CORUN(600478)2024-04-26 12:41Financial Performance of Subsidiaries - The net profit of Lanzhou Jinchuan Keliyuan Battery Co., Ltd. is RMB 128.15 million, with total assets of RMB 7.55 billion and net assets of RMB 4.20 billion[1] - Hunan Koba Automotive Power Battery Co., Ltd. has a net profit of RMB 23.48 million, with total assets of RMB 2.68 billion and net assets of RMB 1.06 billion[1] - Foshan Koba New Energy Automotive Power Battery Co., Ltd. achieved a net profit of RMB 20.30 million, with total assets of RMB 945.14 million and net assets of RMB 281.93 million[1] - The National Engineering Research Center for Advanced Energy Storage Materials has a net profit of RMB 13.99 million, with total assets of RMB 302.63 million and net assets of RMB 208.33 million[1] Market Trends and Projections - The domestic pure nickel market is expected to remain in surplus in 2024, with new capacity releases and reduced imports[2] - The domestic new energy commercial vehicle market is projected to exceed 600,000 units in 2024, driven by the trend of electrification in logistics and heavy-duty vehicles[3] - The global HEV vehicle sales of Toyota reached 3.42 million units in 2023, a 31% increase year-on-year, indicating strong market potential for hybrid vehicles[4] - In 2023, global EV battery installations reached 705.5GWh, a 38.6% increase compared to 2022 (509GWh)[56] - Chinese companies accounted for 63.5% of the global EV battery market share in 2023, with six Chinese battery makers ranking in the top 10 globally[56] - China's EV battery installations reached 387.7GWh in 2023, a 31.6% year-on-year increase[56] - The market share of lithium iron phosphate (LFP) batteries exceeded 70% in 2023 and is expected to surpass 75%[56] - Global energy storage battery shipments reached 185GWh in 2023, a 53% increase from 121GWh in 2022[58] - China accounted for 45% of the global energy storage battery market with 84GWh in 2023, followed by North America with 55GWh (30%) and Europe with 23GWh (12%)[58] - Lithium-ion batteries dominated the energy storage market with a 97.4% share in 2023, while other technologies like lead-carbon, compressed air, and flow batteries accounted for less than 1% each[60] - China's new energy storage installed capacity reached 22.6GW/48.7GWh in 2023, a 260% increase from 2022 and nearly 10 times the capacity at the end of the 13th Five-Year Plan period[63] - Global EV and PHEV sales grew 28% in 2023 across 14 major countries, while HEV sales grew 30%, accelerating from 14% growth in 2022[64] - China's new energy vehicle production and sales reached 9.587 million and 9.495 million units respectively in 2023, with a market share of 31.6%[65] Company Strategy and Business Focus - The company plans to focus on large-scale energy storage business in 2024, aiming to break through in market, technology, and resource aspects[5] - The company will accelerate lithium mining and production line construction to reduce costs and improve efficiency in 2024[5] - The company's Jinfeng Lithium project achieved full production of 10,000 tons of lithium carbonate in December 2023, just 180 days after construction began[72] - The company's advanced energy storage materials national engineering research center developed a hybrid energy storage technology combining nickel-metal hydride and lithium-ion batteries[73] - The battery segment achieved sales revenue of approximately 1.03 billion yuan, with lithium battery business revenue reaching 707 million yuan, a year-on-year increase of 109%[75] - The company delivered 124MWh of energy storage business orders and established an energy storage industry innovation consortium to enhance production scale and competitiveness[76] - The company's nickel-hydrogen-lithium hybrid energy storage technology improves the safety and stability of energy storage systems, with projects currently in the material procurement and processing phase[76] - The company completed the relocation of its registered address to Chenzhou, Hunan Province, to leverage local lithium resources and advance its energy storage strategy[77] - The company's lithium battery production exceeded 940GWh in 2023, with a total industry output value exceeding 1.4 trillion yuan, driven by demand from new energy vehicles and energy storage[83] - The company's lithium battery material production saw significant growth, with cathode materials, anode materials, separators, and electrolytes increasing by over 15% year-on-year[79] - The price of battery-grade lithium carbonate fell below 100,000 yuan per ton, a drop of over 80%, due to oversupply and slowing demand growth[80] - The company's nickel demand fell short of expectations, with global nickel inventories accumulating due to weak downstream demand[81] - The company completed the acquisition of 100% equity of Donglian Company, which owns four underground lithium-bearing clay mines (Tong'an, E'jing, Diyi, and Dangtian), forming an integrated "mining-selection-smelting" lithium carbonate industrial chain[45] - Tong'an Mine has achieved stable ore output, while Dangtian