Stock Code: 688005 Company Abbreviation: Ronbay Technology
Ningbo Ronbay New Energy Technology Co., Ltd.Annual Report 2023 (Abridged English Version)
Contents
Section I Important Notes ...... 3
Section II Definitions ...... 4
Section III Basic Information and Main Financial Data of the Company ...... 6
Section IV Management Discussion and Analysis ...... 7
Section V Corporate Governance ...... 31
Section VI Changes in Shares and Shareholders ...... 40
Section I Important Notes1 The summary of this annual report is derived from the full text of the annual report. To fullyunderstand the Company's operational results, financial condition, and future developmentplans, investors should carefully read the full text of the annual report available atwww.sse.com.cn.
2 The Board of Directors, the Board of Supervisors, the directors, supervisors and seniormanagement of the Company guarantee the truthfulness, accuracy and completeness of thecontents of the Annual Report which is free of any false records, misleading statements or majoromissions, and shall bear joint and several liability.
3 All directors of the Company have attended the Board of Directors meetings.
4 Pan-China Certified Public Accountants (Special General Partnership) has issued a standardunqualified audit report for the Company.
5 The Board of Directors has approved the profit distribution plan or the plan for convertingfund to increase capital stock during the reporting period.As audited by Pan-China Certified Public Accountants (Special General Partnership), as of December31, 2023, the profit available for distribution of the parent company at the end of the period had reachedRMB 362,149,625.26. As decided by the Board of Directors, for the fiscal year 2023, based on the existingtotal share capital of 484,223,588 shares, excluding the repurchased shares in the repurchase specificsecurities account totaling 5,788,628 shares, leaving a base of 478,434,960 shares for profit distribution,it is proposed to distribute a cash dividend of RMB 3.03 per 10 shares (including tax) to all shareholders,totaling RMB 144,965,792.88 (including tax), representing 24.96% of the net profit attributable toshareholders of the listed company for the consolidated statement of the fiscal year 2023. The Companywill not issue bonus shares nor will it convert capital reserve into share capital.If there are changes in the total share capital from the date of this announcement until the equitydistribution record date due to events such as convertible bonds conversion/share repurchase/shareincentive grant share repurchase cancellation/major asset reorganization share repurchase cancellation, theCompany plans to maintain the same per share distribution ratio and adjust the total distribution amountaccordingly. Should there be subsequent changes in the total share capital, specific adjustments will beannounced separately.
The profit distribution plan for the fiscal year 2023 has been deliberated and approved by the thirty-second meeting of the second Board of Directors and is subject to the review of the shareholders' meeting.
Section II DefinitionsUnless the context otherwise requires, the following words shall have the following meanings in thisReport:
| Definition of common words | ||
| Company, The Company and Ronbay Technology | shall mean | Ningbo Ronbay New Energy Technology Co., Ltd. |
| CATL | shall mean | Contemporary Amperex Technology Co., Limited and its controlled companies Jiangsu Contemporary Amperex Technology Limited, Fuding Contemporary Amperex Technology, Sichuan Contemporary Amperex Technology and CATL-SAIC Power Battery Co., Ltd. |
| EVE | shall mean | EVE Energy Co., Ltd. and its subsidiaries EVE Battery Co., Ltd., EVE Jineng Co., Ltd. and EVE Power Co., Ltd. |
| GEM | shall mean | GEM Co., Ltd., Jingmen GEM New Materials Co., Ltd., and GEM (Wuxi) Energy Materials Co., Ltd. |
| Lygend | shall mean | Lygend Resource Technology Co., Ltd. |
| Tianqi Lithium | shall mean | Chengdu Tianqi Lithium Co., Ltd. |
| Albemarle | shall mean | Albemarle Management (Shanghai) Co., Ltd. |
| GGII | shall mean | An industry research consultancy focused on China’s strategic emerging industries, consisting of lithium, electric vehicles, LED, robotics, new materials and intelligent vehicle institutes. |
| Lithium battery | shall mean | A class of batteries consisting of lithium metal or lithium alloy as cathode materials and using a non-aqueous electrolyte solution. Lithium batteries can be divided into lithium-metal batteries and lithium-ion batteries. All references to “lithium batteries” in this Report are lithium-ion batteries |
| Lithium-ion battery | shall mean | A secondary battery (rechargeable battery) that operates primarily by moving lithium ions between the cathode and anode. In the process of charging and discharging, Li+ is embedded and deembedded between the two electrodes. During charging, Li+ is deembedded from the cathode and embedded into the anode through the electrolyte, and the anode is in a lithium-rich state. The opposite is true for electrical discharge. |
| Sodium-ion battery | shall mean | A secondary battery (rechargeable battery) that operates primarily by moving sodium ions between the cathode and anode. In the process of charging and discharging, Na+ is embedded and deembedded between the two electrodes. During |
| charging, Na+ is deembedded from the cathode and embedded into the anode through the electrolyte, and the anode is in a sodium-rich state. The opposite is true for electrical discharge. | ||
| Cathode material | shall mean | One of the main components of lithium battery, the performance of which directly affects the performance index of lithium battery. |
| Precursor | shall mean | The intermediate product of highly uniform distribution of various elements prepared by solution process, which can be converted into the finished product by chemical reaction, and plays a decisive role in the performance index of finished product. |
| Ternary cathode materials/ternary materials | shall mean | Ternary composite cathode materials made of such raw materials as nickel salt, cobalt salt and manganese salt or nickel salt, cobalt salt and aluminum salt in lithium battery cathode materials. |
| NCM (Lithium nickel-cobalt-manganate) | shall mean | A ternary material with the chemical formula of LiNixCoyMnzO2, x+y+z=1, the most widely used ternary material in China now; the higher the nickel content, the higher the specific capacity. |
| NCA (Lithium nickel-cobalt aluminate) | shall mean | A ternary material with the chemical formula of LiNixCoyAlzO2, x+y+z=1 |
| NCMA (Lithium nickel-cobalt-manganese- aluminate) | shall mean | A ternary material with the chemical formula of LiNixCoyMnzAlnO2, x+y+z+n=1 |
| Lithium iron phosphate (LFP) | shall mean | An olivine-structured phosphate, used as a cathode material for lithium-ion batteries, mainly used in lithium-ion power batteries and lithium-ion energy storage, with the chemical formula of LiFePO4. |
| Lithium ferromanganese phosphate (LMFP) | shall mean | A new phosphate solid solution lithium ion battery cathode material formed by replacing part of iron (Fe) with manganese (Mn) on the basis of lithium iron phosphate (LiFePO4), with the chemical formula of LiMnxFe1-xPO4. |
| New energy vehicles | shall mean | Vehicles that adopt unconventional vehicle fuel as a power source (or use conventional vehicle fuel and adopt new on-board power devices), integrate advanced technology in power control and drive of vehicles, and form advanced technical principles, new technologies and a new structure. |
| Energy density | shall mean | Energy per unit volume or unit mass of a battery, divided into volumetric energy density (Wh/L) and mass energy density (Wh/kg). |
Section III Basic Information and Main Financial Data of the Company
3.1 Company profile
3.1.1 Company stock profile
√Applicable □Not applicable
| Company Stock Profile | ||||
| Stock Class | Stock Exchange and Board | Stock Abbreviation | Stock Code | Stock Abbreviation before Change |
| A share | Shanghai Stock Exchange, Science and Technology Innovation Board | Ronbay Technology | 688005 | / |
3.1.2 Contact person and contact information
| Contact Person and Contact Information | Secretary of the Board of Directors (Domestic representative of information disclosure) |
| Name | Yu Jiyun |
| Office Address | 39 Tanjialing East Road, Yuyao, Zhejiang Province |
| Tel | 0574-62730998 |
| ir@ronbaymat.com |
3.2 Main accounting data and financial indicators in the past three years
Unit: RMB Currency: RMB
| 2023 | 2022 | Increase or Decrease of this Year over Last Year (%) | 2021 | |
| Total assets | 24,639,096,566.49 | 25,660,046,343.51 | -3.98 | 14,701,416,639.02 |
| Net assets attributable to shareholders of listed companies | 8,698,065,813.64 | 6,964,671,593.28 | 24.89 | 5,428,982,869.88 |
| Operating revenue | 22,657,274,651.38 | 30,122,995,138.19 | -24.78 | 10,259,004,445.19 |
| Net profit attributable to shareholders of listed companies | 580,908,514.51 | 1,353,229,887.56 | -57.07 | 911,041,341.99 |
| Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses | 515,391,565.36 | 1,316,756,769.65 | -60.86 | 808,246,609.29 |
| Net cash flow from operating activities | 1,795,379,751.91 | -240,981,050.07 | N/A | -191,850,584.26 |
| Weighted average return on equity (%) | 7.73 | 21.94 | Down by 14.21% | 18.41 |
| Basic earnings per share (RMB/share) | 1.27 | 3.00 | -57.67 | 2.06 |
| Diluted earnings per share (RMB/share) | 1.27 | 2.97 | -57.24 | 2.01 |
| R&D investment to operating revenue (%) | 1.56 | 1.62 | Down by 0.06% | 3.50 |
3.3 Main quarterly accounting data during the reporting period
Unit: RMB Currency: RMB
| Quarter 1 (January to March) | Quarter 2 (April to June) | Quarter 3 (July to September) | Quarter 4 (October to December) | |
| Operating revenue | 8,368,049,013.90 | 4,526,084,002.33 | 5,680,098,449.69 | 4,083,043,185.46 |
| Net profit attributable to shareholders of listed companies | 310,929,969.23 | 68,360,427.94 | 236,615,295.23 | -34,997,177.89 |
| Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses | 297,280,857.61 | 27,492,574.83 | 234,736,752.61 | -44,118,619.69 |
| Net cash flow from operating activities | -300,795,709.87 | 1,253,839,907.27 | -62,769,078.75 | 905,104,633.26 |
Section IV Management Discussion and Analysis
4.1 Introduction to the Company's main businesses during the reporting period
4.1.1 Main business, main products or services
The Company is mainly engaged in the R&D, production and marketing of multi-materials, lithiumferromanganese phosphate (LMFP) materials, sodium battery materials and multi-precursors. Theproducts are mainly used in the manufacturing of lithium/sodium batteries, and are mainly applied in thefields such as electric vehicles, electric two-wheelers, energy storage equipment and electronic products.
The leading products are NCM811 series, NCA series, NCA series, NCMA series, Ni90 series and aboveultra-high-nickel cathode materials, pure series and doped series of LMFP cathode materials, and layeredoxide series of sodium battery cathode materials and ternary precursors.As the first cathode material manufacturer in China to realize the mass production of NCM811 seriesproducts and apply them to the international mainstream terminal automakers, the Company is a worldleader in technology and production scale for high-nickel and ultra-high-nickel series products In recentyears, with the mass production of large cylindrical batteries, the shipments of our ultra-high-nickel series9 products have continuously increased. Guided by a global strategy, the Company has accelerated itsentry into the European and American new energy vehicle markets, optimizing our customer structure.Additionally, as a comprehensive supplier of cathode materials covering the entire market, the Companycontinues to expand its competitive advantages and market presence in high-nickel materials whileinnovating around its core business. We have developed multiple types of LMFP materials for applicationsin four-wheelers, two-wheelers, energy storage, and consumer sectors. Among them, products with amanganese to iron ratio of 6:4 and our exclusive M6P product, a blend with ternary materials, haveachieved batch shipments. We have also made breakthroughs in the next-generation integrated solid-liquidprocess, enhancing the performance and reducing the cost of LMFP materials. In the area of sodiumcathodes, while maintaining stable mass production of layered materials, we have developed industry-leading polyanionic sodium cathodes and have received orders from core customers in various marketsegments.
4.1.2 Main business models
The Company has put in place an independent R&D, procurement, production and marketing system,mainly through the R&D, manufacturing and marketing of ternary cathode materials and their precursors,LMFP materials and sodium cathode materials to achieve profitability.
