(Yicai Global) Jan. 4 -- Shares of Ronbay New Energy Technology, which more than doubled in value last year, climbed higher today after the Chinese supplier of lithium-ion battery cathode materials said it expects profit to have risen at least four times last year because of surging demand for its products.

After soaring almost 12 percent in the morning, Ronbay [SHA: 688005] ended up 4.5 percent at CNY120.80 (USD18.91). The stock gained 124 percent last year.

Net profit likely rose 318 percent to 332 percent to between CNY890 million and CNY920 million (USD140 million and USD145 million) in the 12 months ended Dec. 31 from the year earlier, the Ningbo-based firm said late yesterday. Excluding non-recurring gains and losses, it is expected to have jumped 400 percent to 418 percent to between CNY800 million and CNY830 million, it added.

Ronbay, which counts Contemporary Amperex Technology and BYD as clients, attributed the gain mainly to a doubling of sales. Surging demand led the company to speed up expansion of production capacity, maintaining its leading position in the domestic market for ternary cathode material, it noted.

Profit was also buoyed by the fact that the share of self-produced ternary precursors, the raw material for ternary cathode materials, rose to 30 percent and Ronbay delivered more high-end products with higher nickel content compared with 2020.

Ronbay had the capacity to turn out 40,000 tons of ternary cathode materials in 2020 and that is expected to have reached 120,000 tons at the end of last year. It could more than double to 250,000 tons by the end of this year.

Editor: Futura Costaglione