The demand for lithium cathode materials is exuberant. Zhenhua New Materials' net profit in 2021 turned from a loss to a profit compared with the same period last year.

SMM January 19: recently, many lithium industry chain enterprises have issued their 2021 performance forecasts. Zhenhua Xincai announced that its net profit belonging to shareholders of listed companies is expected to reach 380 million-430 million yuan in 2021, a year-on-year turnaround and a net profit loss of 170 million yuan in the same period in 2020.

For the reasons for the changes in the company's performance, Zhenhua Xincai said that the new energy vehicle power battery market is growing rapidly in 2021, the downstream customers of the company have a strong demand for cathode materials, and the new production capacity of the Yilong Phase II project has been gradually released. annual product sales increased by about 2.8 times compared with the same period last year; and the company's sales volume of high-nickel ternary materials and realized income accounted for a substantial increase in operating income compared with 2020.

Public data show that Zhenhua New Materials was mainly engaged in the research, development, production and sales of lithium cobalt oxide and composite ternary cathode materials in the early days, and its products are also used in the field of 3C batteries. However, with the rapid development of the new energy industry, Zhenhua New Materials also began to transform the layout of cathode materials needed for power batteries. In the previously released record sheet of investor activity, Zhenhua Xincai mentioned that the company's sales of high-nickel 8-series NCM ternary cathode materials reached 113.56 tons in 2019 and 408.06 tons in 2020, respectively. The company has sold 1286.38 tons of high-nickel 8-series ternary cathode materials from January to March in 2021.

According to the previous third-quarter financial report, the company's sales revenue of high-nickel 8-series NCM ternary materials in the first three quarters of 2021 was 1.274 billion yuan.

At present, the company Yilong II sub-module is promoting the construction, some modules have been put into production, the other two modules have entered the equipment installation and commissioning process in the fourth quarter of this year, and the release of production capacity is still in the climbing stage.