On the evening of March 30th, Fangyuan shares (688148) disclosed its annual report for 2021. In 2021, the company achieved operating income of 2.07 billion yuan, an increase of 108.49% over the same period last year, and the net profit of shareholders belonging to listed companies was 66.7218 million yuan, an increase of 12.46% over the same period last year.
Fangyuan shares said that the company's performance growth is mainly due to the vigorous development of the new energy vehicle market and the strong demand growth of the ternary precursor market since 2021. On the one hand, the company continues to release its production capacity, on the other hand, the company seizes market opportunities to strengthen product research and development and customer development, resulting in a substantial increase in the company's orders.
Fangyuan shares main business sub-products in 2021 (unit: yuan)
Specifically, Fangyuan's main business products are NCA ternary precursors, NCM ternary precursors, cobalt sulfate, spherical nickel hydroxide and so on. In 2021, the company's NCA ternary precursor products maintained steady growth, achieving operating income of 1.326 billion yuan, accounting for 64.09% of total revenue, an increase of 80.43% over the same period last year. The company's NCM ternary precursor production capacity continued to release. In 2021, the operating income of NCM ternary precursor products reached 537 million yuan, accounting for 25.95% of total revenue, an increase of 623.12% over the same period last year.
In 2021, Fangyuan shares continue to develop its main business and actively promote the layout of production capacity. The "production project of high-quality NCA/NCM precursor (ternary lithium cathode material) with an annual output of 36000 tons" (hereinafter referred to as "Fangyuan New Energy production Project"), built by Jiangmen Fangyuan New Energy Materials Co., Ltd., has been successfully put into production last year. On August 6th, 2021, Fangyuan IPO settled down and successfully landed on the Shanghai Stock Exchange Science and Technology Innovation Board, raising funds mainly for the "annual production of 50,000 tons of high-end ternary lithium precursors (NCA, NCM) and 10,000 tons of battery lithium hydroxide project". As of the end of last year, the company's investment project is still under active construction and is expected to be completed and put into production in 2022.
In addition to the Fangyuan new energy production project and investment project that has been completed at present, Fangyuan shares are also actively preparing for the "annual production of 25000 tons of high-quality NCA, NCM ternary precursors and 6 kiloton battery-grade lithium hydroxide monohydrate" through the holding subsidiary Fangyuan Lithium Energy. The company said that with the gradual completion and commissioning of new capacity construction projects, the company's capacity will be further expanded and its competitive advantage in the industry will be further strengthened.
The left hand is busy expanding production, and the right hand is stable in resources. Fangyuan Co., Ltd. has long been engaged in the comprehensive utilization of nickel and cobalt resources, established a multi-channel and perfect raw material supply system, and signed a strategic cooperation agreement with MCC, a large global producer of hydrometallurgical intermediate products for nickel and cobalt ores. And since February 2021, Panasonic China has purchased metal nickel beans and metal cobalt beans as raw materials to produce NCA ternary precursors (sold to the company after purchasing nickel beans and cobalt beans from BHP Billiton and Glencore, etc.) to ensure a stable supply of nickel and cobalt resources.
At the same time, Fangyuan shares also set up a joint venture with Veolia, one of the largest environmental protection service companies in the world, to set up a power battery recycling and disassembly enterprise, Veolia Jiangmen, which will make full use of Veolia's channels in the field of resource recovery in the future. to further ensure the supply of important raw materials for the company.
What is noteworthy is that, based on the development characteristics of the lithium electricity industry, Fangyuan shares said that under the background of the new energy vehicle policy to reduce the amount of subsidies and improve the technical standards of subsidies, high-end new energy vehicles are developing in the direction of long mileage, which will further enhance the market demand for high energy density power batteries and drive the development trend of high nickel content of ternary cathode material precursors. The company has achieved mass production and sales of high-nickel ternary precursor products, has formed a long-term and stable cooperative relationship with international first-class lithium battery enterprises, and has a certain first-mover advantage compared with other competitors in the industry.
According to reports, in 2015, Fangyuan officially entered the field of high-nickel NCA ternary precursors by virtue of the technical accumulation of spherical nickel hydroxide. According to Panasonic's product demand, it successfully solved the technical problem of difficult coprecipitation of nickel, cobalt and aluminum, and achieved a breakthrough in ternary precursor synthesis technology; at the end of 2017, the company began to supply high-nickel ternary precursor NCA87 to Panasonic in bulk. At the end of 2019, the high nickel ternary precursor NCA91 was supplied to Panasonic in bulk. The company's current products also include high-nickel ternary precursors NCM83, NCM88, etc., mainly under research products include high-nickel ternary precursor NCA94, etc., the nickel content will be further increased.
In terms of customers, in addition to Panasonic, Fangyuan has also established a good cooperative relationship with Bertre, Dangsheng Technology, BASF Shanshan and other leading power battery manufacturers and cathode material manufacturers at home and abroad. it has laid a solid foundation for the company to further improve its market share.
In 2022, Fangyuan shares said that the company will closely follow the opportunity of the rapid development of the new energy vehicle industry, continue to focus on the development of main business, speed up the production capacity construction of fund-raising projects, enhance the company's supply capacity, and actively open up high-quality new customers at home and abroad. further optimize the customer structure and product structure, and promote the sustained and steady development of the company.
