Industrials Author: Sasha Chen Mar 09, 2022 04:50 AM (GMT+8)

On March 8, Ningbo Ronbay New Energy Technology Co., Ltd reported that its market share dropped by almost 18%, with a full-day turnover of more than CNY 2.9 billion.

Ronbay New Energy Tech

China's battery manufacturer Ningbo Ronbay New Energy Technology Co., Ltd (容百科技) focuses on producing cathode materials and precursors for lithium batteries with a wide distribution in China and overseas markets.

On March 8, the Shanghai Stock Exchange Index fell 2.35%, the Shenzhen Stock Exchange Index fell 2.62% and the STAR Market Index fell 1.8%.  The largest net outflow was from Ronbay New Energy Technology Co., Ltd, accounting for CNY 288 million and having 9.96% of the total turnover.

Today, other institutions have a net sale of the company's market share of more than CNY 400 million. The main cause was due to misleading information that concerns investors whether the company operation would be impacted adversely by the increase of nickel prices on the London Metal Exchange (LME).

According to Ningbo Ronbay New Energy Technology Co., Ltd, the company has a productive raw material supply chain and a reasonable inventory cycle. Therefore, the increase in nickel price will not affect the company's profitability in the short term. Due to the sustainability of this industry, the short-term price fluctuations will also not cause serious losses for the company in the long-term development.

As investors retreated from the company, they have shown worries about the unpredictable market in the future, which also influences the rapid rise of nickel prices in the short run. The company clearly explained that nickel resource supplies and demands are not severely impacted because the fundamental structure has not been altered.

It is expected that nickel prices will settle down and the cathode material market still has a considerable growth space. Ningbo Ronbay New Energy Technology Co., Ltd has subsequently identified a layout in its business to improve the stability of nickel supply assurance to their customers.