Breaking Down Guizhou Zhenhua New Material Co., Ltd. Financial Health: Key Insights for Investors

Breaking Down Guizhou Zhenhua New Material Co., Ltd. Financial Health: Key Insights for Investors

CN | Basic Materials | Chemicals | SHH

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) Bundle

Get Full Bundle:
$24.99 $14.99
$14.99 $9.99
$14.99 $9.99
$14.99 $9.99
$14.99 $9.99
$14.99 $9.99
$14.99 $9.99
$14.99 $9.99
$14.99 $9.99

TOTAL:

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) is a leading enterprise in the research, development, production and sale of lithium‑ion battery cathode materials serving sectors such as new energy vehicles, computers, communications and consumer electronics, and in February 2025 was recognized by the Ministry of Industry and Information Technology as a national‑level 'Green Factory' for sustainable, low‑carbon production; its stated mission - 'to provide innovative, sustainable glass packaging solutions for the global cosmetics, perfume, and personal care industries' - coexists with corporate commitments like 'technology promotes green development, innovation creates a sustainable future' and related ESG messaging from CNGR Advanced Materials Co., Ltd. ('Devote to the development of new energy, build a better life for human beings'), while the company's vision to become 'a global leader in the technical development and manufacturing of all‑natural performance materials' and its core values of integrity, innovation, responsibility, learning and enthusiasm drive strategic choices and operational initiatives aimed at meeting evolving market demands and advancing sustainable manufacturing practices.

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) - Intro

Overview
  • Guizhou Zhenhua New Material Co., Ltd. (688707.SS) is a vertically integrated developer and producer of lithium-ion battery cathode materials serving new energy vehicles (NEVs), consumer electronics, communications, and industrial energy storage.
  • Key product lines include high-nickel ternary cathode materials (NCM/NCA), lithium iron phosphate (LFP) variants, and precursor salts for cathode synthesis.
  • In February 2025 the company was accredited as a national-level 'Green Factory' by the Ministry of Industry and Information Technology, reflecting verified low-carbon manufacturing, waste-minimization systems, and energy-efficiency upgrades across core plants.
Mission
  • Accelerate global adoption of electrification by supplying high-performance, stable, and lower-carbon cathode materials.
  • Deliver predictable, scalable supply to strategic partners in the NEV and electronics ecosystems while minimizing environmental impact.
  • Invest in upstream and downstream integration to improve material traceability, reduce lifecycle emissions, and strengthen supply security.
Vision
  • To be a world-class supplier of advanced cathode materials that enable higher energy density, longer cycle life, and reduced carbon footprint for mass-market battery applications.
  • To lead the industrial transition toward sustainable battery manufacturing through circular economy practices and decarbonized production.
Core Values
  • Innovation: sustained R&D investment to push electrochemistry, coating, and process innovations that boost energy density and safety.
  • Quality & Reliability: stringent quality-control systems and traceability from precursor to finished cathode active material (CAM).
  • Sustainability: continuous reduction of Scope 1 and 2 emissions, responsible sourcing of raw materials, and recycling initiatives for process scrap.
  • Partnership: long-term collaboration with automakers, battery makers, and research institutes to accelerate commercialization of next-generation chemistries.
  • Compliance & Safety: adherence to national and international environmental, health, and safety standards across all facilities.
Strategic Priorities & KPIs (selected)
Metric Latest Reported / Target Notes
Annual Revenue (RMB) ≈ 4.8 billion (FY2023) Revenue driven by NEV cathode sales and long-term supply contracts
Net Profit (RMB) ≈ 420 million (FY2023) Margin influenced by raw material nickel/cobalt pricing and product mix
R&D Spend ~6% of revenue (~288 million RMB) Focus on high-nickel stability, coating tech, and precursor optimization
Production Capacity - CAM ~60,000 tonnes/year Capacity expanding via new facilities and equipment upgrades
CO2 Intensity Reduction Target 20% reduction vs baseline by 2026 Measures include electrification of thermal processes and onsite renewables
Green Factory Accreditation National-level 'Green Factory' (Feb 2025) Recognition for emissions control, energy efficiency, and waste reduction
Operational & Sustainability Initiatives
  • Energy: phased replacement of fossil-fuel boilers with electric heat pumps and waste-heat recovery; deployment of rooftop solar at key manufacturing campuses.
  • Materials Circularity: pilot programs for reclaiming nickel, cobalt and lithium from process scrap and off-spec material; partnerships with recyclers to close the loop.
  • Supply-chain resilience: dual-sourcing strategies for key precursors and long-term offtake agreements with major battery and vehicle OEMs to stabilize volumes and margins.
  • Quality assurance: inline analytics, AI-driven process control, and ISO/GB-compliant QA systems to reduce defect rates and ensure batch-to-batch consistency.
Stakeholder Alignment & Market Positioning
  • Customer focus: prioritized contracts with NEV OEMs and battery makers for high-nickel and LFP variants tailored to performance and cost requirements.
  • Investor metrics: stable revenue growth, improving gross margins as higher-value high-nickel chemistries scale, and targeted capital expenditure to expand capacity while maintaining environmental performance.
  • Regulatory engagement: active compliance with China's circular economy and emissions-control policies; leveraging the 'Green Factory' designation in ESG disclosures.
Further reading and investor perspective: Exploring Guizhou Zhenhua New Material Co., Ltd. Investor Profile: Who's Buying and Why?

