Ningbo Ronbay New Energy Technology Co.Ltd(688005) ( Ningbo Ronbay New Energy Technology Co.Ltd(688005) . SH) disclosed on March 9 that the company held a telephone conference for investors on March 8, 2022 and communicated with Contemporary Amperex Technology Co.Limited(300750) , APS Bisheng investment, Agricultural Bank of China Huili, China Securities Co.Ltd(601066) and other companies or institutions. The company said that the nickel price fluctuation was caused by short-term temporary factors. The company did not participate in nickel futures trading, and its production and operation were normal. It was clear and optimistic about the prospect of the whole battery industry.
Ningbo Ronbay New Energy Technology Co.Ltd(688005) is mainly engaged in the R & D, production and sales of lithium battery cathode materials and their precursors. Its main products include ncm523, ncm622, ncm811, NCA and other ternary cathode materials and their precursors.
The reporter of economic information daily noted that for the issues raised by investors about nickel futures trading, nickel price rise, nickel supply guarantee and so on, Ningbo Ronbay New Energy Technology Co.Ltd(688005) said that from the perspective of long-term nickel supply and demand balance, the high price of nickel is unsustainable, the long-term supply of nickel metal is sufficient, and the short-term nickel price fluctuation will not affect the long-term development of the industry or the development of the company.
In terms of the layout of nickel protection and supply, Ningbo Ronbay New Energy Technology Co.Ltd(688005) said that it had just signed a strategic cooperation agreement with Gem Co.Ltd(002340) ( Gem Co.Ltd(002340) . SZ), and the company accounted for 8% of the equity of Indonesia qingmeibang project in Gem Co.Ltd(002340) . The strategic cooperation agreement between the company and Gem Co.Ltd(002340) includes the supply of materials, accounting for 18% of the shares in Gem Co.Ltd(002340) power battery recycling company and obtaining 26% of the supply of materials. The company has also signed a strategic cooperation agreement with Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) . SH). A considerable amount of 400000 tons of precursors in the future will be priced according to the preferential price of nickel metal. A considerable proportion of the precursors that the company will purchase from Zhejiang Huayou Cobalt Co.Ltd(603799) in the future will not be affected by metal price fluctuations. In order to avoid unnecessary harm to the industry caused by the rise of short-term metal nickel price, the two sides decided to sign a long-term agreement. In addition, the company and other partners are also negotiating to carry out similar supply cooperation. At the same time, the company will also improve the stability of raw material supply through capital ties.
For the rise of nickel price, the company said that the industry pricing model is based on the metal price plus processing fee, and the relevant parties in the industry will jointly abide by the pricing rules. The positive materials sold by the company to customers are priced by formula. The increase of upstream price can be transmitted to the downstream. The short-term fluctuation of raw material price will not affect the company’s single ton profit. In the long run, the supply of nickel can meet the demand of power batteries. It is expected that the supply and demand of nickel will be balanced this year, and there may be oversupply in the next year.
In terms of short-term response strategies for raw material procurement, Ningbo Ronbay New Energy Technology Co.Ltd(688005) said that there was no problem with the company’s raw material supply, and the sharp rise in nickel price was a very short-term behavior due to the futures market. Nickel supply and price transmission are basically no problem. The company purchases precursors from suppliers and cathode materials sold to customers are priced by formula. Relevant parties in the industry will jointly abide by the pricing rules. The rise of upstream price can be transmitted to the downstream without affecting the company’s single ton profit, and the risk of raw material price fluctuation can be avoided.
Ningbo Ronbay New Energy Technology Co.Ltd(688005) said that the company did not participate in nickel futures trading. It is learned from upstream resource suppliers that some European long orders of Russian nickel are still being implemented. At present, the short-term rapid rise in nickel prices is mainly due to panic and speculation in the futures market. From the perspective of long-term supply and demand balance of nickel, the high price of nickel is unsustainable, and it is expected that the supply and demand balance of nickel will be realized.
Previously, the company signed a strategic cooperation agreement with Contemporary Amperex Technology Co.Limited(300750) to conduct comprehensive and in-depth cooperation in strategy, market, commerce, technology, product development and supply chain in the field of batteries and materials and reach a strategic partnership. According to the agreement, Contemporary Amperex Technology Co.Limited(300750) expects to purchase about 100000 tons of high nickel ternary cathode materials from the company in 2022; From 2023 to the end of 2025, Contemporary Amperex Technology Co.Limited(300750) will take Ningbo Ronbay New Energy Technology Co.Ltd(688005) as its first supplier of ternary cathode powder and purchase at least a certain proportion of high nickel ternary cathode materials from the company.
According to the performance express released by Ningbo Ronbay New Energy Technology Co.Ltd(688005) the company achieved an operating revenue of 10.464 billion yuan in 2021, with a year-on-year increase of 175.75%; The net profit attributable to the owners of the parent company was 911 million yuan, a year-on-year increase of 327.75%.
On March 9, Ningbo Ronbay New Energy Technology Co.Ltd(688005) shares rose 7.01% to close at 111.50 yuan / share.
