Shanshan Co., Ltd. (600884), whose main business has shifted from the clothing industry to the lithium battery industry, has become the main source of its new energy business in 2016.

Shanshan Co., Ltd. released its 2016 annual report on April 18. During the reporting period, the company achieved operating income of 5.475 billion yuan, an increase of 11% year-on-year; net profit attributable to shareholders of listed companies was 330 million yuan, a year-on-year decrease of 52%.

Shanshan shares stated that the substantial increase in performance was mainly due to the operation of the lithium battery materials business. During the reporting period, the lithium battery materials business revenue was 4.096 billion yuan, a year-on-year increase of 20.5%; net profit attributable to shareholders of listed companies was 280 million yuan , An increase of 180.78% year-on-year.

The new energy business of Shanshan shares currently covers the upstream and downstream industrial chain of lithium new energy, mainly including lithium battery materials, new energy vehicles (including battery system integration, powertrain, vehicle design and R&D, and charging pile construction and new energy Automobile operation) and energy management service business.

The lithium battery materials business products cover lithium battery cathode materials, anode materials and electrolytes. The main products of lithium battery cathode materials include lithium cobalt oxide series products, multi-material series products, lithium manganese oxide series products and ternary precursors, among which high-end cobalt series products with high voltage, high pressure and high energy density, such as 4.45 V and 4.5V have an absolute market advantage and have entered the supply chain of Apple and Huawei; ternary products continue to develop in the direction of high nickel, and the sales of 532, 622 and other products have continued to increase. The 5000-ton 811 production line has started construction and is expected It will be completed and put into production in 2018.

In 2016, its cathode material revenue was 2.53 billion yuan, a year-on-year increase of 8.12%; the net profit attributable to shareholders of listed companies was 174 million yuan, a year-on-year increase of 121.48%. It is mainly due to the continuous optimization of product and customer structure, the increase in the proportion of sales of high-end products with high gross profit margin, and the continuous growth brought about by cost control.

Shanshan shares said that in 2016, the sales volume of cathode materials was 17,960 tons, a year-on-year decrease of 5.88%. This was mainly due to the rise in domestic raw material prices, unclear industrial policies, and delays in the issuance of subsidies, which led downstream companies to basically wait and see. , In order to prevent and control risks, the company adjusted the shipment volume of some customers.

Lithium battery anode material products mainly include artificial graphite, natural graphite, composite graphite and silicon-based anode products. Among them, high-capacity silicon-based anodes have been mass-produced and supplied in 2017. At present, it has a monthly ton-level shipment scale, and it is expected to complete the production scale of 4,000 tons/year of silicon carbon anode in 2017.

In 2016, its annual sales volume of anode materials was 22,604 tons, a year-on-year increase of 42.73%; business revenue was 1.173 billion yuan, a year-on-year increase of 31.36%; net profit attributable to shareholders of listed companies was 96.9667 million yuan, a year-on-year increase of 62.12% . The main reasons are: (1) the company's anode material business has grown steadily and sales volume has increased; (2) through the upgrading of graphitization technology and the integrated production of anode materials, costs are reduced and gross profit margins increased.

Shanshan shares said that during the reporting period, the company’s negative electrode material business accelerated its capacity expansion, and the annual production of 10,000 tons of raw material projects were put into production one after another, and the first phase of the 35,000 tons of lithium-ion power battery materials project was in the equipment installation stage. It is planned to start trial production in 2017. The Ningde 10,000-ton project is currently in the construction stage and is expected to be put into trial production in 2017.

In 2016, its electrolyte business achieved sales volume of 7,241 tons, a year-on-year increase of 27.15%; business revenue was 419 million yuan, a year-on-year increase of 121.05%, and net profit attributable to shareholders of listed companies was 8.355 million yuan, an increase of 4,525.34 compared to last year Ten thousand yuan, to turn losses into profits. It is mainly due to the rapid growth of electrolyte sales and the increase in the price of electrolyte products.

The announcement shows that in 2016, Shanshan has completed its capital increase in Zhejiang Juhua Kailan New Materials Co., Ltd. (now officially renamed Shanshan New Materials (Quzhou) Co., Ltd.) with a registered capital of 120 million yuan.

Shanshan shares said that the company and Juhua Group have formed a comprehensive cooperation in terms of project investment, technology research and development, product manufacturing, and market operations. Currently, 2,000 tons of lithium hexafluorophosphate and 20,000 tons of electrolyte projects are under construction. The third quarter of 2017 is expected. The electrolyte will be put into trial production, and lithium hexafluorophosphate will be put into trial production in 2017.

In addition to the lithium battery material business, in 2016, Shanshan also focused on the layout and implementation of the new energy vehicle business. Gradually carry out battery system integration and powertrain development, vehicle design and R&D, new energy vehicle charging pile construction and operation, and new energy vehicle leasing services. It is planned to drive upstream battery system integration and powertrain through the layout of downstream new energy vehicle operations. Synergistic development of the finished business and the vehicle.

During the reporting period, the new energy vehicle business revenue was 94.523 million yuan, and the net profit attributable to shareholders of listed companies was 117 million yuan. Mainly due to industry policy fluctuations, industrial pilot layouts, and large initial asset investment.

During the reporting period, Ningbo Levi Energy Automation 18650 battery pack production line was initially completed, with an annual output of 18,000 sets of new energy logistics vehicle battery pack systems, with a production capacity of about 700MWH. Customers include Fuqi Xinlongma, Dongfeng Special Automobile, etc.; Shanghai Exhibition The second phase of Xiaoxiao’s plant was completed and put into use. The first LIC module production line has an annual production capacity of about 60,000 units. The application areas involve intelligent equipment, rail transit, start-stop systems, hybrid buses and other fields. The products have begun to be applied in batches in the intelligent equipment market. .

In terms of the power battery PACK business, the first phase of the automated module and system integration production line has been initially completed. It is currently in the stage of equipment commissioning and trial operation. It can support 18,000 sets of new energy vehicles per year, with an annual production capacity of about 700MWH.

Shanshan shares said that in the future, the company will focus on new energy business, based on lithium battery materials, grasp the pulse of upstream and downstream market development, integrate the upstream and downstream advantages of the industrial chain, and form industrial synergy.