China New Materials Co., Ltd. (Stock abbreviation: CNGR Advanced Material) (300919)

Individual Stock Analysis Report　|　Industry: New Energy Battery Materials　|　Report date: September 13, 2026　|　As of the September 11, 2026 close; complete verifiable data for moving averages, MACD, RSI and Bollinger Bands are as of September 1, 2026, representing a lag of approximately 7 trading days; shareholder concentration data are as of March 31, 2026, and shareholder-account data are as of June 30, 2026.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

CNGR Advanced Material’s performance recovered markedly in the first half of 2026: operating revenue reached RMB 33.584 billion, up 57.51% year on year; net profit attributable to shareholders of the listed company was RMB 1.303 billion, up 77.80%; and non-GAAP net profit attributable to shareholders was RMB 1.255 billion, up 92.07%. Profit growth exceeded revenue growth, while the comprehensive gross margin was approximately 13.32%, indicating improved profitability compared with 2025. For full-year 2025, the company recorded revenue of RMB 48.140 billion and net profit attributable to shareholders of RMB 1.567 billion. Total battery-material sales exceeded 420,000 tonnes, and the business remained in an expansion phase.

The company’s traditional strengths lie in ternary precursors and cobalt-based precursors. It is also extending into nickel, phosphorus and lithium resources and smelting, phosphorus- and sodium-based materials, localized overseas production and recycling. In 2025, ternary-precursor revenue was RMB 16.676 billion and new-energy-metals revenue was RMB 17.808 billion, with new-energy metals accounting for a relatively high proportion of revenue. The company disclosed that its 2025 ternary-precursor market share was approximately 24%, ranking first in the industry for six consecutive years. Its market share in cobalt tetroxide also ranked first in the industry for six consecutive years. However, these market-share figures are based on third-party statistics cited by the company.

The sustainability of the earnings recovery will depend on volume and profit recovery for nickel-, cobalt- and phosphorus-based materials, cost reductions in Indonesian nickel resources and smelting, ramp-up of high-end precursors and overseas capacity utilization. Net cash generated from operating activities in the first half of 2026 was RMB 1.596 billion, up 8.13% year on year, below the growth rate of attributable net profit. Operating cash flow fell 65.16% in 2025. Accounts receivable and inventories also remained high, requiring continued monitoring of profit-to-cash conversion and working-capital usage.

As of September 11, 2026, the company’s share price closed at RMB 37.62, close to its 52-week low of RMB 35.51. The short-term price was below the reference ranges for MA5, MA10, MA20 and the lower Bollinger Band that were verifiable as of September 1, indicating weak technical momentum. However, the RSI remained in a neutral range, so extreme oversold conditions cannot yet be confirmed. Recent turnover value increased moderately, but the turnover rate was only 0.90%, providing insufficient evidence of short-term buying support.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Nickel-based materials: high-nickel and ultra-high-nickel ternary precursors, solid-state-battery precursors, high-nickel precursors for the low-altitude economy, medium-nickel high-voltage precursors and others
• Cobalt-based materials: cobalt tetroxide and high-voltage cobalt-based precursors, primarily used in lithium-cobalt-oxide batteries and consumer electronics
• Phosphorus-based materials: iron phosphate and lithium iron phosphate, primarily used in power and energy-storage batteries
• Sodium-based materials: polyanionic sodium-battery cathode materials and layered-oxide sodium-battery cathode materials
• New-energy metals: nickel intermediates, high-purity nickel plates and others; depending on market prices and its own capacity, the company can switch between supplying materials internally and selling metal products externally
• Business coverage includes ternary lithium-ion batteries, lithium-cobalt-oxide batteries, lithium-iron-phosphate batteries, sodium-ion batteries and solid-state/semi-solid-state batteries, applied in new-energy vehicles, energy storage, consumer electronics, low-altitude aircraft and robotics
• 2025 revenue mix: ternary precursors RMB 16.676 billion, or 34.64%; cobalt tetroxide RMB 4.396 billion, or 9.13%; iron phosphate/lithium iron phosphate RMB 1.565 billion, or 3.25%; new-energy metals RMB 17.808 billion, or 36.99%; other businesses RMB 7.661 billion, or 15.91%

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

The company is fundamentally a manufacturer of lithium-battery cathode-material precursors and cathode materials, occupying a core position in the middle reaches of the lithium-battery value chain. It is also extending upstream into nickel, phosphorus and lithium resources and smelting, while developing downstream cathode materials and battery recycling, thereby forming a vertically integrated structure covering “resource extraction—smelting and processing—battery materials—recycling.” Precursor performance is inherited to a considerable extent by cathode materials, giving this segment relatively high technical, capital-investment and customer-certification requirements.

