Down more than 10%! Ningde Times Urgent Response!

On October 21, Ningde Times opened low and went low. As of the close, Ningde Times a shares fell by more than 12% and H shares fell by 11.41%. On the evening of October

20, Ningde Times disclosed its third quarterly report for 2026. In the third quarter of this year, the Company achieved a revenue of 165.22 billion yuan, an increase of 58.6% over the same period last year, and a net profit of 21.25 billion yuan, an increase of 14.5% over the same period last year. However, it is worth noting that the company's net profit in the third quarter showed a month-on-month decline.

In response to the change in profitability in the third quarter, Ningde Times issued a record of investor relations activities on October 20, saying that from the company's point of view, the industry demand in 2027 can still be expected. In terms of domestic passenger cars, although the overall sales of passenger cars have declined this year, we can see that the rate of electrification is increasing rapidly, and the amount of electricity charged by a single vehicle has increased rapidly, so the growth rate of power batteries for domestic new energy passenger cars is still positive. The electrification rate of domestic new energy commercial vehicles is also increasing rapidly; the electrification trend in Europe is continuous, and competitive new models are constantly launched; the electrification potential of other markets may be underestimated by the market. In terms of energy storage , both domestic and overseas have maintained a good growth rate, especially in some overseas markets where the demand for energy storage is relatively strong. Overall, the global market demand for power and energy storage batteries may not be as pessimistic as expected, and there is still a good growth potential.

In response to the issue of capacity utilization, Ningde Times said that the company's capacity utilization rate was very saturated in the first half of the year. In recent years, the company has accelerated the progress of production capacity construction according to market demand. With the successive production of production capacity this year, the tension of production capacity has eased. But the market demand is also growing, overall, the next capacity utilization rate will remain at a high level, to maintain a relatively healthy state.

As for the reasons for the decrease of operating cash flow in the third quarter, Ningde Times responded that in recent years, the upstream enterprises of lithium power supply chain have been under great pressure of cash flow. Since the third quarter, the company has taken the initiative to adjust the payment of suppliers, giving priority to supporting partners with R & D capabilities, innovative spirit and actively cooperating with the company to expand production. It includes shortening the account period, paying advance payment, R & D fund support and so on. The measures taken by the company to support supply chain enterprises may continue for some time in order to promote a healthier and sustainable development of the industrial chain. Operating cash flow may have a phased impact, but in the long run, it will not affect the company's cash profitability, and will return to a relatively healthy level in the future.

As for the reasons for the increase of inventory in the third quarter, Ningde Times responded that the increase of inventory amount in the third quarter was brought about by the development of the company's business scale, but in recent quarters, the company's inventory turnover days have been relatively stable, and there is no situation of poor sales or shipment, which belongs to normal inventory turnover. From the perspective of inventory structure, the growth is mainly in the delivery of goods, which will gradually be reflected in the company's revenue in the future. In terms of energy storage, the company is also selling core and DC side products to provide AC side and system products. The product structure and form are more abundant than in the past, but the corresponding delivery and revenue recognition cycle is longer than before.