Zhongwei Co., Ltd. is in a state of full-load production, accounting for more than 80% of high nickel products.

On January 18, Zhongwei said in an interactive exchange with investors that the company's mainstream products in the existing market are still high nickel and single crystal direction, and the company still maintains an open and cooperative attitude. strive to cover the existing mainstream cathode manufacturers, lithium battery manufacturers and some new energy vehicle companies.

Zhongwei said that at present, the supply of high nickel products abroad exceeds domestic demand, and the transformation from ternary low nickel to high nickel in China is still a bit slower than that abroad, and international customers have higher requirements for technology and quality.

Zhongwei's existing products account for more than 80% of the high nickel series and less than 20% of the low nickel series. The company's 5-series products accounted for about 80% of the company's 5-series products in 2017, and now 5-series products account for only about 20%, which still changes greatly from year to year.

With regard to the three-yuan and iron-lithium lines, Zhongwei said that the homogenization competition of iron-lithium products is more serious, and the room for product performance improvement is relatively small, but the product performance of Sanyuan still has a lot of room to improve. In addition, at this stage, the strength of the industry participants is enhanced, the development capacity is expected to be further enhanced; The cost of iron lithium still has certain advantages over ternary, but ternary also has certain advantages in terms of energy density and voltage, and there will be more differential positioning and demand in the future.

Zhongwei shares revealed that the company is now basically in a state of full capacity production, and the production expansion plan for 2021 is mainly the construction and implementation of fund-raising projects and some other planned new workshops. Of course, it is also possible to adjust the company's production expansion plan in real time because of changes in customer demand; the issue of capacity release is determined according to the needs of the market and customers, including product certification, equipment commissioning, running-in and so on.

Previously, Zhongwei expected operating income of 7.3 billion yuan to 8 billion yuan in 2020, an increase of 37.45% to 50.62% over the same period last year. The net profit attributed to the owner of the parent company was 360 million yuan to 400 million yuan, an increase of 100.19% to 122.44% over the same period last year. Net profit attributable to the owner of the parent company after deducting non-recurring profits and losses was 300 million yuan to 340 million yuan, an increase of 147.39% to 180.37% over the same period last year.

As for the main factors for the increase in performance in 2020, Zhongwei said that it was mainly due to the increase in sales revenue to core customers such as LG Chemical, Tesla and Xiamen Tungsten Industry, which further highlighted the company's scale effect and greatly improved its profit level. On the other hand, benefiting from the further release of economies of scale and the further improvement of capacity utilization, the company has significantly improved the efficiency of reducing costs and increasing efficiency, superimposing the favorable impact of some raw material price fluctuations on operating performance, jointly promote the gross profit margin and net profit margin to further improve.

It is worth noting that on December 23, Zhongwei shares were listed on the Shenzhen Stock Exchange and officially landed on the gem. Zhongwei's products have successfully entered the supply chain systems of LG Chemical, Samsung SDI, LASF, ATL, BYD, Ningde Times and BASF, and some of their products have passed the batch certification of international well-known new energy vehicle companies.