Lithium battery market demand increased, Ganfeng Lithium's net profit in 2017 exceeded 200%

Sep 12, 2019   Pageview:136

In recent years, with the vigorous promotion of the global new energy automobile industry, the demand for electric vehicle batteries and energy storage batteries has increased significantly year by year. The global sales of electric vehicles increased from 1.2 million in 2012 to 3 million in 2017, a compound annual growth. The rate is 19%, and it is expected to reach 8.6 million units by 2022, with a compound annual growth rate of 23%. The global demand for lithium compounds will increase from 134 kilotons of LCE in 2012 to 229 kilotons of LCE in 2017, with a compound annual growth rate of 11%. It is expected to reach 526 kilotons of LCE by 2022, with a compound annual growth rate of 18%. China has taken new energy vehicles as a key support industry. In recent years, it has continuously introduced preferential policies to encourage consumers to purchase electric vehicles, thus promoting the number of lithium battery industry in China. From 2016 to 2017, the demand for lithium batteries will shift from quantity to quality. The supply of high-quality lithium batteries is in short supply, and the problem of excessive supply of low-quality lithium batteries has begun to stand out.


Recently, Ganfeng Lithium announced the latest financial report data, showing total operating income in 2017 was 438,344,600 Yuan, an increase of 54.12% over the previous year. The net profit attributable to shareholders of listed companies was 146,790,100 Yuan, a year-on-year increase. 216.36%, the company's total assets increased from 3.809 billion Yuan in 2016 to 8 billion Yuan in 2017, with a growth rate of 110.02%; net assets increased from 2.488 billion Yuan in 2016 to 4.037 billion Yuan in 2017, with a growth rate of 62.25. %.


During the period of 2010-2017, the revenue of Ganfeng Lithium Industry is growing steadily, especially in 2016-2017. Due to the national new energy vehicle subsidy policy, the revenue growth in 2016 will reach 110.06%, and it will slow down in 2017, 2010. -In 2015, the net profit change of Ganfeng Lithium Industry was not obvious, but in 2016-2017, the net profit surged by 271.03% and 216.36% respectively.


In the quarter of 2017, the revenues in the four quarters were 562,153,200 Yuan, 100,010,380 Yuan, 1,216,739,300 Yuan, and 1,541,418,800 Yuan, achieving quarterly growth in revenue. The net profit for the four quarters was 136,451,700 Yuan. 471,927,100 Yuan, 396,614,400 Yuan, and 465,549,900 Yuan, the first quarter earnings were low, and the last three quarters were profitable.


According to the financial report data, Ganfeng Lithium is the third largest in the world and the largest lithium compound producer in China and the world's largest producer of lithium metal. It has lithium concentrate extracted from ore and lithium salt lake brine, and more than 40 categories in five categories. The production capacity of lithium compound products is one of the most complete manufacturers of lithium series products. Based on 2017 capacity, the company has a leading market share in multiple products in the lithium industry. Among them, lithium carbonate capacity ranks fourth in the world, accounting for 10% of global production capacity; lithium hydroxide capacity ranks third and first in the world and China respectively, accounting for 11% of global production capacity; metal lithium capacity ranks first in the world, accounting for 47% of global production capacity.


The production line of Ganfeng Lithium Industry in 2017 has always maintained a high capacity utilization rate, among which, the utilization rate of lithium carbonate is 98%, the utilization rate of lithium hydroxide is 86.5%, the utilization rate of lithium chloride is 68.5%, and the utilization rate of lithium metal is up to 92.3%, butyl lithium utilization rate of 93%, lithium fluoride utilization rate of 113.1%.


In terms of revenue by industry, Ganfeng Lithium achieved 85.12% of total revenue in non-ferrous metal smelting and rolling processing industry in 2017. Lithium batteries, batteries and direct materials accounted for 6.53%, accounting for other industries. It is 8.35%.


In terms of revenue by product, Ganfeng Lithium achieved relatively large revenue in the deep processing lithium compound series in 2017, reaching 66.28%. The lithium metal battery, lithium batteries, batteries and their direct materials and other products realized revenue. It is 43.72%.


