SHANGHAI, Nov 20 (SMM)—A number of nickel related enterprises have disclosed their performance in the first three quarters. Huayou Cobalt performed well, with a net profit of about 687 million yuan in the first three quarters of 2020, surging 640.27% year on year. According to a Research Report of TF Securities, Huayou Cobalt’s ternary precursor capacities put into production or under construction totalled 100,000 mt per year. It products have entered core industry chains of global leading motive battery producers such as LG Chem, SK, CATL and BYD and have been widely applied to high-end electric vehicles in Europe and America, such as Volkswagen MEB platform, Renault Nissan Alliance, Volvo, Land Rover and Jaguar. The company is building a 45,000 mt high-grade nickel matte project, a 50,000 mt precursor project and an Indonesian wet laterite nickel ore project, and after all of them are put into operation, the company's profits may reach a new level.
It is reported that Huayou Cobalt started development of laterite nickel ore in Indonesia in 2018, and invested in construction of a cobalt hydro-metallurgy project with annual crude nickel hydroxide output of 60,000 mt in order to prepare raw materials for high-nickel lithium battery materials in the future. Meanwhile, the company also carried out industrial layout of urban cobalt and nickel resources recycling, improved construction of cobalt ore supply chain management system, and laid out lithium salt lake in Argentina and lithium mineral resources in Congo (DRC), creating favorable conditions for the company to obtain sustainable cobalt, nickel and lithium resources.
In the first half of 2020, the company’s Huayue hydro-metallurgy project in Indonesia commenced construction in March this year. However, the design, procurement and construction of the project were delayed to varying degrees due to the COVID-19 pandemic, and the company adjusted construction progress according to actual situation. The MIKAS hydro-metallurgy phase III expansion and transformation project in Africa was steadily promoted; the recycling of lithium batteries, the Quzhou Science and Technology Innovation Center project, and the Tongxiang headquarters research center project are all under construction. In mid-July, the subsidiary Quzhou Huayou’s 30,000 mt (metal content) high-purity ternary motive battery-grade nickel sulphate project officially started construction. The completion of the project is of great significance for the company to build an integrated industrial chain of lithium battery materials.
Qingdao Zhongcheng: In the first three quarters of 2020, the company realized a total operating revenue of 540 million yuan, with a year-on-year decrease of 20.8%; the net profit attributable to the parent company was - 15.2 million yuan, which was - 61.79 million yuan in the same period of last year. During the reporting period, the company's gross profit rate was 16.7%, with a year-on-year increase of 4.9 percentage points, and the net profit rate was - 1.4%, 8.5 percentage points on the year.
Pengxin: From January to September of 2020, the company realized an operating revenue of 6.43 billion yuan, with a year-on-year decrease of 45.06%, and the net profit attributable to shareholders of listed companies was 66.73 million yuan, down 81.20% year on year, and earnings per share was 0.0301 yuan.
Chengtun Mining: In the first three quarters of 2020, the revenue was about 32.9 billion yuan, with a year-on-year growth of 41.05%; the net profit was about 270 million yuan, with a year-on-year increase of 52.59%; the basic earnings per share is 0.117 yuan, up 44.44% on a yearly basis.
Hezong Technology: In the first three quarters, the operating revenue was 861 million yuan, down 34.67% year on year; the net profit attributable to shareholders of listed companies was - 167 million yuan, with a decrease of 451.23% year-on-year. The basic earnings per share is -0.2 yuan.
GEM: In the first three quarters of 2020, the revenue was about 8.64 billion yuan, with a year-on-year decrease of 12.09%; the net profit was about 326 million yuan, with a year-on-year decrease of 46.07%; the basic earnings per share was 0.07 yuan, down 53.33% from a year ago.
Huayou Cobalt: In the first three quarters of 2020, the revenue was about 14.8 billion yuan, with a year-on-year growth of 5.82%; the net profit was about 687 million yuan, with a year-on-year increase of 640.27%; the basic earnings per share was 0.61 yuan, up 662.5% on the year.
Shanshan: In the first three quarters of 2020, the revenue was about 5.56 billion yuan, with a year-on-year drop of 14.61%; the net profit was about 278 million yuan, with a year-on-year decrease of 3.52%; the basic earnings per share was 0.202 yuan, down 21.09% from a year earlier.
For queries, please contact William Gu at williamgu@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn