Shanshan Corporation has released an annual performance reduction announcement, and the company expects a net profit of 860 million to 1.1 billion yuan in 2023, a year-on-year decrease of 59% to 68%.

According to the financial report, Shanshan Group achieved a net profit of 1.202 billion yuan in the first three quarters of 2023. Based on this calculation, the company suffered a net profit loss of 102 million yuan to 342 million yuan in the fourth quarter of last year.

In response to the reasons for the decline in performance in 2023, Shanshan Group stated that BASF Shanshan Battery Materials Co., Ltd.'s net profit has significantly declined year-on-year, and the company's non core business, electrolyte and photovoltaic, has turned from profit to loss, as well as the expected provision for impairment of goodwill and other assets in the current period. The announcement shows that as of the disclosure date of this announcement, Shanshan Shares has completed the equity sale of its electrolyte and photovoltaic business; At the same time, taking into account factors such as changes in the industry market and actual operating conditions, the company expects to make provisions for impairment of goodwill and other assets.

According to a spokesperson from Shanshan Group, "In 2023, the company's main business was affected by changes in the industry market environment, resulting in a year-on-year decrease in product prices, leading to a year-on-year decline in net profit attributable to shareholders of the listed company." The person also emphasized that in terms of market share and production and sales, the company's two main business shipments of negative electrode materials and polarizers reached new highs last year, The shipment volume of negative electrode materials business has exceeded the growth rate of industry shipment volume, and the capacity utilization rate of polarizing film business is maintained at a high level.

Caixin News reported that recently, Shanshan Shares revealed on the investor interaction platform that as of the end of 2023, the company's current negative electrode production capacity has reached more than 300000 tons. According to the company's announcement, currently, Shanshan has completed the production capacity layout of 700000 tons of negative electrode materials in China, and the planned production capacity of the overseas Finnish base is 100000 tons.

The current negative electrode material industry is facing significant pressure. In addition, the polarizer industry is also under pressure. Affected by the overall oversupply of the industry, the price per unit area of polarizing film continues to decline. According to Omdia data, the average price of polarizers decreased by up to 7% year-on-year in 2023.