1. R&D model
The Company has developed a customer-centered, market-oriented R&D system and continued tooptimize it. It has established a R&D model centered on customer requirements by the business units andcombining the R&D of forward-looking new industries and high-end products by the research institute.Through the form of integrated product development (IPD), the Company has established a cross-departmental product development team and built a "horizontal + vertical" all-round R&D system. TheCentral Research Institute of the Company has integrated the R&D resources of China, Japan and SouthKorea to undertake core functions such as cutting-edge technology research, product and technologicalinnovation, and incubation of new businesses, supporting the R&D capacity building from originalinnovation to mass production transformation and process improvement. In terms of product developmentand industrialization, while providing material samples to customers, the Company offers usage condition
recommendations based on the development status of the customers' battery products. This helpscustomers finalize their battery systems and jointly explore the product application market. In thedevelopment of R&D personnel, the Company continuously empowers its R&D staff through R&D systemtraining and knowledge sharing, providing a constant supply of R&D talent for the Company's businessexpansion.
2. Procurement model
To achieve coordinated management of supply chain development, centralized procurement, andprocessing trade, the Company has established the Ronbay Trading Company and continuously promotedthe integration of commerce and trade, and industrial and trade platforms. In terms of procurement strategy,for major raw materials such as nickel, cobalt, manganese and lithium, the Company has established long-term partnerships with Ganfeng Lithium, Albemarle, GEM, Tianqi Lithium, Huayou Cobalt, Lygend andother domestically and internationally well-known raw material suppliers. A list of relatively stablequalified suppliers has been formed to ensure the continuous and stable supply of raw materials andestablish a competitive advantage in raw material costs for the Company. In terms of supplier management,the Company has kept procurement under strict control by promoting standardized bidding process,systematic supplier evaluation and other ways to guarantee the reliability of raw materials quality.
3. Production model
The Company mainly adopts the production model based on sales, establishes and implements aproduction plan oriented towards customer orders and medium- and long-term requirements. In terms ofproduction organization, the Company has developed comprehensive process control procedures andefficient customer order handling processes. The Production Department creates production plans basedon sales plans provided by the Sales Department, actual finished goods stock, safety stock levels, andworkshop production capacity, and adjusts production pace according to specific orders to ensure timelydelivery and stable quality while reducing stock levels to control production costs and improve capitalefficiency. Moreover, to meet the production of certain new materials, the Engineering Department willoptimize the production line layout and equipment structure according to the special needs of new products.Additionally, to address the wide distribution of customers, fast development pace, and significant sizedifferences, the Company has established four major production bases in Hubei, Guizhou, Zhejiang, andKorea, with offices in Ningde, Shenzhen, and Korea, maximizing market resources for rapid response inproduct development, manufacturing, and logistics. For strategic customers, the Company also offerscustomized production to meet their specific technical requirements for products, ensuring stable supplyand high performance.
4. Marketing model
The Company mainly adopts the direct sales model, with core customers including mainstreambattery manufacturers and automakers both domestically and internationally. Due to the complex material
system of batteries, the power battery has a long research and development cycle, and requires highprecision control in the manufacturing process. Therefore, the Company, as a cathode material enterprise,needs to provide customers with supporting technical solutions to meet different battery systems, for whichthe Company will organize and collaborate with Sales, R&D, Procurement, Engineering and otherdepartments to form a project team in order to quickly respond to the specific needs of different customers.
4.2 Industry conditions
4.2.1 Development stage, basic characteristics and main technical thresholds of the industry
(1) Development stage of the industry
The Company operates in the lithium-ion battery cathode material industry, which is a key materialindustry critically developed in the fields of new energy, new materials, new energy vehicles, and energystorage. Based on China's goals for "Peak Carbon and Carbon Neutrality" and catalyzed by regulationssuch as the EU's "2035 Ban on the Sale of Fuel Vehicles" and the U.S.'s "Inflation Reduction Act", thelithium battery industry follows the sustained positive long-term development trend of global new energyvehicle industry, demonstrating a robust growth momentum.During the reporting period, the new energy vehicle industry maintained a high growth trend andexperienced structural adjustment. The growth rate slowed down domestically, while the markets inEurope and America performed exceptionally well. In Europe, the new energy vehicle market exceededthe 3 million unit mark, and the U.S. market growth rate far surpassed the global average. According toICCSINO statistics, in 2023, global new energy vehicle sales reached 13.394 million units, up 32% year-on-year; sales in China reached 9.495 million units, up 37.9% year-on-year; sales in Europe were 2.95million units, up 13.4% year-on-year; and sales in the U.S. reached 1.402 million units, up 52.4% year-on-year, making it the region with the highest growth rate globally.Given the vast development potential of the overseas new energy vehicle market and to address theintensifying internal competition in China, the lithium battery industry has started expanding overseas.Moreover, due to the successive introduction of restrictive trade policy bills in Europe and North America(such as the U.S.'s "Inflation Reduction Act" and the EU's "New Battery Act"), international automakersare increasingly demanding localization of the overseas supply chain, further accelerating the overseasproduction layout of Chinese lithium battery companies. According to incomplete statistics from GGII,during the reporting period, 13 domestic lithium battery companies went overseas to set up factories, witha year-on-year increase of 160% and a total investment exceeding RMB 134 billion; over 20 lithiumbattery material companies went abroad to establish factories, mostly those producing ternary precursorsand cathode materials, with a total investment exceeding RMB 74 billion.
(2) Basic characteristics
In 2023, the mainstream cathode materials used in the power battery field remained ternary andlithium iron phosphate (LFP), showing a strong demand for technological upgrades, among which, theshare of high-nickel in ternary cathode has improved, and the industrialization process of lithiumferromanganese phosphate in phosphate has accelerated.
In terms of ternary cathode materials, driven by the domestic and international markets' demand forhigh energy density, the penetration rate of high-nickel products further increased. According to ICCSINOstatistics, in 2023, the global penetration rate of high-nickel ternary cathode materials exceeded 50%; thedomestic production of high-nickel ternary cathode materials was 289,000 tons, up 7.0% year-on-year,accounting for 49% of the domestic ternary cathode material market share.
In terms of phosphate cathode materials, the production of lithium ferromanganese phosphatecontinued to grow, but the growth rate significantly slowed. The lack of energy density has always been apain point in the application of lithium ferromanganese phosphate, with a clear market demand for lithiumferromanganese phosphate-doped upgrades. With the launch of Chery Luxeed S7 equipped with lithiumferromanganese phosphate and CATL's M3P confirmed to be installed in Tesla vehicles, coupled with thepremium of new technologies, the profitability is considerable, and both supply and demand sides areaccelerating the industrialization process of lithium ferromanganese phosphate.
(3) Main technical thresholds
The high-nickel ternary cathode material industry has a high technical threshold, primarily in theareas of development technology, production technology, and quality certification. The high R&Dtechnical threshold is reflected in the fact that the R&D of high-nickel ternary cathode materials not onlyrequires technical modifications such as doping and capping, but also needs to be calcined under theoxygen atmosphere, which has high requirements for the production line design capability, personalizedproduct development capability and technical service capability of enterprises, and also has harshrequirements for the humidity control of the production environment, corrosion resistance of theequipment and automation level. Furthermore, high-nickel ternary cathode materials are among the mostcritical raw materials in power batteries and significantly impact the core and safety performances of thesebatteries. Considering the stability and safety of the products, the certification testing procedures forproducts like NCM811 and NCA by automotive and power battery companies are more complex. Theseprocedures not only require long-term performance testing but also detailed assessments of thecomprehensive supply capabilities, automated production management level, cost-effectiveness, qualitystability and consistency of scale mass production of manufacturers. The overall certification period canextend beyond two years.
The development of LMFP cathode materials has seen several manufacturers achieve mass deliveriesin small power applications such as two-wheelers. However, as an upgraded product of LFP, this materialhas a broader demand in the EV market, which holds high expectations for it. Currently, continuousbreakthroughs are being made in both technology and application in this field. The EV industryconsistently benchmarks the core performance and watt-hour cost of LMFP materials against matureLMFP materials. Thus, in addition to rapidly enhancing performance aspects like fast charging, hightemperature, and direct current resistance (DCR), it is also necessary to achieve more stable massdeliveries and cost control. Given the high market demands, the choice of manufacturing processes forLMFP, precise control of core production parameters, and the balanced application of modificationtechnologies such as carbon coating, nanotechnology, and ion doping result in significant technical barriersto the stable mass production of this material for EV use.
4.2.2 Analysis of the Company's position in the industry and its changes
In 2023, Ronbay's shipment of ternary cathode materials continued to grow by approximately100,000 tons, a year-on-year increase of 11%, with a global market share exceeding 10%, firmlyestablishing its industry leadership position. According to ICCSINO statistics, the global penetration rateof high-nickel materials exceeded 50% in 2023; the domestic production of high-nickel materials was289,000 tons, up 7.0% year-on-year, accounting for 49% of the domestic ternary materials market andbecoming the main driver of market scale growth in ternary materials. The Company continues to hold theleading position in the domestic ternary market.
As a leading enterprise in high-nickel ternary materials, with the gradual application of high-energydensity batteries such as large cylindrical batteries and solid-state batteries in vehicles, the shipment
proportion of the Company's high-nickel and ultra-high-nickel products has significantly increased.Among them, shipments of the series 9 ultra-high-nickel products approached 10,000 tons, furtherstrengthening the Company's barrier advantages and profitability in the high-nickel sector. Additionally,shipments of the Company's LMFP products increased by 85% year-on-year in 2023, further consolidatingits market leadership position, with a breakthrough expected in the automotive market in 2024. In thesodium cathode material sector, the Company maintains a leading advantage in technology R&D andproduct performance. Its layered materials have achieved stable mass production, and its polyanionicmaterials have received orders from core customers in different market segments.
During the reporting period, while deepening its position as a "comprehensive supplier of cathodematerials covering the entire market", the Company continuously iterated its development strategy andofficially released its globalization strategy in August 2023. With the introduction of international tradepolicies such as the U.S.'s "Inflation Reduction Act" and the EU "New Battery Regulation", globalizationdevelopment opportunities are unprecedented. The Company has made significant breakthroughs inoverseas customer development, and through strategic, technological, and supply collaborations, it haspartnered with many of the world's top battery manufacturers and automakers. In 2023, Ronbay signed astrategic cooperation agreement with the globally renowned battery company Eve Energy and also signedframework cooperation and technical cooperation agreements with top lithium battery customers in Japanand South Korea. In the fourth quarter of 2023, the Company achieved monthly shipments of over 1,000tons to a certain Western customer, and is accelerating the integration into the lithium battery supplysystems in Europe, America, Japan, and South Korea.At the end of the reporting period, the Company had built a cathode production capacity of over200,000 tons (including high-nickel, LMFP, and sodium cathode), ranking first globally in ternary cathodeproduction scale. Additionally, the U.S. office has been established, and the European investment projecthas entered a critical phase. The first phase of the Korean base was completed in 2023, and the secondphase, including a 40,000 tons/year ternary material project and a 20,000 tons/year LMFP project,officially commenced in August of the same year. Concurrently, the Company was approved for 250 acresof land in Saemangeum, Korea, planning to build an annual production base of 80,000 tons of ternaryprecursor and associated sulfate production.
In 2024, with the industrialization of ternary high-nickel materials and LMFP, along with theaccelerated volume increase from customers in Europe, America, Japan, and South Korea, the Company'ssales are expected to further break through, and the domestic and foreign customer structure is expectedto further improve. While becoming a comprehensive supplier of cathode materials covering the entiremarket, the Company will fully leverage its early-mover advantage in the global new energy industrychain, advancing capacity building, customer development, and technological cooperation in Asia, Europe,and America, to fully implement its globalization strategy and strengthen its global leadership as a leadingsupplier of cathode materials.