• Key purchases include laterite nickel ore, MHP, nickel matte, high-grade nickel matte and other nickel intermediates, cobalt intermediates, manganese sulfate, cobalt chloride, phosphoric acid, ferrous sulfate and other auxiliary materials.
• Purchase prices for nickel intermediates, cobalt intermediates and manganese sulfate primarily reference spot prices on Shanghai Metals Market, London Metal Exchange prices and other market prices. Overall, the company has strong price-taker characteristics in bulk metal raw materials.
• In 2025, direct-material costs accounted for 82.94% of operating costs in the lithium-battery cathode-precursor business, while direct-material costs accounted for 71.83% of operating costs in the new-energy-metals business. The cost structure is therefore highly dependent on metal raw-material prices.
• Through investments, equity stakes, long-term agreements and offtake arrangements, the company has secured supplies from more than 600 million wet tonnes of laterite nickel ore resources. It has also established approximately 200,000 tonnes of contained-nickel annual smelting capacity in Indonesia. Nickel products can be converted among nickel pig iron, nickel matte, high-grade nickel matte, electrolytic nickel and high-purity nickel plates.
• The company has approximately 98.44 million tonnes of phosphate resources in Kaiyang, Guizhou, with a planned annual mining capacity of 2.8 million tonnes. Through controlling interests in projects including the Jama and Solaroz projects, it has entered Argentina’s salt-lake lithium resources, with controlled lithium resources equivalent to more than 10 million tonnes of lithium carbonate equivalent. These lithium-resource figures do not equate to proven mineable reserves, actual production or current-period profitability.
• Purchases from the five largest suppliers totaled RMB 10.993 billion, accounting for 22.70% of total 2025 purchases. The minutes did not disclose supplier names or a further historical comparison of this concentration.
• Key direct customers include domestic and overseas cathode-material manufacturers, lithium-battery manufacturers and new-energy-vehicle manufacturers. The company disclosed cooperation with Tesla, LG Chem, Samsung SDI, POSCO, SK On, CATL, BYD, CALB, Sunwoda, Panasonic, Easpring Technology, Ronbay Technology, BTR, Xiamen Tungsten, ECOPRO, L&F and other value-chain companies.
• The company generally uses a “raw-material cost plus processing fee” pricing model: the metal-salt raw-material component is priced according to market prices, while the processing fee is determined by process technology, supply and demand, target profit and customer negotiations.
• Most raw-material costs can be passed through to downstream customers. However, the company’s differentiated profit mainly comes from processing fees, process capabilities, product performance, yield, customer certification and scaled manufacturing. When the industry has excess capacity or downstream customers have strong bargaining power, processing fees may be compressed.
• Sales to the five largest customers totaled RMB 17.699 billion, accounting for 36.77% of total 2025 sales; the largest customer accounted for 13.36%. These are 2025 figures, and customers were disclosed anonymously as Customers A–E. Their correspondence with specific companies such as CATL, LG Chem and Tesla cannot be confirmed solely from the annual report. The list of cooperating companies should not be treated as identical to the list of the five largest customers.
• Downstream customers are mostly large battery, cathode-material or vehicle companies with strong purchasing bargaining power. The company’s relationships with large battery manufacturers simultaneously involve customers, partners and potential vertically integrated competitors.
• At the end of 2025, accounts receivable were RMB 6.633 billion, or 8.13% of total assets, equivalent to approximately 13.78% of 2025 operating revenue. Inventories were RMB 14.664 billion, or 17.97% of total assets, equivalent to approximately 30.46% of operating revenue. Net cash generated from operating activities in 2025 was RMB 1.374 billion, down 65.16% year on year and below attributable net profit of RMB 1.567 billion. The company stated that the main reason was increased purchasing payments. Both accounts receivable and inventories increased from the end of 2024, indicating significant working-capital usage from metal raw materials, work in progress and inventories.
• The five largest customers accounted for 36.77% of 2025 sales, with the largest customer accounting for 13.36%; the five largest suppliers accounted for 22.70% of purchases. Customer-concentration data have a clear annual scope, but customer names were anonymized and cannot be directly matched with the company’s disclosed cooperation list. The minutes did not provide concentration data for earlier years; the latest annual report should be consulted for the definitive figures.

