Stock Code: 688005 Company Abbreviation: Ronbay Technology
Ningbo Ronbay New Energy Technology Co., Ltd.
Annual Report 2022 (Abridged English Version)
Contents
Section I Important Notes ........................................................................................................................... 3
Section II Definitions .................................................................................................................................. 3
Section III Basic Information and Main Financial Data of the Company................................................... 6
Section IV Management Discussion and Analysis ...................................................................................... 8
Section V Corporate Governance .............................................................................................................. 30
Section VI Important Matters.................................................................................................................... 36
Section VII Changes in Shares and Shareholders ..................................................................................... 38
Section I Important Notes
1 The Board of Directors, the Board of Supervisors, the directors, supervisors, and senior managers of
the Company shall guarantee the truthfulness, accuracy, and completeness of the contents of the
Annual Report, which is free of any false records, misleading statements, or major omissions, and
shall bear joint and several liability.
2 All directors of the company attend the Board of Directors meetings.
3 Pan-China Certified Public Accountants (Special General Partnership) issued a standard unqualified
audit report for the Company.
4 Profit distribution plan or accumulation fund to increase capital stock plan approved by the Board of
Directors during the reporting period.
As audited by Pan-China Certified Public Accountants (Special General Partnership), as of December
31, 2022, the profit available for distribution of the parent company at the end of the period had reached
RMB 181,965,693.74. As decided by the Board of Directors, the Company intends to distribute the profit
in 2022 on the basis of the total share capital registered on the registration date of the implementation of
equity allocation. The profit distribution plan is as follows: The listed company intends to pay cash
dividend of RMB 3.02 (tax included) for every 10 shares to all shareholders. As of December 31, 2022,
the Company had had a total share capital of 450,883,265 shares, based on which the proposed total cash
dividends were RMB 136,166,746.03 (tax included). This year’s cash dividends account for 10.06% of
the Company’s 2022 net profit attributable to the parent company. The Company’s 2022 annual profit
distribution plan has been deliberated and approved at the 21st meeting of the second Board of Directors
of the Company, and it needs to be submitted to the General Meeting of Shareholders for deliberation.
Section II Definitions
Unless the context otherwise requires, the following words shall have the following meanings in this
Report:
Definition of common words
Company, The Company shall mean Ningbo Ronbay New Energy Technology Co., Ltd.
and Ronbay Technology
Beijing Ronbay shall mean Beijing Ronbay New Energy Technology Co., Ltd., a
wholly-owned subsidiary of the Company
Skyland shall mean Tianjin Skyland Technology Co., Ltd., a majority-owned
subsidiary of the Company
Battery Triangle Fund shall mean Hubei Ronbay Battery Triangle One Equity Investment
Fund Partnership (Limited Partnership)
Shanghai Ronbay shall mean Shanghai Ronbay New Energy Investment Partnership
(Limited Partnership), controlling shareholder of the
Company
Ronbay Management shall mean Beijing Ronbay New Energy Investment Management Co.,
Ltd.
Ronbay Development shall mean Beijing Ronbay New Energy Investment Development Co.,
Ltd.
Ronbay Technology shall mean Beijing Ronbay New Energy Technology Investment
Management Co., Ltd.
Zunyi Ronbay shall mean Zunyi Ronbay New Energy Investment Center (Limited
Partnership Partnership)
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.
Farasis shall mean Farasis Energy (Ganzhou) Co., Ltd. and its subsidiary
Farasis Energy (Zhenjiang) Co., Ltd.
SVOLT shall mean SVOLT Energy Technology Co., Ltd., its controlled
companies SVOLT Energy Technology Baoding, SVOLT
Energy Technology Wuxi and its subsidiary SVOLT Energy
Technology (Wuxi) 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.
GEI shall mean GEI Co., Ltd., Jingmen GEI New Materials Co., Ltd., and
GEI (Wuxi) Energy Materials Co., Ltd.
Lygend shall mean Lygend Resource Technology Co., Ltd.
WeLion shall mean Beijing WeLion New Energy Technology Co., Ltd.
Samsung SDI shall mean Samsung SDI Co., Ltd., subordinate to Samsung Group.
SK on shall mean The battery subsidiary of SK Innovation Co., Ltd., a major
energy and chemical company in South Korea
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 sodium 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 sodium-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 batteries, the
performance of which directly affects the performance
index of lithium batteries.
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 shall mean ternary composite cathode materials made of such raw
materials/ternary materials as nickel salt, cobalt salt, and manganese salt, or
materials nickel salt, cobalt salt, and aluminum salt in lithium battery
cathode materials.
NCM (Lithium shall mean A ternary material with the chemical formula of
nicocobalmanganate) 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 (Nickel-cobalt shall mean A ternary material with the chemical formula of
lithium aluminate) LiNixCoyAlzO2, x+y+z=1.
NCMA (Nickel-cobalt- shall mean A ternary material with the chemical formula of
manganese lithium LiNixCoyMnzAlnO2, x+y+z+n=1.
aluminate)
Lithium iron phosphate shall mean An olivine-structured phosphate, used as a cathode material
(LFP) for lithium-ion batteries, mainly used in lithium-ion power
batteries and lithium-ion energy storage, with the chemical
formula of LiFePO4.
Lithium ferromanganese shall mean A new phosphate solid solution lithium-ion battery cathode
phosphate (LMFP) 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
1 Company Profile
Company Stock Profile
√Applicable Not applicable
Company Stock Profile
Stock Class Stock Exchange and Board Stock Stock Code Stock Abbreviation
Abbreviation before Change
Shanghai Stock Exchange,
Ronbay
A share Science and Technology 688005 /
Technology
Innovation Board
Contact Person and Contact Information
Contact Person and Secretary of the Board of Directors (Domestic representative of information
Contact Information disclosure)
Name Ge Xin
Office Address 39 Tanjialing East Road, Yuyao, Zhejiang Province
Tel 0574-62730998
Email ir@ronbaymat.com
2 Main accounting data and financial indicators of the Company
2.1 Main accounting data and financial indicators in the past three years
Unit: RMB Currency: RMB
Increase or
Decrease of this
2022 2021 2020
Year over Last
Year (%)
Total assets 25,660,046,343.51 14,701,416,639.02 74.54 6,135,115,227.73
Net assets
attributable to
6,964,671,593.28 5,428,982,869.88 28.29 4,483,521,663.86
shareholders of
listed companies
Operating
30,122,995,138.19 10,259,004,445.19 193.62 3,794,556,721.35
revenue
Net profit
attributable to
1,353,229,887.56 911,041,341.99 48.54 213,064,313.24
shareholders of
listed companies
Net profit 1,316,756,769.65 808,246,609.29 62.92 160,135,229.76
attributable to
shareholders of
listed companies
after deducting
non-recurring
gains and losses
Net cash flow
from operating -240,981,050.07 -191,850,584.26 Not applicable 707,926,374.27
activities
Weighted average
return on equity 21.94 18.41 Up by 3.53% 4.85
(%)
Basic earnings
per share 3.00 2.06 45.63 0.48
(RMB/share)
Diluted earnings
per share 2.97 2.01 47.76 0.48
(RMB/share)
R&D investment
to operating 1.62 3.50 Down by 1.88% 3.85
revenue (%)
2.2 Main quarterly accounting data in the reporting period
Unit: RMB Currency: RMB
Quarter 1 Quarter 4
Quarter 2 Quarter 3 (July
(January to (October to
(April to June) to September)
March) December)
Operating revenue 10,843,052,343.6
5,168,288,343.81 6,384,859,991.55 7,726,794,459.21
2
Net profit attributable to
shareholders of listed 292,538,030.75 443,432,927.82 182,176,780.06 435,082,148.93
companies
Net profit attributable to
shareholders of listed
companies after 296,320,715.45 426,387,290.44 188,344,963.29 405,703,800.47
deducting non-recurring
gains and losses
Net cash flow from
-115,300,138.46 1,065,728,706.56 -439,975,774.17 -751,433,844.00
operating activities
Notes on differences between quarterly data and disclosed periodic report data
Applicable √Not applicable
Section IV Management Discussion and Analysis
1 Main Business, Main Products or Services
The Company is mainly engaged in the R&D, production and marketing of ternary cathode material
for lithium batteries and their precursors. The products are mainly used in the manufacturing of lithium
batteries, and are mainly applied in the new energy vehicle power batteries, energy storage equipment and
electronic products. The leading products are NCM811 series, NCA series, Ni90 series and above ultra-
high nickel cathode materials and precursors.
As the first cathode material manufacturer in China to realize the mass production of NCM811 series
products and apply them to the international mainstream terminal automobile enterprises, the Company is
a world leader in NCM811 series product technology and production scale. The Company has set up a
number of advanced production bases in East China, Central China, Southwest China and South Korea,
and built the industry chain focusing on the recycling and reusing of cathode materials.
In the future, cathode materials will be developed in the direction of high energy density, safety and
low cost. Lithium ferromanganese phosphate and sodium cathode materials will be widely used in low-
end power market and energy storage market due to their high cost performance. While further
strengthening the competitive advantage of high-nickel materials, the Company will also accelerate the
layout of lithium ferromanganese phosphate and sodium cathode materials, and continue to maintain its
leading position in market share.
