SINOCHEM INTERNATIONAL(SH:600500) 起点锂电·2025-10-15 10:13Core Viewpoint - The article discusses the financial struggles of China National Chemical Corporation's subsidiary, Ningxia Zhonghua Lithium Battery Materials Co., which has applied for bankruptcy reorganization due to continuous losses and insolvency [2][5][6]. Group 1: Company Overview - Ningxia Zhonghua Lithium Battery was established on October 15, 2018, with a registered capital of 500 million yuan, focusing on the research and production of lithium battery cathode materials, with China National Chemical holding a 94% stake [4]. - As of June 30, 2025, Ningxia Lithium's total assets decreased from 278 million yuan at the end of 2024 to 244 million yuan, while total liabilities were 288 million yuan [5]. Group 2: Financial Performance - In 2024, Ningxia Lithium reported an operating income of 155 million yuan and a net loss of 525 million yuan. For the first half of 2025, the operating income was 88.14 million yuan with a net loss of 21.58 million yuan [5]. - The bankruptcy reorganization aims to attract strategic investors with financial strength and management experience to alleviate the company's operational burden [5]. Group 3: Industry Context - The bankruptcy reorganization of Ningxia Lithium is the second exit of a lithium battery company by China National Chemical in the second half of this year, following the transfer of Huai'an Junsheng New Energy Technology Co. [6]. - The article highlights a shift in the lithium battery market, with lithium iron phosphate batteries capturing over 80% of the domestic power market as of September 2023, indicating a challenging environment for ternary batteries [7]. - Despite the domestic challenges, there remains a strong demand for ternary batteries in overseas markets, providing potential growth opportunities for ternary materials [7].