The company operates in the core materials segment of the middle reaches of the lithium-battery value chain. Its traditional ternary-precursor and cobalt-based-precursor businesses have relatively high technical, certification and scale barriers, but processing fees remain subject to competition. Its nickel- and phosphorus-resource and smelting operations extend upstream, while high-nickel and solid-state precursors, high-voltage cobalt-based materials, lithium iron phosphate and sodium-battery materials represent higher-value-added directions. Further profit improvement will depend mainly on a higher proportion of high-end materials, lower costs through self-supplied Indonesian nickel resources and smelting, increased phosphorus-based-material volumes and higher utilization of global capacity. The company remains exposed to raw-material prices, capacity competition, downstream customer bargaining power and returns on overseas investments.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

As of June 30, 2026, the latest financial report was the 2026 Interim Report, disclosed on August 25, 2026. 2025 data are from the 2025 annual report.

Non-GAAP net profit attributable to shareholders in the first half of 2026 was RMB 1.255 billion, up 92.07% year on year, compared with RMB 653 million in the prior-year period. Basic EPS was RMB 1.23, up 55.70% year on year, and weighted-average return on equity was 5.44%, up 1.80 percentage points from the prior-year period. The comprehensive gross margin was approximately 13.32% and the net margin approximately 5.35%. Profit growth exceeded revenue growth, indicating a recovery in profitability from the first half of 2025. Net cash generated from operating activities in the first half of 2026 was RMB 1.596 billion, up 8.13% year on year but below attributable net-profit growth. Based on the third-party analytical definition cited in the minutes, operating net cash flow/net profit was approximately 0.89, indicating that profit-to-cash conversion still requires monitoring. Net cash generated from operating activities in 2025 was RMB 1.374 billion, down 65.16% year on year.

3.2 Earnings Forecast

Forecast data are based on the Tonghuashun F10 consolidated figures as of September 9, 2026. Six institutions issued 2026 earnings forecasts during the preceding six months. The currently accessible detailed forecast table primarily presents data from Everbright Securities and Soochow Securities. Accordingly, the 2027–2028 average operating-revenue forecasts are closer to the average of the displayed institutions and cannot be regarded as the complete revenue consensus of all six institutions. The aggregated net-profit and EPS data may be used as a reference for the platform’s consensus estimates. Among representative institutions, Soochow Securities forecasts 2026–2028 revenue of RMB 60.496 billion, RMB 70.349 billion and RMB 81.174 billion, respectively; attributable net profit of RMB 3.052 billion, RMB 3.664 billion and RMB 4.402 billion; and EPS of RMB 2.92, RMB 3.51 and RMB 4.22. Everbright Securities forecasts revenue of RMB 66.136 billion, RMB 76.561 billion and RMB 89.102 billion; attributable net profit of RMB 3.031 billion, RMB 3.573 billion and RMB 4.201 billion; and EPS of RMB 2.90, RMB 3.42 and RMB 4.02. Some earlier institutional forecasts for 2026–2028 attributable net profit were approximately RMB 2.36 billion, RMB 2.92 billion and RMB 3.52 billion, respectively, below the more recent forecasts. This indicates that earnings estimates are sensitive to nickel prices, nickel-smelting profitability, ternary-precursor shipment volumes and the recovery of phosphorus-based-material profitability.

3.3 Valuation and Institutional Ratings

Valuation data as of the September 11, 2026 close: closing price of RMB 37.62, total market capitalization of approximately RMB 39.293 billion, PB of approximately 1.67x and dynamic PE of approximately 18.4–18.9x. As of September 10, 2026, Lixinger showed a PE-TTM of approximately 18.89x and PB of approximately 1.72x. PE was at approximately the 37.60th historical percentile, below the historical median of approximately 20.44x. Dawave showed a PE-TTM of approximately 18.9x and PB of approximately 1.72x. Based on Tonghuashun’s average institutional EPS forecasts, forecast PE for 2026–2028 is approximately 13.7x, 11.3x and 9.5x, respectively. Based on average attributable-net-profit forecasts, the corresponding market-capitalization/net-profit multiples are also approximately 13.7x, 11.3x and 9.5x. Based on Soochow Securities’ 2026 EPS forecast of RMB 2.92, the current share price implies 2026 PE of approximately 12.9x; based on its RMB 73 target price, the implied 2026 forecast PE is approximately 25x. Approximately four institutions issued relevant research reports during the preceding six months, with target prices of approximately RMB 67–73 and an average target price of approximately RMB 69.05. Ratings were predominantly Buy. Another platform’s mixed statistics, which include earlier or different time points, showed an average target price of approximately RMB 55.92, with a low of RMB 43.05 and a high of RMB 73. When used as a reference, research reports updated after the August 2026 interim results should be prioritized. Overall, the company’s first-half 2026 performance was in a clear recovery phase. If institutional earnings forecasts are achieved, forward PE will be below the current trailing valuation. However, institutional forecasts vary significantly: the 2026 attributable-net-profit forecast range is RMB 2.504–3.052 billion. Actual performance will depend on nickel prices, metal-smelting profitability, ternary-precursor shipment volumes, recovery in phosphorus-based-material profitability, raw-material prices, overseas operations, exchange rates and industry supply-demand changes. Operating cash flow fell 65.16% year on year in 2025, while first-half 2026 operating-cash-flow growth was also materially below attributable-net-profit growth. The cash content of earnings requires continued monitoring.