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
to achieve profitability.
(1) R&D model
The Company has developed a customer-centered, market-oriented R&D system and continued to
optimize it. It has further formed a three-level R&D organization of “group level—business level—factory
level”, and established a R&D model centered on customer requirements by the business units and
combining 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. The Central Research Institute of the Company has put in place
a “horizontal + vertical” all-round R&D system through the integration of the R&D resources of China,
Japan and South Korea, and the fusion of resources and capabilities of cutting-edge research, technological
innovation, evaluation and testing, resource recovery and engineering development, so as to support the
R&D capacity building from original innovation to mass production transformation and process
improvement.
In terms of product development and industrialization, the Company has trained a large number of
R&D technicians, formed a systematic training mode for new R&D personnel, carried out R&D system
training and knowledge sharing to continuously empower technical personnel and provide a steady stream
of reserve talents for business expansion. In addition to providing material samples, the Company will
recommend the working conditions according to the customers’ battery product development, assist the
customers in finalizing the battery system, and jointly promote the development of the product application
market.
(2) Procurement model
The procurement model of the Company mainly consists of procurement strategy and supplier
management. 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, GEI,
Tianqi Lithium, Huayou Cobalt, Lygend and other domestically and internationally well-known raw
material suppliers. A list of relatively stable, properly competing and dynamically adjusted qualified
suppliers has been formed to ensure the continuous supply of raw materials of good quality at a reasonable
price. 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 or equipment and cost competitiveness.
(3) Production model
The Company mainly adopts the production model based on sales, developing a sound production
process control procedure, and establishing a set of rapid and effective customer order processes centered
on and oriented towards customer orders and medium- and long-term requirements. After signing an order
with the customer, the Company carries out production plan preparation, quality control, shipment, and
other whole-process production organization management according to the product technical indicators,
quantity and delivery time required by the customer, so as to ensure the consistency of delivery on time
and product quality. It helps reduce the inventory levels, so as to keep the costs under reasonable control
and improve the efficiency of the use of funds.
The Company has also set certain safety stock levels according to market forecast, production
capacity and inventory situation to improve delivery speed and maintain balanced production. For the
production of some new materials, the Engineering Department will optimize the layout of production
lines and equipment structures according to the special requirements of new products. In terms of quality
control, the Production Department has established critical control points according to product
performance requirements and related processes, and formulated control items and target values.
(4) Marketing model
The Company mainly adopts the direct sales model, selling the products in both domestic and
international markets to downstream customers, mainly large and well-known domestic and international
lithium battery manufacturers and other end customers. Due to the complex material system of lithium-
ion batteries, the power lithium-ion battery has undergo extensive research and development, and requires
high precision control in the manufacturing process. Cathode material suppliers are required to provide
supporting technical solutions and professional and timely technical support and services under different
material systems and control systems, so as to ensure the excellent quality of lithium-ion battery products.
In order to solve the problems of wide distribution of customers, high development speed and large
scale differences, the Company adopts the parallel model of regional management and large project
management in management. Four production bases have been established in Hubei, Guizhou, Zhejiang
and South Korea, and offices in Ningde, Shenzhen and South Korea have been set up, so as to maximize
the use of market resources, realize the rapid response of product technology, product quality and logistics
transportation, and quickly respond to customer requirements. For strategic customers, customized
production can be further provided according to their specific requirements for product technical
parameters, in order to meet their requirements for stable product supply and high performance.
3 Industry conditions
(1) The development stage, basic characteristics and main technical thresholds of the industry
Thanks to the Peak Carbon and Carbon Neutrality policies, new energy is developing rapidly
worldwide. The lithium-ion battery cathode material industry in which the Company engaged is a key
material industry in the new energy, new material and new energy vehicle segments. The explosion of the
new energy vehicle market drives the rapid expansion of the lithium battery industry. The cathode material
is one of the key materials in lithium batteries and the cathode material industry is in a stage of rapid
development, featuring robust demand in the current and future downstream and terminal markets.
In 2022, the increasing heat of LFP batteries and high-nickel ternary batteries was seen in the global
installed capacity of power batteries, and LMFP and sodium cathode materials started to show an emerging
edge. Driven by low cost, high safety and the growth of the energy storage market, the installed capacity
of LFP batteries has increased significantly year-on-year. Due to the price restriction of lithium and nickel,
high-nickel ternary batteries have a slowdown in permeability growth, but secure a stable position as one
of the mainstream technologies thanks to high density energy. LMFP has excellent comprehensive
properties and is expected to replace medium- and low-nickel ternary materials and part of lithium iron;
sodium cathode materials have been preliminarily applied in energy storage and low-speed power fields,
and are expected to replace LFP and lead-acid batteries in some fields by virtue of their low cost, high
safety and excellent low-temperature performance.
In the long run, the development of power batteries needs to take into accountcost and energy density
goals, and the two technical paths represented by LMFP and high-nickel ternary batteries are the most
clear. Compared with LFP batteries, LMFP batteries have higher density energy, and retain the safety and
low cost properties of LFP cells. The high-nickel battery path can significantly reduce the material cost
and ensure high specific capacity. Thanks to the more competitive per-watt-hour cost and the continuous
emergence of innovative technology in lithium battery structure, high-nickel batteries, as the mainstream
choice of high-end models and long-endurance models of domestic and foreign OEMs, undoubtedly have
a trend of long-term expansion in market application.
At present, the high-nickel ternary cathode material industry has a high technical threshold, mainly
reflected in the development technical barriers, production technical barriers and quality certification
barriers. The high R&D technical threshold requires not only technical modification such as doping and
cladding, but also calcination under oxygen, which puts forward increasingly higher requirements on
production line design ability, personalized product development ability, technical service ability, and
more stringent requirements on humidity control of the production environment, corrosion resistance and
automation level of equipment.
Furthermore, high-nickel ternary cathode material is one of the most important raw materials in
power batteries, which has a great impact on the core performance and safety performance of power
batteries. Considering product stability and safety, automobile enterprises and power battery enterprises
have more complex certification and testing procedures for NCM811, NCA and other products. Not only
long-term product performance testing is required, the comprehensive supply ability, automatic production
management level, low cost, quality stability and consistency of mass production of manufacturers must
be assessed in detail. The overall certification cycle will last more than 2 years.
(2) Analysis of the Company’s position in the industry and its changes
During the reporting period, based on the new integration strategy, the Company transformed and
upgraded into a comprehensive cathode material supplier covering the whole market. While firmly
following the high-nickel route, the Company has actively built its presence in LMFP and sodium battery
materials, and expanded their application fields to the high-, medium - and low-end power, small power,
energy storage and digital markets, growing into the fastest transforming cathode material company.
According to the statistics of ICC, the cumulative output of domestic ternary materials in 2022 was
602,300 tons, up by 51.3% year on year; the cumulative output of domestic high-nickel materials (series
8 and above) was 269,400 tons, up by 76.9% year on year; and the permeability reached 44.7%. The data
of ICC further shows that in 2022, the domestic market share of the Company’s high-nickel ternary
cathode material reached 33%, ranking first in the industry for three consecutive years, and maintaining
the first global market share for two consecutive years, taking an expanding lead. During the reporting
period, the Company built a high nickel production capacity of 250,000 tons, leading the world in
production capacity, and completed and put into operation the first overseas high-nickel cathode
production capacity project in China’s cathode industry—the base in South Korea, advancing the
production capacity globalization process of China’s cathode industry. The leading customers of the
Company’s high-nickel products are CATL, Farasis, SVOLT, SK on, EVE and other well-known lithium-
ion battery manufacturers at home and abroad. As the major high-nickle cathode supplier of CATL and
Farasis, the Company has made its high-nickle products into the international mainstream customer supply
system, taking the lead in the large-scale application of new energy vehicle power batteries in the world.
In 2022, the Company realized the rapid entry into the LFP track through the acquisition of Skyland.
As the only enterprise in the world to achieve mass production of LMFP, the Company is a leader in the
development and certification of existing products for many mainstream customers at home and abroad.
The background of high lithium price provides a strategic opportunity for the industrialization of sodium-
ion batteries. Through self-research, the Company has comprehensively laid out three technical focuses
of layered oxide, Prussian blue/white and polyanion, and completed submitted sample verification with
dozens of downstream customers. With industry-leading comprehensive development capability and a
mass production schedule, the Company has a commanding lead in the fastest commercialization of
layered oxide technology route.
In 2023, the Company's production capacity layout in China and Korea will be gradually
implemented, and the strategic planning research in Europe and America will be gradually carried out.
The Company will continue to promote technology upgrading and new product development and
application, firmly implement the new integration strategy, closely follow the industry trend, and
consolidate its position as the world’s leading cathode material supplier.
