Hunan Corun New Energy Co., Ltd. Business Report FY ended Dec. 2021
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of Change (%) | |
| Sales | 3,085.57 | 2,545.78 | 20.14 |
| Operating income | 43.08 | 49.98 | (13.81) |
| Ordinary income | 44.74 | 54.30 | (17.59) |
| Net income | 5.17 | 40.90 | (87.37) |
Business trends
Batteries
1. Drive battery for HEV
-Sales for the HEV drive battery business of Corun PEVE Automotive Battery Co., Ltd., a subsidiary of the Company, which manufactures battery modules, for the fiscal year ending December 31, 2021 increased by 63.7% year-on-year to CNY 3.225 billion. The 3rd and 4th plant expansions, which are equivalent to 480,000 vehicles a year, have been completed and mass production has officially started.
2.CHS (China Mixed Power and Transmission System Comprehensive Technology Platform: China Hybrid Powertrain System Comprehensive Technology Platform)
-The Company has improved the energy efficiency of existing systems and developed products for New Energy Vehicles that are highly competitive in the market.
Materials
1. HEV battery materials
-The Company's subsidiary, Changde Liyuan New Materials Co., Ltd., sold 2.515 million square meters of nickel foam for HEVs, enough for 382,000 vehicles. This is an increase of 98.8% over the previous year. In addition, the fourth-phase expansion project for nickel foam for HEVs (enough for 480,000 units per year) has been completed and mass production has started.
-Another subsidiary of the Company, Hunan Copower EV Battery Co., Ltd.'s sales of positive and negative electrode materials for HEVs were enough for 365,000 vehicles, up 92.3% year-on-year. The fourth expansion project, which also aims to produce enough for 480,000 vehicles per year, started mass production in August 2021. Sales of battery materials for HEVs totaled CNY 1.396 billion, up 107.4% year-on-year. Aiming to enter the nickel-metal hydride battery market, the company also continuously strives to improve battery materials, and continuously improves the quality and production capacity of steel strips and powder alloys.
2. Materials for hydrogen production
-The Company's subsidiary, Changde Liyuan New Material Co., Ltd., has developed foamed metal for hydrogen production. Due to the large surface area and high hydrogen production efficiency, the catalyst performance of the electrolyzer can be improved, and the energy and equipment costs required for hydrogen production can be reduced. Mass production is scheduled to start in mid-2022.
Production capacity
-In 2021, the company will expand its HEV drive battery production capacity to the equivalent of 480,000 vehicles.
-The third plant of Corun PEVE Automotive Battery Co., Ltd. (Corun PEVE), a subsidiary, started regular production on May 17, 2021. The annual production capacity of power batteries for HEVs has reached enough for 360,000 vehicles. The fourth plant is expected to reach its expansion target in August. Corun PEVE mainly produces drive batteries for HEVs, and currently all products are used in Toyota Corolla, Levin, Camry, Avalon, RAV4, and Wildlander. (From news dated June 24 and June 23, 2021)
-On May 11, 2021, Hunan Copower EV Battery Co., Ltd., a subsidiary of the Company, completed the third plant expansion and started regular production and shipment. The annual production capacity has reached 360,000 units. In the first quarter, electrode shipments increased by 148% year-over-year to 77,000 units. The utilization rate after the 3rd phase plant expansion is 100%. (From a release dated June 24, 2021)
New projects
-Hunan Corun New Energy Co., Ltd. (Corun) announced the formation of a new subsidiary company. The new company will be established by each shareholder of Changde Liyuan New Material Co., Ltd. (Changde Liyuan), a subsidiary of Corun, in proportion to the percentage of shares held by each shareholder. The name of the new company will be Yichun Liyuan New Materials Co., Ltd. (Yichun Liyuan). The new company will procure, produce, and sell lithium ore, lithium battery materials, and lithium battery cells. The new company will undertake the construction of a 30,000-ton battery lithium carbonate material plant, a 60,000-ton high-power lithium iron phosphate cathode material plant, and a 3 GWh lithium battery electrode sheet plant in Yifeng County, which will be operated by Corun. (From a press release dated June 25, 2022)
-Hunan Corun New Energy Co., Ltd. (Corun) announced that it has signed a project contract with the Yifeng county government in Yichun city, Jiangxi province. Corun or its affiliated companies will run investment projects in the industrial park of Yifeng county government. The project names are: “30,000 tons of battery-grade lithium carbonate materials project”, “60,000 tons of high-power lithium iron phosphate cathode materials project”, and “hybrid power technology platform project”. The total investment of the above projects will exceed CNY 3.5 billion. After a project is approved, it will be completed and become fully operational within 24 months. (From a press release dated June 25, 2022)
Capital increase
-The company announced that its subsidiary, China Hybrid System Co., Ltd. (CHS), intends to sign a capital increase agreement with Jiangxi Yifeng Tong'an Mining Product Development Co., Ltd. Under the agreement, CHS will increase capital in Jiangxi Dingsheng New Materials Technology Co., Ltd. for the development of hybrid system technology, aiming to build a high-tech company integrating lithium ore, lithium battery materials, hybrid power and hybrid energy storage technology. Corun is making strategic adjustments to return to the main business of batteries, focusing on nickel-metal hydride (Ni-MH) batteries, lithium batteries, other batteries and their materials. This capital increase will help introduce strategic investors for CHS’s hybrid assembly system business, so that CHS can thrive independently. (From a press release dated April 12, 2022)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D Expenditure | 99.56 | 88.64 | 210.20 |
| Ratio of R&D expenses to sales (%) | 3.26 | 3.48 | 10.11 |
-By the end of 2021, the company had 133 R&D staff members, accounting for 4.00% of the total number of employees.
R&D structure
| R&D Centers | Main business | Year founded | Location | Shareholding (%) | Other shareholdings |
|
National Engineering Research Centre for Advanced Energy Storage Materials Co., Ltd. |
R&D activities on nickel-battery materials, lithium-battery materials, supercapacitor-battery materials, fuel cell materials, etc. | 2010 | Changsha, Hunan | 87.50 | Jinchuan Jidan Company Limited 6.25% Central South University Education Foundation 6.25% |
| Corun CHS Japan Technology Research Co., Ltd. | Development of HEV systems | 2016 | Nagoya, Japan | - | - |
Patents
-In 2021, the company has applied for 63 domestic patents in China and 1 international patent. The Company has 710 domestic patents and 14 international patents, totaling 724 existing patents. (From the 2021 Annual Report)