4. Recent News and Announcements

4.1 Third Extraordinary General Meeting of Shareholders in 2026 to Consider Four Proposals

CNGR Advanced Material plans to convene its third extraordinary general meeting of shareholders in 2026 at 14:30 on September 16, 2026. The record date is September 10, 2026. The meeting will consider the 2026 interim dividend plan, a new general mandate to issue additional A shares or H shares, the provision of financial assistance to an investee company and changes to the use of proceeds from the H-share offering. These matters originated from the fifth meeting of the third Board of Directors held on August 24, 2026, and the relevant announcements were disclosed on August 25, 2026. As of September 13, 2026, the proposals had not yet been considered by shareholders.

4.2 Proposed 2026 Interim Dividend

On August 24, 2026, the Board approved the 2026 interim dividend plan. Based on the total share capital outstanding on the dividend record date after deducting shares held in the repurchase account, the company plans to distribute a cash dividend of RMB 3.8 per 10 shares, tax included, with no bonus shares and no conversion of capital reserves into share capital. Based on 1,014,633,340 shares after deducting repurchased shares as disclosed on the announcement date, the expected cash dividend is approximately RMB 385.6 million. The funds will come from the company’s own resources. The plan remains subject to approval at the third extraordinary general meeting of shareholders in 2026. The actual amount distributed may change due to repurchases, the exercise of equity incentives and other events before the record date.

4.3 First-Half 2026 Results Continued to Grow

In the first half of 2026, the company recorded net profit attributable to shareholders of the listed company of approximately RMB 1.303 billion, while the parent company recorded net profit of approximately RMB 1.222 billion. Net profit after deducting non-recurring items was approximately RMB 1.255 billion. Attributable net profit increased approximately 77.80% year on year, while net profit after deducting non-recurring items increased approximately 92.07%. As of June 30, 2026, undistributed profit available for distribution in the consolidated statements was approximately RMB 6.552 billion, and that of the parent company was approximately RMB 3.313 billion. The interim-report data were unaudited and do not constitute a new September 2026 earnings forecast.

4.4 No New Repurchase Plan at Present

As of September 13, 2026, no new repurchase plan initiated in September 2026 or new repurchase progress announcement had been identified. On August 28, 2026, the company replied on the investor-interaction platform that it had “no repurchase plan at present” and would dynamically assess various market-capitalization-management tools based on market conditions, operating conditions and funding arrangements. According to the 2025 annual report, as of October 15, 2025, the company had repurchased 22,958,992 shares, approximately 2.45% of total shares outstanding at that time, for an aggregate transaction value of approximately RMB 797 million. The repurchase plan had been completed.

4.5 Proposed Financial Assistance of up to USD 6.8 Million to Investee Company SSP

Based on its 34% ownership interest, the company proposes to provide a loan of up to USD 6.8 million or the equivalent amount in renminbi to investee company PT Sinerai Setia Pratiwi (SSP), with a term of no more than 12 months and an interest rate of no more than 10%. The facility may be used on a revolving basis during the effective period of the agreement, with all shareholders providing funding support to SSP according to their respective ownership percentages. The arrangement is primarily intended to ensure SSP’s normal production and operations, advance integrated value-chain development, strengthen coal-quality testing and source-level quality controls, and remains subject to shareholder approval. The announcement stated that the matter does not constitute a connected transaction or a material asset restructuring. If the full USD 6.8 million facility is provided, the balance of financial assistance provided by the company and its subsidiaries to entities outside the consolidated statements would reach approximately USD 402.71 million, equivalent to 11.58% of the company’s most recent audited net assets. The company disclosed that there were no overdue financial-assistance receivables.

4.6 Proposed Adjustment to the Use of H-Share Offering Proceeds

The company proposes to change part of the use of proceeds from its global H-share offering, reallocating approximately HKD 1.2014 billion originally intended for the South Korea production-base project to the Kaiyang phosphate-mine project in Guizhou and Phase III of the integrated phosphorus-industry project. The company stated that the adjustment was based mainly on current market conditions, industry trends, actual project-construction progress and the priority of capital investment, with the aim of improving the efficiency of H-share proceeds. The adjustment would not change the Group’s long-term development strategy or the development direction of its nickel-based-materials business. The matter remains subject to consideration at an extraordinary general meeting of shareholders.

