Huayou Cobalt Industry: net profit in the first quarter rose 256.50% compared with the same period last year. Quzhou, a subsidiary of New Energy, absorbed and merged Huahai New Energy.

On April 15, Huayou Cobalt released its results for the first quarter of 2021. According to the financial report, Huayou Cobalt's revenue in 2021 was about 6.424 billion yuan, an increase of 45.2% over the same period last year, and its net profit was about 654 million yuan, up 256.50% from the same period last year.

Public data show that: Huayou Cobalt Industry was founded in 2002, mainly engaged in new energy lithium materials and cobalt new materials research and development, manufacturing high-tech enterprises. After more than a decade of development, the company has formed three major business sectors of resources, non-ferrous and new energy, from the development and smelting of cobalt and nickel resources to the deep processing of lithium cathode materials, and then to the recycling of new energy lithium battery industry ecology.

Its 2020 annual report showed that the net profit belonging to shareholders of listed companies was about 1.165 billion yuan, an increase of 874.48% over the same period last year, and operating income was about 21.187 billion yuan, up 12.38% from the same period last year. It is worth mentioning that Huayou cobalt lithium new materials business accounts for 36.64% of its total revenue, which is the company's second largest source of revenue.

On April 15, Huayou Cobalt issued an announcement that the board of directors agreed to take Quzhou, a wholly-owned subsidiary of New Energy, to absorb and merge its wholly-owned subsidiary Huahai New Energy on December 31, 2020. After the completion of the absorption and merger, Quzhou, as the absorbing and merging party, continues to operate and acquires all the assets, liabilities and personnel of Huahai New Energy, and Huahai New Energy is cancelled according to law as the merging party.

It is reported that the absorption of the merger will help the company to reduce operating and management costs and improve operational efficiency. If nothing happens, the addition of Huahai New Energy will strengthen the new energy business of Huayou Cobalt to a certain extent.