Revenue from products such as battery-grade lithium carbonate increases the net profit of Hongxing Development in 2021 is more than three times higher than that of the same period last year.

On the evening of January 21, Red Star Development (600367) disclosed its performance forecast. according to the preliminary calculation of the company's financial department, the company's net profit belonging to shareholders of listed companies in 2021 is expected to increase by 165 million yuan to 240 million yuan, an increase of 299.44% to 435.54% over the same period last year.

Hongxing Development said that the main reason for the pre-increase in the current performance is that in 2021, the company took the initiative to increase the sales prices of major products such as barium carbonate, strontium carbonate, barium sulfate, sulfur, battery-grade lithium carbonate and other major products, with year-on-year growth in sales revenue and profits. The company and its subsidiaries actively develop domestic and foreign markets, some products high-purity barium carbonate, BaCl2, barium sulfate, high-purity strontium carbonate, electrolytic manganese dioxide, high-purity manganese sulfate and battery-grade lithium carbonate sales increased compared with the same period last year, sales revenue and profits increased compared with the same period last year.

In addition, Hongxing Development Sun Co., Ltd. Guizhou Songtao Hongxing Electrochemical Mining Co., Ltd. and its subsidiary Wanshan Pengcheng Mining Co., Ltd. stable production, expand sales channels, manganese carbonate ore sales increased compared with the same period last year, improving the overall efficiency of the company; the company subsidiary Guizhou Hongxing Development Dalong Manganese Industry Co., Ltd. Manganese series products due to the gradual rise in sales prices, price loss reduced and increased the company's profits.

The data show that Hongxing's main business is the R & D, production and sales of barium salt, strontium salt and manganese products. Among them, manganese series products mainly include primary battery and lithium battery EMD, high purity manganese sulfate and other products. At the same time, the company is also involved in the production and sales of battery-grade lithium carbonate and by-product sulfur, as well as the natural pigment industry. Electrolytic manganese dioxide products are mainly used in primary batteries and lithium manganate cathode materials, while high-purity manganese sulfate is mainly used in ternary cathode materials (precursors) for lithium-ion batteries. Battery-grade lithium carbonate is mainly used in lithium-ion battery materials.