Securities code: Ningbo Ronbay New Energy Technology Co.Ltd(688005) securities abbreviation: Ningbo Ronbay New Energy Technology Co.Ltd(688005) Announcement No.: 2022009 Ningbo Ronbay New Energy Technology Co.Ltd(688005)
Announcement on 2021 annual profit distribution plan
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law. Important content tips:
Distribution ratio per share: cash dividend of 2.05 yuan (including tax) for every 10 shares. The company will not transfer gifts or give bonus shares this year. The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement. If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the total distribution unchanged, adjust the dividend proportion per share accordingly, and make a separate announcement on the specific adjustment.
1、 Contents of profit distribution plan
Audited by Tianjian Certified Public Accountants (special general partnership), as of December 31, 2021, the distributable profit of the parent company at the end of the period was 17749159563 yuan. According to the resolution of the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021.
The profit distribution plan is as follows: the listed company plans to distribute a cash dividend of 2.05 yuan (including tax) for every 10 shares to all shareholders. As of March 27, 2022, the total share capital of the company is 44803763200 shares. Based on this calculation, the total cash dividend to be distributed is 9184771456 yuan (including tax). The company's cash dividends in this year accounted for 10.08% of the company's net profit attributable to the parent company in 2021.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration due to the conversion of convertible bonds into shares / share repurchase / share incentive grant share repurchase and cancellation / major asset restructuring share repurchase and cancellation, the company plans to maintain the total distribution and adjust the distribution proportion per share accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
The ratio between the amount of cash dividend to be distributed by the company in 2021 and the net profit attributable to the shareholders of the listed company in that year is less than 30%, which is based on the comprehensive consideration of the development of the industry, the development stage of the company, its own business model, profitability and capital demand. The main conditions are as follows:
(I) industry characteristics and development
The industry of the company is the cathode material industry of lithium-ion battery, which is a key material industry in the field of new energy, new materials and new energy vehicles. The rapid development of new energy vehicles drives the rapid expansion of lithium battery industry. As one of the key materials of lithium battery, the cathode material industry will usher in a stage of rapid development and have a broad market space.
In 2021, lithium iron phosphate batteries and high nickel batteries increased most significantly in the installed capacity of global power batteries. Lithium iron phosphate is rejuvenated in energy storage and low endurance passenger vehicles with its cost performance and safety advantages, while high nickel ternary expands its share in high endurance passenger vehicles with its high energy density advantages. According to the statistics of GGII, the global high nickel ternary shipment in 2021 was 309000 tons, with a year-on-year increase of 120.71%, accounting for 41.76% of the total ternary cathode material shipment.
Due to the higher energy density of high nickel ternary cathode material, it can carry more power with lighter weight to meet the high power consumption demand of consumers for high endurance mileage and intelligent driving. High nickel ternary battery is an inevitable choice in the existing technical system and has become a technical route jointly selected by medium and high-end vehicle enterprises at home and abroad. The market share of high nickel ternary material will be further improved.
(II) development stage of the company and its own business model
Cathode and precursor are the core business of the company. During the reporting period, the total sales volume of the company's core products high nickel series 8, 9 and NCA series products exceeded 50000 tons. At present, the process technology and engineering technology of the company's high nickel cathode products have reached the industry-leading level, and the company is continuing to conduct in-depth research on battery technology and materials and develop the latest generation of battery cathode materials. The company continues to increase investment in precursors and develop in coordination with the positive electrode.
At the end of the reporting period, the company has an annual production capacity of 120000 tons of ternary cathode materials, and the production capacity of high nickel products is the world leader. The company will continue to conduct in-depth research on battery technology and materials, extend the industrial chain around the "high nickel cathode", become stronger first, then become bigger, and become extremely professional. Rapidly expand the scale of cathode, develop higher nickel products and become a global leader. At the same time, carry out supply chain development and extend vertically to upstream industries to ensure supply chain security and reduce costs.
(III) profitability and capital demand
In 2021, the net profit attributable to the shareholders of the listed company was 91104134199 yuan, the profitability of the company was continuously enhanced, the cooperative relationship with high-quality customers was deepened, and the overall financial situation was better. In order to meet the growing needs of strategic customers, the company actively expands its production. It is expected that more than 250000 tons of cathode capacity will be built by the end of 2022, forming four cathode bases in Ezhou, Hubei Xiantao, Zunyi, Guizhou and Zhongzhou, South Korea. By 2025, the company will expand the production capacity of high nickel cathode to more than Shanghai Pudong Development Bank Co.Ltd(600000) tons, build manufacturing bases in Europe and North America and serve international strategic customers.
In order to further improve the market share of the company in high nickel ternary cathode materials, the company will, through continuous capital investment, increase the layout of cathode production capacity outside China, accelerate the integration of industrial chain resources, promote the optimization of R & D system, strengthen the construction of process informatization, realize the comprehensive upgrading of operation and management, and further strengthen its leading advantage in the field of lithium new energy materials.
(IV) reasons for the low level of cash dividends of the company
In order to comply with the development trend of the industry, the company focuses on the R & D and manufacturing of high nickel ternary cathode materials and their precursors, and will continue to increase capital investment in high-quality capacity expansion, cutting-edge technology R & D, engineering equipment upgrading, process change and optimization, so as to continuously promote the enterprise to develop in the direction of high-quality and sustainable development. The demand for subsequent development funds is still large. The company's profit distribution plan for 2021 is a prudent decision based on the company's current financial situation and fully considering the company's current operation and long-term development needs on the premise of ensuring the company's normal capital demand.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
According to the company's future development strategy, the company will retain undistributed profits for Xiantao cathode material manufacturing base, fund-raising investment project construction, R & D investment and supplementary working capital, so as to comprehensively improve the company's core competitiveness and provide financial support for the realization of the company's strategic objectives. The economic benefits of the above projects can be estimated by referring to the temporary announcement and project feasibility study report disclosed by the company on the official website of Shanghai Stock Exchange and its designated information disclosure media. The profit distribution plan of the company is in line with the actual situation of the company, which not only meets the cash dividend return to investors, but also ensures the capital demand for the subsequent development of the enterprise.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 11th meeting of the second board of directors on March 28, 2022. The proposal on the company's profit distribution plan in 2021 was deliberated and adopted by 8 votes in favor, 0 votes against and 0 abstentions, and agreed to submit the profit distribution plan to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
The independent directors of the company believe that the decision of the company's profit distribution plan in 2021 complies with the relevant requirements of the articles of association, takes into account the company's profitability, cash flow status and capital demand, and there is no damage to the interests of shareholders, which is conducive to the sustainable and stable development of the company. The voting procedure is open and transparent, and the deliberation procedure complies with the provisions of laws, regulations and the articles of association. Agree to the proposal on the company's profit distribution plan for 2021, and agree to submit the proposal to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The board of supervisors of the company believes that the company's profit distribution plan for 2021 fully considers the actual situation of the company and does not harm the interests of shareholders, which is conducive to repay investors and maintain the sustainable, stable and healthy development of the company. And agree to submit this proposal to the general meeting of shareholders for deliberation.
4、 Relevant risk tips
This profit distribution plan combines the company's development stage, future capital demand and other factors, and will not have a significant impact on the company's operating cash flow, and will not affect the company's normal operation and long-term development.
The profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of the company for deliberation and approval. It is hereby announced.
Ningbo Ronbay New Energy Technology Co.Ltd(688005) board of directors March 30, 2022
