As of October 30, among 84 listed companies in the lithium battery sector, 72 companies achieved positive revenue growth in a single quarter, among which 23 companies doubled their revenue, including Tianqi Lithium, De Fang Nano, Ganfeng Lithium, etc. From the viewpoint of revenue scale, BYD and Ningde Times are the first and second, and there are 10 companies with revenue over 10 billion, including Sinochem International, Huayou Cobalt, Xin Wanda, etc.

　　From the viewpoint of net profit, 57 companies out of 84 listed companies achieved positive growth in net profit in a single quarter, and 25 companies doubled their net profit, including Tianqi Lithium, Guoguang Electric, Xin Wanda and so on. There are 11 listed companies with net profit scale above 1 billion yuan, including Ningde Times, BYD, Tianqi Lithium, Salt Lake, etc.

　　At the same time, the lithium battery sector showed significantly higher performance growth rate. Disclosed results of lithium battery listed companies in the third quarter revenue growth of 81.89% year-on-year, net profit growth of 123.35% year-on-year, much higher than the same period has disclosed results of A-share listed companies, the latter two average growth rate of 7.2% and 0.79% respectively.

　　The boom of the lithium battery industry comes from the still-strong downstream demand. In the third quarter, July and August by the summer off-season and other factors, the growth of new energy vehicle sales slowed down, but in September again surged high. According to CCA data, domestic sales of new energy vehicles reached 708,000 units in September, up 93.9% year-on-year; the market share of new energy vehicles reached 27.1%. In the first nine months, new energy vehicle sales were 4.567 million units, up 110% year-on-year.

　　The industry is still generally optimistic about the fourth quarter sales. As new energy vehicle subsidies will soon be withdrawn at the end of the year, the market is expected to prompt an early demand for vehicles and stimulate a tailspin. Many institutions expect the annual sales of new energy vehicles to reach more than 6 million units.

　　Faucet profitability improvement

　　Specific observation of the profitability of the lithium industry chain, profit differentiation is more obvious.

　　From the performance scale, BYD and Ningde Time is still the absolute leader in the lithium industry chain. In the third quarter, BYD and Ningde Times achieved revenue of 117.081 billion yuan and 97.369 billion yuan respectively, with a year-on-year growth rate of 115.59% and 232.47% respectively; both net profit of 5.716 billion yuan and 9.424 billion yuan respectively, up 350.26% and 188.42% respectively.

　　The two leading companies' performance in the third quarter exceeded market expectations, especially the profit level rebounded significantly.

　　Against the backdrop of high raw material prices, Ningde Times' gross margin improved. The third quarter gross margin was 19.3%, although compared to 21.85% in the second quarter fell slightly, but the company said that some of the batteries in the first quarter has increased prices, to the second quarter customers made up this part of the price difference, making the second quarter gross margin is higher. If you deduct the back payment part, the third quarter power battery and energy storage battery gross margin compared to the second quarter have improved, is expected to further improve the gross margin in the fourth quarter compared to the third quarter.

　　BYD benefits from a more complete self-supply system, the scale effect is also becoming more prominent. BYD new energy vehicle sales in the third quarter 538,700 units, an increase of 194.37% year-on-year, ranking top in the domestic market. Societe Generale Securities analysts expect that the company's new energy vehicles in the third quarter earnings per vehicle close to 10,000 yuan, along with continued volume and capacity expansion, the fourth quarter is expected to achieve earnings per vehicle over 10,000.

　　Overall, the industry chain profits are still clearly concentrated in the upstream materials sector. Within the lithium battery sector, the company with the fastest growth rate of net profit in the third quarter is Tianqi Lithium, although the revenue of 10.35 billion yuan in the third quarter is only about 1/10 of the two leaders, but the net profit increased nearly 12 times year-on-year, amounting to 5.654 billion yuan, which is comparable to BYD.

　　In addition, the top ranking net profit growth rate also includes Xinwanda, Shengxin lithium energy, De Fang Nano, etc., with year-on-year growth rates of 504.79%, 420.1% and 372.6% respectively; from the net profit point of view, the top ranking also includes Salt Lake, Tianzhi materials, Shengxin lithium energy, with net profits of 2.925 billion yuan, 1.454 billion yuan and 1.331 billion yuan respectively. Most of the above companies belong to the upstream lithium resources or lithium materials segment.

　　It is worth noting that some of the head enterprises in the field of materials saw a decline in profits in the third quarter. For example, high nickel ternary leading Rongbaek technology net profit in the third quarter fell 20% year-on-year; electrolyte producer Duoduo net profit fell 23.95% year-on-year; copper foil head company Nordic shares net profit fell 35.87% year-on-year; positive and negative electrode material manufacturer Sansun shares net profit fell 72.8% year-on-year.

　　Most of the reasons for the decline in profits are related to raw material costs or increased competition and other factors. BOC Securities analysis said, by the change in the price of nickel, cobalt, lithium and other metals and the company's shipping rhythm time mismatch, Rongbay Technology's third quarter performance fluctuations. Nordic shares were affected by the downward trend of copper foil processing fees, Dongwu Securities said the company's performance was less than expected, mainly due to a lack of orders, capacity creep led to a decline in capacity utilization and higher unit costs.