According to the Star Daily on December 16 (Reporter Yu Jiaxin), today (December 16), Guangdong Jiayuan Technology announced that it plans to sign a 'Copper Electrolyte Sales Contract' with IXM S.A. and Aikesen (Shanghai) Enterprise Management Co., Ltd. (hereinafter referred to as: Aikesen Shanghai) for a total procurement of 0.07 million tons of Copper, with an estimated total amount of 5.066 billion yuan.

According to the contract, from December 2024 to November 2025, the company will purchase 0.06 million tons of Copper from IXM S.A.; from January 2, 2025, to December 31, 2025, the company will purchase 0.01 million tons of Copper from Aikesen Shanghai.

Today (December 16), a reporter from the Star Daily called the company's securities department as an investor, and the staff stated, 'This procurement amount is indeed more than before, mainly arranged based on this year's situation, and the specific amount will vary according to Copper price trends, which currently cannot be predicted.'

'We are buying foreign Copper, and if Copper mining companies need a stable and large supply, they need to set it in advance to facilitate the production scheduling,' they mentioned.

The reporter from the Star Daily noted that all the procurement parties disclosed by Guangdong Jiayuan Technology are Swiss companies under IXM. Among them, Aikesen Shanghai is a company 100% owned by IXM PTE. LTD.; IXM S.A. and IXM PTE. LTD. are both companies 100% owned by IXM Holding S.A.

Guangdong Jiayuan Technology mainly engages in the research, manufacturing, and sales of high-performance electrolytic copper foils, which are mainly used in the lithium-ion battery, copper-clad laminate, and printed circuit board industries, and ultimately applied in new energy vehicle power batteries, energy storage batteries, 3C digital electronic products, and other fields.

The announcement mentioned that the above contract is a long-term procurement contract for Copper that is part of regular operations, which is beneficial for ensuring the long-term stable supply of Copper raw materials.

The main raw materials for Guangdong Jiayuan Technology's electrolytic copper foil products include Copper, sulfuric acid, etc., among which Copper is the main component of the company's production costs.

It previously mentioned related risks: "Due to the company's procurement timing for Copper pricing not aligning perfectly with the sales pricing timing for copper foil, in the event of significant fluctuations in the copper material market price over a short period, if the company cannot promptly transfer the risk of raw material price fluctuations to downstream customers or cannot effectively formulate countermeasures and maintain a certain core competitiveness, it may lead to a decline in the company's performance, affecting the company's profitability level. At the same time, Copper belongs to the CSI Commodity Equity Index, and the demand for working capital is relatively high. If the market price of copper materials continues to rise, it will also lead to an increase in the company's demand for working capital."

Since the beginning of this year, factors such as the decline in copper foil processing fees and the sharp rise in copper prices have caused many enterprises to suffer losses.

In the first three quarters of this year, Guangdong Jiayuan Technology's revenue increased year-on-year, but it faced an expanding loss situation. Revenue was 4.339 billion yuan, a year-on-year increase of 17.1%; the net income attributable to the parent company was -0.144 billion yuan, a year-on-year decrease of 559.75%. The net cash flow from operating activities (CFO) was -0.92 billion yuan.

Regarding the source of large procurement amounts, the aforementioned person stated, "We have normal operational cash flow, specifically placing orders on a monthly basis."

As for the company's current order situation, Guangdong Jiayuan Technology's financial officer Liao Guosong stated at the Earnings Conference in November, "The company has sufficient orders on hand, currently with a production capacity of over 0.1 million tons and a relatively high capacity utilization rate."

In terms of copper price trends, Changjiang Nonferrous Metals Network recently analyzed that under the current market environment, copper prices are showing a trend of fluctuating running. On one hand, macro factors provide an upward impetus for copper prices; on the other hand, the supply and demand fundamentals impose certain constraints. Therefore, in the absence of substantial policies or economic data, the market may continue to remain in a wait-and-see state, and the copper price will maintain a range-bound fluctuation.

At the same time, regarding the current copper foil processing fee situation, the aforementioned person from the securities department of Guangdong Jiayuan Technology stated, "(Copper foil processing fees) have rebounded compared to the beginning of the year, but overall they are still at a low level."