Company code: Ningbo Ronbay New Energy Technology Co.Ltd(688005) company abbreviation: Ningbo Ronbay New Energy Technology Co.Ltd(688005) Ningbo Ronbay New Energy Technology Co.Ltd(688005)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2 major risk tips
The upstream raw materials of ternary cathode materials produced by the company are nickel salt, cobalt salt and lithium salt. Due to the high price of relevant raw materials, the cost of raw materials accounts for a high proportion of the total production cost of ternary cathode materials. Although the company has established a relatively perfect raw material procurement management system and strategic supplier cooperation relationship, changes in the macroeconomic situation and emergencies may still have great fluctuations in the supply and price of raw materials, which will have a great impact on the company’s operation.
In addition to the above risks, the company has described in detail other risks that the company may face in the process of operation in this report. Please refer to “IV. risk factors” in Section III “management discussion and analysis” of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5. Tianjian Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
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) to all shareholders for every 10 shares. 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.
The company’s profit distribution plan for 2021 has been deliberated and approved at the 11th meeting of the second board of directors of the company and needs to be submitted to the general meeting of shareholders for deliberation 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
A-share Shanghai Stock Exchange Ningbo Ronbay New Energy Technology Co.Ltd(688005) Ningbo Ronbay New Energy Technology Co.Ltd(688005) /
Scientific innovation board
Profile of the company’s depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information: Secretary of the board of directors (domestic representative of information disclosure)
Name: Ge Xin
Office address: No. 39, tanjialing East Road, Yuyao City, Zhejiang Province
Tel: 057462730998
E-mail [email protected].
2. Introduction to the company’s main business in the reporting period (I) main business, main products or services
The company is a leading supplier of lithium battery cathode materials in China, mainly engaged in the R & D, production and sales of high-energy density lithium battery cathode materials and their precursors. Its core products are ncm811 series, NCA series, ni90 and above ultra-high nickel series ternary cathode and precursor materials. Ternary cathode materials are mainly used in the manufacture of lithium batteries, and are mainly used in the fields of new energy vehicle power batteries, energy storage equipment and electronic products.
As the first cathode material manufacturer in China to realize the mass production of ncm811 series products and apply them to international mainstream terminal vehicle enterprises, the company’s ncm811 series product technology and production scale are in a leading position in the world. The company has set up many advanced production bases in East China, central China, Southwest China and South Korea, and has arranged a circular industrial chain around the recycling of cathode materials.
Relying on its strong product development and quality management capabilities, engineering equipment and technology capabilities, product supply capabilities and other advantages, the company has established good cooperative relations with mainstream lithium battery manufacturers at home and abroad, such as Contemporary Amperex Technology Co.Limited(300750) , Farasis Energy (Gan Zhou) Co.Ltd(688567) , honeycomb energy, SK on, Eve Energy Co.Ltd(300014) and so on, and stabilized and deepened customer cooperation through continuous technical optimization and product iteration. （2） Main business model
The company has an independent R & D, procurement, production and sales system, which mainly makes profits through R & D, manufacturing and sales of ternary cathode materials and their precursors.
1. R & D mode
The company has formed a customer-centered and market-oriented R & D system and continued to optimize it. The company has formed a three-level R & D organization of “group level – division level – factory level”, established a mode of combining R & D of the division with customer demand as the core, research institute forward-looking new industries and high-end product R & D, and established an inter departmental product development team in the form of integrated product development (IPD). The Central Research Institute of the company integrates the R & D resources of China, Japan and South Korea, integrates the resources and capabilities of cutting-edge research, technological innovation, evaluation and testing, resource recovery and engineering development, and establishes a “horizontal + vertical” all-round R & D system to support the R & D capacity construction from original innovation to mass production transformation and process improvement.
In terms of product development and industrialization, the company has trained a large number of R & D technicians, formed a systematic training mode for new R & D personnel, conducted R & D system training and knowledge sharing, continuously empowered technicians and provided a steady stream of reserve talents for business expansion. While providing material samples, the company will give suggestions on the use conditions according to the customer’s battery product development, assist the customer to complete the finalization of the battery system, and jointly promote the development of the product application market.
2. Procurement mode
The company’s procurement mode mainly includes two links: procurement strategy and supplier management. In terms of procurement strategy, for major raw materials such as nickel, cobalt, manganese and lithium, the company has established long-term cooperative relations with Ganfeng lithium, Yabao, Gem Co.Ltd(002340) , Tianqi Lithium Corporation(002466) , Zhejiang Huayou Cobalt Co.Ltd(603799) and other well-known raw material suppliers at home and abroad, forming a list of qualified suppliers with relatively stable, appropriate competition and dynamic adjustment, ensuring the continuous stability of raw and auxiliary material supply, excellent quality and reasonable price.
In terms of supplier management, the company strictly controls procurement by promoting the standardization of bidding process and the systematization of supplier evaluation, so as to ensure the reliability and cost competitiveness of raw materials or equipment. 3. Production mode
The company mainly adopts the production mode based on sales and production, formulates perfect production process control procedures, takes customer orders and medium and long-term needs as the core and guidance, and establishes a set of processes for quickly and effectively processing customer orders. After signing the order with the customer, the company carries out the production organization and management of the whole process of production planning, quality control and shipment according to the product technical indicators, quantity, delivery date and other order contents required by the customer, so as to ensure the on-time delivery and the consistency of product quality. In reducing the inventory level, so as to reasonably control the cost and improve the efficiency of capital utilization.
