Xiamen Tungsten Industry's Profit Increased Sharply in 2017

Recently, Xiamen Tungsten Industry announced its performance in 2017. Its annual report shows that the company realized revenue of 14.188 billion yuan, an increase of 66.37% year on year, and realized net profit of 618 million yuan for shareholders of listed companies, an increase of 320.66% year on year, which is higher than expected.

Tungsten products:
In 2017, the prices of tungsten concentrate and APT in China increased by 30% to 91,000 yuan/ton and 140,000 yuan/ton on a year-on-year basis, which led to a 2 PPT to 22% increase in the company's combined gross profit rate. At the same time, tungsten production increased significantly. In 2017, the output of tungsten powder products increased by 36% to 8813 tons, APT production increased by 3% to 16793 tons. In addition, the output of rare earth metals/magnetic materials increased by 1.4x/60% respectively.

In summary, enterprises benefit from the rise of tungsten price, and their profits are greatly increased; APT sales have reached a record high; tungsten powder products continue to maintain technological and industrial advantages, and sales have developed steadily; sales and profits of carbide deep-processing products have steadily increased, among which the key products, alloy bars, integral cutting tools and CNC blades, have been accumulated and developed for many years, and sales revenue and market have been increased. At the same time, the R&D investment of enterprises in cemented carbide production has also reached a record high.

Product structure optimization:
Thanks to the upsurge of new energy vehicles, the new energy battery industry has accelerated its expansion, which has led to a substantial growth in the domestic new energy materials industry. The company's output and productivity have also improved significantly. Xiamen tungsten industry has entered the field of battery cathode materials since 2003. It has witnessed and experienced the updating of mainstream products in the market from hydrogen storage alloys to lithium cobalt oxide and ternary materials. With the advantages of high energy density of NCA and NCM cathode materials, and in line with the future direction of power battery upgrading, Xiamen Tungsten Industry seized the opportunity in 2017 to expand the production capacity of corresponding materials, expanding 10,000 tons in Xiamen Base, 6,000 tons in Sanming Base and 20,000 tons in Ningde Base respectively.

Relevant agencies predict that the recovery market created by recovering cobalt, nickel, manganese, lithium, iron and aluminium from spent power lithium batteries will exceed 5 billion yuan in 2018 and 13.6 billion yuan in 2020. It is generally believed that with the expansion of ternary power batteries in the future, the sources of cobalt metal will mainly come from the recycling field.

The recycling of batteries in Xiamen tungsten industry will further ensure the stable supply of raw materials, extend the industrial layout, and enhance the company's comprehensive strength and core competitiveness. In fact, more and more related enterprises have stepped up the market layout, including Ningde-era shares in Bongpu Group, Hunan Bongpu Power Battery Cycle Project expansion, Greenmay's capital increase to Ganzhou Greenmay, etc. (Information is synthesized from China Finance, Economics Information Network and Fujian Daily)

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