Financial Performance - Revenue for the first half of 2024 reached RMB 7,596.665 million, a 15.2% increase compared to the same period in 2023[7] - Net loss for the first half of 2024 was RMB 658.212 million, a 28.4% decrease compared to the same period in 2023[7] - Gross profit for the first half of 2024 was RMB 272.366 million, a 1.9% increase compared to the same period in 2023[7] - Revenue for the first half of 2024 was RMB 7,596.7 million, a year-on-year growth of 15%[14] - Revenue increased by 15.2% from RMB 6,594.8 million in the first half of 2023 to RMB 7,596.7 million in the first half of 2024, driven by steady growth in power and energy storage battery sales[47] - Gross profit increased by 1.9% to RMB 272.4 million, but gross margin declined from 4.1% to 3.6%[51] - Power battery gross profit turned positive at RMB 31.0 million, compared to a gross loss of RMB 32.1 million in the same period last year[52] - Energy storage battery gross profit decreased by 63.7% to RMB 101.7 million, with gross margin dropping from 6.5% to 3.2%[52] - Other business gross profit surged 627.9% to RMB 139.7 million, with gross margin increasing from 1.9% to 9.2%[52] - Net loss decreased by 28.4% to RMB 658.2 million, compared to RMB 919.7 million in the same period last year[61] - Revenue for the six months ended June 30, 2024, was RMB 7,596,665 thousand, a 15.2% increase compared to RMB 6,594,794 thousand in the same period in 2023[106] - Gross profit for the six months ended June 30, 2024, was RMB 272,366 thousand, a 1.9% increase compared to RMB 267,234 thousand in the same period in 2023[106] - Net loss for the six months ended June 30, 2024, was RMB 658,212 thousand, a 28.4% improvement compared to a net loss of RMB 919,734 thousand in the same period in 2023[106] - Total customer contract revenue for the first six months of 2024 reached RMB 7,592,003 thousand, compared to RMB 6,592,230 thousand in the same period of 2023, representing a 15.2% year-over-year increase[133][134] - Revenue from power battery product sales increased significantly to RMB 2,858,421 thousand in 2024, up from RMB 1,247,794 thousand in 2023, marking a 129.1% growth[134] - Revenue from energy storage battery product sales decreased to RMB 3,207,787 thousand in 2024 from RMB 4,320,526 thousand in 2023, a decline of 25.8%[134] - Basic loss per share for the parent company's ordinary shareholders was RMB (442,973) thousand, a decrease from RMB (710,215) thousand in the same period last year[145] Battery and Energy Storage Market - China's new energy vehicle production and sales in the first half of 2024 reached 4.929 million and 4.944 million units, respectively, with year-on-year growth of 30.1% and 32%[9] - Global new energy vehicle sales are expected to reach 17.5 million units in 2024, a 27% increase year-on-year[9] - Global energy storage cell shipments in the first half of 2024 reached 114.5GWh, a 33.6% increase year-on-year[10] - China's power storage market grew by 43% in the first half of 2024, with a market share increase to 89%[10] - China's wind and solar power installed capacity in the first half of 2024 reached 128.3GW, a 26.5% increase year-on-year[10] - Lithium battery product sales reached 16.18GWh, a year-on-year increase of 108%, with energy storage battery shipments at 8.60GWh (up 45%) and power battery shipments at 7.58GWh (up 316%)[14] - Battery component sales grew by 55.8% year-on-year to RMB 1,297.3 million[14] - The company ranked third globally in energy storage cell shipments and second in small-scale energy storage cell shipments during the first half of 2024[14] - Power battery installations reached 7.58GWh, up 316.5% year-over-year, and energy storage battery shipments reached 8.60GWh, up 44.5% year-over-year[47] - The company's 314/320Ah cells for power storage and industrial/commercial storage have a mass energy density of 180Wh/kg, with an efficiency of 95% and a cycle life exceeding 9,000 cycles[19] - The 345Ah cells for long-duration energy storage have a mass energy density of 185Wh/kg, with an efficiency of over 96% and a cycle life exceeding 10,000 cycles[19] - The company's 228Ah cells for commercial vehicle power have a design lifespan of 15-20 years, with a cycle life of thousands of cycles without significant degradation[19] - The company's 72/100Ah cells for residential energy storage have an energy density exceeding 165Wh/kg and a cycle life of over 6,000 cycles, suitable for over 10 years of use[19] - The company's CTP (Cell to Pack) system achieves an energy density integration efficiency of 80%, with structural performance improved by over 10%[21] - The company has released 5.11MWh and 5.51MWh energy storage systems based on self-developed 314/320Ah and 345Ah cells, achieving the highest volume energy density in the industry[22] - The company plans to develop next-generation energy storage cells with capacities of 500~600Ah+ using "Wending" technology, aiming to improve integration efficiency and reduce costs[24] - The company is upgrading its 6~7MWh battery storage containers to provide customers with economic benefits, safety performance, and cycle life advantages[24] - The company is researching and developing solid-state batteries to achieve a balance between safety and energy density[24] - The company has started developing and producing lithium iron manganese phosphate batteries, which offer higher energy density and lower cost per watt-hour compared to lithium iron phosphate batteries[24] - The company obtained a qualification for the echelon utilization of retired power batteries from new energy vehicles on January 17, 2024[24] Business Development and Partnerships - Secured 13 new