Sales revenue of lithium salt products is nearly 1 billion. Shengxin Lithium can turn losses into profits in the first half of the year.

On August 7, Sheng Xin LiNeng (002240) released its semi-annual report for 2021. In the first half of this year, the company achieved 1.134 billion yuan in revenue, an increase of 50.60% over the same period last year. The net profit belonging to shareholders of listed companies reached 291 million yuan, which was-167 million yuan over the same period last year.

It is reported that Shengxin LiNeng is mainly engaged in the business of new energy materials, including lithium mining, production and sales of basic lithium salts and rare earth products. Among them, the rare earth business was spun off in May 2021, and the company still has a small amount of forest business.

As for the reasons for the performance changes, Shengxin LiNeng said that the new energy automobile industry recovered strongly in the first half of the year, and the market demand and sales price of lithium products increased significantly: in the first half of the year, the company produced 18500 tons of lithium products, an increase of 150.24% over the same period last year; sales volume was 17700 tons, an increase of 324.35% over the same period last year; and sales revenue of lithium products was 992 million yuan, an increase of 484.20% over

The announcement shows that in the first half of this year, Shengxin Lithium Energy subsidiary Zhiyuan Lithium Carbonate and Lithium hydroxide production line is in good operation, the product quality is stable, and it has been recognized by more and more high-quality customers, and has established stable cooperative relations with Ningde Times, AVIC Lithium Power, Xiamen Tungsten Industry, Cunninghamia lanceolata Energy, LGI, Bertre, German Nano, Dangsheng Technology, Rongbai Technology and other industry leaders.

In addition, Suining Shengxin invested in the construction of a lithium hydroxide project with an annual output of 30,000 tons in Sichuan Province, of which the first phase of 20,000 tons started construction at the end of 2020. At present, the construction progress is good.

At the same time, Shengxin Lithium Energy also focuses on ensuring the construction progress of the Oyino mine project, and increases the output of lithium ore by improving work efficiency and increasing work teams, so as to provide resource guarantee for the development of the company's lithium salt business.

With regard to lithium concentrate, the main raw material of lithium salt, Shengxin LiNeng said that the company ensures supply through various channels to reduce the impact of periodic fluctuations in upstream resource prices: (1) the annual production scale of its own mine is 405000 tons, equivalent to about 75000 tons of lithium concentrate, and the company actively promotes the increase of reserves; (2) it has signed long-term off-take agreements with overseas lithium resources companies such as Galaxy Lithium Industry and AVZ Mining. (3) Sichuan Province is rich in lithium resources, and the local procurement of lithium ore can be used as one of the guarantee channels for the supply of lithium raw materials. (4) the company continues to actively look for high-quality lithium resources at home and abroad and lock in upstream lithium resources in the form of investment / underwriting.

In addition to the good operation of lithium salt business, Shengxin Lithium Energy subsidiary Shengwei Lithium Industry first phase 600 ton metal lithium project first group 150 tons production capacity has been put into trial production in September 2020. In the first half of this year, the production line is running well, producing a total of 44.74 tons of metal lithium products and selling 32.06 tons. The surplus capacity of Shengwei Lithium Industry Metal Lithium Project is also under active construction.

At the same time of the steady rise in performance, recently, good news has been coming out from the capital level of Shengxin LiNeng:

On July 30th, Shengxin LiNeng released the fixed increase result, and the company added 115 million shares in this non-public offering, all of which were underwritten by its three major shareholders. Due to long-term optimistic about the lithium new energy industry, the company raised a total of about 950 million yuan to be mainly used to supplement the liquidity of the lithium industry plate.

On August 3, Shengxin LiNeng announced that Shengxin OneWorld, a subsidiary of the company, and Shengtun Group, the company's controlling shareholder, had signed an agreement on the transfer of subscribed capital contribution to Xiamen Shengsheng Investment Partnership (limited partnership). Shengxin OneWorld intends to accept 34.48% of the subscribed capital contribution held by Shengtun Group, which is held by Shengtun Group, and should subscribe 500 million yuan to the new energy industry fund.

At the same time, CIC Chuangyi and Shengtun Tianyu, Xiamen Yisheng and the Central Industrial Fund have set up a new energy industry fund with a target scale of 3 billion yuan, which is an industrial fund specially invested in the new energy automobile industry chain. the main investment directions include upstream lithium resources, lithium materials, mid-stream batteries and downstream new energy vehicles and other high-quality enterprises. At present, the new energy industry fund has completed industrial and commercial registration.