4.2.3 The developments and future trends of new technologies, new industries, new business formsand new models during the reporting period
During the reporting period, the requirements for performance of power and energy storage batteriescontinued to escalate. Meanwhile, as the new energy vehicle market kept growing, the recycling industryalso gained increased attention. The following are the developments and future trends of new technologiesduring the reporting period:
(1) Semi/solid-state battery technology route
Solid-state batteries, which use a solid electrolyte as opposed to traditional lithium batteries, offerhigher safety, better temperature adaptability, and greater energy density. Currently, there are threemainstream technology routes: polymer solid-state batteries, oxide solid-state batteries, and sulfide solid-state batteries. Internationally, the focus is on sulfide systems, while domestically, the focus is on oxidesystems. The American solid-state battery company QuantumScape has claimed that its solid-statebatteries have passed Volkswagen Group's durability tests, achieving "over 1,000 charging cycles with acapacity still above 95%", far exceeding industry standards.
While solid-state batteries continue to be developed and piloted, semi-solid batteries have become atransitional technology solution chosen by the market. Semi-solid batteries use a mixed solid-liquidelectrolyte, with an electrolyte content of 5-10%, and include a coating of solid electrolyte. Compared totraditional liquid lithium batteries, semi-solid batteries offer better safety, higher energy density, longercycle life, and wider operating temperature range. According to data from GGII, in 2023, the installedcapacity of domestic semi-solid batteries exceeded the GWh level, marking the start of industrialization,with an acceleration in mass production expected in 2024.
According to the China Inorganic Salts Industry Association, given the needs to reduce costs andincrease energy density, LMFP, high-nickel ternary, and lithium-rich manganese-based cathode materialsare set to be the main research directions for future solid-state battery cathode materials. As acomprehensive supplier of cathode materials covering the entire market, the Company leads the industryin the development of high-nickel and ultra-high-nickel product series, which can be applied to solid-statebattery systems, with performance indicators at the forefront of the industry. Low cobalt, long-cycle,lithium-rich manganese-based, and solid-state battery cathode materials have also received widerecognition from customers.
(2) Mass production and application of large cylindrical batteries
Large cylindrical battery has the advantages of high energy density, low cost, high safety, and longlife, entering a capacity expansion phase in 2023. In addition to foreign automakers, numerous mainstreamdomestic and international automakers/battery manufacturers have begun to adopt large cylindricalbatteries, such as BMW, NIO, Panasonic, Samsung SDI, CATL, and EVE Energy, with clear demand fromleading OEMs driving the core market for large cylindrical batteries.
Large cylindrical batteries paired with high-nickel ternary materials can fully leverage the advantagesof high energy density and good thermal stability. Currently, large cylindrical batteries primarily useNCM811 cathode materials, and future cost reduction and efficiency improvement could be achieved byreplacing NCM811 with ultra-high-nickel Ni90. In 2024, with the increase of domestic and foreignmainstream enterprises that lay out large cylindrical batteries, the mass production of large cylindricalbatteries and the expansion of production lines, as the first cathode material manufacturer in China torealize the mass production of NCM811 series products and apply them to the international mainstream
terminal automakers, the Company's high-nickel and ultra-high-nickel products will gain extensive marketopportunities.
(3) Application of LMFP batteries in vehicles
LMFP is a new type of phosphate-based lithium-ion battery cathode material formed by dopingmanganese into lithium iron phosphate, representing an upgraded generation of products with higherenergy density, lower cost, and better low-temperature performance. According to GGII, theoretically,LMFP can achieve 10%-20% higher energy density than LFP, and at -20°C, it can perform up to 95% ofits capacity at room temperature. In 2023, LMFP mixed with ternary materials saw its application in end-terminal vehicle models, as evidenced by the Ministry of Industry and Information Technology's 374thbatch of new energy vehicle product catalog, which includes two Max models of Chery Luxeed S7 andChery EXEED developed in cooperation with Huawei, both featuring a "ternary + LMFP" batterycombination.According to GGII forecasts, by 2025, shipments of LMFP cathode materials are expected to exceed200,000 tons, with a market size potentially surpassing RMB 10 billion. The Company has achieved large-scale mass production of LMFP since 2022 through the acquisition of Tianjin Ronbay, maintaining aleading position in industry shipments. Additionally, the Company has developed high-capacity productswith a manganese-iron ratio of 7:3 and M6P products mixed with ternary materials, achieving batchshipments, and is expected to make significant breakthroughs in the automotive market in 2024.
4.3 Business situation analysis and discussion
During the reporting period, the global new energy industry continued to grow rapidly. According tostatistics from SNE Research, in 2023, the global power battery usage for new energy vehicles reached
705.5 GWh, a year-on-year increase of 38.6%; the global shipment volume of energy storage batteriesreached 185 GWh, a year-on-year increase of 53%. Data from the China Association of AutomobileManufacturers shows that the penetration rate of new energy vehicles in China reached 31.6% in 2023,setting a new record, up 5.9% over the same period of last year. In comparison, penetration rates in Europeand North America are far lower than in China, indicating significant growth potential in overseas markets.Benefiting from the growth in downstream market demand, the Company shipped approximately 100,000tons of ternary cathode materials in 2023, an increase of 11% year-on-year, with a global market share ofover 10%, maintaining the industry lead for three consecutive years.
In 2023, the Company launched a global strategy in Shanghai, Seoul, and Shenzhen, activelypromoting the implementation of its global layout. At the end of 2023, the U.S. Department of Energy,based on the "Inflation Reduction Act", further proposed the "Foreign Entity of Concern (FEOC)"regulations. According to the original text and interpretations on the U.S. Department of Energy's officialwebsite, the Company's subsidiaries established in overseas Free Trade Agreement (FTA) regions, such asSouth Korea, meet the tax credit requirements of the "Inflation Reduction Act", providing the Companywith greater development opportunities in the high-value and high-growth North American market. TheCompany will continue to firmly advance its global strategy, entering a new phase of development.
The Company's wholly-owned subsidiary in Korea, JS Corporation, was one of the earliest large-scale cathode material manufacturers built by a domestic enterprise overseas. The first phase of the project
has been completed, with production capacity steadily increasing. In August of the same year, the Koreanbase officially started the construction of the second phase for 40,000 tons/year of ternary materials and20,000 tons/year of LMFP, with an accompanying 80,000 tons of precursor capacity also planned. TheCompany has taken the lead in completing an integrated layout of cathode materials, precursors, andrecycling in Korea. During the same period, to better serve customers, the Company established a NorthAmerican office, initially forming an operational team and starting site selection for a North Americanfactory. Site selection and construction for a European factory also made positive progress.During the reporting period, the Company achieved operating revenue of RMB 22.657 billion, withnet profit attributable to the parent company shareholders of RMB 581 million, down 24.78% and 57.07%year-on-year, respectively. The main reasons are: (1) a significant drop in the price of key raw materialsof lithium salt in 2023, adversely affecting the Company's revenues and profits; (2) increased strategicinvestment in global layout (Korea, Europe, and America), LMFP, and sodium battery productdevelopment, impacting current profits; (3) the adoption of an aggressive market competition strategy,ensuring an increase in market share and affecting the current gross profit.
(1) Ranked first globally in shipping volume of ternary materials for three consecutive years,with significant breakthroughs in developing overseas customersDuring the reporting period, the Company shipped approximately 100,000 tons of ternary materials,an increase of 11% year-on-year, with the global market share maintaining the industry lead for threeconsecutive years. The continuous growth in sales volume stems from years of layout and exploration inoverseas markets. In 2023, the Company signed cooperation framework agreements with Japanese andKorean customers and achieved large-scale shipments to mainstream automakers in Europe and America,with monthly shipments reaching a thousand tons in the fourth quarter. The proportion of the Company'sproducts used in overseas terminal vehicle models has significantly increased, further enhancing the brandinfluence in overseas markets.
(2) Achieved large-scale shipments of series 9 ultra-high-nickel products, leading the industryin LMFP and sodium cathode materials
In 2023, the Company's series 9 and above products were widely applied in large cylindrical batteries,with nearly ten thousand tons shipped throughout the year, further solidifying the Company's technologicallead in the high-nickel sector. LMFP has received significant attention from domestic and internationalcustomers. In 2023, while maintaining the lead in shipments, the Company also developed triple-component mixed M6P products, high-capacity products with a manganese to iron ratio of 7:3, and next-generation solid-liquid integrated process products. These products have completed pilot test in vehiclepower batteries, with breakthroughs expected in the automotive market in 2024. While maintaining stablemass production of sodium cathode layered materials, the Company has developed industry-leadingpolyanionic products and has received orders from core customers in various market segments. In termsof precursors, the sales volume increased by nearly 30% year-on-year, and the production line certificationof overseas customers was completed during the same period.
(3) Led the industry in the R&D of solid-state batteries and lithium-rich manganese-basedtechnologies, making significant achievements in patent development
The Company has successfully developed several high-nickel and ultra-high-nickel ternary cathodematerials suitable for semi/solid-state batteries, among which, the battery products matched with semi-solid state battery cathode materials have been applied to terminal customer models with over 1000kilometers of extended range. The ternary cathode materials for solid-state batteries feature high capacity,stable interface, and long cycle life, gaining full recognition from leading industry customers. TheCompany has completed the development of various solid-state electrolyte materials, including sulfide,oxide, and halide solid electrolytes, achieving industry-leading level in terms of ionic conductivity and air
stability. Additionally, the Company has successfully developed wet and dry electrode preparationtechnology for solid electrolyte membranes. These solid electrolyte materials and films have initiatedcooperation with domestic and international customers and received positive feedback. The Company'shigh-voltage nickel manganese binary materials and lithium-rich manganese-based cathode materials alsolead the industry.During the reporting period, the Company filed for 357 patents, successfully obtained 110 patentgrants, reaching a total of 450 authorized patents, and has built a comprehensive intellectual propertyprotection system. In 2023, the Company won all patent litigations with UMICORE in China and Korea,not only proving the independence and effectiveness of its intellectual property, but also demonstrating itscomprehensive capability to compete in global intellectual property.
(4) Deepened the "New Integration" strategy, strengthening upstream and downstreamcooperation and optimizing the supply chain management systemUnder the guidance of the "New Integration" strategy and adhering to the philosophy of "becomingthe strongest and cooperating with the strongest for mutual benefit", the Company has continuouslydeepened strategic cooperation with upstream partners. By signing long-term strategic agreements andmaking equity investments, the Company extended its supply chain upstream, creating a managementsystem integrating full-link resources, trading and processing from ore to cathode materials, andsynergizing with the existing cathode and precursor industries to share industry growth. The specializedtrading platform, Ronbay Trading Company, has effectively engaged in trading, processing, andinvestment activities with upstream suppliers after three to four years of development, continuouslyperfecting and enhancing the competitiveness of the Company's supply chain system.
(5) Deepened organizational structure reforms, enhancing operational efficiency
In 2023, based on the divisional system, the Company completed the transformation of three systems,transitioning from a pyramid structure to a flat, organized, matrixed, and procedural structure, creatingvertical management systems for markets, R&D, and delivery. Through the implementation of productlines and the IPD process, various systems were interconnected horizontally, forming a procedural andcustomer-oriented organization, continuously improving the Company's operational capabilities andefficiency.
