Two lithium battery projects including lithium hexafluorophosphate – Duofuodu

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Two lithium battery projects will come online this year, offering Polyfluoride new sources of growth in its performance. 01-04-2011; Views: 89. According to CaiNiu.com, Polyfluoride, which has attracted investment interest due to the lithium battery concept, released its first annual report since going public on March 29. However, the company has two projects with excess funds that will go into production this year; the products involved fall under the categories of lithium hexafluorophosphate and power lithium batteries, offering promising growth potential. 　　Two lithium battery projects will come online this year. Duofuodu achieved operating revenue of 819 million yuan last year, a 5.96% increase compared with the same period the previous year ； However, the net profit was only 48.35 million yuan, a decrease of 39.50% on a year-on-year basis. Basic earnings per share is 0.50 yuan. 　　The company explained the increase in revenue without a corresponding increase in profits last year by stating that the prices of key raw materials rose to varying degrees. Although both the volume and price of product sales increased, the rise in operating costs due to higher raw material prices was greater than the increase in revenue ； In addition, foreign demand remains insufficient, and the appreciation of the RMB has an adverse impact on export business. 　　Despite its poor performance, Duofu Duo remains a popular investment target in the secondary market ； Statistics from Wind also show that as of the end of last year, institutions held 10.03 million shares of Duofuodu, accounting for 37.15% of the total outstanding shares, which is 7.61 percentage points higher than the figure reported in the third-quarter report. 　　The company’s strategy in the lithium battery sector is the main reason that has attracted the attention of institutions. The annual report shows that the project to produce 200 tons of lithium hexafluorophosphate per year, funded using 129 million yuan in excess funds raised by the company, is set to be fully completed by the end of this year. Following the announcement in January that the production line had been basically built and was in the trial production phase, the annual report states that the project will be completely finished by the end of this year. The reporter learned from the researchers that the current capacity utilization rate of this project is around 50%, and it will be able to reach full capacity by the end of this year; the total annual production is expected to be around 140 tons ； At the current selling price of over 300,000 yuan per ton, a production volume of 140 tons translates to at least 42 million yuan in revenue. 　　In addition, another use for the excess funds announced by the company in November last year was for the “100 million Ah annual production capacity lithium-ion battery project”; the planned construction period for this project was from December 2010 to June 2012. However, the annual report indicates that the first phase with a production capacity of 50 million Ah will be completed and put into operation in the first half of this year, ahead of the timeline previously learned by researchers during their visits to the company. 　　New lithium battery projects will be launched in large numbers. On March 1, Duofuduo released a draft for equity incentive plans, with the exercise price set at 69.98 yuan ； The industry’s assessment criteria are based on the year 2010; the net profit growth rates for the years 2011 to 2014 must be no less than 30%, 60%, 120%, and 180% respectively. 　　In terms of lithium batteries, the 100 million Ah power lithium battery project focuses on manganese acid lithium batteries; it is currently in the pilot production stage and will be fully completed by June next year. Another over-funded project with a total investment of 344 million yuan was scheduled, according to the initial plans, to complete its first phase of construction by December this year, resulting in production lines capable of producing 5,000 tons per year of electrolyte, 500 tons per year of lithium hexafluorophosphate, 200 tons per year of battery-grade lithium fluoride, and 2,500 tons per year of electronic-grade hydrofluoric acid ； In 2012, the second phase of construction was carried out, which included an electrolyte production line with an annual capacity of 5,000 tons and a lithium hexafluorophosphate production line with an annual capacity of 500 tons ； In 2013, Phase 3 of the project was carried out, during which production lines were established for 10,000 tons per year of electrolyte, 1,000 tons per year of lithium hexafluorophosphate, 200 tons per year of battery-grade lithium fluoride, and 2,500 tons per year of electronic-grade hydrofluoric acid. 　　In terms of its current core business in fluorides, it will benefit from the upward trend in product prices this year ； In 2011, the company will also add another 30,000 tons of aluminum fluoride production capacity; it is expected that revenue and profitability in this area will increase this year.