The net profit of Fengyuan shares increased by more than 669.67% in the first quarter, accelerating the commissioning of the second phase of lithium cathode materials.

On the evening of March 29th, Fengyuan shares (002805) released its performance KuaiBao. The company achieved operating income of 359 million yuan last year, down 21.69% from the same period last year. The average operating income growth rate of the basic chemical industry was-28.44%. The net profit belonging to shareholders of listed companies was-29.2264 million yuan, down 358.01% from the same period last year.

In this regard, Fengyuan shares explained that in 2020, the production capacity of the lithium cathode material industry sector that the company focused on development and investment could not be effectively released, and the new investment led to an increase in costs and expenses. the increase in R & D investment in order to increase the technology reserve has had an impact on the performance of the current period. At the same time, according to accounting standards, the financial department plans to set aside 16 million yuan to 18 million yuan for impairment of related assets (inventory) in 2020 and 14 million yuan to 15 million yuan for overdue credit losses on some accounts receivable. In 2020, the company's annual financial expenses increased greatly due to the increase in interest-bearing liabilities, which also had a great impact on the fourth quarter and annual results.

According to public data, Fengyuan has covered two mainstream products, lithium iron phosphate LFP and ternary material NCM, which can be widely used in power batteries, energy storage, consumer lithium batteries and other emerging fields.

Fengyuan said that in 2021, it will firmly seize the development opportunity of the new energy lithium battery industry, strive to improve the level of business performance, and strengthen and expand the company's lithium battery cathode material industry sector.

On the same day, Fengyuan issued a performance forecast that it is estimated that the net profit attributed to shareholders of listed companies in the first quarter of 2021 is 8 million yuan to 10 million yuan, an increase of 669.67% and 862.09% over the same period last year, and basic earnings per share is 0.06 yuan to 0.07 yuan.

With regard to the reasons for the substantial increase in performance, Fengyuan shares said that on the basis of the restorative growth of the company's business plate, the company's strategic development of the new energy lithium battery cathode materials business has also ushered in a historic opportunity for the development of the green and new energy industry. the company's positive material orders have increased, production capacity has been gradually released, and the company's management has taken positive and effective measures in cost control such as raw material prices. It has improved the company's business performance in all aspects.

In addition, the company is speeding up the production of the second phase of lithium battery cathode materials to meet the strong demand of downstream customers, and will provide support for the next stage of performance growth through further cost improvement and market development.

The battery network learned that the construction of the first phase of the Fengyuan Lithium Iron Phosphate Project has been completed. At present, the 5000 tons of major equipment in the second phase has been put in place, and the relevant supporting construction work is being paid close attention to.