Announcement time of this financial report: 2023-10-27 17:14:00

Long-term Lithium (Stock Code: 688779) is a company specializing in the research, development, production and sales of high-efficiency battery cathode materials, including ternary cathode materials, lithium iron phosphate cathode materials, lithium cobalt cathode materials and so on. Since 2011, the company has entered the field of ternary cathode materials, is one of the earliest domestic enterprises engaged in related R & D and production, and has the mass production capacity of ternary cathode materials.

First of all, in terms of assets and liabilities, the total assets of long-term Lithium Division in the third quarter of 2023 were 15.376 billion yuan, down 12.92% from 17.657 billion yuan at the end of last year. The total debt was 7.629 billion yuan, a decrease of 20.01% compared with 9.536 billion yuan at the end of last year. The net asset was 7.747 billion yuan, a decrease of 4.61% compared with 8.121 billion yuan at the end of last year. The asset-liability ratio was 49.62%, down from 54.01% at the end of the previous year.

Secondly, in terms of profit, the company's operating income in the third quarter of 2023 was 8.365 billion yuan, a decrease of 34.11% compared with 12.696 billion yuan in the same period last year. Operating profit was 69.5613 million yuan, down sharply from 1.372 billion yuan in the same period last year. The net profit was 72.236 million yuan, down 93.51% from 1.114 billion yuan in the same period last year. The gross profit margin was 5.67%, down from 15.78% in the same period last year. The net interest rate was 0.86%, down sharply from 8.77% in the same period last year. Return on equity (ROE) was 0.91 per cent, down sharply from 15.96 per cent at the end of the previous year.

Thirdly, in terms of cash flow, the cash inflow from the company's operating activities in the third quarter of 2023 was 2.149 billion yuan, which was lower than that of 2.534 billion yuan in the same period last year. Cash outflow from operating activities totaled 4.892 billion yuan, up from 3.198 billion yuan in the same period last year.

To sum up, long-term Lithium faced some challenges in the third quarter of 2023. Due to the sharp fluctuations in the price of upstream raw materials, the sales unit price of the company's products has dropped; at the same time, the downstream demand has slowed down and the company's orders have decreased, resulting in a decline in operating income. In addition, the company gives a certain payment credit period to downstream customers, while the overall payment credit period of main material suppliers is shorter, which leads to a substantial increase in operating cash outflow due to the difference between upstream and downstream receipt and payment credit cycle. net cash from operating activities decreased.

Nevertheless, lithium still has a certain competitive advantage in the long run. The company has a first-mover advantage in the field of ternary cathode materials, and has successfully entered the supplier system of mainstream lithium battery manufacturers. In addition, through the wholly-owned subsidiary Jinchi Materials, the company has realized the integrated layout of ternary precursors and cathode materials, fully mastered the core links of the industrial chain, and has the advantages of value division and discourse power of the industrial chain.

Investment advice: although the long-term Lithium Company faces some challenges in the third quarter of 2023, the company still has a strong competitive advantage and development potential. Investors should pay attention to the long-term development trend of the company, rather than short-term operational difficulties.

This article only represents the judgment made by the analyst himself or the analyst on the basis of AI analysis, and can not be used as any investment index, nor does it constitute any investment advice. The original intention of this paper is to help investors analyze and judge the capital market data in the most intuitive and fast way and from the most professional perspective.