Core Viewpoint - Nord Co., Ltd. reported a significant increase in revenue and a reduction in net loss for the first half of 2025, indicating improved operational performance despite ongoing challenges in profitability [1]. Financial Performance - Total revenue for the first half of 2025 reached 3.016 billion yuan, a year-on-year increase of 26.37% [1]. - The net profit attributable to shareholders was -72.43 million yuan, showing a year-on-year improvement of 54.47% [1]. - In Q2 2025, total revenue was 1.606 billion yuan, up 20.15% year-on-year, while the net profit attributable to shareholders was -34.76 million yuan, an increase of 46.27% year-on-year [1]. - Gross margin improved to 9.62%, a 75.24% increase year-on-year, while net margin was -2.68%, up 61.31% year-on-year [1]. - The company’s current ratio is 0.87, indicating rising short-term debt pressure [1]. Cost and Efficiency - Total selling, administrative, and financial expenses amounted to 272 million yuan, accounting for 9.03% of revenue, a decrease of 6.4% year-on-year [1]. - The company reported a significant increase in operating cash flow per share to 0.29 yuan, a 469.76% increase year-on-year [1]. Debt and Liquidity - The company’s cash assets are considered healthy, but the liquidity ratio is low, with cash assets covering only 49.92% of current liabilities [5]. - The interest-bearing debt ratio reached 37.46%, and the total interest-bearing debt to the average operating cash flow over the past three years is 54.59% [5]. Business Model and Strategy - The company focuses on capital expenditure-driven growth and is actively exploring investment opportunities in new energy, new materials, and advanced manufacturing [4][6]. - The company emphasizes research and development, particularly in high-value-added products such as ultra-thin lithium battery copper foil [6][8]. Industry Outlook - The demand for lithium battery copper foil is expected to grow significantly due to the expanding electric vehicle market, with China projected to maintain a leading position in global sales [9][11]. - The global lithium battery shipment is forecasted to reach 1,899.3 GWh in 2025, indicating a compound annual growth rate of approximately 22.4% from 2024 to 2030 [10]. - The high-end PCB copper foil market is also anticipated to grow, driven by advancements in technology and increasing demand for high-performance materials [11].

Core Viewpoint - Nord Co., Ltd. has established itself as a leading supplier of lithium battery copper foil globally, despite facing a net loss in recent financial results, the company is focusing on high-value-added products and expects to improve profitability in the future [1][2]. Financial Performance - For the fiscal year 2024, the company reported a revenue of 5.277 billion yuan, an increase of 15.44% year-on-year; however, the net profit attributable to shareholders was a loss of 352 million yuan, a decrease of 1387.59% [1]. - In Q1 2025, the company achieved a revenue of 1.409 billion yuan, up 34.29% year-on-year, while the net profit attributable to shareholders was a loss of 37.67 million yuan, an improvement of 60.09% year-on-year [1]. Product Development and Innovation - The company emphasizes R&D innovation, focusing on developing thinner, higher tensile strength, and higher elongation lithium battery copper foil products, including ultra-thin copper foil below 4.5 microns and high-end electronic circuit copper foil products [2][3]. - The company has successfully achieved stable mass production of 3-micron lithium battery copper foil and has seen rapid adoption of its 4.5-micron products by customers [2]. Market Outlook - The demand for lithium battery copper foil is expected to grow significantly due to the rapid development of the new energy vehicle and energy storage sectors, with China's new energy vehicle sales projected to reach 16.497 million units by 2025, accounting for 73.6% of global sales [4]. - Global lithium battery shipments are forecasted to grow from 1,545.1 GWh in 2024 to 5,127.3 GWh by 2030, with a compound annual growth rate (CAGR) of approximately 22.4% [4]. Industry Trends - The demand for high-end PCB copper foil is anticipated to rise, driven by advancements in AI technology and the growth of consumer electronics and servers, with a projected CAGR of 10% for high-end PCB copper foil demand by 2030 [5]. - The company is strategically positioning itself to meet the high-end PCB copper foil market demand by establishing advanced production lines in Hubei Huangshi [5].