Xingyuan material: 2017 net profit minus 30% domestic lithium battery separator market polarization

On April 3, Xingyuan Materials released its 2017 annual report, which achieved a total operating income of 521 million Yuan, an increase of 3.09% over the same period of the previous year; a net profit of 107 million Yuan, compared with the same period of the previous year reduced by 31.29%.

According to Star Source, the decline in performance was mainly due to:

1. Due to the policy factors such as the declining standard of subsidies for new energy vehicles in 2017 and strict subsidy policies, and the failure of local subsidy policies to be timely, the demand of battery separator products by downstream customer battery manufacturers has slowed down in the first quarter of 2017. As a result, the net profit for the first quarter of 2017 decreased by 34.12% compared with the same period of the previous year.

2. Hefei Xingyuan, a holding subsidiary, entered the process commissioning in the second half of 2017 to increase the cost. At the same time, due to the fact that its production capacity has not been fully released, the production cost has increased to a certain extent.

3. The continuous advancement of related technologies in the lithium ion battery separator industry, the scale advantage of capital investment formation and the rapid increase in production capacity have gradually reduced the production cost, and the market competition has become increasingly fierce. In the report period, the sales price of the company's products has a certain degree sliding down.

4. On the basis of consolidating the leading position of the dry process in the field of power lithium ion battery separators, the company continues to increase the application research and development of wet process and coating process; at the same time, according to battery technology progress and market demand changes In response to the request, the company actively carried out targeted R&D investment in the process and specifications of related products. During the reporting period, the company's R&D expenditure increased significantly year-on-year.

5. The company was affected by the sharp fluctuation of the US dollar exchange rate in the second half of 2017, which caused a large exchange loss compared with the same period of the previous year. Under the influence of the above reasons, the net profit of the company has decreased compared with the same period. However, through the continuous introduction of new products and the continuous expansion of new businesses, the company's sales revenue has continued to grow steadily compared with the same period last year.

The report shows that Xingyuan Material is a national high-tech enterprise specializing in the research, development, production and sales of lithium-ion battery separators in the field of new energy, new materials and new energy vehicles. It is the lead unit and drafting of the national standards for lithium-ion battery separators deputy leader unit of the committee. At present, Xingyuan material is one of the few leading companies in China to enter the international market and provide diaphragm products and technical services to internationally renowned lithium-ion battery manufacturers. It has become a globally influential lithium-ion battery separator supply business line. In 2016 and 2017, the company's finished lithium-ion battery separator sales reached 139 million square meters and 155 million square meters, respectively, and further increased business cooperation with domestic and foreign well-known lithium-ion battery manufacturers such as LG Chem.

The report also analyzes China's diaphragm market structure.

At present, the domestic lithium-ion battery separator market mainly presents foreign and domestic manufacturers coexisting and polarized market competition pattern: low-end market concentration is low, disorderly competition is obvious, mainly occupied by domestic manufacturers; high technical threshold and product quality requirements The high-end and high-end markets are occupied by Japanese and Korean manufacturers and a few leading domestic companies. In recent years, China's lithium-ion battery separator industry has achieved rapid development under the mutual promotion of technological innovation and demand promotion, but it still needs strong investment and long-term development in terms of technical performance improvement and application field development. Improving the industrialization level of China's lithium-ion battery separator industry and vigorously developing high-end lithium-ion battery separators have important strategic significance for the healthy development of China's lithium-ion battery industry.

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