Lithium battery research and development expenses soar-Lithium - Ion Battery Equipment
Recently, domestic power lithium battery companies have successively announced their 2021 annual financial reports. Although the fundamentals of the overall financial reports are gratifying, many companies have expressed that their concerns about future development remain unabated. Analyzing the financial reports, the situation of leading companies such as CATL, Yiwei Lithium Energy, Guoxuan Hi-Tech, and Funeng Technology is mixed. In 2021, the price of upstream raw materials will continue to soar, which will put severe pressure on the power lithium battery industry; while the production and sales of downstream new energy vehicles will increase by nearly 1.6 times year-on-year, and the demand for power lithium batteries will soar. In the face of all kinds of severe challenges, can the power lithium battery industry still go steady? One or two may be known from the annual financial reports disclosed by relevant companies.(Lithium - Ion Battery Equipment)
revenue and profit
Overseas markets are bright spots as rising costs erode profits
In 2021, the production and sales of new energy vehicles will rise sharply, which will lead to an increase in the net profit of the leading power lithium battery companies.
CATL's recently released 2021 financial report shows that last year's revenue exceeded 100 billion yuan for the first time, reaching 130.356 billion yuan, a year-on-year increase of 159.06%; the net profit attributable to the parent was 15.931 billion yuan, close to the sum of the four years from 2017 to 2020, a year-on-year increase 185.34%. Among them, the power lithium battery system contributed about 91.49 billion yuan in revenue, accounting for more than 70% of the revenue.
CATL's lithium battery sales last year reached 133.41GWh, an increase of 184.82% year-on-year; among which, the power lithium battery system shipments were 116.71GWh, a year-on-year increase of 162.56%; the global market share of power lithium battery installed capacity reached 32.6%. However, due to factors such as rising raw material prices, CATL's gross profit margin declined. In 2021, the gross profit margin of the power lithium battery system is 22%, a year-on-year decrease of 4.56 percentage points.
The company that also achieved a double increase in revenue and profit is Sunwoda. According to the annual report, in 2021, Sunwoda’s revenue will be 37.359 billion yuan, a year-on-year increase of 25.82%; the net profit attributable to the parent company will be 916 million yuan, a year-on-year increase of 14.18%. From the perspective of core business, the power lithium battery business in 2021 will increase by 584.67% year-on-year. In November 2021, it will enter the tenth place in the global power lithium battery installed capacity for the first time, and the installed capacity will rise to the ninth place in the world in December. In 2021, Sunwoda's power lithium battery products will focus on square aluminum shell cells, covering pure electric, plug-in hybrid, 48V light hybrid and other application markets.
Yiwei Lithium Energy also achieved a double increase in revenue and profit last year. According to the financial report, revenue in 2021 exceeded 10 billion yuan for the first time, reaching 16.9 billion yuan, setting a sales record in the past five years, with a year-on-year growth rate of 107.06%; net profit attributable to the parent was 2.906 billion yuan, a year-on-year increase of 75.89%. Among them, the power lithium battery business revenue was 10 billion yuan, a year-on-year increase of 146.25%, mainly due to the continuous release of soft-pack ternary batteries in the passenger vehicle field with the continuous release of new production, and the scale of shipments continued to increase.
Similar to CATL, the increase in raw material prices has eroded the gross profit margin of Yiwei's lithium battery business. In 2021, the gross profit margin of lithium batteries will drop by 7.11 percentage points to 19.02%; the cost will increase by 145.8% year-on-year, accounting for 77.26% of operating costs. Gross margin decline is a common phenomenon in the battery industry. At the same time, the contribution of its overseas markets to revenue has become increasingly prominent. In 2021, income from overseas will account for more than half, up 123.65% year-on-year, higher than the domestic 92.24%.
revenue and profit
Overseas markets are bright spots as rising costs erode profits
In 2021, the production and sales of new energy vehicles will rise sharply, which will lead to an increase in the net profit of the leading power lithium battery companies.
CATL's recently released 2021 financial report shows that last year's revenue exceeded 100 billion yuan for the first time, reaching 130.356 billion yuan, a year-on-year increase of 159.06%; the net profit attributable to the parent was 15.931 billion yuan, close to the sum of the four years from 2017 to 2020, a year-on-year increase 185.34%. Among them, the power lithium battery system contributed about 91.49 billion yuan in revenue, accounting for more than 70% of the revenue.
CATL's lithium battery sales last year reached 133.41GWh, an increase of 184.82% year-on-year; among which, the power lithium battery system shipments were 116.71GWh, a year-on-year increase of 162.56%; the global market share of power lithium battery installed capacity reached 32.6%. However, due to factors such as rising raw material prices, CATL's gross profit margin declined. In 2021, the gross profit margin of the power lithium battery system is 22%, a year-on-year decrease of 4.56 percentage points.
The company that also achieved a double increase in revenue and profit is Sunwoda. According to the annual report, in 2021, Sunwoda’s revenue will be 37.359 billion yuan, a year-on-year increase of 25.82%; the net profit attributable to the parent company will be 916 million yuan, a year-on-year increase of 14.18%. From the perspective of core business, the power lithium battery business in 2021 will increase by 584.67% year-on-year. In November 2021, it will enter the tenth place in the global power lithium battery installed capacity for the first time, and the installed capacity will rise to the ninth place in the world in December. In 2021, Sunwoda's power lithium battery products will focus on square aluminum shell cells, covering pure electric, plug-in hybrid, 48V light hybrid and other application markets.
Yiwei Lithium Energy also achieved a double increase in revenue and profit last year. According to the financial report, revenue in 2021 exceeded 10 billion yuan for the first time, reaching 16.9 billion yuan, setting a sales record in the past five years, with a year-on-year growth rate of 107.06%; net profit attributable to the parent was 2.906 billion yuan, a year-on-year increase of 75.89%. Among them, the power lithium battery business revenue was 10 billion yuan, a year-on-year increase of 146.25%, mainly due to the continuous release of soft-pack ternary batteries in the passenger vehicle field with the continuous release of new production, and the scale of shipments continued to increase.
Similar to CATL, the increase in raw material prices has eroded the gross profit margin of Yiwei's lithium battery business. In 2021, the gross profit margin of lithium batteries will drop by 7.11 percentage points to 19.02%; the cost will increase by 145.8% year-on-year, accounting for 77.26% of operating costs. Gross margin decline is a common phenomenon in the battery industry. At the same time, the contribution of its overseas markets to revenue has become increasingly prominent. In 2021, income from overseas will account for more than half, up 123.65% year-on-year, higher than the domestic 92.24%.