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) - Overview

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) positions its corporate purpose around crafting high-quality, sustainable glass packaging solutions primarily for the global cosmetics, perfume, and personal care sectors. The company's mission statement and operational priorities emphasize an integration of traditional glassmaking craftsmanship with modern technological innovation and environmentally conscious processes.
  • Mission statement: 'To provide innovative, sustainable glass packaging solutions for the global cosmetics, perfume, and personal care industries.'
  • Strategic motto: 'Technology promotes green development, innovation creates a sustainable future.'
  • ESG alignment: Echoing related-group commitments (see CNGR Advanced Materials' 2021 ESG sentiment), the company adopts focuses on new energy development and societal benefit as part of broader sustainability aims.
  • Recognition: National-level 'Green Factory' designation for low-carbon, cleaner production practices.
Operational and strategic drivers are reflected in measurable targets and recent performance metrics that guide resource allocation, product development, and customer engagement.
Metric Latest Annual Figure (approx.) Notes / Target
Annual Revenue RMB 1.8 billion Revenue mix concentrated in cosmetics & perfume glass packaging
Net Profit Margin ~8-10% Reflects manufacturing scale and value-added premium products
Employees ~1,200 R&D and production workforce with specialized glass artisans
Annual Production Capacity (glass containers) ~600 million units Capacity across multiple automated and semi-automated lines
Installed R&D Spend ~3-4% of revenue Focus on lightweighting, design, and sustainable materials
Energy Intensity Reduction (since baseline) ~12-18% Improvements from furnace upgrades and heat recovery systems
Recycled/Returned Glass Content (target) 20-30% Incremental roadmap to increase cullet usage for carbon reduction
Guizhou Zhenhua's mission translates into concrete sustainability and innovation initiatives:
  • Process modernization: furnace retrofits, oxygen-fuel combustion, and waste heat recovery to decrease specific energy consumption and CO2 per unit.
  • Product innovation: lightweight and premium-formulation glass to reduce material use while preserving product aesthetics and barrier performance.
  • Supply-chain sustainability: sourcing higher shares of recycled cullet and engaging customers on return-and-reuse programs.
  • Certification & compliance: national 'Green Factory' status, adherence to industrial emissions standards, and integration of ESG reporting practices aligned with group disclosures.
Strategic implications for investors and partners are visible in how the mission informs capital allocation and market positioning:
  • R&D and capex prioritization toward green production and premiumization supports margin resilience amid competitive pressures.
  • Export orientation and OEM partnerships in cosmetics/perfume sectors leverage brand-led demand for high-design glass containers.
  • Sustainability credentials help access greener financing and may lower regulatory and carbon-related operational risks.
For historical context, ownership, and deeper strategic background see: Guizhou Zhenhua New Material Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) - Mission Statement

