NARADA(SZ:300068) Xin Lang Cai Jing·2025-08-21 23:03Core Viewpoint - The significant revenue decline and net profit loss of Nandu Power reflect the harsh realities of the renewable energy industry, despite a notable increase in cash flow from operating activities [1][4]. Financial Performance - In the first half of 2025, Nandu Power reported a revenue of 3.923 billion, a year-on-year decrease of 31.67%, and a net profit loss of 232 million, marking a dramatic decline of 225.48% compared to the previous year [4]. - The company's gross profit margin improved slightly to 10.95%, while the net profit margin turned negative at -6.24% [4]. - Operating cash flow saw a significant increase of 233.84%, reaching 591 million, compared to a negative cash flow of 442 million in the same period last year [4][6]. Business Segment Analysis - The revenue from the resource recycling segment plummeted by 65.74% to 1.086 billion, with a gross margin of -5.52%, indicating severe operational challenges [3][5]. - In contrast, the communication and data center storage segment grew by 34.09% to 1.890 billion, becoming the largest revenue source [3]. - Lithium-ion battery product revenue increased by 9.54% to 1.994 billion, while lead-acid battery revenue rose by 12.29% to 843 million [3]. Strategic Adjustments - The company is undergoing a strategic transformation, actively reducing its recycling business scale while increasing investment in lithium iron phosphate battery resource development to enhance cost efficiency [1][5]. - Management described the current situation as a "strategic contraction," indicating a shift in focus towards more profitable segments [5]. Market Dynamics - The competitive landscape in the energy storage sector is intensifying, with price pressures affecting the gross margin of lithium battery products, which fell from 29.24% to 17.63% [3][5]. - Nandu Power's overseas revenue accounted for 30% of total revenue, with significant projects won in the U.S., India, the U.K., and Greece, although the gross margin for overseas products decreased by 3.3 percentage points [6][8]. Industry Context - The renewable energy storage market is expanding rapidly, with new installed capacity in China reaching 94.91 GW/222 GWh in the first half of 2025, a 29% increase from the end of 2024 [10]. - The industry is shifting from pure capacity expansion to a focus on technological barriers, cost control, and financial resilience, as highlighted by Nandu Power's management [10].