4.4 R&D description
4.4.1 R&D achievements obtained during the reporting period
During the reporting period, Ronbay achieved a record high in the number of granted patents, completing 357 patent applications and obtaining 110 patent grants.The total number of patent applications accumulated by the Company reached 961, with a cumulative total of 450 patents granted both domestically and internationally.The Company's patents include cutting-edge products such as spinel nickel manganese, lithium-rich manganese-based, and solid-state battery materials, as well as keyproducts like high-nickel series 8 and 9 ternary precursors and cathode materials. These products cover various sectors of the industry chain including engineeringequipment, monitoring, recycling, as well as electrodes and batteries. Through a comprehensive and effective global patent layout strategy, the Company hasconstructed an "innovation moat" for enterprise innovation.During the reporting period, Ronbay obtained 110 new patent grants, including 34 domestic invention patents and 76 domestic utility model patents. The specificdetails of the domestic invention patents are as follows:
| SN | Disclosure (Announcement) Number/Application Number | Title | Patent Type | Legal Status |
| 1. | 202110423732.1 | A lithium-ion battery cathode material, its preparation method, and application | Invention | Awarded |
| 2. | 202111527999.1 | A pre-oxidation preparation process for surface-modified lithium nickel-cobalt-manganese ternary cathode material | Invention | Awarded |
| 3. | 202111529475.6 | A device for cleaning metallic foreign objects inside pipelines | Invention | Awarded |
| 4. | 202111528000.5 | Graphene carbon surface-modified lithium nickel-cobalt-manganese ternary cathode material and its preparation method | Invention | Awarded |
| 5. | 202010074834.2 | A grain size stabilized nickel-cobalt-manganese ternary precursor and its preparation method and preparation device | Invention | Awarded |
| 6. | 201810757022.0 | A preparation method for lithium iron borate | Invention | Awarded |
| 7. | 202010074561.1 | An in-situ carbon-coated high-rate large-size Prussian blue-like sodium ion cathode material and its preparation method | Invention | Awarded |
| 8. | 202110744446.5 | A tungsten-doped high-nickel cobalt-free precursor and its preparation method | Invention | Awarded |
| 9. | 202110949247.8 | High-nickel ternary precursor material and its preparation method, and high-nickel ternary cathode material | Invention | Awarded |
| 10. | 202111158931.0 | A highly spherical ternary precursor and its preparation method | Invention | Awarded |
| 11. | 202111160463.0 | A cyclic pore ternary cathode precursor and its preparation method | Invention | Awarded |
| 12. | 202111271890.6 | A high-compaction density ternary cathode material | Invention | Awarded |
| 13. | 202210305396.5 | An ultra-high-nickel ternary precursor and its preparation method | Invention | Awarded |
| 14. | 202210323182.0 | A high-nickel low-cobalt fine whisker nickel-cobalt-manganese hydroxide and its preparation method | Invention | Awarded |
| 15. | 202210566948.8 | A cobalt-free cathode material, its preparation method and application | Invention | Awarded |
| 16. | 202210606493.8 | A comprehensive recycling method for used lithium manganate cathode materials | Invention | Awarded |
| 17. | 202210606501.9 | A fine whisker small-particle size nickel-cobalt-manganese hydroxide and its preparation method | Invention | Awarded |
| 18. | 202210651790.4 | Boron element-doped high-nickel ternary precursor material and its preparation method, and high-nickel ternary cathode material | Invention | Awarded |
| 19. | 202210726493.1 | A control method for the whisker morphology of ternary precursor | Invention | Awarded |
| 20. | 202210759671.0 | A manganese-based carbonate precursor, lithium-rich manganese-based cathode material, and lithium-ion secondary battery | Invention | Awarded |
| 21. | 202210855847.2 | A preparation method and device for precursor of ternary cathode material, precursor and cathode material | Invention | Awarded |
| 22. | 202210956495.X | A novel preparation method for molybdenum-doped high-nickel ternary precursor | Invention | Awarded |
| 23. | 202211057150.7 | A cobalt gradient high-nickel ternary cathode material and its preparation method | Invention | Awarded |
| 24. | 202211144586.X | A high-compaction low-cost ternary cathode material and its preparation method | Invention | Awarded |
| 25. | 202310705475.X | A cathode material and its preparation method, and lithium-ion battery | Invention | Awarded |
| 26. | 202310759926.8 | A layered oxide and its preparation method, and sodium-ion battery cathode electrode | Invention | Awarded |
| 27. | 202310781322.3 | A cathode material and its preparation method, cathode electrode, and sodium-ion battery | Invention | Awarded |
| 28. | 202310809840.1 | A cathode active material and its preparation method, cathode plate, and secondary battery | Invention | Awarded |
| 29. | 202310840410.6 | A cathode material and its preparation method, and lithium-ion battery | Invention | Awarded |
| 30. | 202311020334.0 | A cathode material and its preparation method, and lithium-ion battery | Invention | Awarded |
| 31. | 202010960586.1 | A lithium-ion battery cathode material, cathode plate, and lithium-ion battery | Invention | Awarded |
| 32. | 202110331975.2 | A dry powder coating method for battery electrode based on phosphate cathode material | Invention | Awarded |
| 33. | 202110328688.6 | A post-treatment method for phosphate system cathode material | Invention | Awarded |
| 34. | 202110325292.6 | A preparation method for high-compaction density LMFP/carbon composite cathode material | Invention | Awarded |
4.4.2 List of intellectual property acquired during the reporting period
| New Increase this Year | Cumulative Number | |||
| Patents Applied | Patents Awarded | Patents Applied | Patents Awarded | |
| Patents for Invention | 231 | 34 | 492 | 104 |
| Utility Model Patents | 126 | 76 | 469 | 346 |
| Total | 357 | 110 | 961 | 450 |
4.4.3 Ongoing projects
| SN | Project Name | Estimated Total Investment | Current Investment Amount | Cumulative Investment Amount | Progress or Periodic Results | Intended Goal | Technical Level | Application Prospects |
| 1 | Ultra-high-nickel Monocrystal Cathode Development | 2,950.00 | 744.89 | 1,887.36 | Pilot run stage | To develop an ultra-high-nickel monocrystal product with a capacity exceeding 20mAh/g compared to the series 8 monocrystals, featuring high capacity and long cycle life. | The product's high capacity, cycle life, and DCR growth meet customer needs, and it has passed large cell testing at the client's end. | Mainly applied in new energy vehicles. |
| 2 | Ultra-high-nickel Polycrystal Cathode Development | 3,700.00 | 1,337.12 | 2,819.23 | Production line commissioning stage | To develop an ultra-high-nickel polycrystal product with a capacity exceeding 20mAh/g compared to the series 8 polycrystals, featuring high capacity and long cycle life. | The product's high capacity, cycle life, and DCR growth meet customer's safety needs, and it has passed large cell testing at the client's end. | Mainly applied in new energy vehicles. |
| 3 | Series 9 Monocrystal Cathode Material Development | 2,087.00 | 625.92 | 1,181.06 | Mass production stage |
To develop high-nickelseries 9 monocrystalmaterial with high energydensity and excellentcycle performance tomeet the productperformance
| Product full battery test reveals 1/3C capacity ≥205mAh/g; comprehensive performance has met customer requirements for tonnage supply. | Mainly applied in new energy vehicles and secondarily applied in digital products |
| requirements of customers. | ||||||||
| 4 | Cobalt-free HV Monocrystal Cathode Development | 2,197.00 | 391.41 | 625.87 | Production line commissioning stage | To develop a cobalt-free monocrystal material that exhibits high capacity and excellent cycling performance under high voltage. | The monocrystal has good dispersion performance, achieving capacities over 190mAh/g, and production line samples have realized ton-level shipments to international customers. | Mainly applied in new energy vehicles and secondarily applied in digital products |
| 5 | Next-generation Series 8 Low-cost Cathode Product Development | 4,563.80 | 70.12 | 70.12 | Pilot test stage | To develop the next-generation low-cost series 8 material with enhanced capacity but reduced costs. | The product features high capacity, improved gas production, and superior cycle performance. | Mainly applied in new energy vehicles. |
| 6 | Series 9 Polycrystal Precursor Development | 4,205.00 | 128.17 | 1,673.56 | Production line commissioning stage | To develop a high-nickel precursor with excellent cycling performance, improved gas production, internal resistance, and high-temperature cycle performance. | The precursor material has good sphericity with no cracked spheres, corresponding to cathode products with high capacity and good cycling. | Mainly applied in new energy vehicles. |
| 7 | Next-generation Series 8 Precursor Development | 2,724.00 | 128.17 | 1,673.56 | Pilot test stage | To develop a series 8 NCM precursor product with low cost, high capacity, high safety, and long cycle life. | The product has no cracked spheres, well-designed porosity, and good sphericity, assisting the next generation of high-nickel cathode materials in solving product capacity and cycle problems. | Mainly applied in new energy vehicles and secondarily applied in digital products |
| 8 | Ultra-high-nickel Precursor Development | 5,270.00 | 1,155.66 | 2,646.30 | Pilot test stage | To develop an ultra-high-nickel precursor with excellent cycling performance, improved gas production, internal resistance, and high-temperature cycle performance. | The product exhibits good crystallinity and dispersion, with no cracked spheres, and the final cathode material features high capacity and excellent cycling performance. | Mainly applied in new energy vehicles and secondarily applied in digital products |
| 9 | Series 7 Cathode Product Development | 2,855.00 | 299.00 | 1,391.32 | Pilot run stage | To develop a series 7 low-Co cathode material with high energy density and excellent long cycling performance. | The product features high capacity and excellent long-term cycling performance, has passed customer certification and is delivered in small batches. | Mainly applied in new energy vehicles and secondarily applied in digital products |
| 10 | Series 6 Cathode Product Development | 1,047.00 | 377.15 | 880.42 | Production line commissioning stage | To develop series 6 high voltage monocrystal materials up to the performance requirements of low cost, long cycle and high safety. | Under high voltage, the series 6 product reveals high capacity, excellent cycle life, and safety performance. | Mainly applied in new energy vehicles and secondarily applied in digital products |
| 11 | Multi-element High-energy Density NCMA Development | 2,970.00 | 392.75 | 2,432.33 | Production line commissioning stage | To make NCMA cathode material with high capacity and stable structure. | The product features high capacity, significantly improved thermal stability, optimized cycling and storage performance, and a rich product array. | Mainly applied in new energy vehicles and secondarily applied in power tools/drones. |
| 12 | Ternary and | 160.00 | 84.50 | 84.50 | Pilot test stage | This project involves a | Through the blending of LMFP | The blend offers |
| LFP Battery Blended Cathode Development | blend of LMFP and ternary materials. Through the blending of different types and proportions of ternary and LMFP, a series of blending application solutions are obtained, providing customers with recommendations for application solutions in different scenarios and needs. | with ternary materials, a full coverage of 180-250Wh/kg energy density is achieved, balancing cost and safety, and providing solutions for new energy vehicles, electric two-wheelers, residential and outdoor energy storage, and 3C digital fields. | high cost-effectiveness and safety across markets including new energy vehicles, electric two-wheelers, residential and outdoor energy storage, and 3C digital fields. | |||||
| 13 | LMFP 73 Project | 400.00 | 391.12 | 391.12 | Mass production stage | To develop a high manganese proportion LMFP material, meeting high voltage platform and high energy density requirements. | The average voltage of full battery tests is ≥3.7V, demonstrating excellent energy density. Comprehensive performance meets customer requirements, achieving hundred-ton shipments. | Applied in digital electronics, new energy vehicles, power batteries, performance vehicle batteries, and other fields. |
| 14 | Ni92 Polycrystal Cost Reduction Process Development | 800.00 | 164.61 | 164.61 | Mass production stage | To develop a mass production process with high equipment utilization rate, low processing cost and improved income. At the | The product has high capacity and excellent cycling characteristics, with production process costs reaching leading levels in the industry, meeting customers' demands for low-cost | Mainly applied in new energy vehicles. |
| same time, the material performance is comparable to conventional processes, featuring high capacity and excellent cycling performance. | raw materials. | |||||||
| 15 | Low-cobalt, Long-cycle, Lithium-rich Manganese-based Cathode Material Development | 875.00 | 258.05 | 635.07 | Pilot test stage | To develop low-cost, long-cycle, medium-to-high voltage lithium-rich cathodes to replace medium-nickel high-voltage cathodes and LFP cathode materials. | The manufactured low-cobalt materials have a discharge capacity of ≥225mAh/g at 0.33C current density at room temperature; they are suitable for liquid and solid-state batteries due to their low cost and high capacity. Currently, we are closely cooperating with several cell and whole machine manufacturers at home and abroad, and the sample performance maintains a leading position in client tests, demonstrating a strong competitive advantage. | Mainly applied in electric vehicles and secondarily applied in drones/electric two-wheelers. |
