Net profit 1.55 billion / invest 1.53 billion to expand production! Hundreds of billions of lithium faucet issued 14 announcements in succession!

On the evening of October 26th, Tianshi material (002709) issued 14 announcements in one go, including "third quarter report 2021", "announcement on the proposed establishment of a wholly-owned subsidiary to invest in the construction of 300000 tons of electrolytes and 100000 tons of iron-lithium battery recycling projects", "announcement on the company's application to China Merchants Bank for comprehensive credit of no more than 200 million yuan" and so on.

Net profit of 1.554 billion yuan in the first three quarters

According to the third quarter report of 2021, the operating income of Tianci material reached 6.623 billion yuan in the first three quarters, an increase of 145.7 percent over the same period last year, while the net profit belonging to shareholders of listed companies was 1.554 billion yuan, an increase of 199.72 percent over the same period last year.

Among them, in the third quarter, the company realized operating income of 2.924 billion yuan, an increase of 165.1% over the same period last year, and the net profit belonging to shareholders of listed companies was 771 million yuan, an increase of 273% over the same period last year.

Tianzi material said that the company's operating income increased significantly in the first three quarters, mainly due to a large increase in the volume and price of lithium-ion battery electrolyte products during the reporting period.

Invest 1.53 billion yuan to expand production

On the same day, Tianci also announced that the company plans to set up a wholly-owned subsidiary to invest in the construction of a recycling project with an annual production capacity of 300000 tons of electrolyte and 100000 tons of iron-lithium batteries, with a total investment of 1.53 billion yuan, of which the construction investment is 880 million yuan and the bottom working capital is 650 million yuan. After the project reaches production, it is expected to achieve an average annual operating income of 8.691 billion yuan and an average annual net profit of 542 million yuan.

According to reports, the name of the joint venture company is Sichuan Tianzhi High-tech Materials Co., Ltd., registered in Sichuan Pengshan Economic Development Zone, Ma Meipeng, the legal representative, with a registered capital of 100 million yuan, and is 100% owned by Tianzhi Materials.

After the completion of the above project, the electrolyte 300000t 6000t/a will be formed, which will be planned for export; industrial grade lithium carbonate and battery grade iron phosphate 2500t will be sold for self-use or for export; copper 7600t/an and aluminum 3600t will be planned to be used for export.

According to Tianzhi material, Sichuan is an important base for the western automobile industry, and for supporting the layout of customers in the western region and Sichuan region, the company plans to achieve the purpose of "nearby supply" to key customers through the implementation of this project. at the same time, further close to the terminal market, reduce transportation costs, and provide customers with better service.

After the completion of the project, it will further improve the layout of the company's industrial chain and give full play to the advantages of industrial coordination to meet the needs of the company's future business development and market expansion. it is conducive to continuously strengthen the company's advantages in raw material transportation costs, supply cycle, quality assurance and other aspects, and constantly improve market competitiveness, which is of great significance to promote the company's long-term and stable development. At the same time, it will effectively solve the problem of insufficient regional capacity supply in the future, which is in line with the company's overall development strategy and the interests of all shareholders.

It is worth noting that on October 26, Zhejiang Tianzhi High-tech Materials Co., Ltd. was established, the legal representative is Yang Peng, the registered capital is 100 million yuan, the company's business scope includes new materials technology research and development; technical services, technical development, technical consultation, technical exchanges, etc., the proportion of investment in divine materials is 100%.

Apply for comprehensive credit of no more than 200 million yuan

The announcement on the company's application for comprehensive credit of no more than 200 million yuan from China Merchants Bank shows that in order to meet the needs of the company's production, operation and normal business, and to ensure the sustainable development of the company, the company held the 20th meeting of the fifth session of the board of directors on October 25, 2021, and examined and passed the "motion on the application of the company to China Merchants Bank for comprehensive credit of no more than 200 million yuan." It is agreed that the company will continue to apply for a comprehensive credit of no more than RMB 200 million after the expiration of the comprehensive credit of RMB 200 million applied for by China Merchants Bank Guangzhou Branch, which is valid for a period of two years (calculated from the date of signing of the credit contract).

This means that Divine Materials has applied for a comprehensive credit of 400 million yuan to the Guangzhou Branch of China Merchants Bank.

Up to now, the total amount of applications for comprehensive credit from relevant financial institutions by Tianshi Materials and subsidiaries included in the consolidated statements is RMB 3.097 billion (including the quota reviewed by the board of directors).

On the secondary market, by the end of October 27th, Divine material was at 162.10 yuan per share, up 12.30 yuan per share or 8.21%, with a total market capitalization of 154.8 billion yuan.