The production and sales of lithium cathode materials have increased significantly! The share price of Fengyuan shares opened the limit after the performance news.

SMM April 14: yesterday evening, Fengyuan shares released the results of KuaiBao in 2021 and the first quarter of 2022. According to the announcement, in the past 2021, Fengyuan shares achieved a total operating income of 803 million yuan, an increase of 124.78 percent over the same period last year, while the net profit belonging to shareholders of listed companies reached 53.09 million yuan, up 281.8 percent from the same period last year.

For the reasons for the substantial increase in performance in 2021, Fengyuan shares said that during the reporting period, the rapid development of the new energy market led to a sustained boom in the lithium cathode material industry; at the same time, the company's new production capacity began to release, production and sales increased significantly compared with the same period, and the company's overall profitability increased significantly.

As for the performance in the first quarter of 2022, Fengyuan shares said that the company is expected to achieve a total net profit of 38 million yuan to 42 million yuan belonging to shareholders of listed companies in the first quarter, an increase of 295.23%, 336.83% compared with the same period last year.

During the reporting period, benefiting from the historic development opportunity of the new energy industry, the demand of the downstream industry of the company continued to improve, and the price and sales volume of the company's lithium cathode materials increased significantly compared with the same period last year. And established a stable supply cooperation relationship with well-known enterprise customers.

It is worth mentioning that in mid-late March, Fengyuan shares were investigated by institutions and expounded the relevant development of the company. It is mentioned that the company's current capacity layout in lithium cathode materials amounts to 350000 tons. The production capacity of lithium iron phosphate is expected to reach 100000 tons by the end of this year, of which the existing 10, 000-ton production line in Zaozhuang base is under construction: 25000 tons for the first phase of the Anqing base, 40, 000 tons for the newly planned Zaozhuang base, and 25000 tons for the first phase in Yuxi, Yunnan. The production capacity of Sanyuan is expected to be about 15000 tons by the end of this year, including 5000 tons of conventional Sanyuan and 10,000 tons of high nickel. The above plans will also be adjusted in time according to market conditions and customer needs.

It is reported that Fengyuan shares in the first quarter of the current lithium iron phosphate to BYD, the other part belongs to Penghui Energy. The company's current customers of conventional ternary materials are mainly Bofuneng, Wuxing, etc.; high nickel Sanyuan currently has a small production capacity, and its main customers are Penghui Energy and far East batteries. The company believes that high nickel ternary and lithium iron phosphate have good development prospects, and will continue to adhere to the route of common development of these two products.

In addition, in the investor relations activity record sheet, Fengyuan also mentioned the lithium salt inventory, it said that the company's lithium carbonate is to sign a long-term agreement with suppliers to ensure supply. As for whether profits are squeezed by raw material costs, Fengyuan shares said frankly that the impact of rising raw material prices is inevitable for the entire industry and even downstream industries.

Stimulated by the good news of the earnings report, Fengyuan shares opened the trading limit today and continued to seal the trading limit at 30.36 yuan per share after experiencing a small shock.