(Yicai Global) Oct. 26 -- China Baoan Group’s shares soared by the exchange-imposed limit after the Chinese new energy materials maker posted a 71 percent jump in nine-month profit and said a unit plans to invest CNY1.8 billion (USD288 million) to boost production of artificial graphite, a lithium battery anode material.

After surging by as much as 10 percent earlier today, China Baoan’s stock price [SHA:000009] closed up 6.6 percent at CNY20.84 (USD3.27).

Net profit was CNY893 million (USD140 million) in the three quarters ended Sept. 30 thanks mainly to soaring demand for battery materials in the NEV sector, the Shenzhen-based firm said in an earnings report published yesterday. Operating revenue rose 75 percent to nearly CNY12.2 billion (USD1.9 billion).

China Baoan also said a unit, BTR New Material Group, will set up a joint venture with two Shanxi province-based businesses and an individual to oversee construction and operation of a new artificial graphite plant. Shenzhen-based BTR New Material will have a 51 percent stake in the JV.

The new project will have an annual capacity of 40,000 tons, and it is expected to be completed in 12 months, China Baoan said. Once the new plant is built and depending on market conditions, the JV will decide whether to expand that capacity by another 30,000 tons.

Situated in Shanxi, the plant will hike both BTR New Material’s output and profit thanks to its partners’ funding and production capacity advantages, its parent company said.

BTR New Material has already unveiled plans to build four plants to expand artificial graphite capacity to meet rising demand from battery makers. The projects will hike its annual anode materials capacity by 270,000 tons once completed, according to its website.

BTR New Material is a leading supplier of lithium battery anode materials and it is listed on the Select tier of the National Equities Exchange and Quotations. It produced 80,000 tons of lithium battery anode materials last year, grossing nearly CNY3.2 billion. Its shipments of lithium battery anode materials ranked first globally for seven straight years from 2013.

Editor: Futura Costaglione