4.7 Proposed General Mandate to Issue A Shares or H Shares

The company proposes to ask shareholders to approve a new general mandate to issue A shares or H shares. The mandate would authorize the Board, during the mandate period, to issue separately or concurrently no more than 20% of the respective number of existing issued A shares or H shares, or securities, share options, warrants and other similar interests convertible into the relevant shares. Uses of the mandate include potential strategic initiatives, project investment, optimization of the shareholder structure and supplementation of daily operating funds. The proposal is a special-resolution matter requiring approval by more than two-thirds of the voting rights held by shareholders attending the meeting. A general mandate does not mean that the company has determined to issue shares. If an issuance is carried out in the future, it may expand the share capital and dilute existing shareholders.

4.8 Institutional Research and Operating Updates

On August 26, 2026, the company disclosed an investor-relations activity record showing that it had hosted more than 100 institutions, including China Merchants Fund, Orient Asset, Nord Fund, Jade Value, CPIC Asset Management, Gaoyi Asset, Morgan Stanley, Nomura Securities, CITIC Securities, CICC and Huatai Securities. During the discussions, the company stated that aggregate sales of nickel-, cobalt-, phosphorus- and sodium-based battery materials exceeded 250,000 tonnes in the first half of 2026; its 40,000-tonne Moroccan capacity had officially commenced production, primarily serving European and U.S. customers; its German recycling joint venture had begun operations; the company would build an overseas supply chain through its two major overseas bases in Morocco and Indonesia; solid-state precursors had reached shipments at the hundreds-of-tonnes level; and the company had established certain first-mover advantages in solid-state batteries, robotics and low-altitude aircraft. This information comes from investor-relations activity records and the interactive platform. It reflects management communications and company statements and does not constitute audited or independently verified operating forecasts.

4.9 No Significant New Shareholder or Regulatory Announcements Identified

As of September 13, 2026, no new September 2026 announcements had been identified concerning reductions, increases, pledges or changes in interests by the company’s controlling shareholder, actual controller or major shareholders. No new third-quarter 2026 earnings forecast, earnings pre-increase or earnings pre-decrease announcement had been identified. No public announcement had been identified concerning regulatory penalties, disciplinary action, a formal investigation or a major inquiry letter. No new September 2026 merger-and-acquisition announcement was identified, although some information may not yet have been fully indexed by search engines or third-party announcement mirrors.

4.10 Basic Company Information

300919 corresponds to China New Materials Co., Ltd., whose A-share abbreviation is “CNGR Advanced Material.” It is listed on the ChiNext board of the Shenzhen Stock Exchange and is also listed on the Hong Kong Stock Exchange under H-share code 02579.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, the share price closed at RMB 37.62, near the lower end of its 52-week range and close to the 52-week low of approximately RMB 35.51. The short-term price had fallen below the MA5, MA10, MA20 and lower Bollinger-Band reference ranges verifiable as of September 1, indicating weak technical momentum. However, the MACD histogram was still positive on September 1 and the RSI remained neutral, so extreme oversold conditions or a medium-term trend reversal cannot be confirmed solely on this basis. The recent decline was accompanied by a moderate increase in turnover value, but the turnover rate remained below 1% and volume was below the three-month average. No clear strong buying support was evident. Regarding the shareholder structure, the largest shareholder held 52.78% of the free float as of March 31, 2026, while the top 10 free-float shareholders held approximately 74.7% in aggregate based on estimates from publicly available tables. This concentration is an approximate calculation based on public data, and the shareholder data are subject to a quarterly lag; the actual ownership structure may have changed.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on the September 11, 2026 closing data and historical technical indicators. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weighting, approximately 60%; this is a subjective heuristic judgment based on current technical and capital-market conditions, not a statistical probability): price range of approximately RMB 36.8–39.5. Trigger conditions include buying support emerging around RMB 37, but no decisive break above RMB 39.5–40, with turnover value remaining around RMB 250–350 million and no obvious negative catalyst or strong catalyst for the sector. If volume does not follow the price, any rebound is more likely to be a weak countertrend bounce.
• Continued weakness (medium weighting; this is a subjective heuristic judgment, not a statistical probability): price range of approximately RMB 35.5–37.0. Trigger conditions include a high-volume break below RMB 37, daily turnover value materially exceeding the recent average, continued weakness in the battery-materials sector or declining broader-market risk appetite. If effective buying support also fails near RMB 35.5, the share price may continue lower. After a break below the 52-week low, volume and bottoming patterns should be reassessed.
• Strengthening rebound (low weighting; this is a subjective heuristic judgment, not a statistical probability): price range of approximately RMB 39.5–40.8. Trigger conditions include a move back above RMB 39.5, followed by a break above RMB 40 and the RMB 40.2–40.8 moving-average resistance zone, with daily turnover value rising steadily above approximately RMB 350 million and ideally accompanied by sector-wide strength in battery materials. A low-volume rebound to around RMB 39–40 followed by a retreat should still be viewed as a weak countertrend bounce rather than a confirmed trend reversal.