| 16 | High-voltage Nickel-manganese Cathode Material | 918.00 | 242.96 | 495.43 | Pilot test stage | To develop a high-energy-density, low-cost, fast-charging high-voltage lithium nickel manganese cathode to |
The prepared monocrystalcathode material features a softpack energy density of≥250Wh/kg with excellent fast-charging and low-temperature
| Development | replace medium-low nickel and lithium iron phosphate materials. | performance, and good safety and stability. It can be used in liquid or semi-solid systems and is developed in cooperation with several domestic and international cell manufacturers, currently at a leading level in the industry. | tools and digital products | |||||
| 17 | All-solid-state Battery Cathode Material Development | 827.00 | 259.91 | 349.83 | Small experiment stage | To develop all-solid-state battery cathode material suitable for sulfide systems, meeting high energy density and safety requirements. | By optimizing the sintering process and altering the morphology of the cathode materials, a high proportion in the composite cathode is achieved; through in-situ coating processes, in-situ fast ionic conductor coating of ternary cathode materials is achieved, ensuring compatibility between the cathode and the electrolyte interface. We have developed several modified high-nickel ternary materials in collaboration with various domestic and international cell companies, maintaining a leading position in the industry. | Mainly applied in electric vehicles with high energy density and secondarily applied in drones. |
| 18 | Sodium-ion Layered Oxide | 2,888.00 | 1,468.55 | 2,232.00 | Pilot run stage | To develop a low-cost sodium-ion battery | The developed layered sodium-ion cathode material has reached | Applied in new energy vehicles |
| Cathode Material Development | layered oxide cathode material with excellent electrochemical performance. | an industry-leading level in full-cell tests in terms of capacity, cycling, and gas generation, meeting the needs of low-speed new energy vehicles, electric two-wheelers, and residential energy storage. Mass production process innovations have achieved significant breakthroughs in product stability control and cost reduction. | and small power field, with broad market; and applied in the energy storage field by way of mixing. | |||||
| 19 | Sodium-ion Polyanionic Cathode Material Development | 3,016.74 | 105.75 | 105.75 | Production line commissioning | To develop a sodium-ion battery polyanionic cathode material with low cost and excellent electrochemical performance. | The sodium-ion polyanionic cathode material excels in capacity, rate, and cycling performance, expected to meet the needs of energy storage and low-speed vehicle applications. | Mainly applied in energy storage field. |
| Total | / | 44,453.54 | 8,625.81 | 21,739.44 | / | / | / | / |
4.5 Discussion and analysis of the Company's future development
4.5.1 Industry pattern and trend
Based on China's goals for "Peak Carbon and Carbon Neutrality", and catalyzed by the EU'sregulation of "2035 Ban on the Sale of Fuel Vehicles" and the subsidy policies of the U.S.'s "InflationReduction Act", the lithium battery industry continues to exhibit a solid long-term growth trend. With therapid development of new energy vehicles and energy storage fields, according to GGII data, it is expectedthat China's lithium battery shipments will reach 1089 GWh in 2024, a year-on-year increase of 23%,marking the official entry of China's lithium battery industry into the TWh era.Favorable policies explicitly support the export of the new energy vehicle industry, boosting lithiumbattery enterprises to accelerate their overseas layouts. Currently, the penetration rate of overseas newenergy vehicles remains low, offering substantial room for growth. According to ICCSINO statistics, thepenetration rate in Europe approached 25% in 2023, and reached 9% in the U.S., with a high growth rateof 52.4%. In February 2024, the Ministry of Commerce and other nine units jointly issued the "Opinionson Supporting the Healthy Development of New Energy Vehicle Trade Cooperation", proposing 18 policymeasures from six aspects to encourage new energy vehicles and their supply chain enterprises toefficiently utilize global innovation resources and optimize the export processes of new energy vehiclesand power batteries. This policy initiative, which clearly promotes new energy vehicles to the internationalmarket for the first time in recent periods, greatly facilitates the rapid overseas expansion of the entire newenergy vehicle industry chain. According to incomplete statistics from GGII, since 2023, dozens of lithiumbattery enterprises, including battery companies such as CATL and EVE Energy, as well as lithium batterymaterial manufacturers such as Huayou Cobalt and Easpring Technology, have announced plans toestablish factories overseas. The Company has a first-mover advantage in the global layout, with the firstphase of its South Korean base completed in 2023, and a 40,000-ton/year ternary material and 20,000-ton/year LMFP project officially starting in August of the same year. Its capacity in South Korea is scarcein global competition, with both existing and under-construction capacities already matching the needs ofseveral major overseas customers. The Company will accelerate its entry into domestic and overseasmarkets, including Europe, America, Japan, and South Korea, through various modes of cooperation suchas strategic, technical, and supply agreements with the world's top battery companies like CATL and EVEEnergy.The trend towards high-end new energy vehicles is becoming increasingly clear, which will furtherexpand the market share of high-nickel and ultra-high-nickel cathode materials in end-use applications.Tesla's Cybertruck was officially delivered in December 2023, with current orders exceeding 2 millionunits; according to GGII statistics, from January to October 2023, the proportion of new energy passengervehicles of Class B and above increased to 46.4%, and the new vehicles launched in the past two yearshave gradually shifted to the high-end market, with the number of pure electric vehicles of Class B andabove growing to 31 models. It is expected that the sales proportion of Class B and above models in Chinawill reach 50% in 2024. High-nickel and ultra-high-nickel cathode materials are the mainstream choicefor high-end vehicle models and long-range models at domestic and foreign OEMs, with penetration ratesgradually increasing. According to ICCSINO statistics, the high-nickel penetration rate of global ternarymaterials exceeded 50% in 2023, with the domestic high-nickel material proportion reaching 49%. As thefirst domestic enterprise to achieve mass production of the NCM811 series products and maintain a leadingposition in high-nickel ternary materials, the trend towards high-end new energy vehicles will bringbroader market demand for the Company's high-nickel and ultra-high-nickel products.
4.5.2 Corporate development strategy
The Company adheres to the mission of "developing the new energy industry, improving humanliving conditions, creating a bright future for the company and its employees, and giving back to society",with a vision to "establish a new energy industrial cluster with first-class innovation capabilities and ahigh degree of commercial civilization".
In 2021, the Company launched the "New Integration" strategy of "becoming the strongest andcooperating with the strongest for mutual benefit". This strategy includes specialization, integration,platformization, ecologization, digitalization, globalization, and organizational development. Guided bythis strategy, the Company strengthened its cooperative relationships with upstream and downstreamenterprises through strategic cooperation and equity participation, ensuring stable development and a long-term competitive edge in the fiercely competitive new energy materials sector.
In 2022, the Company proposed a comprehensive coverage strategy for the cathode market, aimingto transform into a platform-based and group-oriented comprehensive supplier of cathode materials. Theproducts include high-nickel materials, LMFP, and sodium-ion materials, covering applications in high,medium, and low-end power, small power, energy storage, and digital markets.
In 2023, amidst the vigorous development of the overseas new energy vehicle industry and theintensification of domestic industry competition, the Company held a global strategic release conference.It was clarified that the "globalization" strategy is a phase focus of the "New Integration" strategy. Thedetails of the U.S.'s "Inflation Reduction Act" provided a larger market for the Company's overseasexpansion, and the strategic advantage of the Company's layout in overseas regions such as South Koreabecame increasingly apparent.
Looking ahead to 2024, globalization is the trend, and the Company will continue to accelerate itsglobalization strategy. The Company has the advantages of globalization. Firstly, it has the leading strategy,Ronbay proposed globalization in its "new integration" strategy; secondly, as a leading enterprise in theindustry, the Company has the ability of comprehensive innovation and strong comprehensive strength tobuild the strongest competitiveness in the fierce domestic "inward roll" market; finally, the Company hasthe genes and innate advantages of going global. When it was founded, it was a Sino-Korean teamworkenterprise, with eight or nine years' experience of operating in China and South Korea, and it has thenatural ability of transnational operation, cross-culture and cross-region operation.
Globalization entails mastering two markets: serving the Company's strategic major customers wellin the domestic market to hone the strongest operational capabilities, and leveraging these capabilities todevelop the global market. The overseas market is customer-oriented, rapidly developing correspondingproducts and engineering manufacturing technologies, and establishing efficient supply chains to betterserve overseas strategic partners.
Globalization is a process of exploration, expansion, and research innovation. Ronbay is committedto building a truly global company, exploring worldwide, integrating the Company's culture with the mostadvanced global cultures, and accommodating various cultures globally. Simultaneously, the Company isestablishing and refining global regional management schemes, global office system planning, and globalcapital operation schemes.
Through organizational transformations such as the divisional system, three systems, and businessline management, the Company has significantly enhanced its organizational management capabilities. Tosupport the implementation of the globalization strategy, the Company will further refine incentivemechanisms (such as the four-tier partnership system) to build an international talent team.
With the effective implementation of these development strategies, Ronbay is confident in achievingits strategic goal of becoming the global leader in the cathode material industry in the future.
4.5.3 Business plan
In 2024, as the landscape and trends in the new energy industry become increasingly clear, companieswith global production capacity, teams, and expansion capabilities will be prioritized to capture significantmarket opportunities. The Company has a clear globalization strategy in place, with a foundationalcustomer base and production capacity. Following internal organizational reforms and the successfulformation of a skilled team, coupled with adequate financial reserves, the Company is well-prepared toembrace the opportunities presented by globalization and aims to further increase its global market share.
1. Aligning with global customer needs and rapidly expanding production capacity to increasemarket share
In 2024, the Company will accelerate the expansion of its overseas production capacities. In additionto stabilizing and enhancing the production of 20,000 tons of high-nickel ternary materials in the firstphase in South Korea, the second phase will expedite the development of 40,000 tons of high-nickelternary materials and 20,000 tons of phosphate materials. Furthermore, the Company will continue toadvance the establishment of production capacities in Europe and North America to better meet the productdemands of global automakers and battery cell manufacturers, thereby further increasing sales volume andmarket share.
2. Realizing comprehensive coverage of ternary materials, and making breakthroughs in LMFPand sodium batteries
In 2024, the Company will further consolidate its leadership in the high-nickel segment. The shipmentscale of series 9 ultra-high-nickel materials will be accompanied by the development of large cylindricalbatteries and the further expansion of the demand of international customers. It is expected that theproportion of series 9 shipments will increase significantly. Medium-nickel products are anticipated to beshipped on a large scale, further enhancing domestic production capacity utilization.
The Company's LMFP products will advance in both solid and solid-liquid integrated processes.While maintaining sales in the 3C, small power, and energy storage markets, we aim to achievebreakthroughs in the automotive power market. Additionally, to meet downstream customer demands, ourlayered oxide and polyanionic products in sodium battery cathodes have achieved technologicalpositioning, matching the increased demand from downstream customers.
3. Increasing market share in all/semi-solid state batteries, accelerating the mass production ofcutting-edge products
In 2024, the Company will leverage its leading position in the high-nickel area to consolidate andenhance its market share in the semi-solid state battery sector, collaborating with top customers onupgrades and iterations. We will also introduce ternary cathode materials suitable for high-energy densityall-solid-state batteries and start pilot production scaling; in solid electrolytes, we plan to conduct pilotplant test of electrolyte materials and develop low-cost production of key raw materials to enhance productcompetitiveness. The Company plans to complete pilot production of lithium-rich manganese-based andspinel nickel manganese cathode materials in 2024.
