news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

on the evening of september 10, nord holdings (600110) issued an announcement that its wholly-owned subsidiary shenzhen baijiada new energy materials co., ltd. (hereinafter referred to as "baijiada") recently received a designated notice from the indian battery manufacturer exide enengy solutions limited (hereinafter referred to as "eesl"), and will subsequently provide copper foil products to eesl. it is estimated that the transaction amount in 2025 will not exceed 200 million yuan, and the actual supply volume shall be subject to the formal sales order.

according to data, eesl's parent company exide industries ltd. is india's largest battery manufacturer, with nine production bases and more than 20,000 employees in india, and a solid financial situation. in recent years, india's new energy vehicle market has grown rapidly. according to data from the federation of automobile dealers associations of india, the country's electric vehicle sales will be about 90,000 units in fiscal 2023-2024 (april 1, 2023 to march 31, 2024), nearly doubling year-on-year.

nord shares stated that the eesl designation is a recognition by the customer of the company's copper foil product performance and supply qualifications. if the project is implemented smoothly, it is expected to have a positive impact on the 2025 operating performance.

as a leading copper foil manufacturer, nord's products include 3-6 micron ultra-thin lithium battery copper foil, 8-10 micron ultra-thin lithium battery copper foil, 9-70 micron high-performance electronic circuit copper foil, 105-500 micron ultra-thick electrolytic copper foil, porous copper foil for lithium electronics and double-sided high tensile strength copper foil, etc. the downstream application field is mainly lithium battery production and manufacturing. at present, the company has four major production bases in xining city, qinghai province, huangshi city, hubei province, huizhou city, guangdong province, and guixi city, jiangxi province.

in terms of customers, nord shares have entered the supply chain of mainstream battery manufacturers at home and abroad. domestic market customers include contemporary amperex technology (catl), atl, byd, china innovation aviation, eve energy, farasis energy, trina energy, xiamen haichen, and guoxuan high-tech; foreign market customers include lg energy solution, ski, morrow, etc.

at present, nord's revenue mainly comes from the domestic market. in 2023, the domestic revenue was 4.283 billion yuan, and the overseas business revenue was 262 million yuan. the domestic business accounted for more than 90% of the total revenue.

in order to seize overseas markets, nord shares accelerated the overseas expansion of its production capacity and signed a strategic cooperation memorandum with the wallonia state foreign trade and foreign investment agency of belgium in may 2023. it plans to invest in and establish a production base in wallonia, belgium, europe. the first phase of the project plans to invest in the construction of an annual production capacity of 30,000 tons of lithium battery copper foil, 1 million pieces of fdc, and 1 million pieces of pi heating film. the total investment of the project is estimated to be 500 million euros.

in terms of performance, affected by the slowdown in the growth rate of the lithium battery market, nord shares saw an increase in revenue but no increase in profit in the first half of the year, recording revenue of 2.386 billion yuan, a year-on-year increase of 9.82%, and a net profit loss of 159 million yuan, turning from profit to loss year-on-year.

as for the reasons for the performance loss, nord shares said that it was mainly due to the slowdown in the growth of the terminal market. in the short term, the lithium battery copper foil market is still in a state of oversupply and the market competition is fierce. although the copper foil processing fee has rebounded in the second quarter, it is still at a low level. in addition, the price of copper, the main raw material of copper foil products, continued to rise in the first half of the year, resulting in an increase in the actual production cost of copper foil, which lowered the company's gross profit level. in the first half of this year, nord shares' comprehensive gross profit margin was 5.49%, a year-on-year decrease of 7.54 percentage points.

regarding the competition landscape in the industry, nord shares stated that in the medium and long term, as the industry's demand for ultra-thin, high-performance copper foil increases, new technology product production lines will face a certain shortage, and the market will show a situation where high-end products are in short supply, while mid- and low-end products have overcapacity and homogeneous competition is intensifying. in response to the above situation, the company pointed out that it will actively expand new application areas in the future to avoid competition in traditional tracks, while expanding markets that are less affected by the united states, such as europe, "belt and road" countries and regions, south america, other parts of asia, and africa.