③ Capital and Liquidity Background

As of September 11, 2026, the daily turnover rate was 0.90% and turnover value was approximately RMB 308 million. Turnover value over the preceding four trading days ranged from approximately RMB 240 million to RMB 308 million, averaging approximately RMB 268 million. Regarding main funds, cumulative net outflow over the 10 trading days through September 1 was approximately RMB 39.01 million, but complete continuous data from September 2 to September 11 were unavailable. Shareholder-concentration data are as of March 31, 2026: the largest shareholder, Hunan CNGR Holding Group Co., Ltd., held 52.78% of the free float, while the top 10 free-float shareholders held approximately 74.7% in aggregate based on estimates from public tables. These shareholders included Gaoyi Asset, Hong Kong Securities Clearing Company, funds and investment funds, as well as the controlling shareholder, corporations and individual shareholders. They cannot simply be classified as a highly concentrated group of public-market institutions. The number of shareholder accounts was approximately 51,800 as of June 30, 2026, up approximately 26.26% from March 31, 2026. This may indicate some dispersion of holdings, but may also have been affected by additional share issuance, the lifting of lock-ups or changes in share capital. All of these shareholder data lag the market situation as of September 11, 2026, and the actual structure may have changed. Given the sub-1% turnover rate and relatively high shareholder concentration, the readily tradable float is relatively limited. When liquidity weakens, market depth may be insufficient, making the price sensitive to individual trades and potentially increasing execution slippage.

Observable volume-confirmation signals: if daily turnover value subsequently rises consistently above approximately RMB 350 million and the share price simultaneously moves above RMB 39.5–40, this could be viewed as a sign of improved short-term capital participation. If volume rises while the share price continues to fall below RMB 37, this should instead be interpreted as selling-pressure release rather than simply as a capital-inflow signal.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the area around RMB 37 can stabilize on declining volume; if it breaks decisively, monitor the strong-support area at RMB 35.5–36.0.
• Observe whether the RMB 39.5–40.8 resistance zone can be reclaimed on higher volume, particularly the round-number level of RMB 40.
• Observe whether turnover value continues to rise from the recent RMB 240–310 million range to above RMB 350 million.
• Observe whether main funds shift from continued net outflows to continued net inflows. However, reliable cross-verification of continuous capital-flow data from September 2 to September 11 has not yet been obtained. The above are observation frameworks only, not trading instructions.

The above scenario analysis is based on the September 11, 2026 closing data, technical indicators verifiable as of September 1, 2026, historical prices and publicly available shareholder data. Short-term share prices will also be affected by news, capital flows, broader-market conditions, industry prices and market sentiment. Technical indicators themselves have lagging characteristics and limitations. This analysis does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and assume their own investment risks.

6. Industry Structure and Competitor Analysis

6.1 Industry Status

The company operates in the new-energy battery-materials industry, primarily covering ternary precursors, cobalt tetroxide, iron phosphate/lithium iron phosphate, sodium-battery cathode materials and new-energy metals. The industry is developing from single-material processing toward an integrated “resources—smelting—materials—recycling” model. Competitive priorities are shifting from simple capacity expansion toward resource control, high-end product development, yield and cost, certification by leading customers, localized overseas production and closed-loop recycling.

6.2 Competitive Landscape

• The company disclosed that its 2025 ternary-precursor market share was approximately 24%, ranking first in the industry for six consecutive years. It also stated that its nickel- and cobalt-based precursors were globally leading and that its cobalt-tetroxide market share ranked first in the industry for six consecutive years. These market-share figures come from third-party statistics such as Xinlu Data and are external data cited in the company’s annual report rather than figures directly certified by a regulator.
• Ternary precursors, iron phosphate and lithium iron phosphate all face risks from capacity expansion and price competition. Continued expansion by incumbent companies and entry by new companies may intensify competition and pressure market share and gross margins.
• Industry leaders are moving toward integration of resources, smelting, materials and recycling. The profit space of companies focused on single-material processing may be squeezed. Extending along the value chain also creates challenges in capital expenditure, overseas operations and asset-liability management.
• Core competitive factors include control of nickel, cobalt, lithium and phosphorus resources; development of high-nickel, ultra-high-nickel and high-voltage products; production-line yield, cost and consistency; certification by leading battery companies; localized overseas production; closed-loop recycling; and low-carbon supply-chain capabilities.

