NBSS(SH:600884)2020-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥3,210,420,844.43, a decrease of 27.71% compared to ¥4,441,333,396.37 in the same period last year[14]. - The net profit attributable to shareholders for the first half of 2020 was ¥100,076,044.69, down 54.30% from ¥218,990,780.48 in the previous year[14]. - The net cash flow from operating activities was -¥23,444,125.41, compared to -¥618,509,882.73 in the same period last year[15]. - The total assets at the end of the reporting period were ¥23,786,361,732.18, a decrease of 4.91% from ¥25,015,827,214.43 at the end of the previous year[15]. - The company's total equity attributable to shareholders was ¥11,430,422,131.37, down 3.32% from ¥11,822,582,211.12 at the end of the previous year[15]. - The basic earnings per share for the first half of 2020 were ¥0.080, a decrease of 58.97% from ¥0.195 in the same period last year[16]. - The diluted earnings per share were also ¥0.080, reflecting the same percentage decrease of 58.97%[16]. - The weighted average return on equity was 0.876%, down 1.124 percentage points from 2.000% in the previous year[16]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, with a loss of -¥27,205,574.26 compared to a profit of ¥161,668,443.22 in the same period last year, a decrease of 116.83%[15]. - The total share capital increased by 45.00% to 1,628,009,229 shares compared to 1,122,764,986 shares at the end of the previous year[15]. Business Operations - The lithium battery materials business remains the core revenue driver, with a focus on restructuring non-core businesses, including the sale of a 48.1% stake in its apparel brand operation[18]. - The demand for small power batteries is increasing, with a projected 55% year-on-year growth in lithium battery shipments for electric bicycles, reaching 8,450 MWh in 2020[20]. - The lithium battery materials industry saw a 6.8% year-on-year increase in cobalt lithium shipments, totaling 29,500 tons in the first half of 2020[23]. - The average price of lithium cobalt oxide decreased by 7% from RMB 213,000 per ton at the beginning of the year to RMB 198,000 per ton by June 2020[23]. - The electrochemical energy storage market is projected to reach an installed capacity of 14.5 GW by the end of 2024, with a compound annual growth rate of 55% from 2020 to 2024[22]. - The company anticipates a gradual recovery in the apparel market as offline consumption shows signs of revival following the pandemic[28]. Investments and Acquisitions - The company is in the process of acquiring LG Chem's LCD polarizer business, which is expected to enhance its market position and operational efficiency[38]. - The company has established a production capacity of 60,000 tons for cathode materials, 120,000 tons for anode materials, and 40,000 tons for electrolytes[36]. - The company aims to improve capacity utilization and market share in the lithium battery materials sector while integrating the newly acquired LCD polarizer business[38]. - The company plans to acquire 70% equity in a new company established by LG Chem in China, focusing on LCD polarizer business and related assets[55]. Financial Position - The company's total revenue for the first half of 2020 was 952.95 million yuan, a year-on-year decrease of 27.33% due to a significant decline in the sales volume of new energy vehicles and lower product prices[42]. - The negative electrode business achieved a net profit of 30.02 million yuan, down 75.43% year-on-year, with the net profit attributable to shareholders decreasing by 75.35% to 24.91 million yuan[42]. - The electrolyte business reported a sales volume of 6,990 tons, a year-on-year decline of 19%, with main business revenue of 202.19 million yuan, down 23.17%[43]. - The energy management service business generated main business revenue of 342.43 million yuan, a year-on-year increase of 26.10%, but the net profit attributable to shareholders decreased by 25.73% to 9.11 million yuan[43]. - The photovoltaic business achieved main business revenue of 339.44 million yuan, a year-on-year increase of 25.47%, with a net profit of 17.26 million yuan, down 1.22%[44]. - The storage business reported a net loss of 8.15 million yuan, with losses increasing by 294.43% year-on-year, leading to a strategic reduction in this segment[45]. Research and Development - Research and development expenses decreased by 19.28% to ¥178,942,994.89 from ¥221,688,503.98 in the previous year[51]. - The company is increasing R&D investment to enhance product technology performance and improve product consistency and stability, aiming to boost gross margins and strengthen market competitiveness amid intensifying competition in the lithium battery materials sector[76]. Market Outlook - In 2020, China's new energy vehicle production is expected to remain between 1,000,000 and 1,100,000 units, despite a temporary market adjustment due to COVID-19[19]. - The company is closely monitoring the global COVID-19 pandemic and economic recovery, adjusting its customer structure to increase sales to high-quality large clients while reducing exposure to clients with poor creditworthiness[74]. Shareholder Information - The largest shareholder, Nanjing Suning Group Co., Ltd., holds 532,257,280 shares, accounting for 32.69% of total shares[101]. - The second-largest shareholder, Nanjing Suning Holdings Co., Ltd., has decreased its holdings by 5,292,900 shares to 116,912,189 shares, representing 7.18%[101]. - The top ten shareholders collectively hold 732,000,000 shares, which is approximately 45.56% of the total shares[101]. Compliance and Regulations - The company has implemented new revenue recognition standards effective from January 1, 2020, which will not significantly impact its financial status or results[97]. - The company’s lithium battery materials business complies with national environmental regulations throughout its R&D, production, and sales processes[96].