Dongguang last year lithium materials revenue of nearly 450 million batteries aluminum foil has been mass produced and supplied to Murata, Japan.

On March 27th, Dongyang (600673) disclosed its annual report for 2021. In 2021, the company achieved operating income of 12.798 billion yuan, an increase of 23.4% over the same period last year, while the net profit belonging to shareholders of listed companies was 874 million yuan, an increase of 110.26% over the same period last year.

Dongguang 2021 main Accounting data (Unit: yuan)

According to the annual report, Dongyang's main business includes four major sectors: electronic new materials, alloy materials, chemical products and pharmaceutical manufacturing. From the perspective of business structure, Dongyang photoelectrode foil has revenue of 3.06 billion in 2021, accounting for 25.1% of revenue, which is the main source of revenue of the company; lithium materials achieved revenue of 449 million yuan, an increase of 124.65% over the same period last year, making it the company's fastest growing business.

According to reports, while expanding and strengthening the company's core competitive products, Dongyang continues to extend to the downstream high value-added emerging industries and optimize the company's industrial layout by relying on the company's strong R & D strength and technical cooperation. According to the company's long-term development strategic plan, the company has gradually implemented the extension to the new energy and new materials industry. At present, it has laid out lithium battery, fluororesin, battery aluminum foil, laminated foil and laminated foil, capacitors, supercapacitors and other products in research, providing strong support for the company to seize market share in related industries in the future.

What is noteworthy is that in 2021, in order to seize the opportunities brought about by the market demand for lithium batteries, East Sunshine and Pu Tai reached a strategic cooperation intention to integrate the quality resources of the joint venture Ruyuan East Sunshine Fluororesin Co., Ltd. (hereinafter referred to as "Fluororesin Company") as a starting point, jointly promote PVDF product research and development and market expansion, and expand the supporting capacity of PVDF and its raw materials R142b to better meet market demand. Among them, the capital increase involved in this cooperation was completed in July 2021. Pu Tai Lai holds 60% of the equity of the fluororesin company, and the company holds 40% of the equity of the fluororesin company. After that, the fluororesin company is no longer included in the scope of merger. The company enjoys the operating results of the fluororesin company through equity investment.

At the same time, the cooperation between Dongyang and Pu Tai Lai involves capacity expansion. Through consultation, the fluororesin company plans to invest in the new 20, 000-ton / year PVDF and 45000-ton / year R142b projects. The first phase has obtained the project record of the Development and Reform Bureau of Ruyuan Yao Autonomous County and the "Review opinion on the Energy Saving report of 10,000 tons / year PVDF and 18000 tons / year R142b Project of Ruyuan East Sunshine Fluororesin Co., Ltd." issued by Guangdong Energy Bureau.

On March 18, Dongyang said on the investor interactive platform that the joint venture between the company and Pu Tai Lai currently has a production capacity of no less than 5000 tons of PVDF and is expanding the production lines of 18000 tons of R142b and 10,000 tons of PVDF. R142b is expected to be the first to be put into production in the third quarter of this year, while 10,000 tons of PVDF is expected to be put into production by the end of this year. All the PVDF products of the joint venture company are used in the field of lithium batteries, mainly as lithium diaphragm coating and lithium iron phosphate positive binder. The products are in short supply. It is expected that ternary material binder products will be launched in the first half of this year to complete the full coverage of lithium grade PVDF products. The downstream customers of the joint venture are all domestic lithium power head enterprises, and they are also actively opening up overseas head lithium power enterprises to seize foreign market share.

In addition, as the domestic leader in high-end aluminum processing, the battery aluminum foil project jointly operated by East Sunshine and UACJ has an annual production capacity of 20, 000 tons, and is planning to build an annual production capacity of 200000 tons, with an annual production capacity of 50, 000 tons in the first phase. According to the annual report, the first batch of equipment of the project has been officially put into mass production, and the products have been sent to Japanese customers Panasonic, Murata and other high-end customers for certification and audit. At present, they have passed Murata's customer certification and started mass production.