Profit exceeds 1.4 billion! Electrolyte leader cylindrical battery mass production is imminent!

On August 11, Dofluoro recently disclosed its 2022 semi-annual performance report. In the first half of the year, Dofluoro achieved operating income of 6.027 billion yuan, a year-on-year increase of 107.52%; and achieved net profit attributable to shareholders of listed companies of 1.403 billion yuan, a year-on-year increase of 355.54%.

On the same day, Do-Fluoride announced that it plans to increase capital by RMB 120 million to promote the development of its subsidiary Haina New Materials. This capital increase is also part of Do-Fluoride's large-scale expansion.

Regarding the reasons for the increase in performance, Dofluoro stated that in the first half of the year, the sales volume and prices of core products such as lithium hexafluorophosphate, electronic-grade hydrofluoric acid, and electronic-grade silane in the company's new materials business segment increased significantly year-on-year. The company took advantage of development opportunities in related industries to accelerate the release of production capacity, continuously increase the market share of its products, and significantly improve its overall profitability.

In addition, according to the company's head, Do-Fluoride is accelerating the development and production of cylindrical batteries and square aluminum shell batteries, and the 60130 large cylindrical battery is about to be mass-produced. The Henan base will build an annual sodium ion production capacity of 1GWh by the end of 2023, and the Nanning base will build a 5GWh sodium ion battery production capacity by 2025. The battery structure is 60130 large cylindrical.

At present, Do-Fluoride mainly engages in the research and development, production and sales of aluminum fluoride salts, new materials, lithium batteries and other related fields. Among them, the new materials field represented by lithium hexafluorophosphate has the largest contribution to revenue and profit, and has grown into the main force for the company's performance growth.

In recent years, Do-Fluoride has rapidly expanded its business in the power battery sector. After TSMC's on-site audit and multiple rounds of online testing, it has officially entered TSMC's qualified supplier system and recently began to deliver high-purity electronic chemical materials in batches to TSMC (Nanjing) Co., Ltd. In the second half of 2021, Do-Fluoride successively entered the supply chains of GAC, Wuling and other automakers.

Overall, Dofluoro has a mature upstream and downstream industrial layout in lithium hexafluorophosphate involving the three elements of fluorine, lithium, and phosphorus. It can effectively avoid the impact of raw material fluctuations on product costs. At the same time, it has the production advantages of large-scale equipment and intensive devices. It is expected to enjoy high profits during cyclical booms and improve performance by relying on cost advantages.