PRET(SZ:002324) Xin Lang Cai Jing·2025-07-01 00:47Core Viewpoint - Shanghai Pulite Composite Materials Co., Ltd. (002324.SZ) has decided to abandon a significant cross-industry project worth over 10 billion yuan, refocusing on its core business of polymer materials [1] Group 1: Project Termination - The company announced the termination of a cooperation contract with Liuyang Economic and Technological Development Zone for a 30 GWh sodium-ion and lithium-ion battery production base project, which was initially signed in June 2023 [1] - The total investment for the project was planned at 10.2 billion yuan, with three phases of construction [1] - The decision to terminate the project was influenced by changes in the macro environment of the new energy industry, and the company stated that this would not adversely affect its existing operations or performance [1] Group 2: Business Focus and Expansion - Pulite's main business involves high polymer materials and composite materials, having entered the lithium battery sector through the acquisition of Haishida for 1.141 billion yuan in August 2022 [2] - The company is now focusing on expanding its modified plastics production, with a new investment of 1 billion yuan to establish a headquarters and manufacturing base in Nansha, Guangdong [3] - The new project aims to produce modified plastics for automotive applications, with an expected annual capacity of 400,000 tons [3] Group 3: Industry Context - The lithium battery industry is facing overcapacity and significant price declines, with the average price of lithium battery packs projected to drop to $115 per kWh in 2024, a 20% decrease from 2023 [2] - The modified plastics market in China has been growing, with production expected to exceed 30 million tons in 2024, driven by demand from the automotive and home appliance sectors [4] - The human-shaped robot sector, which Pulite is targeting in its second phase of the modified plastics project, is projected to reach a market size of 8.239 billion yuan by 2025, indicating a growing opportunity in this area [7] Group 4: Financial Performance - In Q1, Pulite reported a revenue of 1.934 billion yuan, a slight decrease of 0.68% year-on-year, while net profit attributable to shareholders increased by 38.95% to 109 million yuan [7] - The company's cash flow from operating activities saw a significant increase of 308.68%, reaching 260 million yuan [7] - As of June 30, Pulite's stock price was 10.63 yuan per share, with a total market capitalization of 11.824 billion yuan [8]