Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) ) disclosed the first quarter report on April 29. During the reporting period, the company achieved an operating revenue of 48.678 billion yuan, a year-on-year increase of 153.97%; The net profit was 1.493 billion yuan, a year-on-year decrease of 23.62%; The basic earnings per share is 0.6439 yuan
“Ningwang” quarterly report: revenue increased by more than 150%, but net profit decreased by 24%! What happened to the 200% surge in operating costs?
The soaring prices of raw materials in the upstream are eroding the profit margins of enterprises in the middle and lower reaches.
On April 29, Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) ) disclosed the first quarterly report of 2022. The announcement shows that during the reporting period, the company achieved an operating revenue of 48.678 billion yuan, a year-on-year increase of 153.97%; The net profit was 1.493 billion yuan, a year-on-year decrease of 23.62%.
Previously, Contemporary Amperex Technology Co.Limited(300750) had announced the postponement of the first quarterly report of 2022 because it guaranteed the quality of the preparation of the first quarterly report and the accuracy of information disclosure.
Similar to Contemporary Amperex Technology Co.Limited(300750) “increasing revenue without increasing profit”, there are Eve Energy Co.Ltd(300014) , Sunwoda Electronic Co.Ltd(300207) and other power battery manufacturers.
Pan Helin, CO director and researcher of digital economy and financial innovation research center of International United Business School of Zhejiang University, told the reporter of securities times · e company that at present, the profit distribution of new energy vehicle industry chain is unbalanced. Due to the rise of upstream raw material prices, the profit space of middle and downstream enterprises is squeezed.
rising raw material prices erode profit margins
On April 22, Contemporary Amperex Technology Co.Limited(300750) disclosed the annual report of 2021. The announcement showed that the operating revenue in 2021 was 130356 billion yuan, a year-on-year increase of 159%; The net profit attributable to the parent company was 15.931 billion yuan, a year-on-year increase of 185%.
In the annual report, Contemporary Amperex Technology Co.Limited(300750) repeatedly mentioned the challenges brought to the company by the tight supply of raw materials and rising prices. These factors also have a direct impact on the cost and gross profit of Contemporary Amperex Technology Co.Limited(300750) .
The announcement shows that in 2021, the cost of Contemporary Amperex Technology Co.Limited(300750) power battery system increased by 146.45% over the same period of last year; The cost of lithium battery materials business increased by 324.32% year-on-year. Among them, the gross profit margin of power battery system was 22.00%, down 4.56 percentage points year-on-year, and the gross profit margin of lithium battery materials increased 4.66 percentage points year-on-year.
In the first quarter of this year, the price of raw materials for power batteries continued to soar, and the price of spodumene increased four times year-on-year; The prices of battery grade lithium carbonate and battery grade lithium hydroxide increased by about 8 times year-on-year. This has further raised the cost of power battery enterprises.
According to Contemporary Amperex Technology Co.Limited(300750) disclosure, the operating cost of the company in the first quarter of this year was 41.628 billion yuan, a year-on-year increase of 198.66%, and the net cash flow from operating activities was 7.076 billion yuan, a year-on-year decrease of 35.48%.
It is reported that the increase in cost is mainly due to two factors: first, it increases with the growth of sales; Second, the price of some upstream materials increased rapidly, resulting in increased costs.
increasing income without increasing profits is a common phenomenon in the industry
Recently, a number of power battery manufacturers disclosed that in the first quarter of 2022, increasing income without increasing profit has become a common phenomenon in the industry.
Among them, Eve Energy Co.Ltd(300014) announced that the company’s revenue in the first quarter was 6.734 billion yuan, a year-on-year increase of 127.69%; The net profit was 521 million yuan, a year-on-year decrease of 19.43%.
Sunwoda Electronic Co.Ltd(300207) first quarterly report shows that the company’s operating revenue is 10.621 billion yuan, with a year-on-year increase of 35.11%, and the net profit is 95 million yuan, with a year-on-year decrease of 26.13%.
Pan Helin told the reporter of securities times · e company that the current demand for lithium battery vehicles is booming, resulting in a shortage of upstream materials. In addition, the rise of global bulk commodities has further pushed up the price of raw materials for power batteries. However, as a consumer product, the price increase space of new energy vehicles is relatively limited. Without a significant increase in the total income of the industrial chain, the profit growth of upstream enterprises must be subsidized by midstream power battery enterprises, which is also the core reason why the profits of midstream power battery enterprises are compressed.
According to the judgment of insiders, with the surge of downstream demand, upstream raw material enterprises are bound to actively expand production, and the supply and demand will return to a relatively normal level. After the upstream price drops and loosens, the profit level of power battery enterprises will also rise.
Zhang Xiang, President of New Energy Vehicle Technology Research Institute of Jiangxi new energy technology vocational college, told the reporter of securities times · e company that in this round of price rise, the profits of small and medium-sized power battery enterprises have been squeezed more seriously. At present, the top 10 enterprises in the power battery market account for more than 90% of the market share, which means that those small battery manufacturers lack premium space and capacity. (source: Securities Times · e company)
key points of performance meeting
Contemporary Amperex Technology Co.Limited(300750) Board Secretary Jiang Li: Contemporary Amperex Technology Co.Limited(300750) can’t build their own cars
Contemporary Amperex Technology Co.Limited(300750) Secretary Jiang Li: the price has been renegotiated with the customer to jointly deal with the pressure of the supply chain
Contemporary Amperex Technology Co.Limited(300750) Board Secretary Jiang Li: the bargaining power is determined according to the supply and demand, and ultimately depends on the technological innovation ability
Contemporary Amperex Technology Co.Limited(300750) Board Secretary Jiang Li: the upstream price drop is the trend, and it is expected that the supply-demand relationship will be better reversed in the second half of the year