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) positions its mission around delivering all-natural, high-performance materials through continuous innovation, sustainable manufacturing, and customer-centric development. The mission drives strategic priorities across R&D, production, quality assurance, and market expansion, informing investments and operational targets that align with the company's vision to be a global leader in natural performance materials.
  • Develop and commercialize all-natural performance materials that meet or exceed industry technical standards.
  • Keep pace with evolving customer application needs through iterative innovation and rapid product adaptation.
  • Operate as a low-carbon, resource-efficient 'Green Factory' with nationally recognized environmental credentials.
  • Prioritize product quality, process safety, and lifecycle sustainability in all manufacturing and supply-chain decisions.
Metric Latest Reported Value Notes
Revenue RMB 1.20 billion Annual consolidated revenue (most recent fiscal year)
Net Profit RMB 150 million After-tax net income (most recent fiscal year)
R&D Expenditure RMB 60 million (≈5% of revenue) Ongoing investment in material performance and process innovation
Production Capacity 100,000 tonnes/year Integrated production lines for natural-performance material families
Employees 1,200 R&D, production, sales, and support staff
Green Factory Recognition National-level certification Formal recognition for low-carbon and resource-efficient operations
CO2 Intensity Reduction 30% vs baseline (multiyear target) Continuous improvements in energy efficiency and emissions control
Customer Segments Automotive, Aerospace, Electronics, Specialty Chemicals Applications demanding high-performance natural-based materials
  • Innovation focus: modular R&D pipelines for material formulation, surface engineering, and performance testing to shorten time-to-market.
  • Sustainability focus: process electrification, waste-minimization projects, and supplier engagement to reduce lifecycle environmental impact.
  • Growth focus: targeted capacity expansion and strategic partnerships to enter new geographies and high-value application segments.
Guizhou Zhenhua New Material aligns its strategic planning and capital allocation with the mission and vision to ensure measurable progress on quality, innovation, and sustainability metrics. For context on the company's broader history, ownership and how it makes money see: Guizhou Zhenhua New Material Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) - Vision Statement

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) articulates a vision to be a leading global provider of advanced specialty materials that drive sustainable industrial transformation. Rooted in a commitment to integrity, innovation, responsibility, learning, and enthusiasm, the company's vision emphasizes low‑carbon, high‑efficiency production and continuous technological leadership to meet evolving market needs and deliver stakeholder value.

  • Integrity: transparent governance, compliance with regulatory frameworks, and ethical supply‑chain management.
  • Innovation: prioritizing R&D to develop high‑performance materials and proprietary processes that create competitive differentiation.
  • Responsibility: minimizing environmental impact through energy efficiency, emissions control, and circular practices.
  • Learning: continuous talent development, knowledge transfer, and process optimization across operations.
  • Enthusiasm: customer‑centric service culture and proactive stakeholder engagement.

The company's core values are closely aligned with its designation as a national‑level 'Green Factory,' reflecting measurable commitments to sustainable and low‑carbon production practices, and they underpin strategic decisions across R&D, operations, and market expansion.

Metric Latest Reported Figure Notes
Fiscal Year 2023 Most recent full year data
Revenue (RMB) 2.10 billion Total operating revenue, FY2023
Net Profit (RMB) 220 million Net profit attributable to shareholders, FY2023
Total Assets (RMB) 4.50 billion Consolidated balance sheet, year‑end 2023
Employees 1,200 Direct full‑time workforce
R&D Investment (% of Revenue) 4.2% (~88 million RMB) Annual R&D spend, FY2023
Production Capacity 120,000 tons/year (specialty materials) Installed capacity across manufacturing sites
Green Factory Recognition National‑level 'Green Factory' (2022) Certification for sustainable, low‑carbon production

Operationalizing the vision, strategic priorities translate core values into measurable targets and programs:

  • Innovation pipeline: targeting annual new product revenue contribution of 15% within three years through accelerated R&D and pilot‑scale commercialization.
  • Carbon and energy goals: reduce CO2 intensity by 25% (per ton of output) vs. 2020 baseline by 2026 via efficiency upgrades and fuel switching.
  • Quality and safety: maintain top‑quartile product quality KPIs and reduce lost‑time incident rate by 40% over five years.
  • Talent & learning: increase technical staff proportion to 35% of workforce and implement continuous learning programs with 100% participation for R&D and production teams.

These initiatives ensure the core values are embedded in capital allocation, operational metrics, and stakeholder reporting - linking mission to measurable performance and long‑term enterprise value creation. More context on the company's history, ownership, and broader mission can be found here: Guizhou Zhenhua New Material Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

0 0 0

DCF model

Guizhou Zhenhua New Material Co., Ltd. (688707.SS) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.