Mine is accelerating main tunnel construction, and the other two mines are undergoing detailed exploration[45] Shareholder and Executive Information - Chairman Zhang Judong's shareholding increased by 120,000 shares to 2,175,808 shares due to equity incentives[10] - Director Yu Zheng's shareholding increased by 150,000 shares to 390,000 shares due to equity incentives[10] - Director and General Manager Pan Lixian's shareholding increased by 450,000 shares to 900,000 shares due to equity incentives[10] - Vice President Wang Jianhui's shareholding increased by 300,000 shares to 600,000 shares due to equity incentives[10] - Chairman Zhang Judong received a pre-tax remuneration of 930,700 yuan[10] - Director and General Manager Pan Lixian received a pre-tax remuneration of 1,232,200 yuan[10] - Vice President Wang Jianhui received a pre-tax remuneration of 852,700 yuan[10] - Independent Director Fu Yuwu received a pre-tax remuneration of 52,500 yuan[10] - Independent Director Zhang Taowei received a pre-tax remuneration of 52,500 yuan[10] - Independent Director Jiang Weiping received a pre-tax remuneration of 72,500 yuan[10] - The company's vice chairman, Mr. Zou Lin, inadvertently increased his holdings by 100 shares during the restricted period due to a family member's misoperation[15] - The company's actual controller, Zhong Faping, directly and indirectly controls 18.37% of the company's shares through Keli Group[84] - The company's shareholder, Geely Technology Group, transferred 10.40% of its shares to Geely Maijie Investment Co., Ltd., with the transfer completed in April 2024[87] Corporate Governance and Meetings - The company held its 2023 third extraordinary general meeting on October 12, 2023, electing the eighth board of directors and board of supervisors[12] - The seventh board of directors held 10 meetings in 2023, with 8 conducted via teleconference and 2 combining on-site and teleconference methods[18] - The seventh board of directors' 29th meeting on March 31, 2023, approved the 2022 annual report, financial statements, and 2023 financial budget report[17] - The seventh board of directors' 32nd meeting on July 21, 2023, approved the company's plan to issue A shares to specific targets and the feasibility analysis report for the use of raised funds[17] - The company's directors attended all 10 board meetings in 2023, with Zhang Judong, Zou Lin, and Yu Zheng each attending 10 meetings[16] - The company's independent directors, including Fu Yuwu and Zhang Taowei, attended all 7 board meetings they were required to attend[18] - The company's board of directors approved the 2023-2025 shareholder return plan during the 32nd meeting on July 21, 2023[17] - The company's board of directors approved the establishment of a special account for the raised funds from the A-share issuance to specific targets[17] - The company's board of directors approved the 2023 first quarter report during the 30th meeting on April 27, 2023[17] - The company held 2 meetings of the Remuneration and Assessment Committee in 2023, with all proposals unanimously approved[19] - The company's cash dividend policy complies with the articles of association and shareholder meeting resolutions, with clear standards and procedures[20] - The company has implemented a comprehensive performance evaluation mechanism for senior management, linking compensation to contributions and responsibilities[21] - Subsidiaries operate independently, with the company effectively controlling major matters[22] Environmental and Sustainability - Wastewater discharge indicators: pH 7.2, suspended solids 7mg/L, total phosphorus 0.01mg/L, total nitrogen 1.69mg/L, COD 19mg/L, ammonia nitrogen 0.355mg/L[23] - Air emissions: particulate matter 5.8mg/Nm³, nickel compounds 0.0009mg/Nm³, meeting emission standards[23] - Noise levels at factory boundaries: daytime 53-57dB(A), nighttime 44-48dB(A), complying with industrial standards[23][24] - Annual wastewater discharge: 5112m³ for industrial, 4320m³ for domestic, with COD concentrations of 24mg/L and 34mg/L respectively[27] - Environmental emergency response plans are in place for subsidiaries, with filed records[28] - Regular monitoring of air pollutants: nitrogen oxides monthly, VOCs annually[29] - The company did not face any environmental penalties, delisting risks, or major litigation during the reporting period[48][49] Financial Statements and Key Metrics - Total assets increased to RMB 8,765,916,750.74 in 2023 from RMB 7,990,033,352.57 in the previous year[98] - Accounts receivable decreased to RMB 386,414,853.15 in 2023 from RMB 434,055,289.96 in the previous year[98] - Inventory decreased to RMB 329,138,364.52 in 2023 from RMB 393,744,057.63 in the previous year[98] - Long-term equity investments decreased to RMB 1,786,377,641.18 in 2023 from RMB 1,840,351,900.07 in the previous year[98] - Fixed assets increased to RMB 2,365,329,634.72 in 2023 from RMB 2,153,750,578.66 in the previous year[98] - Intangible assets decreased to RMB 1,021,062,695.11 in 2023 from RMB 1,046,708,378.52 in the previous