Xiamen tungsten industry expects battery materials revenue of about 15.9 billion last year to improve the profitability of ternary materials.

On the evening of January 25th, Xiamen Tungsten Industry (600549) issued a pre-performance announcement that it is expected that the net profit attributed to shareholders of listed companies in 2021 will be about 1.18 billion yuan, an increase of about 92.04% over the same period last year. It is estimated that the net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses in 2021 is about 1.026 billion yuan, an increase of about 123.70% over the same period last year.

Among them, tungsten and molybdenum business, in 2021, tungsten and molybdenum industry continued to pick up, tungsten and molybdenum product sales increased significantly, Xiamen tungsten industry product profitability further improved. The operating income of the company's tungsten, molybdenum and other non-ferrous metals business is about 10.957 billion yuan, an increase of about 45.39% over the same period last year; the total profit realized is about 1.4 billion yuan, an increase of about 74.61% over the same period last year.

In terms of battery materials, in 2021, the sales of lithium cobalt oxide products in Xiamen tungsten industry continued to improve; ternary materials affected by the increase in terminal demand, sales increased significantly compared with the same period last year, economies of scale further appeared, and profitability improved. The company's battery materials (including lithium cathode materials, hydrogen storage alloy business) business realized business income of about 15.913 billion yuan, an increase of about 93.68% over the same period last year; the total profit realized was about 641 million yuan, an increase of about 130.32% over the same period last year.

In terms of rare earth business, in 2021, the profitability of rare earth products in Xiamen tungsten industry was improved due to the increase in sales volume of rare earth products and the optimization of product structure. The company's rare earth business realized operating income of about 4.804 billion yuan, an increase of about 56.98% over the same period last year, and total profits of about 229 million yuan, an increase of about 154.34% over the same period last year.

In terms of real estate business, in 2021, the operating income of Xiamen tungsten real estate business was about 168 million yuan, an increase of about 11.23% over the same period last year; the total profit realized was about-328 million yuan, with a loss increase of about 233 million over the same period last year, mainly due to the increase in financial expenses and various operating expenses.

On August 18, 2021, Xiamen Tungsten Industry announced that the company intends to transfer its 60% stake in Xiamen Tengwangge Real Estate Development Co., Ltd. After the completion of this transaction, the company will no longer hold a stake in Xiamen Tengwang Pavilion, and the company's business will no longer include business related to real estate development and operation.

In addition, Xiamen Tungsten Xinneng (688778), the main body of Xiamen tungsten cathode materials business, was spun off and listed in Science and Technology Innovation Board on August 5, 2021.

On January 25, Xiamen Tungsten Xinneng also issued a performance forecast that the company is expected to achieve an operating income of about 15.557 billion yuan in 2021, an increase of 94.72% over the same period last year, and a total profit of about 618 million yuan, an increase of 135.25% over the same period last year. The net profit attributed to the owner of the parent company was 555 million yuan, an increase of 121.48% over the same period last year. The net profit belonging to the owner of the parent company after deducting non-recurrent gains and losses was 512 million yuan, an increase of 109.97% over the same period last year.

In terms of capacity expansion, on December 15, 2021, Xiamen Tungsten Xineng announced that the company plans to invest with Ya Hua Lithium Industry and Cangya to build an annual production line of 100000 tons of lithium iron phosphate in phases, and at the same time plans to invest 990 million yuan in the Haiyang base to build a 30, 000-ton expansion project of high-nickel ternary cathode materials for lithium-ion batteries.