vehicle model projects in the first half of 2024, including partnerships with major domestic and international automakers[14] - Added 44 new vehicle model certifications in the commercial vehicle and special vehicle sectors during the first half of 2024[15] - Signed framework procurement orders with Powin and won bids for energy storage cell procurement from state-owned enterprises like CNPC and State Power Investment Corporation[15] - Achieved mass production of the Top Technology battery, effectively reducing manufacturing costs[16] - The Wenzhou production base achieved profitability as of June 30, 2024[14] - The company signed a supplementary agreement with its controlling shareholder, Tsingshan Group, to supply power battery products for electric heavy trucks and other engineering transportation equipment from 2024 to 2026[26] - The company plans to establish production facilities in Southeast Asia, Europe, and South America to enhance its global business and mitigate geopolitical risks[27] Technology and Innovation - The mass energy density of the company's mass-produced lithium iron phosphate battery cells reaches 180-200Wh/kg, with sample cells achieving 200-230Wh/kg. For ternary lithium battery cells, the mass energy density is 245-260Wh/kg, and high-nickel lithium battery cell samples achieve 300-320Wh/kg[18] - The volume energy density of the company's lithium iron phosphate battery products can reach up to 450Wh/L, and for ternary battery products, it can reach up to 650Wh/L. By 2024, the volume energy density of pure lithium iron phosphate cells is expected to further increase to 460Wh/L[18] - The company's fast-charging technology enables mass-produced products to achieve 10-15 minutes charging, with R&D products targeting 9-12 minutes charging. The 5C fast-charging lithium iron phosphate cells are undergoing sample testing in 2024[18] - The company has developed a new generation of semi-solid-state cells with a mass energy density of 300Wh/kg, offering improved safety compared to traditional liquid cells[18] Financial Position and Liquidity - Total assets reached RMB 38,683.1 million, a year-on-year increase of 7.4%, while net assets decreased by 5.1% to RMB 10,959.1 million[14] - Cash and cash equivalents amounted to RMB 8,370.7 million as of June 30, 2024, compared to RMB 8,379.5 million as of December 31, 2023[63] - Interest-bearing bank and other borrowings totaled approximately RMB 9,868.5 million as of June 30, 2024, with 33.9% due within one year[64] - The company's asset-liability ratio increased to 71.7% as of June 30, 2024, up from 68.0% as of December 31, 2023[66] - Net cash generated from operating activities was RMB 1,258.9 million for the six months ended June 30, 2024, compared to RMB 453.5 million in the same period of 2023[67] - Capital expenditures for the six months ended June 30, 2024 were approximately RMB 1,650.6 million, primarily related to property, plant, and equipment purchases[69] - The company's capital commitments as of June 30, 2024 stood at RMB 3,237.1 million, mainly related to contracted but unpaid factory construction projects[69] - Total assets pledged as collateral increased by RMB 459.5 million to RMB 6,846.6 million as of June 30, 2024 compared to December 31, 2023[71] - The company maintains sufficient liquidity to meet daily working capital management and capital expenditure needs[62] - The company engages in foreign exchange hedging activities, including forward foreign exchange contracts, to mitigate currency risk[68] - No significant acquisitions or disposals of subsidiaries or associates were made during the six months ended June 30, 2024[70] - Non-current assets increased to RMB 17,296,905,000 from RMB 16,712,399,000, driven by growth in property, plant, and equipment (RMB 15,817,393,000 vs. RMB 15,293,043,000) and right-of-use assets (RMB 1,066,699,000 vs. RMB 957,893,000)[111] - Current assets rose to RMB 21,386,170,000 from RMB 19,308,383,000, with significant increases in inventory (RMB 3,734,581,000 vs. RMB 3,181,177,000) and trade receivables (RMB 4,789,030,000 vs. RMB 3,808,957,000)[111] - Current liabilities grew to RMB 18,629,577,000 from RMB 15,045,047,000, primarily due to higher trade payables (RMB 10,491,137,000 vs. RMB 7,252,393,000) and other payables (RMB 4,446,780,000 vs. RMB 4,835,893,000)[111] - Net current assets decreased to RMB 2,756,593,000 from RMB 4,263,336,000, reflecting higher liabilities relative to assets[112] - Total assets minus current liabilities stood at RMB 20,053,498,000, down from RMB 20,975,735,000[112] - Non-current liabilities decreased to RMB 9,094,415,000 from RMB 9,433,288,000, with a reduction in interest-bearing bank borrowings (RMB 6,527,079,000 vs. RMB 7,036,910,000)[112] - Net assets declined to RMB 10,959,083,000 from RMB 11,542,447,000, impacted by a net loss of RMB 442,973,000 during the period[119] - The company reported a total comprehensive loss of RMB 658,230,000, including a foreign exchange loss of RMB 18,000 and a net loss attributable to non-controlling interests of RMB 215,239,000[117] - Share-based compensation expenses amounted to RMB 74,866,000, reflecting the company's ongoing equity incentive plans[118] - Accumulated losses increased to RMB 2,439,222,000 from RMB 1,996,249,000, driven by the period's net loss[119] - Operating cash flow from operating activities was RMB 1,138,215 thousand, compared to RMB 386,331 thousand in the previous period[122] - Net cash flow from operating activities was RMB 1,258,936 thousand, up from RMB 453,497 thousand in the prior period[122] - Cash outflow from investing activities was RMB 1,242,061 thousand, a decrease from RMB 3,902,802 thousand in