Zeng Yuqun, chairman of THE NINGDE times, responded to hot questions, and 20 questions and answers came

On the evening of February 15, Ningde Times (300750), a leading global power battery company, issued an announcement disclosing that on February 14, Chairman Zeng Yuqun, Secretary of the Board of Directors and Deputy General Manager Jiang Li, and Financial Director Zheng Shu accepted 50 investor surveys including Hillhouse Capital, Hongshang Capital, Tencent Investment, Temasek, Sequoia Capital, etc.

CATL replied to 20 questions that investors focused on. CATL said that the expansion of production does not mean that the expansion of friendly business will increase competition, and products with innovative material systems and structural systems are worthy of competition. The company has always provided customers with the most cost-effective products through material innovation, structural innovation and extreme manufacturing.

CATL said that the expansion of friendly business does not mean that it will increase competition, and products with innovative material systems and structural systems are worthy of competition. The company has always provided customers with the most cost-effective products through material innovation, structural innovation and extreme manufacturing.

The specific content is recorded as follows:

1. How does the company's layout and control of upstream lithium resources exist?

A: The company guarantees the supply of lithium resources through long-term cooperation, investment cooperation, recycling, self-mining and other means. Among them, in terms of recycling, the lithium recovery rate has exceeded 90%, and lithium recycling has now played a certain role in supply security; in addition to the previous overseas investment cooperation, the company has also invested in lithium resources in Yichun and other places and mined lithium mines on its own.

2, what is the company's research and development boundary, whether the traditional manufacturing industry has reached the limit, whether to further do electronic control related? Is the future a battery company or a higher idea?

A: The company is the world's leading power battery company, but there is still a lot of room for energy storage and energy conversion in the manufacturing industry. As a scientific and technological innovation company, based on the new energy cause of mankind, the company may be involved in new energy-related and innovative technology-related fields.

3. In the battery production process, is the technology, materials or equipment of the United States used?

A: The company is not directly involved in the battery production process, and the chip part of the BMS originates from the United States and is currently doing localization.

4, CTC program, the company to do an integrated program to customers, will involve the customer chassis design and manufacture of cake, why would the vehicle manufacturers be willing?

A: The purpose of the company to create A CTC program is to accelerate the electrification of products with higher cost performance and lower power consumption, stemming from the needs of customers to create the competitiveness of new energy vehicle products, through the professional division of labor between the company and car companies, the respective strengths will be played to the extreme to launch competitive products.

5, the general understanding of drying into and testing is one of the core processes of battery manufacturing, drying different batteries time difference is very large, can you use internal resistance detection, control the drying time, to ensure that each drying time is the shortest?

A: The process is designed to achieve performance, such as reliability, safety, etc. The coating drying process is designed to remove the solvent, leaving gaps, and the solvent during the volatilization process causes the binder to be unevenly distributed inside the pole piece, resulting in charge lithium evolution. The company's new technology can solve such problems while achieving a 9-minute fast charge. After the structural design is completed, it is challenging to achieve the corresponding control, and it is really reliable, safe and low cost.

6. Many of the company's customers in the United States are considering going to the United States to build factories? Is it possible?

A: The company interacted with U.S. customers a lot, including both new forces and traditional car companies, and the two sides jointly discussed various possible supply and cooperation options, as well as the possibility of localized production, but the specific situation needs to take into account the impact of factors such as worker training, efficiency, and labor unions on quality and cost.

7. What is the biggest challenge for the company's future development?

A: The company's growth rate, organizational ability and the ability to internationalize people are the biggest challenges. Based on the replicability of the extreme manufacturing system, the company has accumulated 10 major production bases by the end of last year, and in the future, the company intends to strengthen the layout of overseas bases and improve the construction of systems including overseas employee training, and also faces more challenges.

8. How does the company view the expansion of friendly business, especially international competition.

A: The expansion of production does not mean that the expansion of friendly business will increase competition, and products with innovative material systems and structural systems are worthy of competition. The company has always provided customers with the most cost-effective products through material innovation, structural innovation and extreme manufacturing.

9, according to estimates, the current company's expansion of ROE or ROIC is very high, in the long run after 2025, can the high ROE or ROIC continue to be maintained?

A: The improvement of ROE and ROIC also depends on technological progress, the technical level of extreme manufacturing high-speed production lines is leading the world, the single-line production capacity is significantly improved, the production efficiency is improved, and the production cost is reduced.

10. The company has a layout in most aspects of the supply chain, some of which are involved in the form of shares, and some of which have not yet been invested. In the future, in companies that do not have shares but have a high market share, will the company participate in the shares or will it be handed over to market competition?

