SMM, July 13: news on the evening of July 12, Dangsheng Science and Technology issued a pre-increase announcement on its results for the first half of 2021, which showed that the company is expected to achieve a net profit of 4.1 to 450 million yuan in the first half of the year, an increase of 180.67% and 208.05% over the same period last year.
As for the reasons for the change in performance, Dangsheng Technology explained that it was mainly due to the rapid release of the company's capacity of lithium cathode materials, a substantial increase in sales and a rise in net profit. In addition, the stock price of Hunan Zhongke Electric Co., Ltd. held by the company rose, which is also the reason for the increase in the company's net profit.
According to public data, Dangsheng Technology, founded in 2001, is mainly engaged in the research, development, production and sales of small lithium and power lithium cathode materials such as lithium cobalt oxide, multicomponent materials and lithium manganate. It is a leading professional supplier of cathode materials for lithium-ion batteries in China. Its sales scope has covered China, Japan, South Korea, Europe and the United States and other countries and regions.
With the explosive growth of new energy vehicles around the world, the field of power batteries has also ushered in another spring. When Sheng Technology is the leading supplier of cathode materials for lithium-ion batteries in China, its cathode material business is naturally rising. In the first quarter of 2021 alone, the company achieved a net profit of 150 million yuan, a year-on-year increase of 353.5%. Among them, lithium cathode materials definitely play an important role.
In late June, Dangsheng Technology stepped in again, raising 4.645 billion yuan for the construction of cathode materials. According to its announcement at that time, the second phase of the project of Dangsheng Science and Technology (Changzhou) Lithium Electric New material Industry Base plans to invest 2.471 billion yuan to build a 50, 000-ton / year high-nickel lithium cathode material production line. Jiangsu Dangsheng Lithium cathode material production Base Phase IV project plans to invest 1.096 billion yuan to build 20, 000 tons / year digital cathode material production line; The project of Dangsheng Science and Technology (Changzhou) Lithium Electric New Materials Research Institute plans to invest 560 million yuan to build a new trial production center workshop and technical staff office area to support the experimental capabilities of a full range of lithium cathode materials, such as lithium cobalt, lithium manganate, multicomponent materials, iron / manganese phosphate and so on.
As of July 12, according to SMM historical prices, the average price of ternary precursors (523 / power) was 120500 yuan / ton, up 42% this year.
"Click to view the historical price of SMM Metals.
It is worth mentioning that, according to the recent research of SMM, in terms of ternary precursors, the cost of precursors continues to rise as the price of cobalt and nickel salts continues to rise, while in terms of supply and demand, new production capacity of head precursor enterprises is released, production increases, downstream power high nickel orders increase, and high-end production capacity is tight. In terms of price, the lower reaches of last week basically finished purchasing orders in July, and the market transactions in the second half of the week were sporadic, with market quotations rising and being in a state of price but no market. "View details
According to the company's existing production capacity planning, it is estimated that the completed capacity of cathode materials will reach 44000 tons by the end of 2021 and more than 109000 tons by 2025.
