Source: Securities Star

Fengyuan shares announced on the evening of October 20 that Shandong Fengyuan Lithium Energy Technology Co., Ltd. (Fengyuan Lithium Energy), a wholly-owned subsidiary of the company, plans to invest in the construction of a high-nickel ternary material project with an annual output of 10,000 tons of lithium-ion batteries. The investment is about 585 million yuan. The project is planned to be built in the subsidiary Fengyuan Lithium Energy West Plant. The total construction period of the construction project is about 24 months. After it is fully completed, it is predicted according to the current market conditions. It is expected to realize an average annual sales income of about 2 billion yuan and a net profit of about 2 100 million yuan.

The company's annual output of 5,000 tons of ternary material projects has been put into production capacity and full sales, and the remaining production lines under construction will be commissioned in the near future. If the new project can be successfully implemented and put into operation, the company's total production capacity of ternary materials will reach 15,000 tons per year, which will have a positive impact on the company's operating performance.

The company's third quarterly report also revealed that the company achieved operating income of 336 million yuan in the first three quarters and net profit attributable to shareholders of listed companies of 17.6155 million yuan, up 70.49% and 10.27% year-on-year respectively. The increase in the company's operating income was mainly due to the commissioning of the lithium battery cathode material project; affected by the sales of cathode materials, the company's accounts receivable in the first three quarters increased by 77.56 million yuan or 112% from the end of the previous year.