2021 net profit of Tianqi shares is expected to increase by more than 145% compared with the same period last year. Revenue from lithium battery recycling plate has risen sharply.

SMM, Jan. 17: Tianqi shares announced on the evening of January 16 that the company's net profit belonging to shareholders of listed companies in 2021 is expected to be 150 million yuan to 180 million yuan, an increase of 145.71% 194.85% over the same period last year.

As for the reasons for the changes in the company's performance, Tianqi shares said that on the one hand, the overall recovery volume and production capacity of the company's lithium battery recycling plate have been improved, and the product structure has been continuously optimized. On the other hand, due to the rising prices of steel, resin and other commodities, the gross profit space of the company's intelligent equipment plate and heavy industry equipment plate has narrowed.

However, the lithium battery recycling plate is still the bulk of the company's revenue. It is reported that during the reporting period, benefiting from the development of the new energy automobile industry, the strong demand for power battery materials led to a continuous rise in the prices of metals such as cobalt and lithium, and the sales prices of the company's lithium battery recycling plate products rose sharply. as a result, the business income and profits of the company's lithium battery recycling plate increased significantly compared with the same period last year.

On December 23, 2021, Tianqi shares also announced that Tianqi Jintai Pavilion, a wholly owned subsidiary of the company, had been included in the "list of enterprises". It is reported that Tianqi Jintai Pavilion focuses on the resource utilization of waste lithium batteries and now has the technology of extracting all metals from lithium batteries, which is in the forefront of the industry and has strong profitability.

As we all know, the price of lithium carbonate has risen rapidly in 2021, and its rising price has also brought a certain boost to the performance of Tianqi shares. On December 9, Tianqi also publicly said that after expanding production in August, the company's lithium carbonate production capacity could reach 180,000,200 tons. After the technical renovation project of Tianqi Jintai Pavilion is fully reached, the production capacity of lithium carbonate will be increased to 5000 tons per year in an all-round way.

According to the spot price of SMM, the spot price of domestic battery-grade lithium carbonate has been "rising" since 2022, and the price of lithium hydroxide is also rising. As of January 17, domestic battery-grade lithium carbonate rose another 5000 yuan to 331000 yuan per ton, up 19.06 percent from the beginning of the year.

"Click to view the spot price of SMM metal

According to SMM research, domestic battery-grade lithium carbonate smelters are currently offering sporadic quotations. In the middle of last week, under the influence of the sharp drop in lithium prices in Wuxi, some traders began to release goods, but due to the limited inventory and the high degree of shortage downstream, spot prices remain high. "View details

Guojin Securities expects that the price rise of lithium salt has weakened after the Spring Festival, the price has stabilized, and a new round of rise will begin at the end of the third quarter after the horizontal trading. In terms of variety, lithium carbonate rises first, and the increase in lithium hydroxide is expected to catch up by the middle of the year.