The reported net profit of Jiayuan Technology has increased by more than 257.69%, and the overall production capacity of lithium copper foil has increased.

On the evening of June 30th, Jiayuan Technology (688388) issued a semi-annual performance forecast for 2021. The company expects to achieve a net profit of 206 million yuan to 279 million yuan belonging to shareholders of listed companies in the first half of the year, an increase of 257.69% to 383.94% over the same period last year. Net profit after deducting non-recurring profits and losses was 198 million to 268 million yuan, an increase of 389.89% to 562.8% over the same period last year.

Jiayuan Technology said that the increase in the company's performance in the first half of 2021 compared with the same period last year was mainly due to the weak market demand affected by the sudden COVID-19 epidemic in the first half of 2020; with the normalization of epidemic prevention and control, the market demand recovered; at the same time, the company's fund-raising project 5000 tons / year high-performance copper foil technology transformation project for new energy power batteries was completed and put into production, and the company's overall production capacity was further increased.

According to the "White Paper on the Development of China's Copper foil Industry (2021)" jointly released by EVTank, the Yiwei Economic Research Institute and the China Battery Industry Research Institute, shipments of lithium copper foil in China reached 146000 tons in 2020, an increase of 17.7% over the same period last year. Chinese lithium copper foil shipments account for nearly 35% of the total electrolytic copper foil. Among them, in 2020, Longdian Huaxin ranked first with shipments of more than 23000 tons, with a market share of 16.0%, followed by Nord shares and Jiayuan Technology, with a market share of 13.0% and 10.1%, respectively.

The white paper points out that the pursuit of high energy density of downstream power batteries has led to the batch application of 4.5 μ m of extremely thin copper foil, and industry leaders, including Jiayuan Technology and Nord AG, have begun to supply 4.5 μ m of products in large quantities.

Battery net noted that recently, when communicating with investors, Jiayuan Technology said that at present, the company's main products are ultra-thin lithium copper foil, extremely thin lithium copper foil and PCB standard copper foil, of which ≤ 6 μ m extremely thin lithium copper foil is the company's main product. At present, there are relatively few downstream customers using 4.5 μ m copper foil products. With the promotion and application of 4.5 μ m copper foil products in downstream lithium battery manufacturers, the market demand will further increase.

In a research report released in June, Everbright Securities said copper foil prices had risen 28 per cent so far this year as of early June. Copper foil price-electrolytic copper price is used to express the changing trend of copper foil processing fees. up to the beginning of June this year, 8 μ m copper foil processing fees have increased by nearly 40%, and the increase in processing fees has directly improved profitability. As Jiayuan Technology continues to increase the proportion of copper foil shipments of 6 μ m and 4.5 μ m, there is still room for improvement in the company's overall gross profit margin, and the gross profit per ton is expected to double.

Everbright Securities estimates that the global demand for lithium copper foil will be 380000 tons in 2021, an increase of 52% over the same period last year, of which the demand for copper foil for power batteries will be 240000 tons, an increase of 75% over the same period last year. The total global demand for lithium copper foil is expected to be 1.09 million tons in 2025, and the demand for lithium copper foil will triple in the next five years. In 2021, the supply and release is limited, the structural supply of copper foil below 6 μ m falls short of demand, and the tight pattern of supply and demand may continue.