NORD shares: lithium battery copper business to attract a sharp increase in performance

The annual report released by NORD shares shows that the company achieved operating income of 2.538 billion Yuan in 2017, an increase of 26.75% year-on-year; net profit of 190 million Yuan, an increase of 623.23%. Nord Group said that benefiting from the vigorous development of China's lithium battery industry and new energy automobile industry, the demand for electrolytic copper foil for lithium batteries has increased, and the company's copper foil sector has seen a large increase in revenue, driving overall growth.

Copper foil business growth rate is obvious

As the carrier and current collector of the negative electrode of lithium ion battery, lithium copper foil is the most basic raw material for lithium ion battery. NORD is engaged in the production and sales of high-grade copper foil for lithium-ion batteries and the development of lithium battery materials. It is one of the first companies to enter the copper foil industry. Huizhou Electronics, a wholly-owned subsidiary, has more than 25 years of experience in copper foil production and technology accumulation.

According to the data of China Association of Automobile Manufacturers, China's new energy vehicles continued to develop in 2017, with production and sales approaching 800,000 units, reaching 794,000 and 777,000, respectively, up 53.8% and 53. 3%. In 2017, the new energy vehicle market accounted for 2.7%, an increase of 0.9 percentage points over the previous year. With the vigorous development of the new energy automobile industry and the lithium battery industry, the demand for electrolytic copper foil for lithium batteries has risen sharply.

It is reported that Nod's 2017 copper foil product revenue reached 2.169 billion Yuan, accounting for more than 85% of total revenue, a year-on-year increase of 40.96%. The relevant person in charge of the company told the China Securities Journal that NORD's share of the lithium battery market for new energy vehicles is more than 30%, which is in the leading position in the industry, which is benefited from the remarkable technology and cost advantages accumulation of the company in the field of copper foil processing for many years.

Multi-layered consolidation of the leading position in the copper foil industry

Copper foil is an indispensable raw material in the power battery of new energy vehicles. The tight supply of lithium copper foil has become the bottleneck of the development of lithium batteries for new energy vehicles, especially the supply of light and high precision copper foil, which directly affects the capacity density and weight of the battery. . According to the relevant research report, due to production technology and scale restrictions, the short-term supply of copper foil is weak, and the lithium-ion copper foil gap is very large. The high-end thin copper foil manufacturers are valued by the market.

NORD shares aiming at the national policy and the change of supply and demand of lithium battery copper foil. The company has carried out flexible transformation of the production line of the original standard copper foil production capacity of the subsidiary, upgrading and upgrading the equipment, etc., and actively expanding the market share of lithium-ion copper foil while rapidly expanding production capacity. And optimize product structure and continuously improve comprehensive competitiveness.

It is reported that in 2017, NORD shares completed the upgrade and expansion of Huizhou United Copper Foil Electronic Materials Co., Ltd., a wholly-owned subsidiary. The production capacity has been expanded from 2,100 tons/year to 5,000 tons/year. The company's nominal capacity of copper foil is 27100. The ton/year has increased to 30,000 tons/year. At present, the company's lithium copper foil production capacity accounted for more than 80% of the company's effective copper foil production capacity, is one of the largest lithium copper foil production enterprises.

According to relevant industry sources, the pursuit of thin and light copper battery products is also the main reason for the expansion of demand gap. At present, the mainstream in the market is 8 micron copper foil, but the 6 micron copper foil can increase the energy density more than the 8 micrometer copper foil, and has become the direction chosen by the global advanced lithium battery enterprises.

NORD is currently one of the few companies in the world that can supply 6 micron high-precision copper foil. It has long-term cooperation with well-known companies such as Ningde Times, BYD, Guoxuan Hi-Tech, Tianjin Lishen, etc., and is gradually working with Panasonic, LG Chem, etc. Internationally renowned companies establish cooperative relationships. In 2017, NORD shares further expanded the production scale of 6 micron copper foil, laying a foundation for subsequent capacity expansion and market expansion.

The above-mentioned person in charge also introduced that the construction of the annual output of 10,000 tons of lithium battery copper foil project by Qinghai Nord New Material Co., Ltd. was basically completed, and trial production will begin at the end of June. It is worth noting that the development of the lithium battery industry in recent years has obvious seasonal characteristics. The second quarter and the third quarter are the industrial peak season, and the supply chain upstream enterprises in the industrial chain are in short supply. The release of new capacity of NORD shares coincides with the peak season of the industry, which helps to better grasp market opportunities.

In 2017, NORD released a non-public offering plan to raise funds for an annual production of 25,000 tons of electrolytic copper foil for power batteries and supplemented liquidity, further enhancing the company's competitiveness in the copper foil market and expanding Market share plays an important role in consolidating the leading position in the industry.

Optimize the configuration? Focus on the main business

In recent years, in the face of industry development opportunities, Nord Group has sorted out the company's development strategy, assets and business, further optimized resource allocation, and divested non-performing assets and businesses not related to the main business.

Following the divestment of Zhengzhou Cable and Shanghai Zhongke's two loss-making subsidiaries in 2016, NORD shares in July 2017 divested its wholly-owned subsidiary, Beijing Shixin Taide Investment Consulting Co., Ltd., to further optimize its asset and liability structure. At present, significant results have been achieved. After sorting out the adjustment and focusing on the main business, the effect of the industrial upgrading and management improvement of Nord's shares has gradually emerged.

"With the seasonal and phased demand of the lithium battery industry, the orderly release of the company's production capacity and the optimization of product structure, the company will usher in a new round of rapid growth." The relevant person in charge of Nord Group said, "They will further focus the main business of lithium-ion copper foil is to establish a leading position in the field of lithium-ion copper foil, and actively explore the international market. Through strategic measures such as expanding production capacity, expanding sales and industrial integration, the company will continue to improve its efficiency and scale, and further develop new materials and new energy industries. Enhance comprehensive competitiveness and influence, and strive to become the global leader in lithium foil."

The page contains the contents of the machine translation.