On April 26, Desai Battery released its first-quarter results for 2021. According to the report, Desai batteries achieved a total operating income of 3.843 billion yuan in the first quarter, an increase of 33.28 percent over the same period last year, and the net profit belonging to shareholders of listed companies was 135 million yuan, up 185.38 percent from the same period last year.
As for the reasons for the changes in performance during the reporting period, Desai explained that first, the company's lithium battery business, such as smart wearable, tablet computers, notebooks and power tools, has performed well; second, the company completed the acquisition of 25% minority interests in each of its main subsidiaries Huizhou Battery and Huizhou Lanwei in 2020. Huizhou Battery and Huizhou Lanwei have become wholly owned subsidiaries of the company since August 2020, and the net profit belonging to shareholders of listed companies has increased compared with the same period last year.
According to public data, Desai Battery was founded in 1983, its main business includes research, development and sales of mercury-free alkaline manganese batteries, primary lithium batteries, zinc-air batteries, Ni-MH batteries, lithium polymer batteries, fuel cells and other types of batteries, battery materials, accessories and equipment.
It is worth mentioning that because Desai battery is involved in the current hot lithium battery field, investors have asked it on an interactive platform why the company's gross profit margin is only a little more than 8%. And its "peers" Yiwei LiNeng, Tianneng shares and Camel shares all have a gross profit margin of more than 20%. In this regard, Desai battery explained that the company is mainly engaged in lithium battery power management and packaging business, does not produce batteries, the products are mainly used in consumer electronic products represented by smartphones, so the gross profit margin is low.
As of April 26, Desai Electronics was up 0.58% at 71.54 yuan per share.
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