Zhenhua New Material's net profit in the first three quarters dropped by 96% in 2021, and is seeking a fixed increase of no more than 6 billion yuan

Zhenhua New Material (688707. SH) released the third quarter report of 2023 on October 14. In the first three quarters of this year, Zhenhua New Material achieved an operating income of 5280978700 yuan, a year-on-year decrease of 46.68%; Net profit attributable to shareholders of the listed company was 37592700 yuan, a year-on-year decrease of 96.26%; The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 41030500 yuan, a year-on-year decrease of 95.86%; The net cash flow from operating activities was 192829900 yuan, a year-on-year decrease of 20.68%.

Among them, in the third quarter of this year, Zhenhua New Material achieved an operating income of 2022.8458 million yuan, a year-on-year decrease of 54.68%; The net profit attributable to shareholders of the listed company was 73.3868 million yuan, a year-on-year decrease of 78.42%; The net profit attributable to shareholders of the listed company after deducting non recurring profits and losses was 76.3909 million yuan, a year-on-year decrease of 77.17%; The net cash flow from operating activities was 50.2375 million yuan, a year-on-year decrease of 44.65%.

Zhenhua New Material said that in the first three quarters of 2023, affected by the falling price of lithium salt and the slowdown of downstream demand, the sales price and sales volume of the company's products declined year on year, which led to the decline of the company's operating revenue in the first three quarters of 2023 compared with the same period last year. In the first three quarters of 2023, affected by the falling price of lithium salt and the slowdown of downstream demand, the sales price and sales volume of the company's products declined year on year, resulting in a year-on-year decline in operating revenue; The decline in production and sales volume resulted in higher production costs in the same period, and the impact of inventory impairment led to year-on-year decline in performance in the first three quarters of 2023.

Zhenhua New Material was listed on the Science and Technology Innovation Board of Shanghai Stock Exchange on September 14, 2021, and issued 111 million new shares, accounting for 25% of the total capital stock after this issuance. The issue price was 11.75 yuan/share. The recommendation agency was CSC Securities Co., Ltd., and the recommendation representatives were Du Pengfei and Li Bo. The total amount of funds raised by Zhenhua New Material was 1.301 billion yuan, and the actual net amount of funds raised was 1.235 billion yuan.

The net amount of funds eventually raised by Zhenhua New Material was 35.2179 million yuan more than the original plan. According to the prospectus disclosed earlier, the company plans to raise 1.2 billion yuan, which will be used for the construction of lithium ion battery cathode material production line (Phase II of Shawen), lithium ion power battery ternary material production line (Phase II of Yilong), and to supplement working capital.

The listing and issuance expenses of Zhenhua New Materials were 65.9031 million yuan, of which the sponsor, CSC Securities Co., Ltd., received 50.5193 million yuan of sponsorship and underwriting expenses.

Zhenhua New Material's 2022 A-share Offering to Specific Objects Prospectus released on September 7, 2023 shows that the total amount of funds raised from this offering of shares to specific objects does not exceed 6 billion yuan (inclusive), and the net amount of funds raised after deducting the relevant issuance costs is intended to be used for the construction project of cathode material production line (Yilong Phase III) and supplement working capital.

key word: New material Zhenhua Raised funds Lithium salt listed company