Core Viewpoint - Despite achieving revenue of approximately 33.2 billion yuan and a net profit of about 1.02 billion yuan in 2024, the company faces investor concerns regarding its focus on ternary materials in a market where lithium iron phosphate (LFP) materials dominate with over 70% market share [2][3]. Financial Performance - In 2024, the company reported revenue of approximately 33.2 billion yuan, a year-on-year increase of 8.75%, and a net profit attributable to shareholders of about 1.02 billion yuan, up 9.19% [3]. - The net cash flow from operating activities reached 3.055 billion yuan, growing by 41.14%, and the overall gross margin improved by 3.05% to 15.29% [3]. - The fourth quarter net profit was lower than the previous three quarters, primarily due to a decline in the value of shares held in the Korean company ECOPRO MAT [3]. Business Segments - The company operates two main businesses: new energy materials manufacturing and urban mining [5]. - In the new energy materials sector, the sales scale accounted for 77.59% of total sales, with revenue from this segment reaching 25.76 billion yuan, a 10.24% increase year-on-year [6]. - The urban mining business generated revenue of 7.44 billion yuan, reflecting a 3.87% growth [6]. Ternary Battery Market Outlook - The company remains optimistic about the growth of ternary batteries globally, anticipating a balanced market share between LFP and ternary batteries by 2030 [2][9]. - The demand for ternary materials and precursors is projected to reach 3.4 million tons and 3.51 million tons, respectively, by 2030, with a compound annual growth rate (CAGR) of 24% for ternary precursor shipments [9]. Nickel Resource Strategy - The company produced 51,600 tons of nickel in 2024, a 91% increase, and established a nickel resource capacity of 150,000 tons per year [10]. - Nickel business revenue reached 5.848 billion yuan, a significant increase of 143.47%, contributing 17.61% to total revenue [10]. Urban Mining and Recycling - The urban mining segment includes the recovery of key mineral resources and electronic waste, with significant growth in the recycling of retired batteries and scrap vehicles [15]. - The company reported a 31% increase in the recycling of retired batteries, reaching 35,930 tons, and a 133% increase in the recycling of scrap vehicles, totaling 280,000 tons [15]. Electronic Waste Business - The electronic waste recycling business showed poor performance with a gross margin of -7.46%, and revenue decreased by 50.73% [16]. - The company plans to divest its electronic waste business and collaborate with state-owned enterprises for restructuring [16].