(3) The developments and future trends of new technologies, new industries, new business
forms and new models during the reporting period
During the reporting period, the new energy vehicle market developed rapidly, and the performance
requirements of power batteries and energy storage batteries continued to improve. As one of the cores of
new energy power batteries, cathode material directly affects the energy density, cycle, rate, internal
resistance and other performance indicators of the batteries, which is a high cost part of lithium/sodium
batteries. The following are the developments and future trends of new technologies during the reporting
period:
4680 tabless cylindrical battery
The 4680 battery is a new cylindrical battery with a diameter of 46mm and a height of 80mm. It is
suitable for medium- and high-end passenger cars. The battery adopts the tabless, large cell design and
dry battery technology to improve work efficiency and safety, and offers the advantages of high energy
density, low cost, high safety and long life. According to public market data, the single cell capacity and
power of the 4680 battery have been increased by 5and 6 times, respectively, and the driving range has
been increased by 16% and the cost has been reduced by 14% at the vehicle level. The large-scale process
improvement has achieved efficiency and cost reduction. The core difficulties of this technical path are
mainly reflected in the welding process, dry battery electrode technology and yield. In 2022, Tesla 4680
battery increased the product yield from 20% at the beginning to 92% through technological improvement,
and the weekly production capacity of 4680 battery reached 868,000, breaking through the bottleneck of
yield. The year 2023 is expected to be the first year of mass production.
The high safety 4680 cylindrical battery is adapted to the high density system, its packaging structure
features high thermal safety and mechanical properties, greatly reducing the risk of high-nickel ternary
applications. Currently, the 4680 battery mainly uses NCM811 cathode, and the subsequent use of ultra-
high nickel Ni90 in replacement of NCM811 can also achieve cost reduction and efficiency. With 4680
battery to achieve mass production and production line expansion, high-nickel ternary material will be the
first to benefit. As China’s first cathode material manufacturer realizing NCM811 series product mass
production and application in the international mainstream terminal carmakers, the Company will embrace
broad market opportunities from 4680 battery mass production and application.
Sodium-ion battery
The sodium-ion battery is a secondary battery with a cost reduction of 30% to 40% compared with
the LFP battery. It also offers excellent low temperature performance by a capacity retention rate of more
than 88% at the -20℃ low temperature test, much higher than that of the LFP battery. In the future, it is
expected to be widely used in energy storage, low-speed electric vehicles, two-wheeled electric vehicles,
electric boats and other fields with low energy density requirements but strong cost sensitivity. In the
context of high-priced lithium and the outburst of key energy storage scenarios in 2022, sodium-ion
batteries with similar working principles to lithium-ion batteries flourished. Demand pull and technical
thrust have become the key points of sodium-ion battery industrialization from 0 to 1.
The current mainstream cathode materials for sodium-ion batteries are layered oxides, Prussian blue
analogues, polyanionic compounds, etc. With its simple preparation method, easy mass production and
conversion, high energy density and high rate performance, layered oxide is the main layout focus of
domestic enterprises and is expected to be the first to realize industrialization. Prussian compounds have
the advantages of low cost and high specific mass energy density. Polyanionic compounds offer the main
advantages of low cost of raw materials, stable structure and good cycling performance. At present, the
sodium-ion battery cathode material presents the situation of co-existence of multiple routes.
Now the Company is comprehensively laying out three technical focuses of layered oxide, Prussian
blue/white and polyanion, and has completed submitted sample verification with dozens of downstream
customers, showing industry-leading comprehensive development capability and mass production
schedule.
LMFP battery
The LMFP battery is an upgrade of the LFP battery, and a new type of phosphate lithium-ion battery
cathode material formed by doping a certain proportion of manganese on the basis of lithium iron
phosphate. High energy density is a core strength of the LMFP battery compared with the LFP battery.
The LMFP battery has an energy density of about 15% higher, offering a higher voltage platform and
retaining the safety and low-cost properties of LFP cells. With the progress of modification technologies
such as carbon coating, nanocrystallization and lithium supplement technology, the conductive properties
that restricted the development of LMFP in the past have been improved, and the industrialization process
has been accelerated. According to market estimates, LMFP will be stably mass produced in China in 2023,
and extensively applied to electric vehicles. The Company has realized the mass production of LMP
through the acquisition of Skyland, and is actively working with downstream customers on certification,
topping the list in development progress.
Lithium-rich manganese-based cathode material
The lithium-rich manganese-based material features cheap manganese as the main transition metal
element, with a discharge specific capacity up to 250 mAh/g or above,and a higher mass energy density
compared with LFP, NCM and NCA. With a current actual capacity of about 1.5 times of that of currently
commercialized cathode materials, the lithium-rich manganese-based material can improve the power
battery’s life. With a nickel content only about 30% of that of the ternary materials and no cobalt element,
it requires low cost.
At present, the lithium-rich manganese-based material is still in the research and development stage,
and technical problems such as improving magnification performance, inhibiting voltage attenuation of
the cycle and storage process are yet to be addressed. If technical bottlenecks are solved, the lithium-rich
manganese-based material will become the next generation lithium-ion battery cathode material with great
potential, to be widely used in automobiles, energy storage, small power and digital fields.
Solid-state battery
The biggest difference between solid state lithium batteries and traditional lithium batteries is the
electrolytes. While traditional lithium batteries use a diaphragm and electrolyte with a liquid substance in
between, solid-state batteries utilize solid electrolyte. Solid-state lithium batteries are safer and have a
higher energy density than traditional lithium batteries.
Solid-state battery electrolytes in use or close to commercial use include polymers, sulfides and
oxides. Among them, the oxide electrolyte has the best air stability and is widely used in solid-state
batteries with a solid-liquid mixed system, requiring low cost. The main drawback is that the interface
contact problem has not been solved perfectly. Oxide electrolytes are more suitable for power batteries.
Now most of the domestic enterprises choose the technical route of the oxide system, with steadily
improved manufacturing processes and modification levels. Furthermore, sulfide system electrolytes with
ionic conductivity comparable to liquid electrolytes solution shows higher rate performance in the all-
solid-state system. The leading cell and carmakers in Japan, Korea, Europe and the United States are
actively rolling out the sulfide all-solid-state battery business. Due to the narrow electrochemical window
based on sulfide electrolyte and poor stability of electrolyte and cathode and anode interfaces, further
improvements are required to realize industrialization.
Based on the intrinsic defects of electrolytes, the Company has prepared solid electrolytes with high
ionic conductivity, developed the ternary cathode material suitable for solid-state batteries, improved the
compatibility of the ternary cathode and solid-state electrolyte interface, which has been highly recognized
by downstream customers at home and abroad.
4 Business situation analysis and discussion
During the reporting period, the global new energy vehicle market demand maintained a rapid growth
trend. According to the data in the White Paper on the Development of China’s New Energy Vehicle
Industry (2023), global sales of new energy vehicles reached 10.824 million vehicles in 2022, up by 61.6%
year on year. According to statistics from GGII and other organizations, the global shipments of ternary
cathode materials in 2022 were about 980,000 tons, with a year-on-year growth of 55%. The global
shipments of high-nickel cathode materials were about 328,000 tons, with a year-on-year growth of 64%.
The market of the ternary cathode materials continues the trend of high-nickel cathode materials, and the
product upgrading keeps accelerating.
Benefiting from the robust demand from downstream battery enterprises, the accelerated launch of
high energy density models by mainstream carmakers in Europe and the United States, as well as the
continuous improvement of profitability through technological progress and supply chain optimization,
the Company achieved a significant improvement in performance in 2022. During the reporting period,
the Company realized the operating revenue of RMB 30.123 billion, with a year-on-year growth of
193.62%; the net profit attributable to listed companies reached RMB 1.353 billion, up by 48.54% year
on year.
(1) Ranked first in the global market share of ternary materials, constantly optimizing the product and
customer structure
In 2022, the total sales volume of the Company’s high-nickel series 8 and above ternary cathode
products came up to nearly 90,000 tons, with a year-on-year growth of 70.13%. Among them, cutting-
edge materials such as high-nickel, low-cobalt and ultra-high nickel materials had achieved a 1,000-ton
shipment. The data from ICC further shows that in 2022, the domestic market share of the Company’s
high-nickel ternary cathode material reached 33%, ranking first in the industry for three consecutive years,
and maintaining the first global market share for two consecutive years, taking an expanding lead. During
the reporting period, the Company built a high nickel production capacity of 250,000 tons, and four
cathode material bases in Ezhou and Xiantao of Hubei Province, Zunyi of Guizhou Province and Chungju
in South Korea.
During the reporting period, the Company actively expanded the customer base, and established
partnerships with domestic new-energy vehicle enterprises and mainstream European and American
carmakers to develop cutting-edge products.
(2) Merged and conducted an integrated layout of LMFP enterprises, taking an industry-leading
position in product technology, market development, production and marketing scale.
During the reporting period, the Company formally built its presence in LMFP through the acquisition
of Skyland and its subsidiaries. With an existing production capacity of 6200 tons/year, the Company is
the only enterprise to achieve mass production of LMFP, producing 3C digital, power batteries and other
products in the market, and taking a leading position in product development for many well-known battery
customers at home and abroad.
(3) Launched the pioneering new strategic product—sodium-ion battery cathode material, showing
industry-leading comprehensive development capability and a mass production schedule.
