Description of the event

Jinbo Co., Ltd. released its 2024 semi-annual report. 2024H1 achieved revenue of 0.343 billion yuan, a year-on-year decrease of 43.43%; of these, 2024Q2 achieved revenue of 0.141 billion yuan, a year-on-year decrease of 53.67%, a year-on-year decrease of 30.15%; and net profit to mother of -0.048 billion yuan, a month-on-month decrease of losses.

Incident comments

2024H1's products in the four fields of photovoltaics, lithium batteries, semiconductors, and transportation achieved revenue of 0.258 billion yuan, 0.069 billion yuan, 0.009 billion yuan, and 0.005 billion yuan respectively. Among them, the gross profit margin for products in the photovoltaic field was 0.46%, mainly due to reduced demand and price decline for thermal field products; the gross margin for products in the lithium battery field was -14.74%; and the gross margins for semiconductor and transportation products were 53.16% and 24.86%, respectively.

On the financial side, the company's 2024H1 net cash flow from operating activities was -0.07 billion yuan, of which Q2 was 0.026 billion yuan, a significant improvement over the previous month. The company's 2024H1 asset impairment losses were 0.023 billion yuan, a significant increase over the previous year, mainly due to inventory depreciation losses and contract performance cost impairment losses, of which Q2 reached 0.021 billion yuan; credit impairment losses amounted to 0.016 billion yuan, of which Q2 reached 0.013 billion yuan, mainly due to a sharp increase in accounts receivable losses.

Looking ahead, in the face of the severe situation of increased competition in the photovoltaic industry, the company continuously optimizes the customer structure and reduces production costs through technical optimization and collaborative innovation. The new carbon-based composite main heater products have been verified by many customers. With the introduction of new products, the company's leading position in the field of photovoltaic thermal field materials will be further stabilized. The company's carbon-based composite thermal field series products for lithium batteries have been successfully applied to the 0.05 million ton project of the company's lithium battery anode integration demonstration line. Mass delivery has also begun on the client side. In addition, several lithium battery anode material customers are undergoing product verification. As high-priced carbon-based lithium thermal field materials begin to be delivered to customers in batches, the profit of products in the lithium battery field is expected to improve.

Risk warning

1. Deterioration of the competitive landscape;

2. PV installation falls short of expectations.