Xiangfenghua: The company's production capacity configuration meets the demand for LG Chemical products and the supply is sufficient

Recently, Xiangfenghua stated in an institutional survey that the company began to supply LG Chem in batches in November 2019 and passed Samsung SDI's qualified supplier certification in April 2020.

At present, Xiangfenghua’s production capacity configuration can meet LG Chem’s product demand, and this year’s supply to LG Chem is expected to be around 9,400 tons.

Regarding the planning of graphite processing production lines, Xiangfenghua said that the company's graphite processing capacity now reaches 3,000 tons per year, and it is expected to complete the construction of a graphite production line with an annual output of 12,000 tons by the end of March next year, thus reaching an annual production capacity of 15,000 tons.

Currently, the product the company supplies to LG Chem is natural graphite, and the company has not yet received any demand plans or orders for artificial graphite from LG Chem.

Regarding its main customer BYD, Xiangfenghua said that the company's supply volume to BYD remains stable and the customer has not clearly defined the scope of use for the products provided by the company.

Regarding the price changes of negative electrode products, Xiangfenghua said that the sales price of negative electrode products is generally affected by many factors such as product category, raw materials and product performance. Companies in the industrial chain have the need to reduce costs. The company will actively improve itself and strive to keep the product sales price basically consistent with the market level.

It is understood that Xiangfenghua is a company specializing in the research and development, production and sales of negative electrode materials for lithium-ion batteries, and is also a domestic advanced professional supplier of negative electrode materials for lithium batteries. The company's main products are divided into two categories: natural graphite and artificial graphite. The products are used in lithium-ion battery fields such as power (electric vehicles, such as new energy vehicles, electric bicycles, etc.), 3C consumer electronics, and industrial energy storage.

In the third quarter of 2020, Xiangfenghua achieved operating income of 121 million yuan, a year-on-year decrease of 8.69%; net profit attributable to shareholders of listed companies was 11.9481 million yuan, a year-on-year increase of 266.37%; net cash flow generated by operating activities was 26.0240 million yuan, a year-on-year increase of 236.33%.