As a new battery material, the sodium-ion battery cathode material has significantly improved
product competitiveness compared with traditional materials, and is expected to be extensively applied in
the low-end power battery market, energy storage market, 3C and small power market in the future. Now
the Company has comprehensively laid out three technical focuses of layered oxide, Prussian blue/white
and polyanion, and has completed submitted sample verification with dozens of downstream customers,
with a sodium-ion battery cathode material capacity of about 1.5 tons/year. During the reporting period,
the Company cumulatively sold dozens of tons of sodium-ion battery cathode materials, showing industry-
leading comprehensive development capability and a mass production schedule.
(4) Advanced the strategic layout of globalization rapidly, and made remarkable progress in the
development of production capacity and customers in South Korea.
The Company’s Chungju Base in South Korea is the first high-nickel cathode production capacity
project built by Chinese enterprises overseas, and South Korea’s production capacity is obviously scarce.
On the one hand, Chinese exports to the United States will be subject to a 25% tariff, while exports
to Europe will be subject to a 6% tariff. South Korean products exported to European and American
markets are entitled to the zero tariff policy.
On the other hand, under the Inflation Reduction Act announced in August 2022, the United States
plans to invest 370 billion U.S. dollars in the climate and clean energy sectors, and some 20 countries,
including South Korea and Australia, that have signed free trade agreements with the U.S. will receive a
certain percentage of subsidies for their products. Compared with those produced by the China precursor
material production base, the precursors produced by the Chungju Base in South Korea meet the
requirements of the Act on qualified key minerals, and can receive a tax credit of 3,750 U.S. dollars/vehicle.
Compared with the cathode materials produced by the China cathode material production base, the cathode
materials produced by the Chungju Base in South Korea do not fall under the prohibitions stipulated in
the Act and are expected to receive a tax credit of U.S. dollars/vehicle for battery packs under the Act.
Therefore, the production capacity layout of the Chungju Base in South Korea is of strategic significance.
During the reporting period, the Chungju Base in South Korea has built a production capacity of
20,000 tons/year of high-nickel cathode materials, and the production line has completed the audit and
verification by mainstream customers in Japan, South Korea and the United States, which has the basis
for volume expansion. At present, the penetration rate of new energy vehicles in European and North
American markets is significantly lower than that in China. As the Company is advancing its
internationalization strategy rapidly, its products are mainly applied in overseas markets, embracing huge
space for future development.
(5) Unfolded research on cutting-edge technologies, taking a lead in R&D
The Company’s high-nickel and ultra-high nickel multi-product sequence R&D technologies lead the
industry. The cutting-edge lithium-rich manganese-based samples have passed customer certification, and
the pilot test of the spinel nickel manganese product has been completed. The related products manifest
excellent performance in capacity, recycling and rate. The quality and energy density of solid-state battery
cathode materials have greatly improved, which has been recognized by domestic and international solid-
state battery customers.
The problems of residual alkali and high pH value, serious gas production, poor recycling of sodium-
ion battery layered oxide cathode materials have been overcome, and the Company has taken the lead in
realizing the mass production finalization of several types of sodium-ion battery layered oxide cathode
materials in the industry. Various technical indicators have been evaluated by different customers and are
at the forefront of the industry.
The LMFP materials have been certified by multiple mainstream customers at home and abroad,
taking the lead in the world to achieve 1,000-ton mass production and shipment. Meanwhile, technical
breakthroughs in the new generation high ferromanganese ratio products and LFM and ternary blended
products have been made, realizing small-scale mass production, and the products of some customers have
entered the batch stability test stage.
(6) Set a new high in the number of patents applied, establishing an improved intellectual property
protection system
The Company has constantly strengthened scientific research and innovation efforts, and trained
scientific research and innovation talents. As it develops new materials and new technologies while
deepening the advantages of high-nickel materials, a wide intellectual property protection network
centered on the upstream and downstream of the industrial chain has been established. In 2022, the
Company applied for 604 patents in total, 346 of which were awarded, continuously upgrading the
Intelligence First concept. The Company has obtained a large number of independent intellectual property
rights centered on the product layout, which can provide a strong guarantee to expand the market for all
products.
(7) Comprehensively practiced the New Integration strategy
The New Integration strategy is an upgraded systematic competition strategy on the basis of
traditional integration competition, and it is an upgrade of the business model. During the reporting period,
the New Integration strategy of the Company was fully implemented to integrate resources to the greatest
extent and build a competitive new energy industry chain.
The most important role of the New Integration strategy is to strengthen supply chain management.
Through investment along the industrial chain and the establishment of strategic partnerships with
upstream and downstream enterprises, the stable procurement and cost advantages of upstream raw
materials are guaranteed, so as to achieve bulk centralized supply to downstream customers. In 2022, the
Company invested in Lygend through Ronbay Battery Triangle Fund, and signed a Long-term Order
Purchase Agreement with Lygend, forming the double cooperation of long-term purchase and capital. The
Company has further established long-term supply relationship with CALT and WeLion, carried out in-
depth cooperation in battery and material technology, products and supply chain, and jointly promoted the
rapid development of high-nickel batteries in the terminal market.
In 2022, the Company concluded a series of strategic cooperation agreements with multiple levels of
government, including Hubei Province, Xiantao City and Hanyang District of Wuhan, aiming to build a
systematic layout of Ronbay Technology in Hubei Province, including multi-dimensional deep
cooperation with production bases, Central China headquarters, New Energy Technology Research
Institute and equity investment fund.
5 R&D description
(1) R&D achievements obtained during the reporting period
During the reporting period, the Company comprehensively promoted the concept of integrated
product development in the Central Research Institute and related business departments, greatly optimized
the collaboration between the Research Institute and various departments of the Company, and made the
organizational structure more reasonable. Furthermore, it also planned the Central China New Energy
Technology Research Institute and other regional R&D centers and entered into the Cooperation
Agreement between Hubei New Energy Technology Research Institute and Central China Regional
Headquarters with Hanyang District People’s Government, Wuhan. In order to improve the cell and
material detection and analysis abilities, the Company carried out battery chemistry research, and
increased investment in cathode and precursor detection and electrochemical mechanism research. In view
of the rapid development of the new energy industry chain (peers, customers, industry technology status
and development trend, etc.), the Market Analysis Business Department was established to collect and
analyze industry information to be used as the basis for the direction of research and development
technology improvement, effectively supporting the Company’s material development and mass
production introduction speed, and significantly improving the research and development strength.
During the reporting period, the Company applied for 357 new patents. Among them, 136 domestic
patents for invention and 221 domestic utility model patents; the Company received 208 new patents
awarded, including 12 domestic patents for invention and 196 domestic utility model patents. The details
are as follows:
Disclosure
Serial (Announcement) Patent Legal
Title
No. Number/Application Type Status
Number
A sulfide solid electrolyte with high
ionic conductivity based on the liquid
1 201910309120.2 Invention Awarded
phase method and its preparation
method
A sulfide solid electrolyte with high
2 201910309109.6 ionic conductivity based on wet ball Invention Awarded
milling and its preparation method
A high-nickel cathode material with a
3 201811604074.0 single particle orientation arrangement Invention Awarded
and its preparation method
A ternary cathode material and its
4 201811454811.3 Invention Awarded
preparation method
A preparation method for a narrow
5 202010397121.X particle size distribution ternary Invention Awarded
precursor
A nano lithium zirconium fluoride in-
6 202110217122.6 situ cladded high-nickel ternary Invention Awarded
cathode material and its preparation
method and lithium-ion batteries
A high rate monocrystalline type
7 201911250375.2 NCMA cathode material with cladding Invention Awarded
layer and its preparation method
A spinel type single-crystalline cobalt-
free high voltage lithium nickel-
8 202110453689.3 manganate cathode material and its Invention Awarded
preparation method and lithium-ion
batteries
A modified high specific capacity
9 202010455679.9 high-nickel ternary cathode material Invention Awarded
and its preparation method
A high-nickel precursor material and
10 202110565272.6 Invention Awarded
its preparation method and application
A method for preparing an inner tank
11 201910952471.5 of a rotary kiln based on the built-in Invention Awarded
heating mode
A preparation method of manganese
12 202110326303.2 vanadium lithium phosphate cathode Invention Awarded
material
(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 136 12 261 72
Utility Model Patents 221 196 343 274
Total 357 208 604 346
(3) Ongoing Projects
Estimated Current Cumulative Progress or
Serial Application
Project Name Total Investment Investment Periodic Intended Goal Technical Level
No. Prospects
Investment Amount Amount Results
To develop high
capacity, low cost, Product full battery test Mainly applied in
Ni96 New Mass excellent high reveals 1/3C capacity new energy
1 Product 1,620.00 630.81 1,258.48 production temperature cycle ≥215mAh/g, showing low vehicles and
Development stage ultra-high-nickel cost high capacity and secondarily applied
polycrystalline good cycle life. in digital products
products (Ni≥92%).
Product full battery test
reveals 1/3C capacity
≥205mAh/g; the thermal Mainly applied in
Production To make NCMA
Multi-element stability of the product is new energy
line cathode materials
2 High Energy 2,970.00 848.36 2,039.58 significantly improved, vehicles and
commissioning with high capacity
Density NCMA and the cycle and storage secondarily applied
stage and stable structure.
performance are further in digital products
optimized; main product
process is finalized.