year[98] - Short-term borrowings increased to RMB 1,612,181,910.97 in 2023 from RMB 1,171,612,719.15 in the previous year[98] - Accounts payable increased to RMB 475,059,171.56 in 2023 from RMB 366,025,172.69 in the previous year[98] - Mining rights impairment was identified as a key audit issue with a carrying value of RMB 494,026,600.00 as of December 31, 2023[94] - Total liabilities increased to 5,614,536,465.30 yuan in 2023, up from 4,642,484,300.09 yuan in 2022[99] - Total assets grew to 6,617,706,123.81 yuan in 2023, compared to 5,989,389,673.17 yuan in 2022[101] - Equity attributable to parent company owners decreased to 2,709,740,661.01 yuan in 2023 from 2,777,009,600.23 yuan in 2022[99] - Long-term loans increased to 1,022,187,840.98 yuan in 2023, up from 671,350,663.89 yuan in 2022[99] - Monetary funds more than doubled to 663,665,706.39 yuan in 2023 from 278,287,156.73 yuan in 2022[101] - Investment income from associates totaled 37,060,427.02 yuan in 2023, with a positive contribution from Kelimei Automotive Power Battery Co., Ltd. of 98,428,999.04 yuan and a negative contribution from Jiangxi Dingsheng New Material Technology Co., Ltd. of -61,368,572.02 yuan[104] - Long-term equity investments increased to 4,639,474,970.08 yuan in 2023 from 4,452,507,099.28 yuan in 2022[101] - Current liabilities rose to 3,729,865,707.27 yuan in 2023, up from 2,968,857,662.14 yuan in 2022[99] - Non-current liabilities increased to 1,884,670,758.03 yuan in 2023 from 1,673,626,637.95 yuan in 2022[99] - Total liabilities and equity reached 8,765,916,750.74 yuan in 2023, up from 7,990,033,352.57 yuan in 2022[100] - Total operating revenue for 2023 was RMB 3,711,413,189.76, a slight decrease from RMB 3,785,832,152.72 in 2022[111] - Operating costs in 2023 increased to RMB 3,351,459,707.81, up from RMB 3,214,633,270.11 in 2022[111] - Net cash flow from operating activities in 2023 was RMB 366,062,678.18, compared to RMB 205,073,761.80 in 2022[114] - Cash and cash equivalents as of December 31, 2023, were RMB 1,527,238,567.38, up from RMB 1,153,215,723.28 in 2022[110] - Research and development expenses in 2023 were RMB 45,731,620.31, slightly lower than RMB 47,843,581.59 in 2022[111] - Net profit for 2023 was RMB -170,778,273.96, a significant decline from RMB 252,188,129.51 in 2022[111] - Total assets as of December 31, 2023, included RMB 4,204,818.00 in trading financial assets and RMB 73,870.00 in derivative financial assets[110] - Cash inflows from investing activities in 2023 were RMB 363,573,786.49, down from RMB 610,321,044.15 in 2022[114] - Cash outflows for investing activities in 2023 were RMB 1,041,181,617.13, compared to RMB 1,486,742,814.92 in 2022[114] - The company received RMB 10,773,612.72 in tax refunds in 2023, down from RMB 36,325,582.29 in 2022[114] - Cash and cash equivalents increased by RMB 465.42 million, reaching RMB 1.22 billion at the end of 2023[115] - Net cash flow from financing activities was RMB 775.78 million, a 6.7% increase compared to 2022[115] - Net cash flow from operating activities turned positive to RMB 581.15 million, a significant improvement from a loss of RMB 706.66 million in 2022[116] - Total operating cash inflow reached RMB 9.05 billion, a 117.8% increase year-over-year[116] - The company's lithium battery materials business generated revenue of RMB 187 million in 2023[117] - The company delivered 110MWh of energy storage systems through its subsidiary Lanzhou Jinke and 14MWh for a photovoltaic energy storage project[118] - Established an energy storage industry fund with a target size of RMB 2 billion, with an initial phase of RMB 402 million[118] - Total liabilities increased by 20.9% to RMB 3.28 billion, primarily due to a 132.7% increase in short-term borrowings[119] - Owner's equity grew by 1.8% to RMB 3.33 billion, driven by a 40.9% increase in retained earnings[119] - Total assets reached RMB 6.62 billion, representing a 10.5% year-over-year growth[119] - Net profit for 2023 was -135,690,788.02 RMB, a significant decline compared to 200,452,231.81 RMB in 2022[121] - Net profit attributable to parent company shareholders was -68,145,303.25 RMB, down from 179,104,795.41 RMB in 2022[121] - Minority shareholders' net loss was -67,545,484.77 RMB, compared to a profit of 21,347,436.40 RMB in 2022[121] - Total comprehensive income for 2023 was -144,317,937.19 RMB, a sharp decline from 189,913,341.46 RMB in 2022[121] - Basic earnings per share (EPS) for 2023 was -0.04 RMB, compared to 0.11 RMB in 2022[121] - Cash received from sales of goods and services was 3,587,036,074.99 RMB, slightly lower than 3,587,658,230.97 RMB in 2022[123] - Total comprehensive income for another segment was 52,156,007.84 RMB, down from 82,736,369.43 RMB in 2022[122] - Special reserves increased by 115,805.00 RMB, with a total of 183,186.47 RMB after adding 67,381.47 RMB from the previous period[127] - Total owner's equity at the end of the period was 3,151,380,285.44 RMB, up from 3,058,299,105.34 RMB at the beginning of the period[127] - The company holds 634 valid patents, including 610 domestic