The net profit of Divine Materials increased nearly 6 times in the first quarter compared with the same period last year. Solid state battery electrolyte patents have been arranged.

After trading on April 19, Tianci (002709) released a report for the first quarter of 2021, saying that the company's revenue from January to March this year was 1.562 billion yuan, a substantial increase over the same period last year, with an increase of 197.47%. The net profit belonging to shareholders of listed companies reached 287 million yuan, a surge of 591.15% over the same period last year.

Tianci material said that the electrolyte continued to release in the first quarter, with a substantial increase in sales compared with the first quarter of last year, and benefited from the integrated layout of the company's raw material industry chain, the self-supply rate of some of the company's raw materials further increased. The company's overall gross profit margin has a significant increase both year-on-year and month-on-month. The performance growth is in line with the company's expectations.

At the same time, Tianci expects that the company's first-half net profit will reach 650 million yuan to 750 million yuan, an increase of 108.55% 140.63% over the same period last year. It is mainly due to the strong market demand of lithium-ion battery material electrolyte products and the obvious increase in sales volume. At the same time, the self-production rate of raw materials and gross profit margin of the company's products are increased.

It is reported that according to the development strategy and development stage of Tianci materials, the company still focuses on electrolytes, lithium salts and additives-related products.

Among them, due to the recent rising prices of raw materials in the upper reaches, the prices of electrolyte products of divine materials are facing a certain price upward pressure. The company said in its research activities on April 20 that at present, the price transmission of the company's electrolyte is relatively smooth, and the company will also make timely adjustments to the prices of electrolyte products according to the price of raw materials in the future market.

In terms of additive products, Tianci material said that due to the current market VC, FEC suppliers do not have large-scale production expansion plans, and chemical products capacity expansion cycle is long, the company expects related products will still be in a tight balance in 2021. At present, the company has part of the production capacity of VC, and the self-financing rate is gradually increasing.

In addition, Battery Network noted that the non-public offering of Tianci Materials shares received approval from the China Securities Regulatory Commission on March 23 this year. The new projects with an annual output of 20, 000 tons of electrolyte basic materials and 5800 tons of new lithium electrolytes, 150000 tons of lithium electric materials, 400000 tons of sulphuric acid from sulfur, 50, 000 tons of hydrogen fluoride and 25000 tons of electronic-grade hydrofluoric acid (100) are all progressing smoothly. it is expected that the construction will be completed within this year. The project with an annual capacity of 100000 tons of lithium battery electrolyte is still waiting for the land to be auctioned and is expected to be put into production next year.

Soochow Securities Research reported that Tianci Materials has been built into Ningde, Guangzhou, Jiujiang three major bases, with a total production capacity of nearly 150000 tons. In order to meet the needs of downstream customers, the company actively expands the production capacity of Liyang, Fuding base and overseas Czech subsidiaries. After completion, the company's production capacity is expected to reach more than 550000 tons, supporting more than 300GWH battery capacity, corresponding to the target market share of 30% +. At the same time, the company's current hexafluorine production capacity is 12000 tons, and another 20, 000 tons will be invested in the second half of the year; second, the company's new lithium salt production capacity of 2000 tons is the first to achieve mass production, supporting leading customers, and the follow-up production capacity will be expanded to 6000 tons; third, the company's vc and new additives can achieve mass production, and the proportion of self-supply gradually increases.

If the enterprise wants to develop for a long time, it is inseparable from the continuous technical support. It is reported that Tianci has attached great importance to technological innovation since its inception, and its R & D investment has increased year by year. In 2020, the company's R & D investment reached 168 million yuan, accounting for 4.09% of the company's revenue. In recent years, the company has also continued to invest in the research and development of substances / technologies and processes for solid-state battery potential solutions, and currently has a related patent layout for solid-state battery electrolytes.