Financial Associated Press, October 27 (reporter Zeng Chuchu, special correspondent Zhang Shuwei)Lithium power industry demand growth slowed, lithium salt prices declined, lithium salt plant Shengxin lithium energy (002240.SZ) revenue and net profit in the first three quarters were lower than the same period last year, but affected by non-recurrent profit and loss, Q3 company home net profit increased significantly. The lithium concentrate of Shengxin Lithium Energy Sabi Mine has been sent to China one after another, and the 60,000-ton lithium salt project in Indonesia is under active construction.

Shengxin LiNeng announced today that the company's operating income in the first three quarters was 6.628 billion yuan, down 18.55 percent from the same period last year, and its net profit was 1.095 billion yuan, down 74.83 percent from the same period last year.

Specific to the performance in the third quarter, Shengxin LiNeng Q3 achieved operating income of 1.87 billion yuan, down 37.77% from the same period last year; net profit was 483 million yuan, down 63.68% from the same period last year, up 226.95% from the previous year; and deducting 11.75 million yuan from non-net profit, down 99.13% from the same period last year and 92.2% from the previous year.

A reporter from the Financial Associated Press noted that the impact of the company's non-recurrent profit and loss on net profit in the third quarter was about 472 million yuan. Shengxin LiNeng Q3, in addition to the effective hedging business related to the company's normal business, the investment income from holding transactional financial assets was 538 million yuan, which was the investment income for the settlement of the claims of Chengdu Xingneng Company held by the company, while the income in the semi-annual report was only 27.69 million yuan.

For the first three quarters of operating revenue decreased compared with the same period last year, the company said that the main reason is the slowing down of demand growth in the lithium industry where the company is located, and a large correction in the price of lithium products. At the same time, the price of raw materials increased over the same period last year, and the company's operating cost in the first three quarters was 5.59 billion yuan, an increase of 110.22% over the same period last year, resulting in a decline in financial indicators such as return-to-home net profit and deducting non-net profit compared with the same period last year.

Public data show that Shengxin lithium energy business mainly focuses on upstream lithium ore development and the production of lithium salt and metal lithium products, but the company's lithium concentrate self-sufficiency rate is low. Prior to this, after the cost upside down, the large-scale overhaul and production reduction of the lithium salt plant was staged, and Shengxin Lithium Energy also announced that, combined with the downward situation of lithium salt prices, the production line of the Zhiyuan plant would be inspected normally in October.

It is reported that Shengxin Lithium Energy has built an annual production capacity of 70,000 tons of lithium salt, of which Zhiyuan Lithium Industry 40,000 tons / year, Suining Shengxin 30,000 tons / year, planned Indonesian lithium hydroxide production capacity of 50,000 tons / year and lithium carbonate capacity of 10,000 tons / year, and Shengxin Metal Phase I lithium salt production capacity, which is expected to be put into production this year.

On this basis, Shengxin Lithium Neng said on the investor interactive platform in September that the 20,000-ton lithium carbonate project of Shengjing Lithium Industry can be used as a flexible production arrangement for Suining Shengxin 30,000-ton lithium salt production base; the company can flexibly adjust the lithium sulfate solution in the middle section of Suining Shengxin lithium salt production line and process it into lithium hydroxide or lithium carbonate.

With regard to the progress of lithium supply, Shengxin Lithium Energy previously said that the lithium concentrate of the Sabixing mine (with an estimated production scale of 200000 tons / year) has been sent to China one after another, and the 60, 000-ton lithium salt project in Indonesia is under active construction.