Jiayuan Technology plans to set up a copper foil subsidiary with a net profit of about 111 million yuan in the first quarter.

On April 16, Jiayuan Technology (688388) issued a first-quarter results announcement, saying that revenue in the first quarter of 2021 was about 531 million yuan, up 259.30 percent from the same period last year; net profit was about 111 million yuan, up 366.44 percent from the same period last year; and basic earnings per share was 0.48 yuan, up 380 percent from the same period last year.

On the same day, Jiayuan Science and Technology announced that the company plans to invest 100 million yuan to set up Jiayuan (Shenzhen) Science and Technology Innovation Co., Ltd., a wholly-owned subsidiary in Nanshan District, Shenzhen City, Guangdong Province (tentative name, subject to the name approved by the administrative department for industry and commerce). The aim is to make full use of Shenzhen's core position in Guangdong-Hong Kong-Macau Greater Bay Area and South China, the advantages of talent gathering and a strong atmosphere of innovation. Strengthen the communication and cooperation with the high-quality enterprises in the upstream and downstream of the industrial chain, and strengthen the company's R & D and market influence ability in the field of lithium copper foil.

Jiayuan Technology has previously said that the capacity expansion of domestic lithium copper foil manufacturers reflects an optimistic prediction that the large-scale expansion of downstream lithium battery manufacturers leads to a tight relationship between supply and demand of lithium copper foil. In the long run, the lithium copper foil market will show a supply and demand pattern of high-end product capacity falling short of demand and structural overcapacity of middle and low-end products.

It is reported that Jiayuan Technology is mainly engaged in the research, production and sales of 4.5 ~ 12 μ m high-performance electrolytic copper foil for lithium-ion battery and electrolytic copper foil for PCB, which is mainly used for lithium-ion battery current collector and PCB circuit board. In 2020, Jiayuan Technology Lithium Copper foil achieved revenue of 1.079 billion yuan, a decrease of 24.81% over the same period last year, while revenue of standard copper foil reached 123 million yuan, an increase of 964.86% over the same period last year.

The battery network learned that Jiayuan Technology now has an annual production capacity of 21000 tons of copper foil, which is currently under construction or in the planning stage, including the 15000 tons of high-performance copper foil project located in the Baidu plant area of Meixian County, the new 16000 tons of high-performance electrolytic copper foil project in Jiayuan Science and Technology Park, and the 15000 tons of high-performance copper foil project located in Fu'an City, Ningde City, Fujian Province. And the project with an annual output of 20,000 tons of electrolytic copper foil located in Longnan City, Ganzhou City, Jiangxi Province.

On March 14, Jiayuan Science and Technology just announced a new production expansion plan: on the basis of the "annual output of 15000 tons of high-performance copper foil project" in Shaping Village, Baidu Town, Meixian District, Meizhou City, Guangdong Province, the company plans to invest about 1 billion yuan in adjacent industrial plots to build a "new high-performance electrolytic copper foil project with an annual output of 16000 tons in Jiayuan Science and Technology Park." after the project is completed, The total production capacity of the company in Shaping, Baidu Town, Meixian District will reach 31000 tons per year.

In addition, recently, EVTank, together with Yiwei Economic Research Institute and China Battery Industry Research Institute, jointly issued the "White Paper on the Development of China's Copper foil Industry (2021)". White paper statistics show that in 2020, Chinese lithium copper foil shipments reached 146000 tons, an increase of 17.7% over the same period last year, and Chinese lithium copper foil shipments accounted for nearly 35% of all electrolytic copper foil shipments.

From the perspective of enterprise competition, Longdian Huaxin ranked first with shipments of more than 23000 tons in 2020, with a market share of 16.0%, followed by Nord shares and Jiayuan Technology, with a market share of 13.0% and 10.1%, respectively.

The white paper also points out that the pursuit of high energy density of downstream power batteries has led to the mass application of 4.5 μ m of extremely thin copper foil, and industry leaders, including Jiayuan Technology and Nord AG, have begun to supply 4.5 μ m of products in large quantities.