YONGTAI TECH.(SZ:002326)2022-11-21 15:42Company Overview - Zhejiang Yongtai Technology Co., Ltd. was established in 1999 and listed in 2009, headquartered in Taizhou, Zhejiang Province [1] - The company primarily produces fluorine fine chemicals, categorized into three main product lines: pharmaceuticals, pesticides, and lithium battery materials [1] Financial Performance - In the first three quarters of 2021, the company achieved operating revenue of CNY 3.273 billion, a year-on-year increase of 32.25% [2] - The overall gross profit margin was 34.56%, up by 6.61 percentage points year-on-year [2] - Net profit attributable to shareholders reached CNY 375 million, a year-on-year growth of 65.25% [2] - The net profit after deducting non-recurring gains and losses was CNY 411 million, a significant increase of 200.79% [2] Lithium Battery Materials Segment - Current production capacity for lithium hexafluorophosphate is approximately 2,000 tons/year, with actual monthly production exceeding 200 tons [2] - An additional 6,000 tons/year capacity is under construction, expected to be operational by the end of November to December 2021, bringing total capacity to 8,000 tons/year [2] - VC product production has been ramping up since August, with current output around 10-15 tons per day, aiming to stabilize at a design capacity of 5,000 tons/year [2] - Future capacity projections for lithium battery materials over the next three years include: - Lithium hexafluorophosphate: solid 8,000 tons/year, liquid 67,000 tons/year - Lithium bis(fluorosulfonyl)imide: solid 500 tons/year, liquid 67,000 tons/year - VC: 30,000 tons/year - FEC: 8,000 tons/year [2] Strategic Responses and Market Outlook - The company is addressing rising upstream raw material prices through strategic partnerships, process upgrades, and continuous production improvements [3] - Demand for lithium hexafluorophosphate is strong due to the rapid growth of the new energy vehicle sector, although there may be price risks as production capacity expands [3] - The contribution to profits from various business segments in the first half of 2021 was as follows: pharmaceuticals 32.43%, pesticides 18.72%, lithium battery materials 18.46%, and trade 30.01% [3] - The gross profit contributions were: pharmaceuticals 39.17%, pesticides 29.03%, lithium battery materials 58.81%, and trade 8.42% [3] Production and Technical Aspects - The production process for liquid lithium salts is more efficient than solid forms, reducing investment and production costs, although transportation costs may increase [4] - The company has established strong market responsiveness and equipment integration capabilities through years of collaboration with multinational enterprises [4] - The high price of VC is influenced by supply-demand dynamics, with current demand outpacing supply due to insufficient production capacity [4] - The decision to expand the production of lithium bis(fluorosulfonyl)imide is based on achieving technical goals related to cost reduction and by-product recycling [4]