the previous period[125] - Net cash flow from financing activities was a negative RMB 32,796 thousand, compared to a positive RMB 2,570,166 thousand in the prior period[125] - Cash and cash equivalents decreased by RMB 15,921 thousand, compared to a decrease of RMB 879,139 thousand in the previous period[125] - The company's total cash and cash equivalents at the end of the period were RMB 8,370,717 thousand, up from RMB 4,021,452 thousand in the prior period[125] - Depreciation of property, plant, and equipment was RMB 680,178 thousand, compared to RMB 405,303 thousand in the previous period[122] - The company's inventory increased by RMB 421,640 thousand, compared to an increase of RMB 44,720 thousand in the prior period[122] - Trade and other payables increased by RMB 3,320,302 thousand, compared to a decrease of RMB 870,377 thousand in the previous period[122] - The company's restricted cash increased by RMB 999,756 thousand, compared to an increase of RMB 14,360 thousand in the prior period[122] - The company's trade receivables within three months increased to RMB 2,461,687 thousand as of June 30, 2024, up from RMB 1,789,016 thousand at the end of 2023[151] - The company's trade payables within one year increased to RMB 10,484,890 thousand as of June 30, 2024, compared to RMB 7,251,201 thousand at the end of 2023[152] - The company's property, plant, and equipment had a net book value of RMB 3,566,544 thousand as of June 30, 2024, down from RMB 3,736,054 thousand at the end of 2023[147] - Contractual commitments for the purchase of property, plant, and equipment amounted to RMB 3,237,149 thousand as of June 30, 2024[154] Shareholder and Equity Information - Dr. Cao Hui holds 360,000,000 shares of the company's unlisted domestic shares, representing approximately 18.28% of the total unlisted shares and 15.81% of the total issued share capital[76][79] - Yongqing Technology holds 1,089,419,482 shares of the company's unlisted domestic shares, representing approximately 55.31% of the total unlisted shares and 47.85% of the total issued share capital[91] - Qingtuo Group Limited is the largest shareholder of Qingtuo Group Co., Ltd., holding 48.85% of the shares as of June 30, 2024[80] - The company has issued a total of 1,969,495,912 unlisted domestic shares and 2,276,874,050 total issued shares as of June 30, 2024[79] - Dr. Cao Hui holds approximately 41.1% of the limited partnership interests in Shanghai Fuqin Enterprise Development Partnership (Limited Partnership), which in turn holds approximately 72.7% of the limited partnership interests in Wenzhou Jingli[79] - Jiaxing SAIC Qirui Equity Investment Partnership holds 187,828,067 shares of the company's unlisted domestic shares, representing approximately 9.54% of the total unlisted shares and 8.25% of the total issued share capital[91] - Qingdao SAIC Innovation Upgrade Industrial Equity Investment Fund Partnership holds 56,285,178 shares of the company's unlisted domestic shares, representing approximately 2.86% of the total unlisted shares and 2.47% of the total issued share capital[92] - The company's share incentive plans have granted rights equivalent to 326,215,500 shares under the 2021 plan and 18,130,761 shares under the 2022 plan[103] - The company's share incentive plans have a total of 360,600,000 shares available for granting, with 16,253,739 shares remaining unallocated[103] - The Shanghai Lanjun share incentive plan has granted rights equivalent to an investment amount of RMB 24,342,434 in Wenzhou Chenshan Enterprise Management Partnership[103] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2024, and held no treasury shares as of that date[98] - No interim dividend was recommended for the six months ended June 30, 2024[100] - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the same period in 2023[146] Related Party Transactions - Total sales to related parties increased to RMB 1,844,994 thousand in the first half of 2024, up from RMB 1,191,470 thousand in the same period of 2023[163] - Sales to SAIC-GM-Wuling surged to RMB 775,226 thousand in 2024, compared to RMB

Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 7,596.7 million, representing a year-on-year increase of 15.2%[1] - Gross profit for the same period was RMB 272.4 million, up 1.9% year-on-year[1] - The net loss for the period decreased by 28.4% to RMB 658.2 million compared to the previous year[1] - Basic and diluted loss per share was RMB 0.19, compared to a loss of RMB 0.33 in the same period last year[1] - Revenue for the six months ended June 30, 2024, reached RMB 7,592,003 thousand, an increase from RMB 6,592,230 thousand for the same period in 2023, representing a growth of approximately 15.2%[15] - The total revenue recognized at a point in time was RMB 7,576,286 thousand, compared to RMB 6,579,914 thousand in the previous year, representing an increase of approximately 15.1%[15] - The company's revenue increased by 15.2% from RMB 6,594.8 million in the six months ended June 30, 2023, to RMB 7,596.7 million in the six months ended June 30, 2024[55] Sales and Product Performance - Sales of power battery products designated for customer industries amounted to RMB 2,858,421 thousand, up from RMB 1,247,794 thousand in the previous year, indicating a significant increase of approximately 129.0%[15] - Sales of energy storage battery products designated for customer industries decreased to RMB 3,207,787 thousand from RMB 4,320,526 thousand, reflecting a decline of about 25.7%[15] - The sales volume of power battery products increased by 316.5% to 7.58 GWh, while energy storage battery shipments rose by 44.5% to 8.60 GWh[55] - Revenue from power battery products