Ganfeng Lithium said that the rapid growth in demand for electric vehicle batteries and energy storage batteries has provided sufficient opportunities for the global lithium compound and lithium metal market.


In the lithium battery industry, the gross profit margin and net profit of Ganfeng Lithium Industry have also increased year by year. From the gross profit margin of 22.11% in 2010 to 40.47% in 2017, the net profit margin has also increased from 11.86% to 33.50%.


Due to the high demand for lithium batteries and other lithium-containing terminal products, lithium extraction and processing capacity is relatively limited, lithium battery material manufacturers and lithium battery manufacturers will continue to rely heavily on the supply of lithium chloride and lithium metal in the middle of the supply of safe upstream lithium resources business. Ganfeng Lithium seized the market direction and completed the acquisition of the equity of Mount Marion in 2017. According to the capacity and output as of December 31, 2017, Mount Marion is the second largest spodumene mine in the world. Ganfeng Lithium holds a 43.1% stake in Mount Marion, Mineral Resources Limited and Neo metals Ltd. hold 43.1% and 13.8%, respectively. Mineral Resources Limited is a mining services and processing company based in Australia; Neo metals Ltd is a Australia-based company specializing in the exploration and development of lithium, titanium, vanadium and other basic minerals. According to the Mining Services Agreement, the Mount Marion mine is operated by Mineral Resources Limited. Ganfeng Lithium said that the company has signed a long-term underwriting agreement to cover all lithium raw materials produced by Mount Marion from 2017 to 2020.


In addition, Ganfeng Lithium has established three new subsidiaries in China in 2017: (1) In 2017, it established a wholly-owned subsidiary, HAVELOCKMININGINVESTMENTLIMITED. The company is registered in Hong Kong and its main business is investment. (2) In September 2017, a wholly-owned subsidiary, Jiangxi Ganfeng New Energy Technology Co., Ltd., was established. The company's registered place is located in Xinyu, Jiangxi. The company's main business is the construction and operation of solar photovoltaic power generation systems. (3) In December 2017, Zhejiang Feng Li New Energy Technology Co., Ltd., a wholly-owned subsidiary, was established. The company's registered place is located in Ningbo, Zhejiang Province. The company's main business is power battery and lithium battery.


In terms of technical research and patents, as of the end of 2017, there were 192 R&D teams in the company, dedicated to product development and technology improvement. Most of the R&D staff is deployed in the factory to integrate the R&D process into the production process, facilitating the efficient conversion of R&D knowledge into commercial production. In 2017, Ganfeng Lithium applied for 29 national patents, including 14 invention patents and 15 utility model patents; 13 national patents were granted, including 5 inventions and 8 utility models. At the end of the reporting period, a total of 141 national patents were applied, of which 45 were granted national invention patents, 50 were utility model patents, and 3 were computer software works.


Lithium-ion battery according to the National Development and Reform Commission's Announcement No. 1 of 2017 - Guidance Catalogue for Strategic Emerging Industries Key Products and Services (2016 Edition) promulgated and implemented by the National Development and Reform Commission on January 25, 2017 Monomers, modules and systems; lithium nickel cobalt manganese oxide, lithium cobalt aluminum aluminate ternary system; lithium extraction from carbonate-rich lithium brine; battery recycling and production equipment is a strategic emerging industry key products and services. The “Guiding Opinions on Promoting Energy Storage Technology and Industrial Development” promulgated in September 2017 clearly stated that a number of energy storage technologies and materials with key core significance should be concentrated, and a number of energy storage with industrial potentials should be tested and demonstrated. Technology and equipment, application and promotion of a number of energy storage technologies and products with independent intellectual property rights, improve energy storage product standards and testing and certification systems. According to the analysis of the OF week Industry Research Center, in the first two months of 2018, China's new energy passenger car production growth rate was significant, a total of 68,000 vehicles, an increase of 430%. Ganfeng Lithium is committed to the research, application and market sales of solid-state lithium battery commercialization. Under the general trend of national policies and market, the development prospects are particularly impressive.


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