A: The company values long-term and real cooperation partners, regardless of the market is good or bad, can overcome difficulties together, work together for win-win results, and jointly promote the stable and sustainable development of the industry.

11. Energy storage has a high market share in the United States, how to view the risk of changes in the ENERGY storage policy in the United States?

A: The company has discussed with US energy storage customers, customers want to localize the supply, and need to comprehensively consider the factors such as power battery production capacity, customer demand, and production costs.

12, the company's new products will consider building a new supply chain system, such as their own fluorine chemical, what is the specific planning?

A: The new supply chain system construction involved in new products, for materials with high technical content, the company will first develop, produce proofs, and then authorize the technology to suppliers, and the company has the responsibility to apply the best technology to customer products.

13, in the past two years, lithium iron phosphate has lowered the barriers to entry in the industry, and through these batteries, it can also achieve a range of 500-700 kilometers for new energy vehicle product NEDC, is it possible that many of the company's industry advantages cannot be played?

A: From the perspective of resources, the advantages of different products are different, and the company has made ultra-long-life batteries in the existing system to support business model innovation. In terms of the new system, the sodium-ion battery developed by the company has better low temperature performance, and higher energy density products will explore breakthrough applications in new fields, such as commercial aircraft.

14. One of the key points of investor exchanges and discussions last year was the efficient and low-cost product route, which is quite different from the focus of today's exchanges, how has the company's operation or your attitude changed this year?

A: The promotion of electric vehicles in the early stage needed efficient and low-cost products, but now high-end electric vehicles are also widely welcomed by consumers, and consumer recognition of new energy vehicles has become a trend. To create value for customers and investors, it is inseparable from technological leadership, operational excellence and quality services.

15. How does the company view the future evolution of battery chemistry system, packaging structure and business model in the largest reachable market of 100,000-200,000 vehicles, such as M3P, diamondless, etc.?

A: To be precise, the more difficult to replace is the 8-120,000 price range models, with chocolate battery replacement products supporting the corresponding models, which can make the first purchase cost of new energy vehicles (excluding batteries) lower than that of fuel vehicles, and the speed of power replacement is equal to fuel vehicle refueling, solving the problem of cost performance. The company plans to launch a new product M3P, to be precise, not lithium manganese iron phosphate, but also contains other metal elements, the company calls the ternary of the phosphate system, the cost is lower than the ternary, but still occupies a certain cost of new energy vehicles. We believe that the ultimate solution for models in the 80,000-120,000 yuan range is chocolate power exchange.

16, the company in recent years a lot of export business, overseas income has also soared, combined with the soaring freight rates, a brief introduction to how the company on the export path and logistics providers to choose?

A: The company selects a wide range of partners around the world to comprehensively evaluate various factors such as logistics transfer and inland transportation to reduce comprehensive costs.

17, the company's battery recovery ternary key metal recovery rate can reach 99.3%, can you introduce the recovery of lithium iron phosphate.

A: The reason why the maturity of ternary recovery is higher than that of lithium iron phosphate recovery is that the price of nickel and diamond metals is high, and the recent increase in the price of lithium iron phosphate has also increased significantly. At present, the company has both ternary and iron lithium waste battery annual recycling technology and production capacity, and the future production capacity will continue to expand. In addition to the cathode, the company has laid out graphite and electrolyte recycling to improve product economy and reduce product carbon emissions.

18. At present, consumers' attention to battery suppliers is not so obvious, but the mileage is associated with car companies. Does the company intend to go from behind the scenes to the front of the stage and let consumers choose the battery brand?

A: The company began to build its own brand from the power exchange, so that consumers can recognize the advantages of products equipped with the company's batteries.

19. At present, the company's global power battery usage accounts for 33% of the market, and the domestic consumption exceeds 50%. What is the long-term market share target?

A: The company's vision is to provide first-class new energy solutions for customers around the world, and the increase in market share brought about by the depth and breadth of customer service is the result and the direction of efforts.

20, lithium shortage for a while and a half will not be able to solve, resource development needs a cycle, copper, aluminum is also rising prices, during this period the company how to deal with? Although the company has some long-term supply, but the entire industry bears the price increase, is there any concern about sales?

A: The short-term cost of raw materials such as lithium carbonate has a certain impact on the company and can be hedged in a variety of ways; copper and aluminum can be greatly reduced through new technologies. The power exchange mode allows consumers to achieve a lower cost of first purchase than fuel vehicles, while enjoying electrification, intelligence and power exchange convenience.