surged by 129.1% from RMB 1,247.8 million to RMB 2,858.4 million[55] - Revenue from energy storage battery products decreased by 25.8% from RMB 4,320.5 million to RMB 3,207.8 million[55] - Other business revenue grew by 49.1% from RMB 1,026.5 million to RMB 1,530.5 million, driven by increased sales of battery components[56] Research and Development - Research and development expenses amounted to RMB 406.3 million, down from RMB 505.2 million in the previous year[2] - Research and development expenses decreased by 19.6% from RMB 505.2 million to RMB 406.3 million[53] - The company has 1,876 R&D personnel as of June 30, 2024, and has been granted a total of 2,245 patents, including 189 invention patents[47] - The company plans to develop high-capacity 500-600Ah+ next-generation energy storage cells using "Wen Ding" technology, aiming to improve integration efficiency and reduce costs[48] - The company is researching solid-state battery electrolyte materials and production processes to achieve a balance between safety and energy density[49] Assets and Liabilities - Total non-current assets as of June 30, 2024, were RMB 17,296.9 million, an increase from RMB 16,712.4 million at the end of 2023[4] - Current assets totaled RMB 21,386.2 million, up from RMB 19,308.4 million at the end of 2023[4] - Total liabilities increased to RMB 18,629.6 million from RMB 15,045.0 million at the end of 2023[4] - The company's total equity as of June 30, 2024, was RMB 10,959.1 million, down from RMB 11,542.4 million at the end of 2023[5] - Trade receivables increased to RMB 4,789,030,000 as of June 30, 2024, from RMB 3,808,957,000 as of December 31, 2023[24] Cash Flow and Capital Expenditures - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 1,258.9 million, compared to RMB 453.5 million for the same period in 2023, representing a significant increase[76] - The net cash flow used in investing activities for the six months ended June 30, 2024, was RMB 1,242.1 million, down from RMB 3,902.8 million for the same period in 2023[76] - Capital expenditures for the six months ended June 30, 2024, amounted to approximately RMB 1,650.6 million, primarily related to the purchase of properties, plants, and equipment[78] - The company's capital commitments as of June 30, 2024, were RMB 3,237.1 million, related to contracted but unpaid construction projects[78] Market Trends and Industry Insights - In the first half of 2024, China's new energy vehicle sales reached 4.929 million units, a year-on-year increase of 30.1%, with a market share of 35.2%[28] - The cumulative installed capacity of power batteries in China for the first half of 2024 was 203.3 GWh, representing a year-on-year growth of 33.7%[28] - Global new energy vehicle sales are projected to reach 17.5 million units in 2024, a year-on-year increase of 27%[29] - In the first half of 2024, global energy storage cell shipments reached 114.5 GWh, a year-on-year increase of 33.6%[31] Corporate Governance and Compliance - The audit committee has confirmed compliance with applicable accounting principles and regulations for the interim financial statements for the six months ending June 30, 2024[87] - The audit committee consists of three independent non-executive directors, ensuring adherence to corporate governance standards[86] Future Plans and Developments - The company plans to establish production facilities in Southeast Asia, Europe, and South America to strengthen its global business presence and mitigate geopolitical risks[51] - The company aims to complete the core technology R&D for advanced lithium-ion batteries by December 31, 2025[85]

Investment Rating - The report initiates coverage with a "Neutral" rating for the company, with a target price of HK$14.77 per share based on a price-to-book ratio of 2.7 [3][31][30]. Core Insights - The company is experiencing a period of capacity expansion, with total design capacity reaching 62GWh by the end of 2023, and projected to increase to approximately 110GWh in 2024 [19][31]. - In 2023, the company achieved operating income of 13.763 billion yuan, a year-on-year decrease of 6.12%, with battery product revenue declining by 13.4% [6][50]. - The company's overseas sales significantly increased, reaching 1.05 billion yuan, a year-on-year growth of 5.25 times, indicating a strong international market presence [6][23]. - The gross profit margin for power batteries turned negative, dropping from 3.1% in 2022 to -3.1% in 2023, while the overall gross profit margin decreased to 2.23% [11][50]. - The company is positioned within a competitive lithium battery market, facing price declines and increased competition, particularly in the power battery segment [45][50]. Financial Forecast and Valuation - The forecast for the company's main operating income for FY24-26 is 15.025 billion yuan, 25.749 billion yuan, and 40.737 billion yuan respectively, with corresponding net losses of -2.161 billion yuan, -2.586 billion yuan, and -1.925 billion yuan [3][31]. - The expected EPS for the same period is -7.04, -8.42, and -6.27 [3][31]. - The company's financial metrics indicate a significant increase in sales volume, with a total shipment of 19.48GWh in 2023, a year-on-year increase of 17.28% [10][50]. Market Position and Strategy - The company is backed by Tsingshan Holding Group, which provides a strong supply chain and operational support [56]. - The product line continues to expand, focusing on both energy storage and power batteries, with notable growth in energy storage battery shipments [10][19]. - The company has established partnerships with international clients, enhancing its global market reach and operational capabilities [18][23].