6.3 Major Competitors

CNGR Advanced Material’s traditional strengths are ternary precursors and cobalt-based precursors. It is expanding into nickel, phosphorus and lithium resources and smelting, phosphorus- and sodium-based materials and recycling, positioning itself between midstream materials manufacturing and an integrated resource-and-smelting platform. Compared with Huayou Cobalt, its traditional strengths are more concentrated in precursor scale, technology and customer certification. Compared with GEM, recycling and secondary-resource characteristics are not currently its most prominent features. Compared with Ronbay Technology, CNGR is more focused on precursors, resource smelting and metal-raw-material security, while Ronbay is more focused on cathode-material manufacturing. Its relationships with large battery companies such as CATL and LG Energy Solution combine the characteristics of customers, partners and potential vertically integrated competitors.

7. Risk Factors

• Raw-material prices and profit-pass-through risk: In 2025, direct-material costs accounted for 82.94% of operating costs in the lithium-battery cathode-precursor business and 71.83% in the new-energy-metals business. Although the company mostly uses a raw-material-cost-plus-processing-fee pricing model, fluctuations in nickel, cobalt, lithium and phosphorus prices, as well as downstream customer bargaining power, may still compress processing fees and profit margins.
• Structural risk from the high proportion of new-energy metals: In 2025, new-energy-metals revenue was RMB 17.808 billion, accounting for 36.99% of operating revenue, while its gross margin was 6.96%, below the 18.67% gross margin of the ternary-precursor business. Changes in metal prices, smelting profits or product mix could therefore have a material impact on the overall margin.
• Industry competition and overcapacity risk: Ternary precursors, iron phosphate and lithium iron phosphate all face capacity-expansion and price-competition risks. The company must continue to address new industry capacity, the strong bargaining power of large downstream customers and the pressure on processing fees resulting from large battery companies extending upstream into materials.
• Working-capital and cash-flow risk: At the end of 2025, accounts receivable were RMB 6.633 billion and inventories RMB 14.664 billion, representing 8.13% and 17.97% of total assets, respectively. Net operating cash flow declined 65.16% year on year in 2025, while first-half 2026 cash-flow growth was also below attributable-net-profit growth. Higher purchasing payments and funds tied up in inventories and work in progress may continue to affect cash turnover.
• Overseas projects and integration-investment risk: The company is advancing nickel-resource smelting, overseas materials production and recycling projects in Indonesia, Morocco, Germany and other locations. Overseas expansion may face risks involving project-construction progress, capacity utilization, operating management, exchange rates and lower-than-expected returns on investment. The company proposes to reallocate approximately HKD 1.2014 billion of H-share proceeds from the South Korea production-base project to the Kaiyang phosphate-mine and Phase III phosphorus-integration projects, and the benefits of these projects still require validation.
• Risk from external financial assistance: The company proposes to provide up to USD 6.8 million or the equivalent amount in renminbi, for a term of no more than 12 months, to SSP, in which it holds a 34% stake. If the full amount is provided, the balance of financial assistance extended by the company and its subsidiaries to entities outside the consolidated statements would reach approximately USD 402.71 million, or 11.58% of the most recent audited net assets, creating risks related to fund recovery, investee-company operations and project execution.
• Potential share dilution risk: The company proposes to apply for a general mandate to issue A shares or H shares, authorizing the Board to issue, during the mandate period, no more than 20% of the respective number of existing issued A shares or H shares, or related convertible securities. Although the mandate does not mean that an issuance has been determined, any future issuance could expand the share capital and dilute existing shareholders’ interests.
• Customer concentration and supply-chain bargaining risk: The five largest customers accounted for 36.77% of 2025 sales, while the largest customer accounted for 13.36%. The five largest suppliers accounted for 22.70% of purchases. Customer names were disclosed anonymously, and the specific identities cannot be confirmed from the available data alone. Changes in demand, certification progress or purchasing strategies among major customers could affect the company’s shipments and capacity utilization.
• Technical and liquidity risk: As of September 11, 2026, the share price was RMB 37.62, close to the 52-week low and below the short-term moving-average and Bollinger-Band reference ranges verifiable as of September 1. The daily turnover rate was only 0.90%, and volume was below the three-month average. If support near RMB 37 and RMB 35.5 fails, share-price volatility could increase. At the same time, shareholder concentration is relatively high and the data are lagged, so weaker liquidity could amplify price movements.

