The supply of cathode materials exceeds the demand. The long-term net profit of Lithium Co., Ltd. in 2021 is more than 700 million.

On the evening of February 16, long-term Lithium Science (688779) released its performance KuaiBao. In 2021, the company realized operating income of 6.841 billion yuan, an increase of 240.25% over the same period last year, and a net profit of 701 million yuan belonging to shareholders of listed companies, an increase of 538.17% over the same period last year. Basic earnings per share is 0.44 yuan.

Long-term Lithium Branch 2021 main financial data and index unit: ten thousand yuan

Long-term Lithium said that in 2021, there was a strong demand for new energy vehicles, a substantial increase in sales, a surge in power battery installation, a rapid growth in demand for the company's products from downstream customers, and a substantial increase in production and sales compared with the same period last year. At the same time, the company's production line is running at full load, the utilization rate of production capacity is significantly improved, cost reduction and efficiency are achieved under large-scale production, the unit manufacturing cost of the product is reduced, the gross profit is increased, and the company's profit is increased.

Data show that long-term Lithium Co., Ltd. was founded in 2002, is the world's top 500 enterprises China Minmetals Group Co., Ltd., the main products include ternary cathode materials and precursors, lithium cobalt oxide cathode materials, nodular nickel and so on. The company has three production bases: Lugu base, Tongguan base and high-tech base.

The Battery Network noted that in recent years, the pace of long-term lithium production expansion has obviously accelerated: on September 29, 2021, long-term Lithium Science announced that the implementation body of the company's fundraising project "Phase I expansion Project of vehicle Lithium Battery cathode Materials" is the wholly-owned subsidiary Hunan long-term Lithium New Energy Co., Ltd. ("long-term New Energy"). The company plans to use 1.718 billion yuan to raise funds from long-term new energy to increase capital for the implementation of the above-mentioned fund-raising projects. Of this amount, 600 million yuan is used as registered capital, and the remaining 1.118 billion yuan is included in the capital reserve.

On September 13 of the same year, long-term Lithium also announced that in order to further consolidate the company's market position and meet the future market and development needs of related business, the company's wholly-owned subsidiary long-term New Energy plans to invest in the second phase of expansion of automotive lithium battery cathode materials and build a production line of 40, 000 tons of cathode materials per year, with a total investment of about 3.339 billion yuan. It is planned to start construction at the end of January 2022 and put into production in October 2023.

According to the long-term future development goal of Lithium, from 2022 to 2025, the company plans to complete the project construction of 40 million tons of ternary cathode materials, with a production capacity of 110000 tons.

It is worth noting that with the increasing popularity of lithium iron phosphate batteries, long-term lithium will also add lithium iron phosphate cathode material business on the basis of the original business. On the evening of December 30, 2021, long-term Lithium Science announced that the wholly-owned subsidiary long-term New Energy intends to invest in the construction of a project with an annual output of 60, 000 tons of lithium iron phosphate cathode materials, with a total investment of about 2.088 billion yuan. Construction is planned to start in January 2022 and put into production in April 2023. The construction period is 16 months.