Azure lithium battery business revenue of 1.447 billion yuan and net profit of 267 million yuan in 2020

On the evening of February 8th, Azure Lithium Core (002245) released its annual report for 2020. Last year, the company achieved a total operating income of 4.2495504 billion yuan, an increase of 20.76% over the same period last year; an operating profit of 355.6048 million yuan, an increase of 126.27% over the same period last year; a net profit of 280.9986 million yuan, an increase of 91.30% over the same period last year; and a net profit of 277.9519 million yuan belonging to shareholders of listed companies, an increase of 136.33% over the same period last year.

Among them, in 2020, the business income of Azure lithium-core lithium battery business reached 1.4466211 billion yuan, an increase of 49.97% over the same period last year, and a net profit of 267.4253 million yuan, an increase of 137.87% over the same period last year. The lithium battery business has become the company's biggest source of profit.

Composition of operating income of Azure Lithium Core in 2020 (unit: yuan)

As the company's lithium battery business has become the company's largest profit source and the largest profit growth point, since December 14, 2020, the abbreviation of Aoyang Shunchang Chinese Securities has been changed to "Azure Lithium Core", and the securities code remains unchanged. On the same day, Azure Lithium announced that more than 1.2 billion yuan would be invested in the lithium battery project, with an estimated investment of 1.256 billion yuan, an additional annual production capacity of 1 billion AH lithium-ion batteries, and an annual production capacity of more than 300 million lithium batteries. After the completion of the project, the wholly-owned subsidiary Tianpeng Power supply will have an annual capacity of 700 million lithium batteries.

It is reported that in 2020, Tianpeng Power supply lithium battery capacity construction maintained an orderly progress, and a new production line of 21700 and 18650 compatible batteries was put into production in the fourth quarter. The new lithium-ion battery project with an annual capacity of 1 billion AH is scheduled to release capacity from Q3 in 2021.

In 2020, Tianpeng Power supply will continue to focus on the small power battery market dominated by power tools, give full play to the company's traditional advantages in the field of high-rate battery segmentation, and comprehensively promote stable cooperation with international well-known brands such as BOSH, Stanley Black&Decker, TTI and domestic first-tier tool manufacturers such as Dongcheng and Dayi, and business volume continues to maintain rapid growth.

Wu Hui, president of the China Battery Industry Research Institute and general manager of the research department of the Yiwei Economic Research Institute, said in a previous exchange with the battery network that global shipments of lithium batteries for power tools have grown rapidly in recent years, climbing from 1.2GWh in 2011 to 11GWH in 2019, 9.17 times that in 2011. He expects the tight supply of power tool batteries to continue into the first half of 2021.