4. Continuously implementing the "New Integration" strategy to build a competitive globalsupply chain
In the current competitive landscape of the new energy lithium battery industry, the Company willcontinue to advance its 'New Integration' strategy. By streamlining the resource-to-product end industrychain, we aim to build a global supply chain that meets the requirements of the U.S.'s "Inflation ReductionAct" and the EU's "New Battery Act". We will gradually establish a trade network across Southeast Asia,Europe, North America, South America, and Africa, deepening cooperation with global regional resourcesand processing enterprises, leveraging industry strengths, and ensuring raw material security and costadvantages to create a competitive global supply chain system.
5. Seizing global development opportunities to build a world-class talent teamThrough organizational transformations such as the divisional system, three systems, and businessline management, the Company has significantly enhanced its organizational management capabilities. In2024, to support the implementation of our globalization strategy, the Company will attract top talentsworldwide through effective incentive mechanisms, such as the 3P (Position, Pay, Performance), salaryincentive system, and a four-tier partnership model, to seize global opportunities.
Section V Corporate Governance
5.1 Notes on corporate governance
During the reporting period, the Company continuously improved its corporate governance structureand standardized its operations in accordance with the requirements of the "Company Law", "SecuritiesLaw", "Governance Guidelines for Listed Companies", and "Rules for Stock Listing on the Science andInnovation Board of Shanghai Stock Exchange" and other laws, regulations, rules and normativedocuments. The actual situation of corporate governance conforms to the requirements of the "Code ofGovernance for Listed Companies" and other normative documents issued by the China SecuritiesRegulatory Commission.
1. Regarding shareholders and shareholders' meetings: The Company has formulated the rules ofprocedure for the shareholders' meetings, thus able to convene and hold the shareholders' meetings in strictaccordance with the requirements of the standard opinions of the shareholders' meetings. In terms of venueselection, more shareholders should be invited to attend the shareholders' meetings and exercise theirvoting rights. The Company can treat all shareholders equally and ensure that shareholders exercise theirrights.
2. Regarding the relationship between controlling shareholders and listed companies: The code ofconduct of controlling shareholders guarantees that the controlling shareholders do not directly orindirectly interfere with the decision-making and business activities of the Company beyond theshareholders' meeting; the Company and the controlling shareholders are "independent" in terms ofpersonnel, assets, finance, organization and business. The Board of Directors, the Board of Supervisorsand the internal organization of the Company operate independently. The Company's connectedtransaction follow legal procedures, adopt a rational price and fulfill the obligation of informationdisclosure.
3. Regarding directors and the Board of Directors: The Company elects the directors in strictaccordance with the appointment procedures for directors stipulated in the "Articles of Association".During the reporting period, the Company added two non-independent directors, improving the staffingof the corporate governance body. The director number and composition of the Board of Directors shall
meet the requirements of laws and regulations; the Board of Directors of the Company has formulated therules of procedure for the Board of Directors, so that the directors of the Company can attend the Boardof Directors and the shareholders' meetings with a serious and responsible attitude, familiarize themselveswith relevant laws and regulations, understand the rights, obligations and responsibilities of directors, anddiligently exercise their voting rights. The Board of Directors has established committees such as theStrategy Committee, Audit Committee, Nominating Committee, and Remuneration and EvaluationCommittee, all composed of directors, which utilize their expertise to offer scientifically sound andreasonable suggestions on significant matters.
4. Regarding the supervisors and the Board of Supervisors: The Board of Supervisors shall strictlyimplement the relevant provisions of the "Company Law" and the "Articles of Association", and thesupervisor number and composition of the Board of Supervisors shall meet the requirements of laws andregulations; The Board of Supervisors of the Company has formulated the rules of procedure for the Boardof Supervisors. The supervisors of the Company can conscientiously perform their duties and supervisethe Company’s finance and the lawful compliance of the directors and senior management in the executionof duty in the spirit of being responsible to shareholders.
5. Regarding performance evaluation and incentive and constraint mechanism: The Company hasestablished fair and transparent performance and performance evaluation standards and procedures fordirectors, supervisors and senior management, and put in place an evaluation mechanism that linkscompensation with corporate performance and individual performance, thus maintaining certain stabilityof senior management and core employees, and ensuring sustainable corporate development.
6. Regarding stakeholders: The Company fully respects the legitimate rights of stakeholders such asshareholders, employees, customers, suppliers, and investors, has established diverse communicationchannels based on stakeholder categories, ensures the effectiveness and normalization of communication,and actively responds to the expectations and demands of various stakeholders. It strengthenscommunication with shareholders and investors through general meetings of shareholders, performancebriefings, and investor hotlines, listens to their concerns and suggestions; enhances employee rightsprotection, supports the exercise of powers by employee representative assemblies and trade unionorganizations in accordance with the law, jointly promoting the Company's continuous healthydevelopment; conducts on-site reviews and technical training for suppliers to maintain close contact,helping improve the quality of supplied products and creating a win-win business atmosphere; activelyholds customer communication meetings and conducts customer satisfaction surveys to protect customerrights.
7. Regarding information disclosure and transparency: The information disclosure media designatedby the Company are China Securities Journal, Shanghai Securities News, Securities Daily, SecuritiesTimes and the website of Shanghai Stock Exchange. The Company fully fulfills the information disclosure
obligations of listed companies in strict accordance with relevant laws, regulations and rules. The directors,supervisors and senior management of the Company ensure that the information disclosed by the Companyis true, accurate, complete, prompt and fair, actively safeguarding the legal rights of the Company andinvestors. The information disclosure work for the years 2022-2023 was evaluated as Grade A.
5.2 Current and resigned directors, supervisors, senior management and core technicians duringthe reporting period
| Name | Position Held | Gender | Age | Start Date of Tenure | End Date of Tenure |
| Bai Houshan | Chairman | Male | 60 | 2018/3/9 | 2024/6/28 |
| You Sangyul | Vice Chairman and General Manager | Male | 64 | 2018/3/9 | 2024/6/28 |
| Zhang Huiqing | Director and Deputy General Manager | Male | 57 | 2018/3/9 | 2024/6/28 |
| Song Wenlei | Director | Male | 58 | 2021/6/29 | 2024/6/28 |
| Zhao Xinyan | Director | Male | 62 | 2023/4/18 | 2024/6/28 |
| Feng Tao | Director | Female | 36 | 2023/4/18 | 2024/6/28 |
| Yu Qingjiao | Independent Director | Male | 54 | 2018/3/9 | 2024/6/28 |
| Jiang Hui | Independent Director | Female | 47 | 2018/3/9 | 2024/6/28 |
| Zhao Yiqing | Independent Director | Female | 42 | 2018/3/9 | 2024/6/28 |
| Zhu Yan | Chairman of the Board of Supervisors | Male | 49 | 2018/3/9 | 2024/6/28 |
| Shen Zheng | Supervisor | Female | 41 | 2021/6/29 | 2024/6/28 |
| Chen Ruitang | Employee Representative Supervisor | Male | 61 | 2018/3/9 | 2024/6/28 |
| Yu Jiyun | Secretary of the Board of Directors and Financial Officer | Male | 39 | 2023/8/5 | 2024/6/28 |
| Liu Dexian | Deputy General Manager | Male | 50 | 2018/3/24 | 2024/6/28 |
| Tian Qianli | Financial Officer (resigned) | Male | 44 | 2021/12/4 | 2023/12/29 |
| Ge Xin | Secretary of the Board of Directors (resigned) | Female | 41 | 2021/6/29 | 2023/8/4 |
| Lee Jonghee | Key Technician | Male | 49 | 2018/3/12 | To date |
| Chen Mingfeng | Key Technician | Male | 39 | 2018/12/31 | To date |
| Yuan Xujun | Key Technician | Male | 40 | 2018/3/12 | To date |
| Total | / | / | / | / | / |
Notes:
1. Vice Chairman You Sangyul concurrently works as the General Manager of the Company and
Director Zhang Huiqing concurrently works as the Deputy General Manager of the Companywith the term of office from March 24, 2018 to June 28, 2024 as senior managers; Yu Jiyun,Secretary of the Board of Directors, concurrently works as the Financial Officer of the Companywith the term of office from January 2, 2024 to June 28, 2024.
