Defang Nano expects to make a profit of 760 million to 830 million yuan in 2021, reversing losses year-on-year

Defang Nano announced on the evening of January 11 that it expects to make a profit of 760 million to 830 million yuan in 2021, reversing the loss year-on-year.

Defang Nano pointed out that during the reporting period, the company's newly built production capacity was released, and production and sales volumes increased significantly compared to 2020; factors such as rising upstream raw material prices and tight supply and demand in the lithium iron phosphate market led to an increase in the company's product prices; at the same time, thanks to the company's effective promotion of cost control and the emergence of economies of scale, the company's profitability has increased significantly compared to 2020.

Against the backdrop of a sharp rise in downstream demand for positive and negative electrode materials this year, Defang Nano continued to expand production. On January 6, Defang Nano announced that the company had signed an "Annual Production of 330,000 Tons of New Phosphate-Based Cathode Material Production Base Project Investment Agreement" with the Qujing Municipal People's Government and the Qujing Economic and Technological Development Zone Management Committee. The company plans to build an "Annual Production of 330,000 Tons of New Phosphate-Based Cathode Material Production Base Project" in the Qujing Economic and Technological Development Zone, with a total investment of approximately RMB 7.5 billion.

Defang Nano revealed that this outbound investment is to further expand the company's cathode material production capacity, meet the market demand of downstream customers, and further enhance the company's market competitiveness. The funds for this outbound investment come from the company's self-raised funds. The signing of this agreement will not have a significant impact on the company's financial situation and operating results in the short term, and the performance of the agreement will not affect the company's business independence. In addition, Defang Nano also stated that this investment has risks such as market environment and operation management. Since the construction and implementation of the project requires a certain period of time, it is expected that it will not have a significant impact on the company's performance in the short term.