explained that on the basis of stabilizing the supply channels of upstream raw materials, Xiamen Tungsten Xin can actively take improvement measures such as optimizing the procurement mechanism and strengthening inventory management. From January to June 2020, with the effective implementation of the above improvement measures and the stabilization of cobalt raw material prices since the second half of 2019, the profitability of Xiamen Tungsten Xineng has rebounded.
In addition, industry insiders once told Science and Technology Innovation Board Daily that due to the influence of favorable driving factors such as the acceleration of 5G commercialization and the rapid development of new energy vehicles, the cathode materials industry is facing good market opportunities, but at present, the competition in the cathode materials industry is more fierce, including the upstream raw materials manufacturers are also in the layout, but the chaotic market caused by overheated capital may clean the industry, so that market share is further concentrated to the head of high-quality enterprises.
The aforementioned company said that Xiamen Tungsten Xinneng currently ranks among the forefront of the industry in terms of sales volume and market share of cathode materials, and continues to strengthen its technical advantages and communication with customers. For example, the company will further improve customer satisfaction and achieve common development by deepening cooperation with major customers.
A reporter from the Financial Associated Press noted that no matter from the front-end materials or back-end customers, the verification of cathode materials takes a long time, further raising the barriers of the industry, companies that occupy the market first or gain a first-in advantage. The person close to the company also said that in the first half of 2020, the sales of Xiamen tungsten Xineng lithium cobalt increased, and the profitability of the battery materials business rebounded significantly compared with the same period last year.
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