On February 14, Ronbay Technology shared its performance forecast. The company is anticipating revenue of 15.083 billion yuan for 2024. This is a significant drop of 33.43% compared to last year. Their expected net profit attributable to shareholders is 292 million yuan, a decline of nearly 50% year-over-year. For the fourth quarter of 2024, they predict revenues of 3.763 billion yuan and a net profit of 176 million yuan.
(Chart: Revenue of Ronbay Technology in Each Reporting Period)
(Chart: Net Profit Attributable to Shareholders of Ronbay Technology in Each Reporting Period)
Profitability Faces Challenges in 2024
Ronbay Technology focuses on developing, producing, and selling lithium battery cathode materials. It operates as a multinational high-tech group in the new energy sector.
The company attributed its performance decline to tough market competition and changing raw material prices, especially during the first half of 2024. However, they noticed improvements in operations during the second half. There was monthly growth in net profit, but overall profitability for 2024 is still expected to decrease due to these pressures.
In their forecast, Ronbay Technology highlighted operational progress and updates on some products for 2025. They reported that their South Korean production site, designed for 20,000 mt/year, reached full capacity and became profitable by Q4 2024. The second phase, which will double production to 40,000 mt/year, is set to begin trial production in the first half of 2025.
In the ternary materials segment, the company achieved annual sales of 120,000 mt in 2024, marking a nearly 20% increase compared to the previous year. Their global share of ternary materials rose to over 12%, keeping them at the forefront of the market for four years running. Their high-nickel ternary cathode and solid-state battery materials have gained recognition from multiple global customers.
Ronbay’s precursor production line also passed key certifications from leading international clients in 2024, with major advancements expected in 2025. Sales of manganese-iron-lithium materials doubled during the year, and significant orders for layered oxide materials are anticipated to ramp up production in 2025.
Interestingly, the share of overseas customers has grown. Ronbay has partnered with five of the six largest battery and electric vehicle manufacturers globally, leading to more than 20,000 mt in overseas sales. Milestones include the sale of 27,000 mt of ultra-high nickel products.
Ternary Materials Expanding into New Areas
Market data indicates that during the first half of 2024, prices for ternary materials generally fell. The average price dropped to around 125,000 yuan/mt, a staggering 79% decrease from the prior year. Yet, in the second half, rising raw material costs and strategic price stabilization by key players helped to level off prices.
Companies heavily reliant on ternary material revenue, like Easpring Technology and Zhenhua New Materials, have also forecasted declines for 2024.
Looking ahead to 2025, Ronbay’s forecast notes a shift in demand driven by new battery technologies and developing markets like humanoid robots. They foresee new opportunities for high-nickel ternary materials as industries evolve.
Easpring Technology recently announced a strategic agreement with CNGR to build a long-term partnership for lithium battery raw materials across various sectors, highlighting an ongoing commitment to innovation and growth.
Likewise, Zhenhua New Materials reported that many automakers are planning more R&D investment in extended-range vehicles that primarily utilize ternary batteries, signaling ongoing demand for these materials. They expect an increase in market share for ternary materials as these trends continue.
