Sharp increase in Lithium Salt Business profit in the first three quarters of Ya Hua Group, net profit increased by 380.9% Mel 411.97%.

SMM October 13th: yesterday evening, Ya Hua Group released its first three quarters of 2021 results forecast. According to the announcement, the company expects to achieve a net profit of 630 million yuan to 650 million yuan for shareholders of listed companies from January to September, up 225% from the same period last year. Among them, the net profit of shareholders belonging to listed companies in the third quarter is expected to reach 300 million yuan to 320 million yuan, an increase of 380.9% Murray 411.97% over the same period last year.

For the reasons for the growth of the company's performance, the company announcement shows that it is mainly due to the continued development of the two main businesses of the company, the popular explosion and the lithium industry. Under the background of maintaining the steady growth of civil explosion business, lithium salt products are affected by the rising prosperity of the lithium industry, and the price is also rising. The company seized the opportunity to release lithium salt production capacity, the sales of lithium products increased steadily during the reporting period, and business profits increased significantly.

The price of lithium salt continues to rise, which can be seen from the spot price trend of SMM. Take battery-grade lithium carbonate as an example. According to SMM data, the average spot price of domestic battery-grade lithium carbonate has risen by 44250 yuan per ton, or 31.49 percent, in just 14 trading days from September 13 to October 12, with an average daily price increase of more than 3000 yuan per ton.

Although the performance of battery-grade lithium hydroxide is slightly inferior, but the increase is also as high as 29.54%, lithium metal lithium, electrolytic cobalt, domestic cobalt sulfate and other lithium materials have all increased to varying degrees. The lithium industry as a recognized high-profile industry, this price increase is not the end. For lithium carbonate alone, SMM expects its process structure to remain tight in the second half of the year, and lithium carbonate quotations will continue to rise. "View details

Citic Construction also said earlier that there has been a structural shortage of lithium products since the third quarter of 2020, and the corresponding prices of lithium carbonate and lithium hydroxide have risen successively, and the structural shortage is expected to last until the end of 2021.

With the rising prices of lithium products, Ya Hua Group also continues to distribute upstream lithium resources. In early September, Ya Hua Group facilitated the signing of a non-binding memorandum of understanding by Australian miner Eastern Iron Co., Ltd. to cooperate on the acquisition and development of lithium projects, including joint venture exploration and development of the Trigg Hill lithium Tantalum project in Western Australia. On the other hand, Yahua will have the right of priority to purchase products from any joint venture project (including the Trigg Hill project), and the company's lithium resource supply will be guaranteed stably.

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