Financial Performance - Total revenue for 2023 was RMB 13,748,914 thousand, a decrease of 6.1% from RMB 14,647,778 thousand in 2022[5] - Gross profit for 2023 was RMB 293,349 thousand, down from RMB 1,088,288 thousand in 2022, indicating a significant decline in profitability[5] - The company reported a pre-tax loss of RMB 1,940,863 thousand for 2023, compared to a loss of RMB 450,798 thousand in 2022, reflecting a worsening financial position[5] - The company's revenue for the year ended December 31, 2023, was RMB 13,748,914, a decrease of 6.1% compared to RMB 14,647,778 in 2022[55] - The gross profit for 2023 was RMB 293,349, representing only 2.1% of total revenue, a significant decline of 73.0% from 2022[55] - The company reported a net loss of RMB 1,943,300 for 2023, which is a 331.1% increase in losses compared to RMB 450,823 in 2022[55] - The company's annual loss increased by 331.1% from RMB 450.8 million in 2022 to RMB 1,943.3 million in 2023[74] Asset and Capital Structure - Non-current assets increased to RMB 16,712,399 thousand in 2023 from RMB 10,002,704 thousand in 2022, showing a growth of 67.9%[6] - Current assets rose to RMB 19,308,383 thousand in 2023, up from RMB 16,438,699 thousand in 2022, representing a growth of 11.3%[6] - Total assets reached RMB 36,020,782 thousand in 2023, an increase of 36.1% from RMB 26,441,403 thousand in 2022[6] - As of December 31, 2023, the total assets of the company reached RMB 36,020.8 million, an increase of 36.2% compared to December 31, 2022[42] - The company's net assets as of December 31, 2023, amounted to RMB 11,542.4 million, reflecting a growth of 0.8% year-on-year[42] - The company's interest-bearing bank and other borrowings amounted to approximately RMB 9,627.8 million as of December 31, 2023, compared to RMB 4,651.2 million as of December 31, 2022[79] - The company's debt-to-equity ratio increased from 40.9% as of December 31, 2022, to 83.7% as of December 31, 2023[81] Market and Sales Performance - In 2023, global electric vehicle sales reached 14.061 million units, a year-on-year increase of 33.4%[19] - In China, electric vehicle sales totaled 9.495 million units in 2023, representing a year-on-year growth of 37.9% and accounting for 59.8% of the global market share[24] - The sales of plug-in hybrid vehicles in China surged to 2.804 million units, marking an impressive year-on-year increase of 84.7%[24] - The company ranked 11th in domestic power battery installation volume and 6th in lithium iron phosphate battery installation volume among domestic competitors in 2023[38] - The company achieved a global ranking of 4th in energy storage cell shipments in 2023[38] Research and Development - Research and development expenses increased by 29.1% to RMB 991,311 in 2023, compared to RMB 767,685 in 2022[55] - The company is developing a semi-solid battery that utilizes high nickel anodes and silicon-carbon cathodes to enhance energy density and safety[49] - The company launched 320Ah and 345Ah energy storage battery products in 2023, receiving positive market feedback and international recognition[40] - The company's lithium iron phosphate batteries have achieved a mass energy density of 180-200 Wh/kg, with samples reaching 200-230 Wh/kg[43] - The "ET cell" developed by the company has a mass energy density of 190-210 Wh/kg and a volume energy density of 420-480 Wh/L[45] - The "Twin Star" battery, currently in sample testing, is expected to achieve mass production by June 2025, with an energy density exceeding 215 Wh/kg[45] Strategic Initiatives - The company maintained a dual focus strategy on the power battery and energy storage battery markets, with significant partnerships established with major automotive groups[11] - The company aims to achieve operational carbon neutrality through battery recycling, electrification, and efficient manufacturing[12] - The company is committed to enhancing its competitiveness in the global market for the renewable energy industry while promoting sustainable development[12] - The company plans to establish production facilities in Southeast Asia, Europe, and South America to enhance global operations and mitigate geopolitical risks[52] - The company has established strategic partnerships with over 10 automotive manufacturers, including SAIC Motor and Dongfeng Motor, enhancing its customer base and product application range[39] Governance and Management - The company has expanded its board with several non-executive directors, enhancing governance and independent judgment[104] - The company has a comprehensive management team with diverse backgrounds in finance, engineering, and corporate strategy[101] - The board includes members with significant experience in investment and corporate governance, contributing to the company's growth strategy[116] - The company has a strong emphasis on corporate governance with independent directors providing oversight and judgment[104] Sustainability and Corporate Responsibility - The company aims to focus on recycling technologies to maximize cost-effectiveness and improve the safety and stability of recycled products[54] - The company has set ambitious sustainability goals, aiming for a K% reduction in carbon emissions by the year L[147] Financial Activities and Future Outlook - The company raised approximately HKD 2,013.1 million from the global offering, with 116,070,200 shares issued on the Hong Kong Stock Exchange[150] - 80% of the net proceeds, approximately HKD 1,610.5 million, is allocated for capacity expansion, expected to be utilized by December 31, 2024[167] - 10% of the net proceeds, approximately HKD 201.3 million, is designated for R&D of advanced lithium-ion batteries and materials, with an expected utilization by December 31, 2025[167] - 10% of the net proceeds, approximately HKD 201.3 million, is reserved for working capital and general corporate purposes, expected to be utilized by December 31, 2024[167]