2. The number of shares held in the above table is the number of direct holdings.
5.3 Resumes of current and resigned directors, supervisors, senior management and core techniciansduring the reporting period
| Name | Main Work Experience |
| Bai Houshan | Bai Houshan, male, born in 1964, has Chinese nationality and permanent resident status in the U.S. He graduated from the Central South University as a major in nonferrous metallurgy, and Northeastern University as a major in heavy metal smelting by fire process, and obtained a Master's Degree in Business Administration from Tsinghua University. From September 1984 to July 1987, Mr. Bai worked as a technician in the Metallurgy Office of Shenyang Institute of Mining and Metallurgy. From September 1987 to March 1990, he studied heavy metal smelting by fire process at the Northeastern University; from March 1990 to December 2001, he successively served as assistant engineer, engineer, senior engineer, professor-level senior engineer, team leader, director of Electronic Powder Material Factory, manager of North Mine Electronic Center, deputy director of Metallurgy Office of Shenyang Institute of Mining and Metallurgy; from |
| December 2001 to March 2012, he served as the Director and General Manager of Beijing Dangsheng Material Technology Co., Ltd. Since 2013, he has been working as the Chairman and General Manager of Ronbay Holdings. From October 2015 to the present, he has served as Chairman of the Board of Directors of the Company. He has been a Director of ZOWEE Technology since May 2022. | |
| You Sangyul | You Sangyul, male, born in 1960, has South Korean nationality. After graduation from the Graduate School of Physics, Hanyang University, he successively worked as a researcher of Samsung SDI Research Institute and Director of Samsung SDI Material and Pharmaceutical Manufacturing Department from August 1984 to November 2002; from January 2003 to April 2005, he served as Technical Consultant and General Manager of JAMR (a Sino-Canadian joint-venture). From May 2005 to December 2009, he worked as General Manager of L&F Lithium Cathode Material Business Unit. In 2010, he founded EMT Corporation and served as Chairman and General Manager. He has been serving as the Vice Chairman and General Manager of the Company from October 2014 to now. |
| Zhang Huiqing | Zhang Huiqing, male, born in 1967, has Chinese nationality and no permanent resident status overseas. After graduation from the Beijing University of Chemical Technology, he further obtained an on-the-job MBA degree from the University of Science and Technology Beijing. From 1989 to 1998, Mr. Zhang successively served as Production Dispatching Specialist, Deputy Director and Director of Production Planning Office, Manager of Production Department and Manager of General Management Department of Jinan Sanai Fluoro Chemical Co., Ltd.; from January 1999 to February 2000, he worked as Production Manager of Shengbang Lvye Group Business Unit of VICOME Co., Ltd.; after that, he worked as Production Manager of Beijing Friend Chemicals Co., Ltd. from March 2000 to December 2001, and successively served as Factory Director, Assistant General Manager, Production Director, Operations Director, Deputy General Manager/Production Director of Beijing Dangsheng Material Technology Co., Ltd. from 2002 to July 2012. Then he served as Deputy General Manager of Ronbay Holdings from 2013 to 2014 and Director and Deputy General Manager of the Company from 2014 to date. |
| Song Wenlei | Song Wenlei, male, born in 1966, has Chinese nationality and no permanent resident status overseas. He graduated from the School of Economics and Management of Tsinghua University with a Master’s Degree in Finance. From November 1997 to December 2009, he successively served as General Manager of Research Department, Venture Capital Department and Acquisition and Merger Business of CITIC Securities Co., Ltd.; after that, he worked as Managing Director of Goldstone Investment Co., Ltd. from January 2010 to July 2013; from August 2013 to April 2018, he served as Chief Investment Officer and Managing Director of CITIC Construction Investment Management Co., Ltd., and General Manager of CITIC Construction Investment M&A Fund. Since May 2018, he has been working as the General Manager of Strategic Investment and Development Business Unit and the Chief Investment Officer of Strategic Equity Investment of Sunshine Insurance. He has been a Director of Ronbay Technology since June 2021. |
| Zhao | Zhao Xinyan, male, has Chinese nationality and no permanent resident status overseas. |
| Xinyan | He has a postgraduate education in Material Engineering and Business Administration. Previously, he served as an engineer at China National Corporation for Overseas Economic Cooperation, Department Manager and Deputy General Manager at China Power International Limited, Director of Capital Operations at State Nuclear Power Technology Corporation, a member of the Expert Committee and a full-time director at State Power Investment Corporation Limited, Executive Director at China Power New Energy Development Co., Ltd., Vice Chairman at Shanxi Zhangze Electric Power Co., Ltd., Supervisor at Inner Mongolia Diantou Energy Co., Ltd., Director at China Power Investment Finance Co., Ltd., and Director at SPIC Yuanda Environmental Protection Co., Ltd. Currently, he serves as an Independent Director at Watchdata Technologies, and as an Independent Director at Shenzhen Agricultural Power Group Co., Ltd. He has been a Director of Ronbay Technology since April 2023. |
| Feng Tao | Feng Tao, female, has Chinese nationality and no permanent resident status overseas. She holds a Bachelor's degree in Economics majoring in Finance. She has previously worked as a Securities Affairs Representative and Head at the Securities Department at Bgrimm Magnetic Materials & Technology Co., Ltd., and as a Securities Affairs Representative and Deputy General Manager at Beijing Sumavision Technologies Co., Ltd. He has been a Director of Ronbay Technology since April 2023. |
| Yu Qingjiao | Yu Qingjiao, male, born in 1970, has Chinese nationality and no permanent resident status overseas. Graduating from the Party School of the CPC Central Committee with a Bachelor's degree in Economic Management, he is a member and senior planner of the China Association for the Promotion of Democracy. From September 1995 to July 2003, served as the Assistant Director of the Policy, Law and Regulation Research Office of Shandong Huangdao Power Plant; then he worked as the Market Director of the Air Conditioning Business Unit of AUCMA Holding Co., Ltd. from August 2003 to July 2006; he has been serving as the Chairman of Qingdao Haineng Enterprise Management Planning Co., Ltd. since April 2006, the Chairman of Beijing Haineng Times Cultural Development Co., Ltd. since November 2009; he worked as the Assistant to the Chairman and Spokesperson of the China Battery Industry Association from December 2010 to April 2012, and an Independent Director of RLG Australia from January 2016 to December 2016; and he has been serving as the Chairman of Beijing Xiwang Investment Management Co., Ltd. since January 2017, the Secretary General of the Zhongguancun New Battery Technology Innovation Alliance since August 2018, an Independent Director of Henan Huiqiang New Energy Material Technology Co., Ltd. since July 2019, the Chairman of Beijing Hairong Huida Network Technology Co., Ltd. since June 2020, an Independent Director of Sichuan Changhong New Energy Technology Co., Ltd. since August 2020, the Chairman of Hairong Huida (Qingdao) Network Technology Co., Ltd. since March 2021, and an Independent Director of Ronbay Technology since March 2018. |
| Jiang Hui | Jiang Hui, female, born in 1977, has Chinese nationality and no permanent resident status overseas. With a Master's Degree in Finance from the University of Sydney, she served as the Director of the Management Department of Ishizuka Electronics Co., Ltd. from 2004 to 2010, and the Human Resource Director of Beijing Dangsheng Material Technology Co., Ltd. from 2010 to 2014; then she has been working as the Deputy |
| General Manager of Shanghai Dingyi Intelligent Technology Co., Ltd. since 2015 and an Independent Director of the Company since March 2018. | |
| Zhao Yiqing | Zhao Yiqing, female, born in 1982, has Chinese nationality and no permanent resident status overseas. She received her Doctorate Degree in Management from Renmin University of China, and has been teaching at the School of Accounting, Capital University of Economics and Business since 2011. From January 2017 to December 2017, she served as an Independent Director of Easy Exchange (Hong Kong) Currency Services Co., Limited. Then she served as an Independent Director of Shenzhen Tongye Technology Co., Ltd. from March 2017 to September 2021; and she served as an Independent Director of Wuxi Lutong Viscom Network Co., Ltd. from August 2022 to December 2022; and an Independent Director of the Company since March 2018. |
| Zhu Yan | Zhu Yan, male, born in 1975, has American nationality. After graduation from Stanford University with an MBA degree, he served as Managing Partner, Head of Investment Department and member of Investment Committee of Tsing Capital from October 2007 to September 2016. Working as the Legal Representative, Executive Director, General Manager and Managing Partner of Hubei Changjiang NIO New Energy Investment Management Co., Ltd. since October 2016, he has also serving as the Chairman of the Board of Supervisors of the Company since March 2018. |
| Shen Zheng | Shen Zheng, female, born in 1983, has Chinese nationality and no permanent resident status overseas. She received her Bachelor's Degree in Finance from Durham University, UK. From May 2008 to May 2014, she was a representative of the Shanghai Representative Office of the City of London Government. She has been working as the Executive Director of Shanghai Ouqing Xinjin Venture Capital Co., Ltd. since July 2014. She has been a Supervisor of Ronbay Technology since June 2021. |
| Chen Ruitang | Chen Ruitang, male, born in 1963, has Chinese nationality and no permanent resident status overseas. He graduated from the Central South University with a Bachelor's Degree in Nonferrous Metallurgy. From July 1984 to March 1989, he worked as an engineer at Aluminum Corporation of China Guiyang Aluminum Magnesium Design & Research Institute. From March 1989 to March 2013, he served as the Chief Engineer of Zhengzhou Research Institute of Chalco; then he worked as the Deputy Chief Engineer of Hunan Zhongda Metallurgical Design Institute Co., Ltd. from April 2013 to October 2015. He has been serving as the Chief Engineer of Engineering Design Institute of the Company since October 2015 and the Employee Representative Supervisor of the Company since July 2017. |
| Liu Dexian | Liu Dexian, male, born in 1974, has Chinese nationality and no permanent resident status overseas. He graduated from Beijing Institute of Technology with a Master's Degree in Materials Science and Engineering. From January 1999 to May 2004, he successively served as the Marketing Engineer, Marketing Manager and Assistant to General Manager of Beijing Dangsheng Material Technology Co., Ltd. Then he worked as the Sales Manager and Regional Sales Director of Base Metals Business Unit of Vale in China from June 2004 to July 2017. He has successfully served as the General Manager, Assistant President and Deputy General Manager of the International Trade Business Unit of the Company since July 2017. |
| Yu Jiyun | Yu Jiyun, male, born in 1985, has Chinese nationality and graduated from Central South |
| University majoring in Powder Material Science and Engineering. He holds qualifications to serve as a Secretary of the Board of directors on the Science and Technology Innovation Board of the Shanghai Stock Exchange and has a professional qualification certificate in fund management. From July 2007 to June 2013, he served as the Manager of Marketing Department and Investment Department at Beijing Dangsheng Material Technology Co., Ltd.; from June 2013 to July 2014, he served as the Investment Director at Beijing Ronbay Investment Holdings Co., Ltd.; from March 2020 to July 2023, he served as the Investment General Manager at Beijing Ronbay New Energy Investment Management Co., Ltd. Since July 2022, he has been a Supervisor at the Company's subsidiary, Tianjin Skyland Technology Co., Ltd.; since August 2023, he has been the Secretary of the Company's Board of Directors; and since January 2024, he has been the Company's Financial Officer. | |
| Lee Jonghee | Lee Jonghee, male, born in 1975, has South Korean nationality. He graduated from Kyushu University in Japan with a Doctorate Degree in Applied Chemistry. From 2002 to 2004, he worked as a research engineer at the Korea Institute of Energy Research; he then served as a research assistant at the Japan Institute of Applied Chemistry from 2004 to 2007 and a senior engineer at Samsung SDI Battery Development Center from 2007 to 2012; during the period from 2012 to 2016, he served as the Chief Engineer of Battery Materials Research Center of GS Energy Co., Ltd. He has successfully served as the Vice President of the Central Research Institute and the President of the R&D System of the Company since 2017. |
| Chen Mingfeng | Chen Mingfeng, male, born in 1985, has Chinese nationality and no permanent resident status overseas. He graduated from Qingdao University of Science and Technology with a Bachelor's Degree in Inorganic Non-metallic Materials Engineering. From July 2007 to January 2014, he served as a R&D Engineer, the Manager of R&D Technology Department, R&D Director, Manufacturing Director and Assistant to General Manager of Jinhe New Materials; from February 2014 to February 2015, he served as the Director of Jinhe New Materials Research Institute; from March 2015 to April 2016, he served as the General Manager and Chief Technical Expert of the Company's Precursor Plant. After that, he worked as the Deputy General Manager of Zhejiang Meidu Haichuang Lithium Technology Co., Ltd. from May 2016 to April 2018, and the Deputy General Manager of Zhejiang Desheng New Energy Technology Co., Ltd. from May 2018 to December 2018. From December 2018 to date, he successively served as the General Manager of the Precursor and Renewable Resource Research Center, the General Manager of Strategic Operations Center & the General Manager of Linshan Branch, and the Senior Expert of Central Research Institute. |
| Yuan Xujun | Yuan Xujun, male, born in 1984, has Chinese nationality and no permanent resident status overseas. He received his Bachelor of Science Degree in Chemistry from Ningbo University. From July 2007 to June 2008, he worked as a Research Assistant of the Fuel Cell Business Unit of Ningbo Institute of Materials Technology and Engineering, Chinese Academy of Sciences; from July 2008 to September 2014, he successively served as a R&D Engineer and the R&D Manager of Jinhe New Materials; engaged in the research and development of cathode materials for lithium-ion batteries since October 2014, and successively served as the Deputy General Manager of Cathode Business Unit |
| and the General Manager of the Ternary Cathode Business Unit. | |
| Ge Xin | Ge Xin, female, born in 1983, has Chinese nationality and no permanent resident status overseas. With a Master of Science Degree in Organic Chemistry from Changchun University of Technology, she holds the Qualification Certificates of Securities Practitioner and Fund Practitioner, and Board Secretary of Shanghai Stock Exchange and Shenzhen Stock Exchange. She served as the General Manager of Beijing Dangsheng Material Technology Co., Ltd. from July 2009 to May 2013, and the Operations Director of Beijing Ronbay Investment Holding Co., Ltd. from May 2013 to September 2017; then she worked as the Director of Fund Management Department of Hanhua Financial Holding Co., Ltd. Capital Group from October 2017 to November 2018; from November 2018 to June 2021, she served as the Director of the Office of the President, Director of Investor Relations, Director of the Office of the Board of Directors and Chairman of the Board of Supervisors of Woaiwojia Holding Group Co., Ltd.; and she has been working as the Secretary of the Board of Directors and Assistant to the President of the Company From June 2021 to August 2023. |
| Tian Qianli | Tian Qianli, male, born in 1980, has Chinese nationality and no permanent resident status overseas. After graduation from the International Business School of the University of International Business and Economics with a Master's Degree in Business Administration, he served as a Senior Auditor at Pricewaterhousecoopers Zhongtian Certified Public Accountants, a special general partnership, from August 2006 to June 2010; then he served as the Financial Manager and Senior Manager of Investment and Financing of UPC Wind Asia (Hong Kong) Co., Ltd. from June 2010 to April 2013; from April 2013 to April 2018, he served as the Director of Investment Department of Xinjiang Goldwind Technology Co., Ltd.; from April 2018 to September 2019, he served as the Deputy General Manager and Chief Financial Officer of Jiawo Agricultural Development Co., Ltd.; after that, he worked as the Executive Vice President and Chief Financial Officer of China Oil HBP Technology Co., Ltd. from September 2019 to April 2021; from April to December 2021, he successively served as the General Manager and Chief Financial Officer of the Company's Financial Management Center; and he served as the Financial Officer of the Company from December 2021 to December 2023. |
Other information
1. On March 28, 2023, the Company convened the twenty-first meeting of the second Board ofDirectors and held the 2022 Annual General Meeting of shareholders on April 18, 2023. During thesemeetings, the "Proposal for Addition of Non-Independent Director to the Second Session of the Board ofDirectors of the Company" was deliberated and approved. Following nominations by shareholders andapproval by the Nominating Committee of the second Board of Directors, with consent from the nomineesand approval by the Board of Directors and the General Meeting of Shareholders, Mr. Zhao Xinyan andMs. Feng Tao were appointed as candidates for non-independent directors of the second Board of Directorsfor the term from the date of approval by the General Meeting of Shareholders until the end of the currentboard term.
