Core Viewpoint - Shanshan Co., Ltd. (600884.SH), a leading anode material manufacturer, is expected to see a significant improvement in its performance for the first half of the year, with projected net profits ranging from 160 million to 240 million yuan, representing a year-on-year increase of 810.41% to 1265.61% [1] Financial Performance - In the previous year, the company reported total revenue of 18.68 billion yuan, a decline of 2.05% year-on-year, and a net loss of 367 million yuan, with profits decreasing by 147.97% [2] - The company’s net profit for the first quarter of this year was approximately 30 million yuan, indicating that the second quarter's net profit is estimated to be between 130 million and 210 million yuan, reflecting a quarter-on-quarter increase of 330% [6] Corporate Restructuring - The controlling shareholder, Shanshan Group, is undergoing bankruptcy reorganization, with the court officially accepting the reorganization on February 25. The latest development includes a public recruitment announcement for reorganization investors on June 9, marking a critical phase in the process [3] - The majority of Shanshan Group's and its subsidiary Pengze Trading's shares in Shanshan Co. are currently pledged and frozen, which may lead to changes in control, although the company asserts that its business operations remain unaffected [3] Market Position and Product Development - Shanshan Co. is the first domestic company engaged in the research and production of artificial graphite anode materials for lithium-ion batteries, with its main business segments being anode materials and polarizers. In the previous year, these segments contributed 43.88% and 55.26% to the company's revenue, respectively [3] - The company maintains the top market share in artificial anode materials, with a projected market share increase of 6 percentage points to 92% by the first half of 2025 [4] Cost Management and Production Efficiency - The significant growth in the company's performance is attributed to multiple factors, including a decline in raw material prices, which has reduced production costs and supported profit margins [5][6] - The company has implemented cost-reduction measures since last year, particularly in its anode materials business, which has shown notable improvements [7] - The production cost of anode materials is heavily influenced by electricity costs, which account for 60% of the graphite production costs. The company has strategically located its production facilities in regions with lower electricity costs to enhance cost efficiency [8] Future Prospects - The market for silicon-based anode materials is expanding rapidly alongside the development of semi-solid and solid-state batteries. Shanshan Co. has developed a silicon-carbon anode deposition technology that enhances material stability and performance [9] - The company’s subsidiary, BASF Shanshan, which focuses on the research and production of lithium-ion battery cathode materials, is expected to impact Shanshan Co.'s financials negatively, with projected losses of 150 million to 170 million yuan [10] Stock Performance - As of July 15, Shanshan Co.'s stock price was 9.13 yuan, down 1.3%, with a market capitalization of 20.537 billion yuan [11]