Financial Performance - Revenue for the year 2023 was RMB 13,748.9 million, a decrease of 6.1% compared to the previous year[2] - Gross profit for the year 2023 was RMB 293.3 million, a significant decrease of 73.0% compared to the previous year[2] - Net loss for the year 2023 was RMB 1,943.3 million, an increase of 331.1% compared to the previous year[2] - Basic and diluted loss per share for the year 2023 was RMB 0.68, compared to a loss of RMB 0.20 in the previous year[2] - The company's revenue for 2023 was RMB 13,748,914 thousand, a decrease of 6.1% compared to 2022, with a gross profit of RMB 293,349 thousand, a decrease of 73.0% compared to 2022[91] - The company's net loss for 2023 was RMB 1,943,300 thousand, an increase of 331.1% compared to 2022[91] - The company's revenue decreased by 6.1% from RMB 14,647.8 million in 2022 to RMB 13,748.9 million in 2023, primarily due to a decline in revenue from power and energy storage battery products[94] - Revenue from power battery products decreased by 7.2% from RMB 4,642.8 million in 2022 to RMB 4,307.1 million in 2023, while revenue from energy storage battery products decreased by 16.9% from RMB 8,400.6 million to RMB 6,985.0 million[96] - Revenue from other products increased by 53.1% from RMB 1,604.4 million in 2022 to RMB 2,456.8 million in 2023, driven by increased sales of battery components[96] - Gross profit decreased by 73.0% from RMB 1,088.3 million in 2022 to RMB 293.3 million in 2023, with the gross margin dropping from 7.4% to 2.1%[98] - The power battery segment recorded a gross loss of RMB 135.0 million in 2023, compared to a gross profit of RMB 146.2 million in 2022, due to lower average selling prices and intense market competition[99] - Gross profit from energy storage battery products decreased by 55.6% from RMB 731.4 million in 2022 to RMB 324.9 million in 2023, with the gross margin declining from 8.7% to 4.7%[99] - Other income and gains increased by 58.2% from RMB 167.8 million in 2022 to RMB 265.6 million in 2023, driven by higher government subsidies and increased interest income[101] - R&D expenses increased by 29.1% from RMB 767.7 million in 2022 to RMB 991.3 million in 2023, reflecting the company's expanded R&D team and continued investment in new product and technology development[104] - Financial and contract asset impairment losses increased by 267.3% from RMB 81.1 million in 2022 to RMB 297.7 million in 2023, primarily due to provisions for expected credit losses on trade receivables[105] - Other expenses rose from RMB 0.1 million in 2022 to RMB 8.4 million in 2023, mainly due to increased export business volume and foreign exchange losses caused by RMB depreciation against the USD[106] - Financial costs increased by 36.0% from RMB 188.9 million in 2022 to RMB 256.9 million in 2023, driven by higher interest-bearing bank borrowings for production facilities and daily operations[107] - The company's net loss surged by 331.1% from RMB 450.8 million in 2022 to RMB 1,943.3 million in 2023[109] - Pre-tax loss for 2023 was RMB 1,940,863,000, compared to RMB 450,798,000 in 2022[42] - Financing costs increased to RMB 256,850,000 in 2023 from RMB 188,925,000 in 2022[43] Assets and Liabilities - Total non-current assets increased to RMB 16,712.4 million in 2023 from RMB 10,002.7 million in 2022[7] - Total current assets increased to RMB 19,308.4 million in 2023 from RMB 16,438.7 million in 2022[7] - Cash and cash equivalents increased to RMB 8,379.5 million in 2023 from RMB 4,901.1 million in 2022[7] - Inventory decreased slightly to RMB 3,181.2 million in 2023 from RMB 3,245.6 million in 2022[7] - Trade receivables and bills receivable decreased to RMB 3,809.0 million in 2023 from RMB 4,194.1 million in 2022[7] - Restricted cash decreased to RMB 1,100.1 million in 2023 from RMB 1,843.5 million in 2022[7] - Total current liabilities increased to RMB 15,045,047 thousand in 2023 from RMB 10,399,482 thousand in 2022, a growth of approximately 44.7%[9] - Non-current liabilities rose to RMB 9,433,288 thousand in 2023 from RMB 4,590,348 thousand in 2022, an increase of about 105.5%[9] - The company's total assets minus current liabilities grew to RMB 20,975,735 thousand in 2023 from RMB 16,041,921 thousand in 2022, reflecting a 30.7% increase[9] - The company's equity attributable to owners of the parent company increased to RMB 11,311,319 thousand in 2023 from RMB 10,748,947 thousand in 2022, a growth of approximately 5.2%[9] - The company's total equity slightly increased to RMB 11,542,447 thousand in 2023 from RMB 11,451,573 thousand in 2022, a marginal growth of 0.8%[9] - The company's total assets reached RMB 36,020.8 million as of December 31, 2023, a 36.2% increase year-over-year[81] - Interest-bearing bank and other borrowings increased from RMB 4,651.2 million at the end of 2022 to RMB 9,627.8 million at the end of 2023[114] - The company's asset-liability ratio rose