The company also sets a certain safety stock according to market forecast, production capacity and inventory, improves delivery speed and maintains balanced production. In order to meet the production of some new materials, the engineering department will optimize the production line layout and equipment structure according to the special needs of new products; In terms of quality control, the production department establishes key control points according to product performance requirements and relevant processes, and formulates control items and target values.
4. Sales model
The company mainly adopts the direct selling mode, and most of its downstream customers are large and well-known lithium battery manufacturers and other end customers outside China, which are sold in markets outside China. Due to the complex material system of lithium-ion battery, the R & D cycle of power lithium battery is long, and the manufacturing process requires high-precision control. Cathode material suppliers are required to provide supporting technical solutions and professional and timely technical support and services under different material systems and control systems, so as to ensure the excellent quality of lithium-ion battery products.
In order to solve the problems of wide distribution, fast development speed and large scale difference of customers, the company adopts the parallel mode of regional management and large project management in the management mode, establishes four production bases in Hubei, Guizhou, Zhejiang and South Korea, and establishes offices in Ningde, Shenzhen and South Korea, so as to make maximum use of market resources, realize rapid response to product technology, product quality and logistics transportation, and quickly respond to customer needs. In addition, for strategic customers, customized production is realized according to their specific requirements for product technical parameters, so as to ensure their stable supply of products and high performance requirements. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
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.
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.
At present, there is a high technical threshold in the high nickel ternary cathode material industry, which is mainly reflected in three aspects: development technical barrier, production technical barrier and quality certification barrier. The higher R & D technology threshold requires not only technical modification such as doping and coating, but also calcination in oxygen atmosphere, which puts forward higher and higher requirements for production line design ability, personalized product development ability and technical service ability. At the same time, it also requires more stringent requirements for humidity control of production environment, corrosion resistance and automation level of equipment.
In addition, the performance and stability of batteries are one of the most important factors for NCA’s production, which is based on the long-term performance and safety of battery manufacturers. In addition, it is also one of the most important factors for NCA to test the performance and stability of batteries The level of automatic production management, low cost and quality stability and consistency under large-scale mass production will be evaluated in detail, and the overall certification cycle time will reach more than 2 years.
2. Analysis of the company’s industry position and its changes
As the first cathode material enterprise to break through and master the key process technology of high nickel ternary cathode material and realize the large-scale mass production of high nickel ncm811 in China, the company’s high nickel cathode material took the lead in passing the certification procedures of many mainstream lithium battery manufacturers outside China and the cross-level audit of BMW, Mercedes Benz and other international well-known terminal vehicle enterprises, promoting the large-scale application of ncm811 cathode material in the field of power batteries.
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. The company’s high nickel ternary cathode material shipments accounted for 90% of the total shipments, and the market share has ranked first in China for many consecutive years. According to the statistics of GGII, the company’s high nickel shipments ranked second in the world in 2021.
The main customers of the company’s high nickel products have covered Contemporary Amperex Technology Co.Limited(300750) , Farasis Energy (Gan Zhou) Co.Ltd(688567) , honeycomb energy, SK on, Eve Energy Co.Ltd(300014) and other well-known lithium-ion battery manufacturers at home and abroad. As the main supplier of high nickel cathode such as Contemporary Amperex Technology Co.Limited(300750) , Farasis Energy (Gan Zhou) Co.Ltd(688567) and so on, the company’s high nickel products have been introduced into the international mainstream customer supply system, and have taken the lead in large-scale application in the power battery of new energy vehicles all over the world.
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. In 2022, with the completion of the cathode production base in South Korea and the new production capacity of Hubei Xiantao base, the company will further expand the production scale and explore the international market, improve the production efficiency, promote the development and application of new products, consolidate the company’s position as a leading supplier of cathode materials in the world and improve the global market share. 3. Development and future development trend of new technologies, Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business forms and new models during the reporting period
With the development of new energy vehicle market, the pace of development of power battery industry is accelerating. Cathode material is the core material of new energy power battery, which directly affects the energy density, cycle, magnification, internal resistance and other properties of the battery. It is also the high cost part of lithium battery.
1.4680 technical route of electrodeless lug large cylinder
Tesla released the new type 4680 battery with electrodeless ear on the “battery technology day” in 2020, that is, the electrodeless ear technology with a height of 80mm and a diameter of 46mm and laser engraving. The structure of stepless ear battery removes the main heating parts of the battery, reduces the internal resistance, and makes it possible to have a higher density cell. Compared with the previous 2170 battery, the power of 4680 battery has been increased by 6 times, the energy density has been increased by 5 times, the mileage has been increased by 16% and the cost per kWh has been reduced by 14%. It is reported that at present, Tesla has reached the milestone of producing one million 4680 cylindrical lithium-ion batteries. Relevant models are expected to enter the market at the end of the first quarter of 2022, and the market is expected to be mass produced and used in 2023. Experts assess that the positive pole of 4680 large cylindrical battery is made of high nickel material, which can take into account energy density, safety and power performance. The large volume of future models will greatly improve the high nickel positive pole