8. Conclusion and Outlook

The company’s core growth thesis currently centers on scale expansion and vertical value-chain integration. On the one hand, ternary precursors and cobalt-based precursors continue to benefit from scale, technical and customer-certification advantages. On the other hand, nickel resources and smelting, the Kaiyang phosphate mine and phosphorus integration, sodium-based and solid-state precursors, overseas bases and recycling businesses could broaden the company’s product and resource-security boundaries. The improvement in first-half 2026 earnings growth and gross margin indicates that this business mix has generated positive effects during the current phase.

Whether the earnings recovery can continue will depend on nickel prices and smelting profits, ternary-precursor shipments, profitability of phosphorus-based materials, the proportion of high-end products, overseas project construction and capacity utilization. Institutional forecasts for 2026 attributable net profit range from RMB 2.504 billion to RMB 3.052 billion, a relatively wide range that demonstrates the sensitivity of earnings estimates to metal prices, shipment volumes and the profitability of new businesses. Consensus expectations continue to point to growth in 2027–2028, but some revenue forecasts are primarily based on displayed institutional data and should not be treated as a complete market consensus.

The company plans to implement an interim dividend, adjust the use of H-share offering proceeds, provide up to USD 6.8 million in financial assistance to investee company SSP, and apply for a general mandate to issue A shares or H shares. These matters involve cash distribution, allocation of funds, external use of funds and potential share-capital expansion, respectively. Investors should monitor shareholder-meeting outcomes, returns on project investment and the impact of capital operations on the financial structure and shareholder interests. Technically, the areas around RMB 37 and RMB 35.5–36.0 are important levels to monitor, while RMB 39.5–40.8 represents an upside resistance zone. However, these judgments are based on technical data with a lag and do not represent a definitive forecast of future share-price performance.

Data Sources

• https://static.cninfo.com.cn/finalpage/2026-03-31/1225054811.PDF
• https://cngrgf.com.cn/Upload/Template/web/Files/202505/3e57e96e-00e3-4e06-bb3f-ab5d252dbd9a.pdf
• CNGR Advanced Material (300919)_Company Announcements_CNGR: 2024 Annual Report_Sina Finance
• Huayou Cobalt (603799)_Company Announcements_Huayou Cobalt: 2025 Annual Report_Sina Finance
• GEM Co., Ltd. 2025 Annual Report
• Ronbay New Energy Technology Co., Ltd. 2025 Annual Report
• https://disc.static.szse.cn/disc/disk03/finalpage/2026-08-25/53856f2b-83a4-477b-913d-79194ee16cf7.PDF
• CNGR Advanced Material (300919)_Company Announcements_CNGR: 2025 Annual Report_Sina Finance
• CNGR Advanced Material (300919) Earnings Forecast_F10_Tonghuashun Financial Services
• https://reportify.cn/reports/1239979401169473536?utm_source=openai
• Institutional Ratings | Two Institutions Update CNGR Advanced Material Rating
• CNGR Advanced Material (300919) Stock Information - Data Platform
• Stock abbreviation: CNGR Stock code: 300919
• CNGR Advanced Material (300919)_Company Announcements_CNGR Advanced Material: Notice of the Third Extraordinary General Meeting of Shareholders in 2026_Sina Finance
• CNGR Advanced Material (300919)_Company Announcements_CNGR Advanced Material: Announcement on the 2026 Interim Dividend Plan_Sina Finance
• CNGR Advanced Material: No Repurchase Plan at Present; Market-Capitalization-Management Tools to Be Dynamically Assessed | Hithink RoyalFlush
• CNGR Advanced Material Co., Ltd. 2026 Interim Report Summary | Shanghai Securities News
• Listed Company Information Title Search
• CNGR Advanced Material (300919)_Company Announcements_CNGR Advanced Material: Investor Relations Management Information, 20260826_Sina Finance
• CNGR Advanced Material (300919) Trading Alerts_Securities Star

This report was automatically searched, compiled and generated by AI based on publicly available information. The information is current as of the September 11, 2026 close; complete verifiable data for moving averages, MACD, RSI and Bollinger Bands are as of September 1, 2026, representing a lag of approximately 7 trading days; shareholder concentration data are as of March 31, 2026, and shareholder-account data are as of June 30, 2026. Timing differences may exist. Specific data should be verified against the company’s official announcements and authoritative data terminals. This report is provided solely as an information compilation and research reference. It does not constitute investment advice of any kind. Investors should make independent judgments and assume their own investment risks.