from 40.9% at the end of 2022 to 83.7% at the end of 2023[116] - Net cash generated from operating activities was RMB 1,074.6 million in 2023, compared to net cash used in operating activities of RMB 2,230.5 million in 2022[117] - Capital expenditures for 2023 amounted to approximately RMB 5,692.4 million, mainly related to property, plant, and equipment purchases[119] - The company's capital commitments stood at RMB 3,240.7 million as of December 31, 2023, related to contracted but unpaid factory construction projects[119] - Total assets pledged by the company amounted to RMB 6,387.1 million as of December 31, 2023, an increase of RMB 825.3 million from the beginning of the year[122] - Cash and cash equivalents grew from RMB 4,901.1 million at the end of 2022 to RMB 8,379.5 million at the end of 2023[113] Subsidiaries and Equity Stakes - The company's subsidiary, Shanghai Lanjun New Energy Technology Co., Ltd., has a registered capital of RMB 1,000,000,000 and the company holds a 71% direct equity stake[12] - The company's subsidiary, Guangdong Ruipu Lanjun Energy Co., Ltd., has a registered capital of RMB 500,000,000 and the company holds an 80% direct equity stake[12] - The company's subsidiary, Ruipu Saike Power Battery Co., Ltd., has a registered capital of RMB 1,200,000,000 and the company holds a 51% direct equity stake[14] - The company's subsidiary, Chongqing Ruipu Lanjun Energy Co., Ltd., has a registered capital of RMB 800,000,000 and the company holds a 100% direct equity stake[14] International Financial Reporting Standards (IFRS) - The company adopted new and revised International Financial Reporting Standards (IFRS) for the first time in the 2023 financial statements, including IFRS 17 for insurance contracts and amendments to IAS 1, IAS 8, and IAS 12[21][22] - The amendments to IAS 1 require the company to disclose significant accounting policy information rather than key accounting policies, with no impact on the financial statements[22] - The amendments to IAS 8 clarify the distinction between changes in accounting estimates and changes in accounting policies, with no impact on the company's financial statements[22] - The amendments to IAS 12 narrow the scope of the initial recognition exception, requiring the company to recognize deferred tax assets and liabilities for transactions that give rise to equal taxable and deductible temporary differences, with no significant impact on the financial statements[22] - The amendments to IAS 12 introduce mandatory temporary exemptions and disclosure requirements related to the OECD's Pillar Two model rules, with no impact on the company as it is not within the scope of the Pillar Two model rules[22] - The company plans to apply revised International Financial Reporting Standards (IFRS) when they become effective, including amendments to IFRS 10, IAS 28, IFRS 16, IAS 1, and IAS 7[23] - Amendments to IFRS 16, effective from January 1, 2024, will not have a significant impact on the company's financial statements[25] - Amendments to IAS 1 and IAS 7, which clarify the classification of liabilities and supplier financing arrangements, are not expected to have a significant impact on the company's financial statements[27][28] Revenue and Sales - The company's external customer revenue in Mainland China for 2023 was RMB 12,698,141 thousand, a decrease from RMB 14,480,096 thousand in 2022[32] - Revenue from other countries/regions in 2023 was RMB 1,050,773 thousand, a significant increase from RMB 167,682 thousand in 2022[32] - Total revenue for 2023 was RMB 13,748,914 thousand, slightly lower than RMB 14,647,778 thousand in 2022[32] - Revenue from a single major customer accounted for approximately RMB 2,020,657,000 in 2023, compared to RMB 1,708,342,000 in 2022[34] - Total revenue for 2023 was RMB 13,748,914,000, a slight decrease from RMB 14,647,778,000 in 2022[35] - Sales of energy storage battery products decreased to RMB 6,984,971,000 in 2023 from RMB 8,400,597,000 in 2022[36] - Revenue from battery component sales increased significantly to RMB 1,969,626,000 in 2023 from RMB 771,756,000 in 2022[36] - Other income and gains totaled RMB 265,555,000 in 2023, up from RMB 167,818,000 in 2022, driven by government grants and interest income[40] Market and Industry Trends - Global electric vehicle sales in 2023 reached 14.061 million units, a 33.4% year-over-year increase, with significant growth in North America (49.1%) and Asia excluding China (47.9%)[61] - China remains the largest market for electric vehicles, with sales of 9.495 million units in 2023, followed by Europe with 3.121 million units and North America with 1.662 million units[63] - China's electric vehicle sales reached 9.495 million units in 2023, a year-on-year increase of 37.9%, accounting for 59.8% of the global market share[65] - Plug-in hybrid vehicle sales in China surged to 2.804 million units in 2023, an 84.7% year-on-year growth[65] - Pure electric vehicle sales in China grew by 24.6% to 6.685 million units in 2023[65] - Global power battery installations reached 705.5 GWh in 2023, a 38.6% year-on-year increase[69] - Global energy storage battery shipments grew by 53% to 185 GWh in 2023[70] - The company ranked 11th in domestic power battery installations and 6th in lithium iron phosphate battery installations in China in 2023[77] - The company's energy storage battery cell shipments ranked 4th globally in 2023[77] Production