On December 2, the "Star Market Daily" reported (Reporter Huang Xiumei) that "In the first three quarters of the company's revenue, the high-nickel 8 series ternary materials accounted for a large proportion, the medium-nickel 5 series followed, and the 6 series had a relatively low proportion due to the underperformance of new product launches; in addition, the revenue growth rate of high-nickel 8 series products was significant, and ultra-high nickel 9 series has already achieved shipments in the hundred-ton level." Chairman Hou Qiaokun of Zhenghua New Materials stated at the performance briefing for the third quarter of 2024 held today (December 2).

Zhenghua New Materials is a leading enterprise for battery cathode materials in China. The company's current main research directions include the development and basic research of ternary precursors, sodium-ion batteries cathode materials, single crystal ternary materials with large primary particles, cobalt-free nickel-manganese binary materials, high-voltage lithium cobalt oxide, and phosphorus anode materials.

From the company's performance in the first three quarters of this year, it achieved revenue of 1.459 billion yuan, a year-on-year decrease of 72.37%; the net income attributable to the parent company was a loss of 0.331 billion yuan, with the loss amount expanding 981.19% year-on-year. The company has also shifted from profit to loss since the first quarter of this year.

The reporter from the "Star Market Daily" observed that in the A-share market, many cathode material enterprises experienced a significant decline in their performance in the first three quarters of this year. Among them, the leading lithium iron phosphate company Hunan Yuno realized a net income attributable to the parent company of 0.491 billion yuan, a year-on-year decrease of 68.18%; Wukuang New Energy, another leading cathode material company, also suffered a loss of 0.172 billion yuan, with the loss expanding 338.75% year-on-year.

Regarding the current market situation for downstream cathode materials, Chairman Hou Qiaokun of Zhenghua New Materials stated in response to a question from a reporter from the "Star Market Daily": "Currently, downstream demand continues to grow, and production is increasing, but prices are under pressure; while facing price pressure and intensified market competition challenges, the market also shows signs of recovery, especially driven by policies and demand, and it is expected that product prices will tend to rise next year."

Hou Qiaokun stated that the company is actively laying out battery recycling projects and is promoting the industrialization process of sodium-ion batteries' cathode materials.

"However, due to the rapid decline in lithium salt prices, the economic viability of the battery recycling market is not as expected. The company's plan to establish a holding company to develop battery recycling business is still in the preliminary stage," said Hou Qiaokun. "However, from the perspective of circular economy and sustainable development, there is a certain necessity to conduct battery recycling business."

Regarding the industrialization of sodium-ion batteries' cathode materials, Hou Qiaokun further stated that Zhenhua New Materials achieved the industrialization of sodium-ion batteries' cathode materials in 2022 and took the lead in achieving application in vehicles in 2023.

"Currently, the industrialization process of Zhenhua New Materials' polyionic system is accelerating, the performance enhancement of layered oxide system products and market promotion is progressing smoothly. Based on the performance advantages of sodium batteries and innovations in battery technology, the sodium battery materials market shows a positive growth trend," said Hou Qiaokun.

It is worth mentioning that as a leading domestic cathode material enterprise, many investors are also concerned about whether Zhenhua New Materials will venture into energy storage business. Hou Qiaokun responded at the performance briefing, saying, "The company is very bullish on the application of lithium-ion batteries and sodium-ion batteries in the energy storage market, having corresponding technical reserves and R&D layout."