The stock market seems not to have excessive reactions to the accident, and two related public companies' stocks are still in high positions.
Image credit“Public gallery”
According to Shenzhen Dynanonic’s announcement on January 20, 2021, an explosion occurs in Qujing Lintie Technology, a joint venture subsidiary of the company and CATL. Based on the analysis of Shenzhen Dynanonic, the accident is owing to the low temperature resulting in a high pressure of tail gas tower, which make the valve failure. However, the company says the accident will not have a significant adverse impact on its production and operation.
Founded in 2018, Qujing Lintie Technology has been focusing on developing lithium iron phosphate material, and one of its main downstream companies is CATL. From an ownership perspective, CATL owns 40% shares of the company, while Shenzhen Dynanonic owns the rest 60% shares. According to Shenzhen Dynanonic’s financial report, Qujing Lintie Technology has received a total of CNY 131 million orders from CATL. Affected by the increase of downstream demand, the price of lithium iron phosphate has been rising to nearly CNY 40,000 per ton.
In the stock market, investors seem not to react strongly to the accident. As of the close of the trading day, Shenzhen Dynanonic stock price reaches CNY 163.78 yuan, up 4.32%, while CATL drops only 0.03% to CNY 391.30.