The price of lithium hexafluorophosphate dropped to 130,000 yuan / ton of listed companies 'overall performance under pressure

On the evening of May 8, Bikang's shares responded to the Shenzhen Stock Exchange's annual report inquiry letter, saying that the price of lithium hexafluorophosphate has dropped significantly and the company's new energy plate has been affected by the deterioration of the market's competitive environment. Revenue and profits have declined in 2017.

Lithium hexafluorophosphate, the core raw material of lithium battery electrolytes, has experienced a cliff fall since March 2017. The analysis of the industry believes that the growth rate of the power battery market is not as expected, the price of positive materials has risen sharply, and the large amount of new production capacity has been the main reason for the sharp drop in the price of lithium hexafluorophosphate. The lithium hexafluorophosphate industry is being reshuffled. The relevant listed companies are under pressure.

Prices have fallen to $130,000 per ton

In response to the enquiry letter, Bikang said that since March 2017, the price of lithium hexafluorophosphate has dropped significantly, from 350,000 yuan per ton in March 2017 to 150,000 yuan in September 2017. / ton. Affected by this, the company's new energy plate orders decreased, and the gross profit rate dropped significantly. Due to changes in the supply and demand of lithium hexafluorophosphate in 2017, the business achieved operating income of 207 million yuan, a decrease of 61.61 yuan from the same period last year.

On May 8, the company announced that the company intends to transfer 100 shares of Jiujiujiu Technology, a wholly-owned subsidiary, to Oriental Risheng, and the transfer price is in principle not less than 2.6 billion yuan. Jiujiujiu Technology, as a wholly-owned subsidiary of Bikang, is engaged in the production of new energy materials such as lithium hexafluorophosphate.

According to the quarterly report of Bikang Shares, it is expected that the net profit of shareholders belonging to listed companies from January to June 2018 will be -10 <UNK> -20 <UNK>. The company said that although the company's pharmaceutical plate production and management is good, but due to "new energy plate affected by policy changes, declining demand and other factors, it is expected that the revenue and profits of the plate continue to decline year-on-year."

Since 2018, the price of lithium hexafluorophosphate has continued to decline, and most companies have even entered the marginal cost line. "The average price of lithium hexafluorophosphate has dropped to 130,000 yuan/ton, and the product price of individual small-scale enterprises has reached 110,000 yuan/ton, which has reached the point where the breakeven or even loss has been discontinued. However, there are also individual stable overseas export orders, which have relatively high quality requirements and can reach 150,000 yuan/ton. "The relevant person in charge of a listed company told the China Securities News reporter.

In 2017, although the domestic power battery market continued to maintain rapid growth, but with the cost pressure of new energy vehicle subsidies and the release of new production capacity, the new production of lithium hexafluorophosphate could not be digested in time, and its price also fell completely.

Overall performance of listed companies under pressure

With the price of lithium hexafluorophosphate hovering at a low level, the performance of listed companies related to the industrial chain such as lithium hexafluorophosphate and electrolytes is under overall pressure.

According to the quarterly report of Skyline Shares, the company achieved revenue of RMB 175 million in the first quarter, a year-on-year decrease of 31.15 <UNK>; The net profit attributable to shareholders of listed companies was 8.641 million yuan, a year-on-year drop of 89.40 <UNK>. The company said market prices for lithium hexafluorophosphate, its main product, were still low, while the market prices for lithium hexafluorophosphate were high in the first quarter of last year, leading to a sharp drop in profitability from a year earlier.

According to the 2017 annual report of Xinzhou State, operating income in 2017 was 1.82 billion yuan, an increase of 14.25 % year-on-year; The net profit attributed to shareholders of listed companies was 280 billion yuan, a year-on-year increase of 9.43 %. The company said that during the reporting period, the market environment in 2017 was extremely fierce competition, the upstream raw material lithium hexafluorophosphate was significantly reduced due to the release of production capacity, the electrolyte industry prices were under pressure, the company's lithium battery chemical performance growth mainly benefited from the increase in sales.

Although the price of lithium hexafluorophosphate has fallen sharply, the release of new production capacity is still accelerating. According to Xinyan's information statistics, as of April 2018, the domestic production capacity of lithium hexafluorophosphate was as high as 38.9 million tons, and 12,000 tons of production capacity were still added around 2019, and the domestic supply of lithium hexafluorophosphate was significantly excessive. Xin Xin information analyst Chengling believes that in order to integrate into the market as soon as possible, new entrants will take low-cost marketing measures to seize customers. The price system of lithium hexafluorophosphate was directly destroyed, and companies will still linger in the period of slight interest.

The relevant person in charge of the above company believes that the price of lithium hexafluorophosphate has now reached the bottom, and it is estimated that it will not rebound in the short term. It will gradually return to rationality next year and it is expected that the price will remain at around 200,000 yuan/ton.

The page contains the contents of the machine translation.