To develop series 6 Full battery test under high
high voltage single- voltage reveals 1/3C Mainly applied in
Production
Series 6 High crystal materials up to capacity up to 195 mAh/g; new energy
line
3 Voltage Material 1,047.00 503.27 503.27 the performance the good cycle life and vehicles and
commissioning
Development requirements of low safety performance can secondarily applied
stage
cost, long cycle and meet the use requirements in digital products
high safety. of new energy vehicles.
4 Series 8 Low 1,365.00 431.45 547.30 Pilot run stage The overall Product full battery test Mainly applied in
Cost New performance of the reveals 1/3C capacity new energy
Product products prepared by ≥200mAh/g; the physical vehicles and
Development the precursor system and chemical properties of secondarily applied
reaches the level, the the products have been in digital products
cost is effectively verified by the client side,
reduced and the reaching the leading level
competitiveness of of similar products in the
the series 8 products industry.
improved.
To develop series 7
Mainly applied in
products with high Full battery test under the
Series 7 New new energy
energy density and voltage of 4.35V reveals
5 Product 2,855.00 414.57 1,092.32 Pilot run stage vehicles and
high temperature 1/3C capacity
Development secondarily applied
performance under ≥196mAh/g;
in digital products
high voltage.
The low cobalt material
buckle battery is 0.33C
To develop lithium-
Low Cobalt current density at room
rich manganese-based
Long Cycle temperature and discharge Mainly applied in
cathode materials
Lithium-Rich specific capacity ≥ new energy
with an
6 Manganese- 875.00 329.87 377.02 Pilot test stage 225mAh/g; low cost and vehicles and
energy density
Based Cathode high capacity, suitable for secondarily applied
equivalent to
Material liquid battery, the sample in digital products
NCM811 and good
Development has been sent to many
cycle.
domestic and international
cell enterprises for testing.
High Voltage To develop a high The prepared cathode Mainly applied in
7 Nickel 918.00 212.31 252.47 Pilot test stage voltage nickel- material has a soft package new energy
Manganese manganese binary full gram capacity vehicles and
Cathode Material product with high ≥132mAh/g, excellent secondarily applied
energy density, low cycle performance, in electric tools and
cost and long cycle to rate/low temperature digital products
replace medium- and performance. At present,
low- nickel and the Company has worked
lithium iron with many customers at
phosphate materials. home and abroad to solve
the battery matching
problem of high voltage
system.
The capacity, cycle and
gas production
Applications in
To develop the performance of sodium-
new energy
Sodium-ion Production sodium-ion battery ion battery cathode
vehicles, small
Battery Cathode line cathode material with material have reached the
8 2,888.00 763.45 763.45 power market and
material commissioning low cost and excellent industry-leading level in
energy storage,
Development stage electrochemical the full battery test, and
broad market
performance. can meet the needs of low-
prospects
speed new energy vehicles
and electric two-wheelers.
To develop high-
nickel series 9 single- Product full battery test
crystal material with reveals 1/3C capacity Mainly applied in
Series 9 Single- Production
high energy density ≥208mAh/g; new energy
crystal Cathode line
9 2,087.00 555.13 555.13 and excellent cycle comprehensive vehicles and
Material commissioning
performance to meet performance has met secondarily applied
Development stage
the product customer requirements for in digital products
performance tonnage supply.
requirements of
customers.
To develop high- The physical and chemical
Mainly applied in
nickle single-crystal properties of the products
Series 8 Low new energy
materials with lost have been verified by the
10 Cost Single- 2,632.00 1,588.78 1,891.48 Pilot run stage vehicles and
cost, high energy client side, reaching the
crystal Material secondarily applied
density and excellent leading level of similar
in digital products
cycle. products in the industry.
The capacity, cycle and
To develop sodium-
gas production
ion battery layered
performance of layered Mainly applied in
oxide and Prussian
cathode material have low-speed new
Sodium-Ion blue analogue
reached the industry- energy vehicles,
11 Battery Cathode 1,123.00 209.89 964.80 Pilot test stage cathode materials
leading level in the full electric two-
Material with low cost and
battery test, and can meet wheelers and
excellent
the needs of low-speed energy storage
electrochemical
new energy vehicles and
performance.
electric two-wheelers.
Mainly applied in
To develop a high The high energy density
new energy
LMFP Cathode energy density and LMFP cathode material is
vehicles and
12 Material 315.00 120.87 120.87 Pilot test stage high voltage LMFP developed and its
secondarily applied
Development cathode material to performance indexes are
in small power
meet customer needs. industry-leading.
products
Through the research
and development of
solid-state battery
technology, master
the cathode material Through the research and
suitable for solid-state development of solid-state
battery system and battery technology, the
the production conductivity of solid-state
technology of solid- electrolyte ions prepared
state electrolyte, and has exceeded the project
develop at least one target, realizing stable
high-nickel cathode production in kg, and
All Solid-state Small material suitable for delivering industrially
Applied in 3C/EV,
13 Battery Cathode 1,629.00 218.62 1,550.32 experiment solid-state battery. advanced product
and mainly in EV
Material stage The lithium-ion performance. At present, a
conductivity of the number of modified high-
solid-state electrolyte nickel ternary materials
produced should be have been developed to
higher than 1mS/cm, achieve compatibility
and the solid-state between the cathode and
battery produced electrolyte interface, and
should reach the offer industry-leading
domestic advanced performance indicators.
level in energy
density, cycle
performance and
safety performance.
NCM90 Mass To develop NCM The products are Mainly applied in
14 1,781.00 1,193.48 1,545.23
Precursor production precursor products uniformly-shaped with no new energy
Development stage with high capacity, agglomeration and good vehicles and
high cycle life and sphericity, which reduces secondarily applied
high safety the control difficulty in the in digital products
(Ni≥90%). sintering process. The
final cathode material has
the characteristics of high
capacity and good
circulation.
The uniformly-shaped
To develop the ultra-
products offer good
high-nickel
dispersion, narrower
precursors with high
particle size distribution Mainly applied in
capacity and excellent
width than that of the new energy
NI96 Precursor cycle performance to
15 2,855.00 1,248.43 1,490.64 Pilot test stage conventional batch vehicles and
Development improve gas
process; the final cathode secondarily applied
production, internal
material featuring low gas in digital products
resistance and high
production and excellent
temperature cycle
high temperature cycle can
performance.
be used in soft pack cells.
The products provide good
To develop series 8 crystallization, no Mainly applied in
Series 8 Low NCM precursor cracking and good particle new energy
16 Cost Precursor 2,724.00 111.80 1,859.98 Pilot test stage products with low consistency, solving the vehicles and
Development cost, high safety and high-nickel and low cobalt secondarily applied
high cycle life. product capacity and cycle in digital products
problems.
Development of Mass The lithium The comminute device is Applied in the
17 Self- 1,600.00 100.13 100.13 production hydroxide after used to pulverize and whole process
comminution stage comminution has a regulate the composition from crushing to
Process of stable particle size, of compressed gas. packaging of
Lithium and a change in the Material moisture, lithium salt raw
Hydroxide content of the main magnetic foreign matter materials for the
elements, with and CO2 levels are ternary cathode
industry-leading effectively controlled, materials
magnetic foreign reaching the advanced
matter, moisture level of similar products in
increment and CO2 the industry.
increment levels.
There is no
significant difference
between the material
The production capacity
Development of performance
and human efficiency are Mainly applied in
Sintering Process indicators and the
Mass improved through new energy
for High-nickel conventional process;
18 13,000.00 5,528.81 7,002.96 production technological innovation vehicles and
Ternary the single line
stage to reach the advanced secondarily applied
Polycrystalline production capacity is
level of similar products in in digital products
Materials greatly improved, and
the industry.
the material
processing cost is
significantly reduced.
Able to test the Study the
Design and internal resistance, application effect
The production and testing
Development of rate properties, cycle of ternary cathode
Mass capabilities of soft pack
Full Battery Soft properties and gas material in
19 2,400.00 30.66 129.24 production batteries have reached the
Pack Battery storage/ production terminal, and
stage professional level of cell
Detection properties and other provide effective
factories.
Process electrochemical data technical
performance support for
indicators such as of research and
more than 100 development,
batteries per day. improvement and
enhancement of
material properties
The normally-shaped and
evenly-distributed
products have reached the
To shorten the
normal level of the same
existing sintering
Development of period in the physical and Mainly applied in
period, improve the
Sintering Process Mass chemical indicators of the new energy
single line production
20 for High-nickel 3,000.00 2,251.92 2,267.41 production quality line, electrical vehicles and
capacity, and lay a
Ternary Single- stage properties, cycle and gas secondarily applied
foundation for high-
crystal Materials production. After process in digital products
nickel single-crystal
exploration, optimization
increment.
and solidification should
be carried out to form a
unified standard.
Total / 49,684.00 17,292.61 26,312.08 / / / /
6 Discussion and analysis of the Company’s future development
6.1 Industry pattern and trend
It is imperative to transform the global energy pattern into new energy. With the rapid development of new energy vehicles, energy storage and other fields, the
market forecasts that the lithium battery industry will grow by more than 10 times in the next decade.
