Jiangsu HSC New Energy Materials (SH:688353)2025-04-24 13:35Financial Performance - The net profit attributable to shareholders for 2024 was -174.6748 million RMB, with accumulated undistributed profits as of December 31, 2024, amounting to 368.7084 million RMB[6]. - The total cash dividend for the first three quarters of 2024 was 47.3125 million RMB, with a share repurchase amount of 40.3090 million RMB, leading to a combined total of 87.6215 million RMB[7]. - The company will not distribute cash dividends, issue bonus shares, or increase capital reserves due to the negative net profit for the year[6]. - The company's operating revenue for 2024 is CNY 504,899,353.12, a decrease of 3.83% compared to CNY 525,031,402.36 in 2023[23]. - The net profit attributable to shareholders for 2024 is CNY -174,674,817.37, compared to CNY -23,911,803.46 in 2023[23]. - The net cash flow from operating activities for 2024 is CNY -110,656,959.03, an improvement from CNY -134,894,897.67 in 2023[23]. - The company reported a significant decrease in net profit, indicating challenges in the current market environment[23]. - The net profit attributable to shareholders decreased by 7% to approximately CNY 3.47 billion compared to the previous year[24]. - Basic earnings per share dropped significantly to -CNY 1.10, down from -CNY 0.15 in the previous year[24]. - The weighted average return on equity fell to -4.82%, a decrease of 4.19 percentage points from the previous year[24]. - The overall revenue of listed companies in the lithium battery supply chain is estimated to decline by 20.21% year-on-year in the first half of 2024, with a gross margin of 18.94%, down 2.26 percentage points[70]. - The company's overall gross margin for the reporting period was -19.41%, a significant decline from 11.28% in the previous year, primarily due to excess supply and price drops in the industry[124]. Production and Capacity Expansion - The company plans to expand its production capacity with projects including a 20,000-ton low-energy high-performance lithium battery anode material project[1]. - The first phase of the lithium difluoro(oxalato)borate project will have an annual production capacity of 500 tons[1]. - The company aims to achieve a production capacity of 6,000 tons of vinyl carbonate and 3,000 tons of fluorinated carbonic acid ethyl ester[1]. - The company has successfully completed the technical transformation of a project with an annual production capacity of 6,000 tons of vinyl carbonate and 3,000 tons of fluorinated ethylene carbonate, enhancing production efficiency[43]. - The company is actively expanding its production capacity for electrolyte additives, with a current annual production capacity of 14,000 tons for VC and FEC products[47]. - The company has established a new production line with an annual capacity of 500 tons for lithium difluoro(oxalato)borate and 2000 tons for MMDS[83]. Research and Development - The company is actively engaging in research and development to improve its product offerings and maintain competitiveness[1]. - The company is focusing on the research and development of lithium battery-related materials, including low-energy, high-performance graphite anodes and sodium-ion batteries[35]. - The company aims to strengthen its core competitiveness by exploring cutting-edge technologies for next-generation battery additives and electrolytes[35]. - The company has authorized a total of 135 patents, including 85 invention patents and 48 utility model patents, demonstrating a strong commitment to R&D and innovation[38]. - The R&D team consists of 119 members, accounting for 10.62% of the total workforce, ensuring the company's strong research capabilities and stability in core technical personnel[82]. - The company holds multiple core technologies in lithium battery electrolyte additives and special organic silicon, with a focus on continuous innovation and self-research[82]. - The company has established four provincial-level research stations and a national postdoctoral workstation, further strengthening its R&D capabilities[38]. - The company has made significant investments in R&D, reflecting its commitment to innovation and product development[101]. - Total R&D expenses decreased by 13.56% from the previous year, amounting to ¥41,023,937.27, with the ratio of R&D expenses to operating income dropping from 9.04% to 8.13%[102]. Market and Sales - The company is focusing on market expansion and technological advancements in the lithium battery materials sector[1]. - The company’s products, including VC and FEC, are primarily supplied to new energy vehicle manufacturers, reflecting a strong market demand in this sector[63]. - The company’s sales model includes direct sales and distribution, with major clients in the lithium battery supply chain, including BYD and Mitsubishi Chemical[63]. - The company plans to continue expanding its market presence, particularly in overseas markets, leveraging its established brand reputation and customer resources[72]. - In 2024, global sales of new energy vehicles are expected to reach 18.236 million units, a year-on-year increase of 24.4%, with China's sales projected at 12.866 million units, up 35.5%[67]. - The demand for lithium battery electrolyte additives is anticipated to rise significantly, benefiting from the continuous expansion of the lithium battery industry and increasing requirements for safety, cycle life, and charge/discharge speed[68]. - The company’s main business revenue from lithium battery electrolyte additives decreased by 3.87% to CNY 504.67 million, primarily due to intense market competition and a significant drop in product sales prices[135]. - Domestic sales revenue fell by 22.69% to CNY 445.41 million, while export sales increased by 5.02% to CNY 59.26 million[138]. Risks and Challenges - The company faces risks from potential changes in environmental protection regulations, which could lead to production limitations or increased operational costs[121]. - The company is at risk of being replaced by competitors if it fails to keep up with new electrolyte formulations and performance requirements in the lithium battery market[122]. - The company’s export business is a significant revenue source, and fluctuations in the RMB exchange rate could adversely impact profits[123]. - The company is exposed to risks from the loss of core technical personnel, which could hinder its innovation and operational capabilities[119]. - The company must navigate the risk of technological obsolescence in the lithium battery sector, as new technologies may surpass current lithium-ion battery performance[116]. - The company faces risks related to macroeconomic conditions, industry competition, and potential project delays or cancellations[130][132]. Innovations and New Technologies - The company has developed a new industrial production process for LiFSI, achieving a production capacity of 1,000,000 units, with a current output of RMB 745.44 million[106]. - The production process for ethylene carbonate was improved, resulting in a synthesis yield increase and a reduction in solvent usage, with a production capacity of 1,250,000 units and an output of RMB 1,388.89 million[106]. - The company developed a continuous flow reaction technology for vinyl carbonate (VC), increasing reaction efficiency and reducing process time by over 50% while lowering material consumption by 10%[86]. - The company’s fluorinated carbonate ester (FEC) production process has a high conversion rate and low by-product generation, with the product receiving multiple national and international patents[88]. - The company has developed LiBOB, an electrolyte additive that enhances the cycling performance of lithium batteries by forming a stable protective film on the surface of cathode materials, with ongoing improvements in production processes to reduce costs[90]. - The company is advancing the industrialization of silicon-carbon anode materials, which address the challenges of volume expansion and short cycle life associated with pure silicon anodes[94]. - The innovative HSI003 cathode film-forming additive is in the critical market promotion phase, showing superior performance in high-rate cycling and high-temperature storage compared to benchmark formulations[81]. Environmental and Compliance - The company has established a complete waste treatment system, including bioreactors and incinerators, to ensure compliance with environmental regulations[112]. - The production yield for a new type of isocyanate-based silane reached over 90%, showcasing the company's commitment to green production methods[110].