Qinghai Salt Lake's net profit exceeded 2 billion yuan in H1 2021

SHANGHAI, Jul 8 (SMM) – Qinghai Salt Lake released its 2021 semi-annual performance forecast on July 6, which showed that the company is estimated to achieve a net profit of 2-2.2 billion yuan in H1 2021, an increase of 44.69% to 59.15% over the same period of the previous year. Net profit excluding non-recurring profit and loss was 2-2.2 billion yuan, a year-on-year increase of 38.30% to 52.13%.

The company stated that in the first half of the year, its main business KCl production and sales were stable, and Lanke Lithium's 20,000 mt project has been partly put into operation. The output of lithium carbonate has increased on the year. Affected by the increase in commodity prices, the company's performance improved as the prices of KCl and lithium carbonate products rose in H1.

Qinghai Salt Lake's audited net profits stayed negative for the three consecutive fiscal years of 2017, 2018, and 2019, and the Shenzhen Stock Exchange has decided to suspend listing of the its stocks from May 22, 2020.

According to the latest updated 2020 annual report of Qinghai Salt Lake, it has continued to do a good job in the development, production and sales of potash fertiliser and lithium salt for many years. The company achieved operating income of 14.02 billion yuan, and realised net profit attributable to shareholders of listed companies at 2.04 billion yuan, an increase of 104.45% on the year. The company’s net assets were 5.27 billion yuan. The company’s net profits and net assets attributable to shareholders of listed companies have both turned positive, and the ability to continue operations has been restored.

In the lithium sector, the company's lithium carbonate output reached 13,602 mt, an increase of 2,300 mt year-on-year. The quality of lithium carbonate products has been steadily improved. The proportion of high-grade products (main content ≥99.2%) reached 92.67%, an increase of 14.4 percentage points over the same period last year. The overall progress of the 20,000 mt/year battery-grade lithium carbonate project has reached 85%, and some devices have been put into trial operation. 

With the recovery of operating capacity, Qinghai Salt Lake’s performance continues to improve. It submitted a written application for the resumption of stock listing to the Shenzhen Stock Exchange, and submitted relevant supplementary materials on July 6.