DFP, the leading producer of cigarette packages in China, is accelerating its expansion into the field of Li-ion batteries. On June 3, the company announced that a groundbreaking ceremony had been held to mark the start of construction for the phase 2 of its separator manufacturing base in Yancheng, which is a city in China’s Jiangsu Province. DFP’s subsidiary Bosheng is in charge of the construction and operation of the base.
Source: DFP
Currently, the phase 1 of the separator manufacturing base in Yancheng is operating at a fully-loaded capacity and cannot meet the additional demand from major clients such as BYD and CATL. The phase 2 is scheduled to enter operation in April 2024. The investment in the phase 2 is set above RMB 2 billion, and the new production lines in the phase 2 will be used to manufacture the next-generation coated separator. The production capacity of the phase 2 is set above 1 billion square meters per year. Once the phase 2 enters operation, it is expected to contribute more than RMB 3 billion in annual sales revenue as its production capacity meets the demand from major clients.
Established in December 1983 and listed on the main board of the Shanghai Stock Exchange on February 16, 2012, DFP primarily designs and manufactures cigarette packages and other types of package materials. DFP currently has three wholly-owne subsidiaries that respectively based in Dongguan (Guangdong Province), Loudi (Hunan Provincce), and Yancheng (Jiangsu Province). It also has two holding subsidiaries in Huizhou (Guangdong Province) and Dongguan.
DFP has developed a growth strategy based on new energy, energy storage, and advanced materials. On February 9 of this year, the company announced that its subsidiary Bosheng plans to invest RMB 2 billion to set up production capacity for battery separators in the Yancheng National High-Tech Industrial Development Zone. Bosheng’s separators would be used in batteries for NEVs and energy storage equipment. The proposed project would output other types of compound materials. Also, earlier on January 30 of this year, DFP disclosed that Bosheng’s wholly-owned subsidiary plans to invest RMB 2 billion to establish another battery material project in the Loudi Economic and Technological Development Zone.
In terms of financial performance, DFP had a successful 2022 as its businesses pertaining to battery separators and related materials grew steadily. For 2022, DFP posted RMB 3.744 billion in revenue and RMB 289 million in net profit attributable to the parent company. For 1Q23, the company posted RMB 916 million in revenue and RMB 225 million in net profit attributable to the parent company, reflecting a YoY growth of 85.48%.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.