and Operations - The company operates as a single business unit focusing on power battery products, energy storage battery products, waste, battery components, and R&D services[31] - The company completed the construction of its Liuzhou production base and began commercial production in 2023[76] - The company established a subsidiary in Germany to accelerate its globalization process in 2023[76] - The company entered the zero-carbon shipping sector through partnerships with China Classification Society and Norwegian Classification Society in 2023[76] - The company's power battery customer base is diversified and balanced, covering mature automakers, emerging EV manufacturers, and new auto parts manufacturers, with over 10 new vehicle models added in 2023[78] - The company's energy storage battery customers include 7 of the top 10 energy storage inverter system manufacturers and 6 of the top 10 energy storage integrators in China, with products used globally[79] - The company launched 320Ah and 345Ah energy storage battery products in May 2023, which have been well-received in the market[79] - The company sold 19.48GWh of lithium battery products in 2023, a 17.3% increase year-over-year, with a designed annual production capacity of 62GWh by the end of 2023[81] - The company's mass-produced LFP battery cells have a mass energy density of 180-200Wh/kg, with sample cells reaching 200-230Wh/kg[82] - The company's mass-produced ternary lithium battery cells have a mass energy density of 245-255Wh/kg, with high-nickel sample cells exceeding 300Wh/kg[82] - The company's LFP battery products achieve a volumetric energy density of up to 450Wh/L, while ternary battery products reach up to 650Wh/L[82] - Fast charging technology achieves 10-15 minutes for mass-produced products and 9-12 minutes for in-development products, meeting electric vehicle customer needs[83] - Battery cycle life improved to 8,000-12,000 cycles with a lifespan of 15-20 years using internal self-balancing technology[83] - Phosphate iron lithium (LFP) batteries achieve up to 450Wh/L volumetric energy density and 190.5Wh/kg mass energy density, with a range of 700km[83] - Ternary batteries achieve up to 650Wh/L volumetric energy density and 300Wh/kg mass energy density, with a range of 1,000km[84] - ET cells achieve mass energy density of 190-210Wh/kg and volumetric energy density of 420-480Wh/L[84] - "Gemini" battery combines LFP and ternary advantages, with energy density exceeding 215Wh/kg and 500Wh/L, expected to enter mass production by June 2025[84] - Semi-solid-state batteries under development use high-nickel anode and silicon-carbon cathode, enhancing energy density and safety[84] - Multi-functional energy storage container supports 360kW discharge, enabling fast charging and stable temperature control[84] - R&D team consists of 1,918 members, with a new R&D center in Jiashan expected to open in the second half of 2024[85] - The company has been granted a total of 1,780 patents, including 108 invention patents and 1,624 design patents, with 887 patents granted in 2023, including 76 invention patents, 772 utility model patents, and 37 design patents[86] - The company's R&D focus includes the development of top-sealing technology, semi-solid square batteries, and composite material systems, with the top-sealing technology 2.0 being introduced in 2023 to further enhance product performance[86] - The company plans to establish production facilities in Southeast Asia, Europe, and South America to enhance its global business, be closer to local natural resources and raw materials, and mitigate geopolitical risks[88] - The company has started developing and producing lithium iron manganese phosphate batteries, which offer higher energy density, lower cost per watt-hour, and better low-temperature performance compared to lithium iron phosphate batteries, as well as better safety performance compared to ternary batteries[89] - The company is researching solid-state battery electrolyte materials, solid electrolyte reaction interface performance, and solid-state battery production processes to achieve a balance between safety and energy density[89] - The company is focusing on sodium-ion battery production to reduce the cost of energy storage batteries and reduce dependence on metals such as lithium, nickel, and cobalt[89] - The company is developing recycling technologies to maximize the cost-effectiveness of power batteries, improve the safety, stability, and cycle life of recycled products, and reduce the cost of battery reassembly, certification testing, and production[89] Corporate Governance and Shareholder Information - The company listed on the Hong Kong Stock Exchange on December 18, 2023[11] - The company was re-certified as a high-tech enterprise in 2023, allowing it to enjoy a preferential corporate income tax rate of 15%[44] - Unrecognized deferred tax assets amounted to RMB 5,486,816,000 in 2023, up from RMB 2,677,184,000 in 2022[47] - Unrecognized tax losses as of December 31, 2023, total RMB 2,512,138 thousand, with significant amounts expiring in 2031 (RMB 558,808 thousand) and 2032 (RMB 576,350 thousand)[48] - The company did not recommend any dividend for the year ended December 31, 2023, consistent with the previous year[49] - Basic and diluted loss per share for 2023 was calculated based on a loss attributable to ordinary equity holders of RMB 1,471,802 thousand, with