China’s Tinci Materials Surges to Record After Battery Electrolyte Maker Nearly Quadruples Profit
Tang Shihua
DATE:  Oct 27 2021
/ SOURCE:  Yicai
China’s Tinci Materials Surges to Record After Battery Electrolyte Maker Nearly Quadruples Profit China’s Tinci Materials Surges to Record After Battery Electrolyte Maker Nearly Quadruples Profit

(Yicai Global) Oct. 27 -- Shares of Tinci Materials Technology touched an all-time high after the leading Chinese maker of lithium battery electrolyte posted a 273 percent jump in third-quarter profit and said it will invest CNY1.5 billion (USD240 million) to build two new plants that will boost future earnings.

After gaining by the 10 percent exchange-imposed limit in the morning session, Tinci’s stock price [SHE:002709] finished today at CNY162.10 (USD25.35), up 8.2 percent.

Net profit was CNY771 million (USD120.8 million) in the three months ended Sept. 30 mainly due to strong demand and soaring prices, the Guangzhou-based firm said in an earnings report released yesterday. Revenue rose 165 percent to CNY2.9 billion.

In the first nine months of the year, profit almost tripled to CNY1.6 billion on a 146 percent jump in revenue to CNY6.6 billion.

Tinci also said it plans to build two plants in China’s Sichuan province: one for lithium battery electrolyte and one for lithium-iron phosphate battery recycling and processing. The company expects them to generate average annual revenue of CNY8.7 billion and profit of CNY542 million.

Sichuan is an important auto industry base in western China. The new plants will solve Tinci’s problem of insufficient output in the region and help it supply key customers, reduce transport costs, and provide better service, the firm said.

The projects will have annual output of 300,000 tons of lithium battery electrolyte, 6,000 tons of industrial-grade lithium carbonate, 25,000 tons of battery-grade iron phosphate, as well as copper and aluminum by-products. Work on them is expected to be completed in 18 months.

Editor: Futura Costaglione

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Keywords:   Capacity Expansion,Battery Electrolyte,Lithium Carbonate,Ferric Phosphate,Cathode Material,Battery Recycle,Power Battery,Tinci Materials