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Shares of Ronbay New Energy Technology rose after the Chinese supplier of lithium battery cathode materials announced it likely shifted from a loss to a net profit in the first half of this year, driven by the recovery of the new energy sector.
The company’s stock in Shanghai ended the day up by 5.1%, closing at CNY28.56 (approximately USD4.20), after surging as much as 12.7% earlier.
For the first six months ending June 30, the company reported a net profit estimated between CNY100 million and CNY120 million (around USD14.7 million to USD17.7 million), a significant turnaround from a net loss of CNY68.4 million (about USD10.1 million) reported last year, according to a statement released yesterday.
Last year, the firm endured losses in the first three quarters due to a price war in China’s new energy vehicle industry, with profitability returning only in the fourth quarter when it recorded a net profit of CNY16.2 million. Overall, the company posted an annual net loss of CNY187 million.
In the first quarter of this year, the company had reported a net profit of CNY11.6 million. Based on this, the second quarter’s results suggest the firm earned between CNY88.4 million and CNY108.4 million, reflecting a growth of 662% to 834% compared to the first quarter.
The surge in performance is mainly credited to the thriving new energy industry during the period. Additionally, the company’s ternary lithium battery positive electrode business steadily improved its profitability, and overseas shipments increased notably.
The company also updated that its lithium iron phosphate cathode project is progressing as planned, its lithium manganese iron phosphate operations are running at full capacity with all products sold out, and its sodium-ion battery cathode business has entered a phase of large-scale shipments. The platform strategy’s effectiveness is gradually becoming evident.
Established in 2014, the company supplies positive electrode materials to major global battery producers, including leading brands such as Contemporary Amperex Technology, BYD, and LG Chem.
In January, the company announced a six-year procurement agreement for lithium iron phosphate cathode materials with a major manufacturer, claiming that the total order value would exceed CNY120 billion (around USD17.7 billion). However, concerns about the scale of this contract prompted investigations by the China Securities Regulatory Commission, which imposed penalties on the company’s management for inaccuracies in disclosures.
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