[SMM Analysis] Performance Review of Listed Ternary Cathode Materials Companies in Q3 2024

According to SMM statistics, China's production of ternary cathode materials in Q3 2024 was 178,000 mt, up 5% YoY, with an operating rate of around 41%. Although production increased YoY, the revenue and net profit of ternary cathode materials companies were lower-than-expected, mainly due to multiple factors such as intensified market competition and declining raw material prices. For instance, the monthly average price of 6-series ternary cathode materials (monocrystalline/power type) dropped from 131,000 yuan/mt in July 2024 to 125,000 yuan/mt in September 2024, according to SMM data. The significant decline in material prices had a substantial impact on the companies' revenue.

Based on the Q3 financial reports disclosed by listed ternary cathode materials companies, the revenue of companies in Q1-Q3 2024 declined significantly YoY. Ronbay Technology consistently ranked first in revenue but had relatively low net profit, with 120 million yuan in Q1-Q3. Easpring Technology, although having a revenue of 5.5 billion yuan in Q1-Q3, achieved a net profit of 460 million yuan, maintaining a leading gross profit margin in the industry.

Looking ahead to Q4, with raw material costs continuing to decline, ternary cathode materials prices are also expected to lack effective support in Q4. The increasing market share squeeze and rising market concentration will pose greater challenges to ternary cathode materials companies.