2. In August 2023, Ms. Ge Xin resigned as the Secretary of the Board of Directors due to personalreasons. Following a nomination by the Chairman of the Board, and review by the Nominating Committee,the Company convened the twenty-fifth meeting of the second Board of Directors on August 4, 2023,
where the "Proposal on the Appointment of the Secretary of the Board of Directors of the Company" wasdeliberated and approved. The Board of Directors of the Company agreed to appoint Mr. Yu Jiyun as theSecretary of the Board of Directors of the Company for a term commencing from the date ofannouncement of the resolution of the Board of Directors to the date of expiry of the term of office of thesecond Board of Directors.
3. In December 2023, Mr. Tian Qianli resigned as the Company's Finance Officer due to personal reasons.Following a nomination by the General Manager and review by the Nominating Committee and AuditCommittee, the Company convened the thirtieth meeting of the second Board of Directors on January 2,2024, where the "Proposal on the Change of Financial Officer of the Company" was deliberated andapproved. The Board of Directors agreed to appoint Mr. Yu Jiyun as the Company's Finance Officer.
Section VI Changes in Shares and Shareholders
6.1 Statement of changes in shares
Unit: Shares
| Before This Change | Increment and Decrement of This Change (+, -) | After This Change | |||||||
| Quantity | Ratio (%) | New Shares Issued | Shares Allotted | Shares Converted from Provident Fund | Others | Sub-total | Quantity | Ratio (%) | |
| I. Shares with Sales Restriction Conditions | 170,464,182.00 | 37.80 | 31,681,102.00 | -1,659,706.00 | 30,021,396.00 | 200,485,578.00 | 41.40 | ||
| 1. Shares held by the state | |||||||||
| 2. Shares held by state-owned legal persons | 4,678,223.00 | 4,678,223.00 | 4,678,223.00 | 0.97 | |||||
| 3. Shares held by other domestic capital | 170,464,182.00 | 37.80 | 20,137,729.00 | -1,659,706.00 | 18,478,023.00 | 188,942,205.00 | 39.02 | ||
| incl: shares held by non-state-owned legal persons in Mainland China | 167,475,400.00 | 37.14 | 20,137,729.00 | 20,137,729.00 | 187,613,129.00 | 38.75 | |||
| shares held by natural persons | 2,988,782.00 | 0.66 | -1,659,706.0 | -1,659,706. | 1,329,076.00 | 0.27 | |||
| in Mainland China | 0 | 00 | |||||||
| 4. Shares held by foreign capital | 6,865,150.00 | 6,865,150.00 | 6,865,150.00 | 1.42 | |||||
| incl: shares held by legal persons outside of Mainland China | 6,865,150.00 | 6,865,150.00 | 6,865,150.00 | 1.42 | |||||
| shares held by natural persons outside of Mainland China | |||||||||
| II. Negotiable Shares without Sales Restriction Conditions | 280,419,083.00 | 62.20 | 3,318,927.00 | 3,318,927.00 | 283,738,010.00 | 58.60 | |||
| 1. RMB ordinary shares | 280,419,083.00 | 62.20 | 3,318,927.00 | 3,318,927.00 | 283,738,010.00 | 58.60 | |||
| 2. Foreign shares offered in Mainland China | |||||||||
| 3. Foreign shares offered outside of Mainland China | |||||||||
| 4. Others | |||||||||
| III. Total Number of Shares | 450,883,265.00 | 100.00 | 35,000,029.00 | -1,659,706.00 | 33,340,323.00 | 484,223,588.00 | 100.00 |
6.2 The total number of common shareholders, the total number of preferred shareholders whosevoting rights have been restored, the total number of shareholders holding special voting shares andthe top 10 shareholders
Unit: Shares
| The total number of common shareholders as of the end of the reporting period (Shareholders) | 25,547 |
| The total number of common shareholders as of the end of last month prior to the disclosure date of the Annual Report (Shareholders) | 27,423 |
| The total number of preferred shareholders whose voting rights have been restored as of the end of the reporting period (Shareholders) | 0 |
| The total number of preferred shareholders whose voting rights have been restored as of the end of last month prior to the disclosure date of the Annual Report (Shareholders) | 0 | ||||||||
| The total number of shareholders holding special voting shares as of the end of the reporting period (Shareholders) | 0 | ||||||||
| The total number of shareholders holding special voting shares as of the end of last month prior to the disclosure date of the Annual Report (Shareholders) | 0 | ||||||||
| Shareholding of the top 10 shareholders | |||||||||
| Shareholder Name (Full Name) | Increment and Decrement within the Reporting Period | Number of Shares Held at the End of the Period | Ratio (%) | Number of Shares with Sales Restriction Conditions Held | Number of Restricted Shares Including Refinancing Shares on Loan | Pledge, Mark or Freezing | Nature of Shareholder | ||
| Share Status | Quantity | ||||||||
| Shanghai Ronbay New Energy Investment Partnership (Limited Partnership) | 0 | 129,000,000 | 26.64 | 129,000,000 | 129,000,000 | None | 0 | Others | |
| China Merchants Bank Company Limited—Huaxia SSE Science and Technology Innovation Board 50 Index Exchange-traded Fund | 6,150,026 | 17,816,355 | 3.68 | 0 | 0 | None | 0 | Others | |
| Beijing Ronbay New Energy Investment Development Co., Ltd. | 0 | 13,957,800 | 2.88 | 13,957,800 | 13,957,800 | None | 0 | Non-state-owned Legal Person in Mainland China |
| Huzhou Haiyu Equity Investment Partnership (Limited Partnership) | 0 | 10,094,835 | 2.08 | 0 | 0 | None | 0 | Others |
| Gongqingcheng Rongcheng Investment Management Partnership (Limited Partnership) | -1,033,187 | 8,907,303 | 1.84 | 0 | 0 | None | 0 | Others |
| Beijing Ronbay New Energy Investment Management Co., Ltd. | 0 | 8,800,000 | 1.82 | 8,800,000 | 8,800,000 | None | 0 | Non-state-owned Legal Person in Mainland China |
| Hong Kong Securities Clearing Company Limited | -4,763,348 | 8,437,642 | 1.74 | 0 | 0 | None | 0 | Legal Person outside of Mainland China |
| Beijing Ronbay New Energy Technology Investment Management Co., Ltd. | 0 | 8,240,300 | 1.70 | 8,240,300 | 8,240,300 | None | 0 | Non-state-owned Legal Person in Mainland China |
| Zunyi Ronbay New Energy Investment Center (Limited Partnership) | 0 | 7,477,300 | 1.54 | 7,477,300 | 7,477,300 | None | 0 | Others | |
| Hubei Changjiang NIO New Energy Industry Development Fund Partnership (Limited Partnership) | 0 | 6,978,961 | 1.44 | 0 | 0 | None | 0 | Others | |
| Notes on the association or concerted action of the above shareholders | Shanghai Ronbay New Energy Investment Partnership (Limited Partnership), Beijing Ronbay New Energy Investment Development Co., Ltd., Beijing Ronbay New Energy Investment Management Co., Ltd., Beijing Ronbay New Energy Technology Investment Management Co., Ltd. and Zunyi Ronbay New Energy Investment Center (Limited Partnership) are under the same control of Bai Houshan, the actual controller of the Company, and Bai Houshan is one of the limited partners of the Company’s employee shareholding platform Gongqingcheng Rongcheng Investment Management Partnership (Limited Partnership). | ||||||||
| Notes on preferred shareholders whose voting rights have been restored and number of shares held | None | ||||||||
6.3 Block diagram of the property rights and control relationship between the Company and thecontrolling shareholder
Shanghai Ronbay New Energy Investment Partnership (Limited
Partnership)Ningbo Ronbay New Energy Technology Co., Ltd.
Ningbo Ronbay New Energy Technology Co., Ltd.
26.64%
6.4 Block diagram of the property rights and control relationship between the Company and theactual controller
6.5 Specific implementation of share repurchase during the reporting period
Based on confidence in the Company's future development prospects, recognition of the Company'svalue, and the actual fulfillment of social responsibilities, the Company disclosed the Share RepurchaseReport on October 26, 2023. It plans to use no less than RMB 75 million and no more than RMB 125million of its own funds to repurchase some of its shares through centralized bidding transactions. As ofDecember 31, 2023, the Company has cumulatively repurchased 3,147,658 shares through centralizedbidding transactions during the first phase, accounting for 0.65% of the total issued capital and using atotal of RMB 125 million, representing 99.99% of the upper limit of the funds for the first repurchase plan.
Unit: RMB Currency: RMB
| Name of the share repurchase plan | Share repurchase plan through centralized bidding transaction |
| Disclosure date of the share repurchase plan | October 26, 2023 |
| Number of shares to be repurchased and the percentage of total issued capital (%) | 0.23—0.39 |
| Amount to be repurchased | 75,000,000—125,000,000 |
| Repurchase period | October 26, 2023 to January 26, 2024 |
| Purpose of repurchase | Implement employee stock ownership plan or equity incentives |
| Number of shares repurchased (shares) | 3,147,658 |
| Percentage of the repurchased shares in relation to the shares involved in the stock incentive plan (%) (if | / |
BAI HOUSHAN
BAI HOUSHAN
Gongqingcheng RongxinInvestment Partnership (Limited
Partnership) (RonghuiPartnership)
Gongqingcheng RongxinInvestment Partnership (Limited
Partnership) (RonghuiPartnership)Beijing Ronbay InvestmentHolding Co., Ltd. (Ronbay
Holding)
Beijing Ronbay InvestmentHolding Co., Ltd. (Ronbay
Holding)Gongqingcheng Ronghui InvestmentPartnership (Limited Partnership)
(Ronghui Partnership)
Gongqingcheng Ronghui InvestmentPartnership (Limited Partnership)
(Ronghui Partnership)Shanghai Ronbay New
Energy InvestmentPartnership (Limited
Partnership)
| Shanghai Ronbay New Energy Investment Partnership (Limited Partnership) | Beijing Ronbay New Energy Investment Management Co., Ltd. (Ronbay Management) | Zunyi Ronbay New Energy Investment Center (Limited Partnership) (Zunyi Ronbay Partnership) | Beijing Ronbay New Energy Technology Investment Management Co., Ltd(Ronbay Technology Investment) | Beijing Ronbay New Energy Investment Development Co., Ltd (Ronbay Development) |
Ningbo Ronbay New Energy Technology Co., Ltd.
| applicable) | |
| Progress of reducing the repurchased shares through centralized bidding transactions | / |
Ningbo Ronbay New Energy Technology Co., Ltd.
Board of Directors 2024