Ronbay Technology Expects Both Revenue and Net Profit to Decline in 2024 Due to Intensified Market Competition and Raw Material Price Fluctuations

Ronbay Technology released its performance forecast on the evening of February 14, stating that it expects to achieve revenue of 15.083 billion yuan in 2024, down 33.43% YoY, and net profit attributable to shareholders of 292 million yuan, down 49.69% YoY. Based on this, Ronbay Technology is expected to achieve revenue of 3.763 billion yuan and net profit attributable to shareholders of 176 million yuan in Q4 2024.

(Chart: Revenue of Ronbay Technology in Each Reporting Period)

(Chart: Net Profit Attributable to Shareholders of Ronbay Technology in Each Reporting Period)

Profitability Under Pressure in H1, Operations Improved in H2

Ronbay Technology specializes in the R&D, production, and sales of lithium battery cathode materials and is a multinational high-tech group company in the new energy materials industry.

Regarding the decline in performance, Ronbay Technology stated that due to intensified market competition and fluctuations in raw material prices, the company faced profitability pressure in H1 2024. However, capacity utilization rate improved, and operational conditions showed improvement in H2. Quarterly net profit attributable to shareholders achieved MoM growth during the reporting period, but the annual profitability in 2024 still declined YoY due to the aforementioned factors.

Ronbay Technology further elaborated on the specific operational performance in 2024 and the latest progress of certain products/production lines in 2025 in its performance forecast.

Ronbay Technology stated that the first phase of its 20,000 mt/year production site in South Korea achieved full capacity on a monthly basis and turned profitable for the first time in Q4 2024. The second phase 40,000 mt/year production line is expected to commence trial production in H1 2025.

In the ternary materials segment, Ronbay Technology achieved annual sales of 120,000 mt in 2024, up nearly 20% YoY. The company's global market share of ternary materials exceeded 12% in 2024, up 2 percentage points YoY, maintaining its position as the global leader for four consecutive years. Its ultra-high nickel ternary cathode materials and sulphide electrolyte materials for solid-state batteries have been certified by multiple domestic and international customers.

In other product segments, Ronbay Technology stated that its precursor production line successfully passed certification audits by top-tier international customers in 2024, with related projects expected to achieve breakthroughs in 2025. Sales of manganese-iron-lithium materials doubled in 2024, while layered oxide materials secured a 3,000 mt procurement order from downstream customers in 2025, with large-scale production and delivery expected within the year.

Notably, the proportion of Ronbay Technology's overseas customers further increased in 2024. The company has established partnerships with five of the world's top six most valuable battery and EV customers, with cumulative overseas sales exceeding 20,000 mt. With progress in international customer development, Ronbay Technology's cumulative sales of 9-series ultra-high nickel products reached 27,000 mt, marking a new breakthrough.

Humanoid Robots Become a New Application Scenario for Ternary Materials

Public data shows that in H1 2024, domestic ternary material market prices generally fluctuated downward. The nationwide average price of ternary materials remained around 125,000 yuan/mt, down 79% YoY.

However, due to rising prices of raw materials such as nickel, cobalt, and manganese, as well as joint efforts to maintain prices by major enterprises, ternary material prices showed signs of stabilization in H2 2024.

As of now, publicly listed firms with a high proportion of ternary material revenue, including Easpring Technology, Zhenhua New Materials, and XTC New Energy Materials (Xiamen), have disclosed their 2024 performance forecasts. All three companies expect a decline in their 2024 performance.

Regarding the demand trend for ternary materials in 2025, Ronbay Technology stated in its performance forecast disclosed on the evening of February 14, "With the large-scale adoption of 4680 cylindrical batteries, the accelerated industrialisation of solid-state batteries, and the rapid development of emerging markets such as humanoid robots and the low-altitude economy, new support points will emerge for the future market demand for high-nickel ternary materials."

A notice released by Easpring Technology on the evening of February 10 revealed that it had signed a strategic cooperation framework agreement with CNGR to establish a long-term supply chain partnership for various raw materials used in lithium batteries in sectors such as power, ESS, low-altitude, AI, and robotics, including ternary materials.

In an investor survey disclosed by Zhenhua New Materials on February 13, it was mentioned that many automakers are launching or planning to increase R&D investment in extended-range car models equipped with large batteries. Based on energy density and cycle requirements, extended-range batteries currently primarily use ternary batteries.

"The rapid development of high-energy-density application scenarios such as solid-state batteries and the low-altitude economy also benefits ternary materials," Zhenhua New Materials stated, "The market share of ternary materials in installations is expected to increase next year."