The development of the industry drives innovation in battery structure. The 4680 cylindrical battery and CTP battery further innovate the power battery structure
and promote the wide application of high-nickel and ultra-high-nickel cathode material technology. Tesla has launched the 4680 cylindrical battery which increases
the energy of a single battery by 5 times, improves the mileage by 16%, and reduces the cost by 14%. It will be released in large quantities soon. CALT has released
the CTP battery (CTP3.0) which has a maximum volume space utilization rate of 72%, increases the energy density of the ternary battery system to 255Wh/kg, and
offers a vehicle endurance over 1000km. The mass production of the CTP battery has been realized, which will further drive demand for the Company’s high-nickel
and ultra-high-nickel cathode material products.
The Company anticipates that cathode materials will be developed in the direction of low cost and high energy density while meeting high safety requirements.
High-nickel ternary batteries are mainly used in the high-end market for new energy vehicles. According to statistics from GGII and other organizations, the penetration
rate of high-nickel materials (series 8 and above) in China will reach 44.7% in 2022, and the ternary market will continue the high-nickel trend, while product upgrading
will continue to accelerate. With the maturity of high-nickel technology, the improvement of yield and the scale development of material system, high energy density
advantage will become prominent, the battery comprehensive cost will be reduced and the market share of high-nickel batteries will be further increased. The highly
cost-effective LMFP and sodium-ion battery cathode materials and other products will be used in the medium- and low-end power battery market and energy storage
market, 3C digital and small power market.
China’s lithium battery and material enterprises are playing an increasingly important role in the global new energy industry chain. According to SNE Research,
the global installed capacity of power batteries in new energy vehicles reached 517.9Gwh in 2022, revealing a year-on-year increase of 71.8%. SNE’s data showed
that six Chinese companies were included in the list of the world’s top 10 battery suppliers in 2022, taking up a combined market share of 60.4%, up by 12% year-on-
year. According to statistics from GGII and other organizations, the global shipments of ternary cathode materials in 2022 were about 980,000 tons, of which 550,000
tons were shipped by China, accounting for about 56% of the world’s total shipments. In 2022, the Company’s ternary cathode materials had a global market share of
about 9%, showing a year-on-year increase of 1%, and ranking first in the world. In the future, the global market share of Chinese enterprises will further increase.
Overseas market demand is growing rapidly, and global reach has become the consensus of the industry. According to the data of the European Automobile
Manufacturers Association, the registered volume of new energy passenger vehicles in 30 European countries reached 2.589 million in 2022, up by 14.6% year on
year. As revealed by the data of the Alliance for Automotive Innovation, 913,000 new energy light vehicles were sold in the United States in 2022, up by 41.1% year
on year. With the increasing global attention to and efforts in new energy industry chain, countries have also developed relevant industrial policies to cultivate local
enterprises (such as the IRA Act of the United States). The production capacity on overseas bases helps enterprises to improve their anti-risk ability. The Company
has completed and put into operation the 20,000 tons/year high-nickel cathode material base in South Korea. With a total planned production capacity of 100,000
tons/year, the base will serve mainstream battery and terminal customers in Japan, Korea and the United States.
6.2 Corporate development strategy
In 2022, the Company completed its transformation to a comprehensive supplier of cathode materials covering the whole market, and the high-nickel ternary,
LMFP and sodium-ion battery materials will achieve comprehensive coverage of the high-end, medium-end and low-end power battery markets, and energy storage
market, 3C digital and small power markets. Positioned as an operator in the lithium battery new energy material industry, the Company focuses on high-nickel cathode
materials, and builds its presence in LMFP and sodium-ion battery cathode materials to establish a competitive circular industry chain centered on the battery triangle.
The Company carries out comprehensive innovation with a focus on the main business of cathode materials that involves product innovation, process and equipment
innovation, supply chain innovation and management innovation, so as to establish industry barriers between competitors; on the other hand, through strategic
cooperation and capital cooperation, business synergy, innovation synergy and strategic synergy are established with upstream and downstream enterprises, so as to
improve the efficiency of the whole industrial chain, reduce costs, build a competitive industrial chain and achieve win-win results for partners in the industrial chain.
In 2023, the Company will accelerate the strategic layout of globalization which is reflected not only in the industrial layout, but also in the overall spatial layout.
In the future, the Company will explore other overseas markets except China and South Korea. From the perspective of global markets, the penetration rate of new
energy vehicles in China in 2022 was close to 30%, significantly higher than that in other markets. With the improvement of China’s battery technology and
consumption level, the share of high-nickel cathode materials in the Chinese medium and high-end markets will be further improved. At present, the Company’s high-
nickel products are sold to overseas terminal markets through its main battery customers. In 2022, the penetration rate of new energy vehicles in the European market
was over 20%, and that in the American market was less than 10%, revealing a great room for growth in the overseas markets. As the Company’s production base in
South Korea is relatively rare in the country, the Company will accelerate the expansion of this base to better serve international customers.
The Company will adhere to the development mission of developing new energy industry, improving human living environment, creating a better future for the
business and employees, and giving back to the community. The vision of the Company is to build a highly commercially civilized new energy industry cluster with
first-class innovation ability.
6.3 Business plan
The new energy industry has maintained rapid growth and is expected to have a growth room of more than 10 times in the future. In 2022, the global installed
capacity of lithium batteries for new energy vehicles was 517GWh. With the increasing demand for new energy vehicles and the outbreak of energy storage market,
the installed capacity of lithium batteries is expected to exceed 6000GWh in 2030, which represents a growth room of more than 10 times compared with 2022.
The current penetration rate of electrification in Europe and America is low, revealing significant structural development opportunities in the overseas markets.
In 2022, the penetration rate of new energy vehicles in 30 European countries was 22.9% and that in the United States was 6.7%. The transformation of energy
structure to new energy in Europe and the United States and the increase of penetration rate of electric vehicles are inevitable. Currently, the overall European and
American markets have greater opportunities, and the installed capacity of lithium batteries is growing at a faster rate.
The competition pattern of the cathode material industry will be further concentrated from dispersion. From 2018 to 2022, the market share of ternary cathode
CR5 increased from 48.2% to 59%. In the future, with the finalization of product technology and the continuous expansion of market and product competitive
advantages of large-scale leading enterprises, the market share will be further concentrated.
(1) Upgraded from a high-nickel leader to a platform-oriented and collectivized comprehensive supplier of cathode materials, promoting comprehensive coverage
of market applications
In July 2022, the Company held a strategic press conference and announced that it would transform from a high-nickel leader into a platform-oriented and
collectivized comprehensive supplier of cathode materials. With products covering high-nickel materials, ferromanganese lithium and sodium-ion battery materials,
and applications covering high-end, medium-end and low-end power, small power, energy storage and digital markets, the Company is the only and fastest growing
cathode material company in the industry.
In 2023, the Company will further maintain the leading edge in series 8 high-nickel products, actively expand new customers and improve the market share.
Meanwhile, the Company will promote the mass production of series 9 ultra-high-nickel products with higher energy density, and complete the development of high-
voltage and high-nickel material and NCA product lines, so as to create a comprehensive high-nickel product sequence and further strengthen the product lead.
Lithium ferromanganese product is the next generation upgraded product of LFP, offering the advantages of higher energy density and lower cost. With the
upgrading of product technology and the expansion of production capacity, lithium ferromanganese product is expected to replace LFP in the power battery market in
the future. The Company shipped nearly 1,000 tons of lithium ferromanganese products last year, ranking first in sales. In 2023, the Company will further integrate
internal and external resources to promote the mass production of lithium ferromanganese products.
In sodium-ion battery cathode materials, the Company has comprehensively laid out three technical focuses of layered oxide, Prussian blue/white and polyanion,
and completed submitted sample verification with dozens of downstream customers, manifesting an industry-leading level in comprehensive development capability
and mass production progress. The Company has achieved a number of technological breakthroughs in relation to low residual alkali, high pressure compaction, long
cycle, low gas production and low cost, that have been successfully applied to the finalized products. It is expected to achieve mass production in 2023.
(2) Strengthening the global reach and accelerating the expansion of overseas production capacity and international customers
In 2022, the Company built a 20,000 tons/year high-nickel cathode material capacity in Chungju, South Korea. The South Korean Base is the first factory
completed and put into operation overseas by a Chinese cathode enterprise, which is a crucial step in the global layout of Ronbay and truly starts the process of
capacity globalization of Ronbay and even China’s cathode industry. The base will continue to expand to a capacity of 100,000 tons, with production lines covering
the full range of high-nickel, ultra-high-nickel NCM, NCA and NCMA products.
The completion and production of the South Korean Base will help Ronbay better serve the overseas customers. Based on the South Korean Base, Ronbay will
better respond to the needs of international customers in the areas of technology research and development, manufacturing and business communication. The release
of production capacity in South Korea will promote the strategic interaction between Ronbay and customers in Japan and South Korea, and influence the markets of
Europe, the United States and Southeast Asia, serving the overseas factories of international customers and Chinese customers, truly embracing customers and serving
the world. Overseas capacity also helps the Company reduce supply chain risks, ensure supply chain sustainability, provide product and supply chain diversification
solutions, and create value for customers.
