南都电源20251029

Summary of Nandu Power's Conference Call Company Overview - Company: Nandu Power - Date: Q3 2025 Key Points Financial Performance - Nandu Power reported a loss of 220 million RMB in Q3 2025, a shift from a profit of 240 million RMB in the same period last year, primarily due to reduced investment income, expanded losses in the recycled lead business, and increased R&D expenses [2][4][5] - Revenue decreased by 1.9 billion RMB, mainly due to a 2 billion RMB drop from the recycled lead business and a 200 million RMB decline in recycled aluminum due to price reductions [3][4] - Despite the overall revenue decline, the company saw an increase in gross profit of 120 million RMB, improving from 180 million RMB to 300 million RMB year-on-year [3][5] - Operating cash flow improved significantly from -400 million RMB to 590 million RMB year-on-year [3] Business Segments - Recycled Lead Business: Experienced a loss of approximately 120 million RMB, with ongoing evaluations on whether to continue this as a core business or seek external buyers [4][18] - Civil Lithium Battery Business: Expected to contribute over 1 billion RMB in revenue this year, with projections to reach at least 2 billion RMB next year [4][21] - High-Pressure Lithium Battery Business: Sales reached 1 billion RMB this year, with expectations to confirm revenue of 300-400 million RMB next year. The average gross margin for this segment is around 25% [2][7][8][9] Order Backlog - The company has an order backlog of approximately 8.9 billion RMB, including 5.5 billion RMB for large storage, 1.67 billion RMB for Suzhou center lithium batteries, 380 million RMB for civil lithium batteries, and 470 million RMB for communication lithium batteries [2][6] Production Capacity and Future Outlook - Nandu Power confirmed 3 GWh of large-scale storage revenue for the first three quarters, with a new production capacity of 4 GWh expected to come online by year-end, which is anticipated to drive profit growth [2][14] - Plans to deliver 1.2 GWh of semi-solid storage products, with 1.8 GWh scheduled for next year, although there are challenges in meeting delivery timelines [2][17] - The company aims to increase its production capacity from 1.8 GWh to 2.5 GWh by mid-next year, with potential further expansions under consideration [19][20] Market Dynamics - The high-pressure lithium battery market is primarily focused on data center backup applications, with a competitive edge in phosphate lithium supply compared to ternary lithium in the U.S. market [7][9] - The company is optimistic about the growth potential in the high-pressure lithium battery segment, driven by changes in data center backup requirements and new construction [9] Challenges and Strategic Focus - The recycled lead business is facing significant challenges, and the company is assessing its future viability [4][18] - Nandu Power is focusing on optimizing its product structure and enhancing its high-margin segments to ensure sustainable growth [25] Conclusion - Despite a challenging financial quarter, Nandu Power is positioned with a solid order backlog and strategic plans for capacity expansion, indicating a positive outlook for future performance [25]