Felicity and Ningde Times will join hands with Ningde Times. Will the lithium battery business rise?

After signing a supply agreement with Huawei and making a lot of noise, Fulin Precision (300432) caught up with the Ningde era and became the latter's supplier. On October 1, Felicity Precision announced that the company’s grandson Jiangxi Shenghua New Materials Co., Ltd. (hereinafter referred to as Jiangxi Shenghua) has recently signed a 'Plan Agreement' with Jiangsu Times New Energy Technology Co., Ltd. (hereinafter referred to as Jiangsu Times) 'SingleSo, will the partnership with Ningde era break the predicament of Felin Precision's lithium battery business? Purchasing price related to commercial secrets was not disclosed. According to the agreement, within the time limit agreed in the agreement, Jiangsu Times will purchase cathode active material lithium iron phosphate from Jiangxi Sublimation, and the detailed purchase quantity Jiangsu Times will sublimate to Jiangxi by order based on its own needs at the end of October. Issue a delivery notice. The purchase price involves commercial secrets and has been reported to the Shenzhen Stock Exchange. According to the 'Planning Agreement' reached by the two parties, during the implementation process, if the purchase price changes due to the update of the price of raw materials, changes in the technology of parts or other reasons, the two parties can negotiate with the other party to agree on the purchase price stipulated in this agreement. change. Availability period: September 28, 2020 to October 28, 2021. The notice disclosed that Jiangsu Times was established in June 2016, the legal representative is Wu Yingming, the registered capital is 1 billion yuan, and the key business is the processing and sales of lithium-ion power lithium batteries. The Tianyan Check shows that Jiangsu Times is a 100% controlled subsidiary of Ningde Times (300750). The 2019 annual report of CATL shows that in 2019, Jiangsu Times had total assets of 5.961 billion yuan, net assets of 1.486 billion yuan, operating income of 4.867 billion yuan last year, operating profit of 606 million yuan, and net profit of 548 million yuan. Despite the strong background and wealth of the Jiangsu era, it is still unknown how much cathode active material lithium iron phosphate can be purchased from Fulin Precision. Fulin Precision stated in the notice that this agreement does not stipulate the detailed purchase quantity. Subsequent Jiangsu Times will notify the supply by order at the end of the month based on its own needs. The supply quantity is temporarily unable to be estimated. Therefore, the impact of this agreement on the company's future operating performance is uncertain. Lithium battery revenue last year was less than 20 million. In fact, for Fulin Precision, the signing of a supply agreement with Jiangsu Times, a subsidiary of CATL, is of great significance. After all, since the acquisition of Hunan Shenghua Technology Co., Ltd. (hereinafter referred to as: Shenghua Technology) , The company’s lithium battery cathode material business has always been difficult. In 2016, the year after Fulin Precision went public, it issued 95.67 million shares at 16.68 yuan per share, paid 504 million yuan in cash, and acquired 100% of the shares of Shenghua Technology, a lithium battery cathode material company, at a price of 2.1 billion yuan, and signed a contract with it. The net profit realized from 2016 to 2018 is not less than 152 million yuan, 200 million yuan and 261 million yuan respectively. In 2016, Shenghua Technology achieved a non-net profit of 158 million yuan and fulfilled its performance commitment; although it failed to fulfill its performance commitment in 2017, it still achieved a net profit of 150 million yuan and a non-net profit of 133 million yuan; but The serious financial crisis of Shenghua Technology's key customer, Walmart, directly caused Shenghua Technology's net loss of 1.08 billion yuan in 2018. This also directly dragged down Fulin Precision, after accruing huge amounts of goodwill, the company lost 2.324 billion yuan in 2018. Despite the performance promise and compensation of the counterparty during the merger and acquisition, the lawsuits have continued, and the operation of Shenghua Technology is still not optimistic. In August 2019, Fulin Precision directly transferred 100% equity of Shenghua Technology to its wholly-owned subsidiary Hunan Shenghua New Material Technology Co., Ltd. (hereinafter referred to as Hunan Shenghua New Material) for a total price of 1 yuan. Tianyancha shows that Jiangxi Shenghua, which signed the supply agreement this time, is a wholly-owned subsidiary of Shenghua Technology. Fulin Precision's 2019 annual report disclosed that the company's lithium battery cathode materials only achieved operating income of 19,984,300 yuan, accounting for only 1.32% of the company's revenue. The 2020 mid-year report disclosed that Shenghua Technology is accelerating the customer expansion of new products while satisfying the delivery of customer orders such as Haistar and Henan Lidong. The new generation of lithium iron phosphate and ternary NCM613 have been verified by customers and are expected to enter batches within the year supply. During the reporting period, the Jiangxi Plant and Zhuzhou Plant were fully upgraded and the renovation work will be basically completed within September. After the transformation is completed, the Jiangxi plant will produce an annual output of 12,000 tons of lithium iron phosphate cathode materials, and the Zhuzhou plant will produce an annual output of 2,000 tons of ternary cathode materials. Disclaimer: Some pictures and content of the articles published on this site are from the Internet. If there is any infringement, please contact to delete.