The South Korean Base will help the Company establish an overseas operations system and realize a comprehensive international transformation. The smooth
operation of the South Korean Base will help Rongbai further promote the internationalization of operations, supply chains, platforms and teams. The Company is
now preparing a North American office and will expand to Europe in the future.
(3) Resolutely implementing the New Integration strategy through industrial investment
During the reporting period, the Company formally built its presence in lithium ferromanganese through the acquisition of Skyland and its subsidiaries. Skyland
has a number of stable customers in the electric two-wheeler market. In the four-wheeler power battery market, Skyland has conducted in-depth material research and
development cooperation with many well-known battery manufacturers at home and abroad, and accumulated a profound customer base. This acquisition will help
the Company expand the cathode material market, enrich the product structure, and achieve full coverage of “high-end, medium-end and low-end” materials. The
Company will also continue to consolidate front-end resources through investment and acquisition, and prepare for the next generation technology and process, so as
to enhance the comprehensive competitiveness of phosphate products such as lithium ferromanganese products.
During the reporting period, the Company invested in Lygend through Hubei Ronbay Battery Triangle One Equity Investment Fund Partnership (Limited
Partnership) and entered into the Long-term Order Purchase Agreement with it. According to the agreement, Lygend, as the core supplier of nickel-cobalt wet process
intermediate (MHP) and nickel-cobalt sulfate of the Company, will steadily supply 20% of its total annual shipments of battery nickel-cobalt products (MHP or nickel-
cobalt sulfate or cobalt sulfate) to the Company every year.
Meanwhile, Lygend will give priority to supply the surplus shipments beyond the 20% battery nickel-cobalt products to Ronbay. The execution of the Long-term
Order Purchase Agreement will help the Company improve its main business operation ability.
The Company will firmly implement the New Integration strategy, analyze the best supply chain path through the in-depth control of the whole industrial chain,
and then establish long-term strategic partnerships through investing in the upstream and downstream parts of the industrial chain, build the lowest cost supply chain,
and achieve sound operation and profit.
The Company will continue to focus on the development progress of global nickel, lithium and other resources, select projects with cost advantages, carry out
cooperation in the form of equity participation, and increase access to low-priced preferential resources. On the one hand, the Company can form effective synergies
with existing industries, on the other hand, the Company can further share the growth of the whole industry through industrial investment.
(4) Continuing cutting-edge research and development and mass production, and improving the intellectual property protection system
The Company will study cutting-edge technologies, develop high-nickel cathode materials suitable for all-solid-state batteries, and make breakthroughs in the
higher capacity ultra-high nickel technology. Continuous efforts will be made to increase R&D investment and R&D personnel recruitment, improve the
comprehensive technical strength. This year, the Company will start the construction of Hubei New Energy Technology Research Institute and build the South Korean
Research Institute, and establish transnational R&D institutions. In terms of intellectual property, we plan to complete more than 200 patent applications and more
than 10 PCT patent applications in 2023, and advance the establishment of the intellectual property management system.
(5) Comprehensively deepening reforms in organizational development and advancing the implementation of the “three-system” architecture
In order to better serve the implementation of the New Integration strategy, the Company began to carry out platform-based and collectivized reform in 2022,
established and strengthened the enterprise operation and management center, and promoted its overall collaborative operation through the PMO (Project Management
Office) process system. In 2023, the reform of the three organizational systems will be promoted to build a complete cadre and talent development system. On the
basis of optimizing the existing business unit system, the Company will deepen the organizational reform of the three systems of market, R&D and delivery, and
establish a profession-oriented business organization and operation mechanism. Meanwhile, the Company will strengthen the building of the cadre team, establish a
matching four-level partner incentive mechanism, and build a competitive talent system by attracting top-notch talents from around the world, which will help further
realize the integrated operations of the whole Company and achieve the market objectives more agilely.
Section V Corporate Governance
1 Notes on corporate governance
During the reporting period, the Company continuously improved its corporate governance structure and standardized its operations in accordance with the
requirements of The Company Law, The Securities Law, The Governance Guidelines for Listed Companies, and The Rules for Stock Listing on the Science and
Innovation Board of Shanghai Stock Exchange and other laws, regulations, rules and normative documents. The actual situation of corporate governance conforms to
the requirements of The Code of Governance for Listed Companies and other normative documents issued by the China Securities Regulatory Commission.
1. Regarding shareholders and shareholders’ meetings: The Company has formulated the rules of procedure for the shareholders’ meetings, thus able to convene
and hold the shareholders’ meetings in strict accordance with the requirements of the standard opinions of the shareholders’ meetings. In terms of venue selection,
more shareholders should be invited to attend the shareholders’ meetings and exercise their voting rights. The Company can treat all shareholders equally and ensure
that shareholders exercise their rights.
2. Regarding the relationship between controlling shareholders and listed companies: The code of conduct of controlling shareholders guarantees that the
controlling shareholders do not directly or indirectly interfere with the decision-making and business activities of the Company beyond the shareholders’ meeting; The
Company and the controlling shareholders are “independent” in terms of personnel, assets, finance, organization and business. The Board of Directors, the Board of
Supervisors and the internal organization of the Company operate independently. The Company’s connected transaction follow legal procedures, adopt a rational price
and fulfill the obligation of information disclosure.
3. Regarding directors and the Board of Directors: The Company elects the directors in strict accordance with the appointment procedures for directors stipulated
in the Articles of Association; 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 the rules of procedure for the Board of Directors, so that the directors of the Company can attend the Board of Directors and
the shareholders’ meetings with a serious and responsible attitude, familiarize themselves with relevant laws and regulations, and understand the rights, obligations
and responsibilities of directors.
4. Regarding the supervisors and the Board of Supervisors: The Board of Supervisors shall strictly implement the relevant provisions of the Company Law and
the Articles of Association, and the supervisor number and composition of the Board of Supervisors shall meet the requirements of laws and regulations; The Board
of Supervisors of the Company has formulated the rules of procedure for the Board of Supervisors. The supervisors of the Company can conscientiously perform their
duties and supervise the Company’s finance and the lawful compliance of the directors and senior managers in the execution of duty in the spirit of being responsible
to shareholders.
5. Regarding performance evaluation and incentive and constraint mechanism: The Company has established fair and transparent performance and performance
evaluation standards and procedures for directors, supervisors and senior managers, and put in place an evaluation mechanism that links compensation with corporate
performance and individual performance, thus maintaining the stability of senior managers and core employees, and effectively conducting comprehensive evaluation
on each employee, thus ensuring sustainable corporate development.
6. Regarding stakeholders: The Company fully respects the legitimate rights of shareholders, employees, customers, suppliers and other stakeholders, and carries
out effective communication and cooperation with them, strengthens the protection of employees' rights and interests, supports the workers' congress and trade union
organizations to exercise their functions and powers according to law, and jointly promotes the sustainable and sound corporate development.
7. Regarding information disclosure and transparency: The information disclosure media designated by the Company are China Securities Journal, Shanghai
Securities News, Securities Daily, Securities Times 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 managers of the Company ensure that the
information disclosed by the Company is true, accurate, complete, prompt and fair.
2 Information of directors, supervisors, senior managers and core technicians
Name Position Held (Notes) Gender Age Start Date of Tenure End Date of Tenure
Bai Houshan Chairman Male 59 2018/3/9 2024/6/29
You Sangyul Vice Chairman Male 63 2018/3/9 2024/6/29
Zhang Huiqing Director Male 56 2018/3/9 2024/6/29
Song Wenlei Director Male 57 2021/6/30 2024/6/29
Yu Qingjiao Independent Director Male 53 2018/3/9 2024/6/29
Jiang Hui Independent Director Female 46 2018/3/9 2024/6/29
Zhao Yiqing Independent Director Female 41 2018/3/9 2024/6/29
Chairman of the Board
Zhu Yan Male 48 2018/3/9 2024/6/29
of Supervisors
Shen Cheng Supervisor Female 40 2021/6/30 2024/6/29
Chen Ruitang Supervisor Male 60 2018/3/9 2024/6/29
Tian Qianli Financial Director Male 43 2021/12/4 2024/6/29
Deputy General
Liu Dexian Male 49 2018/3/24 2024/6/29
Manager
Secretary of the Board
Ge Xin Female 40 2021/6/30 2024/6/29
of Directors
Zhang Yuan Director (Resigned) Female 39 2021/6/30 2022/10/29
Lee Jonghee Key Technician Male 48 2018/3/12 To date
Chen Mingfeng Key Technician Male 38 2018/12/31 To date
Yuan Xujun Key Technician Male 39 2018/3/12 To date
Notes: 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 Company with the term of office from March 24, 2018 to June 20, 2024 as senior managers.
3 Resumes of directors, supervisors, senior managers and core technicians
Name Main Work Experience
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
Bai Houshan 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, 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
You Sangyul
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, 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
Zhang
February 2000, he worked as Production Manager of Shengbang Lvye Group Business Unit of VICOME Co., Ltd.; after that, he worked as
Huiqing
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.
Zhang Yuan, female, born in 1984, has Chinese nationality and no permanent resident status overseas. After graduation from the Central South
University as a Bachelor in Administration, she obtained the Doctorate Degree in Administration. From 2012 to October 2016, she served as
Strategic Analyst, Macro Analyst and Deputy General Manager of Consulting Department of Minsheng Securities Co., Ltd. From October 2016 to
Zhang Yuan
October 2019, she served as Vice President of Fund Management Department of CITIC Construction Investment Management Co., Ltd. After that,
she worked as Director of the Chairman’s Office, Secretary and Chief Financial Officer of the Board of Directors, and Director successively from
November 2019 to October 2022.
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
Song Wenlei
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.
Yu Qingjiao, male, born in 1966, 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
Yu Qingjiao
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, 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
Jiang Hui
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, 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.,
Zhao Yiqing
Limited. Then she served as an Independent Director of Shenzhen Tongye Technology Co., Ltd. from March 2017 to September 2021; she has been
serving as an Independent Director of Wuxi Lutong Viscom Network Co., Ltd. since August 2021; and an Independent Director of the Company
since March 2018.
Ge Xin, female, born in 1983, has Chinese nationality and no permanent resident status overseas. With a Master of Science Degree in Organic
Ge Xin 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 since June 2021.
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
Tian Qianli 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 has been serving as the Financial Officer of the Company since December 2021.
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
Zhu Yan
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 Cheng, female, born in 1983, has Chinese nationality and no permanent resident status overseas. She received her Bachelor’s Degree in
Shen Cheng 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.
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
Chen of China Guiyang Aluminum Magnesium Design & Research Institute. From March 1989 to March 2013, he served as the Chief Engineer of
Ruitang 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 been working as the
General Manager, Assistant President and Deputy General Manager of the International Trade Business Unit of the Company since July 2017.
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
Lee Jonghee 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
been working as the Vice President of the Central Research Institute of the Company since 2017.
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
Chen
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
Mingfeng
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 has 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, 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
Yuan Xujun 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, he currently works as the Deputy General Manager of Cathode Business Unit.
Section VI Important Matters
1 The Company shall, in accordance with the principle of materiality, disclose the major changes in its business conditions during the reporting period, as well as
the events occurred during the reporting period that had a material impact on its business conditions and are expected to have a material impact in the future.
During the reporting period, in response to challenges such as rising raw material prices, the Company provided customers with cutting-edge high-energy density
products through comprehensive industry-leading competitive advantages in relation to technological innovation and product research and development, collaborative
customer service, engineering equipment development and production line design, maintained the first-mover advantage and a good market reputation in the industry,
and promoted the sustainable corporate development strategy.
During the reporting period, the Company achieved the operating revenue of RMB 30.123 billion, with a year-on-year growth of 193.62%; the net profit
attributable to shareholders of listed companies came up to RMB 1.353 billion, up by 48.54% year on year; the net profit attributable to shareholders of listed companies
after deducting non-recurring gains and losses was RMB 1.317 billion, up by 62.92% year on year; the net cash outflow from operating activities reached RMB 241
million.
Section VII Changes in Shares and Shareholders
1 Statement of Changes in Shares
1. Unit: Shares
Before This Change Increment and Decrement of This Change (+, -) After This Change
Shares
New Converted
Shares Ratio
Quantity Ratio (%) Shares from Others Sub-total Quantity
Allotted (%)
Issued Provident
Fund
I. Shares with Sales
172,227,332 38.44 -1,763,150 -1,763,150 170,464,182 37.80
Restriction Conditions
1. Shares held by the state 0 0
2. Shares held by state-
0 0
owned legal persons
3. Shares held by other
172,227,332 38.44 -1,763,150 -1,763,150 170,464,182 37.80
domestic capital
incl: shares held by non-
state-owned legal persons 167,475,400 37.38 167,475,400 37.14
in Mainland China
shares held by
natural persons in 4,751,932 1.06 -1,763,150 -1,763,150 2,988,782 0.66
Mainland China
4. Shares held by foreign
0 0
capital
incl: shares held by legal
persons outside of 0 0
Mainland China
shares held by
natural persons
0 0
outside of Mainland
China
II. Negotiable Shares
without Sales Restriction 275,810,300 61.56 3,079,372 1,529,411 4,608,783 280,419,083 62.20
Conditions
1. RMB ordinary shares 275,810,300 61.56 3,079,372 1,529,411 4,608,783 280,419,083 62.20
2. Foreign shares offered in
Mainland China
3. Foreign shares offered
outside of Mainland China
4. Others
III. Total Number of
448,037,632 100 3,079,372 -233,739 2,845,633 450,883,265 100
Shares
Notes:
1. On July 11, 2022, the first installment of 3,079,372 Class II restricted shares first granted under the 2020 Restricted Share Incentive Plan was registered with
Shanghai Branch of China Securities Depository and Clearing Co., Ltd. For details, please refer to the Announcement on the Vesting Result and Offering of the First
Installment of Restricted Shares First Granted under the 2020 Restricted Share Incentive Plan (2022-054) disclosed by the Company on the Shanghai Stock Exchange
website (http://www.sse.com.cn) and relevant designated media on July 14, 2022.
2. On July 19, 2022, the first sales restriction period of the partial Class I restricted shares first granted under the 2020 Restricted Share Incentive Plan expired, and
1,529,411 shares started to be circulated. For details, please refer to the Reminder Announcement on the Lift of Sales Restriction for Offering and Circulation of the
First Installment of Restricted Shares First Granted under the 2020 Restricted Share Incentive Plan disclosed by the Company on the Shanghai Stock Exchange website
(http://www.sse.com.cn) and relevant designated media on July 12, 2022 (2022-52).
3. On September 6, 2022, 233,739 partial Class I restricted shares for buyback cancellation under the 2020 Restricted Share Incentive Plan were canceled with
Shanghai Branch of China Securities Depository and Clearing Co., Ltd. For details, please refer to the Announcement on the Implementation of Buyback Cancellation
of Partial Class I Restricted Shares under the 2020 and 2021 Share Incentive Plan (2022-079) disclosed by the Company on the Shanghai Stock Exchange website
(http://www.sse.com.cn) and relevant designated media on September 2, 2022.
In summary, the total number of shares of the Company increased from 448,037,632 to 450,883,265 during the reporting period.
2 The total number of common shareholders, the total number of preferred shareholders whose voting rights have been restored, the total number of shareholders
holding special voting shares and the top 10 shareholders
Unit: Shares
The total number of common shareholders as of the end of the reporting period
29,917
(Shareholders)
The total number of common shareholders as of the end of last month prior to the
28,463
disclosure date of the Annual Report (Shareholders)
The total number of preferred shareholders whose voting rights have been restored
0
as of the end of the reporting period (Shareholders)
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 0
(Shareholders)
The total number of shareholders holding special voting shares as of the end of the
0
reporting period (Shareholders)
The total number of shareholders holding special voting shares as of the end of last
0
month prior to the disclosure date of the Annual Report (Shareholders)
Shareholding of the top 10 shareholders
Shareholder Name (Full Increment and Number of Ratio Pledge, Mark or Freezing Nature of
Name) Decrement Shares Held (%) Number of Shareholder
Number of
within the at the End Shares with
Reporting of the Restricted Shares
Sales Share
Including Quantity
Period Period Restriction Status
Refinancing
Conditions
Shares on Loan
Held
Shanghai Ronbay New
Energy Investment
0 129,000,000 28.61 129,000,000 129,000,000 None 0 Others
Partnership (Limited
Partnership)
Beijing Ronbay New Non-state-owned
Energy Investment 0 13,957,800 3.10 13,957,800 13,957,800 None 0 Legal Person in
Development Co., Ltd. Mainland China
Hong Kong Securities Legal Person
Clearing Company 13,200,990 13,200,990 2.93 0 0 None 0 outside of
Limited Mainland China
China Merchants Bank
Company Limited—
Huaxia SSE Science and
6,041,894 11,666,329 2.59 0 0 None 0 Others
Technology Innovation
Board 50 Index
Exchange-traded Fund
Huzhou Haiyu Equity
Investment Partnership -3,759,145 10,094,835 2.24 0 0 None 0 Others
(Limited Partnership)
Gongqingcheng
-2,300,915 9,940,490 2.20 0 0 None 0 Others
Rongcheng Investment
Management Partnership
(Limited Partnership)
Beijing Ronbay New Non-state-owned
Energy Investment 0 8,800,000 1.95 8,800,000 8,800,000 None 0 Legal Person in
Management Co., Ltd. Mainland China
Beijing Ronbay New
Non-state-owned
Energy Technology
0 8,240,300 1.83 8,240,300 8,240,300 None 0 Legal Person in
Investment Management
Mainland China
Co., Ltd.
Zunyi Ronbay New
Energy Investment
0 7,477,300 1.66 7,477,300 7,477,300 None 0 Others
Center (Limited
Partnership)
Hubei Changjiang NIO
New Energy Industry
Development Fund 0 6,978,961 1.55 0 0 None 0 Others
Partnership (Limited
Partnership)
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
Notes on the association or concerted action of the above shareholders
Energy Investment Center (Limited Partnership) are under the same control of
Bai Houshan, the actual controller of the Company, and Bai Houshanis 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
None
number of shares held
3 Block diagram of the property rights and control relationship between the Company and the controlling shareholder
v
4 Block diagram of the property rights and control relationship between the Company and the actual controller
