located in Zaozhuang, disclosed on the evening of July 14 that it intends to raise no more than 2 billion yuan by issuing shares to specific targets for the production line project of lithium iron phosphate cathode materials for lithium batteries with an annual output of 100000 tons, the project of high-energy cathode materials for lithium ion batteries with an annual output of 50000 tons and supplementary liquidity.
Economic Herald reporter noted that the deep cultivation of oxalic acid business Fengyuan shares listed on the Shenzhen Stock Exchange in July 2016, in 2016 into the field of new energy cathode materials, in 2022 the company's lithium battery cathode materials business sales revenue has accounted for 86.20% of the company's total revenue. Fengyuan shares said that the project can expand the production capacity of lithium battery cathode materials, better meet the market demand for the company's products, consolidate and enhance the company's position in the industry.
01 The
new projects are located in Yunnan and Zaozhuang
respectively. According to the disclosure, Fengyuan intends to issue shares to no more than 35 specific investors who meet the requirements, with the number of shares issued not exceeding 84.0188 million, and the total amount of funds to be raised not exceeding 2 billion yuan.
Economic Herald reporter noted that, as one of the investment projects, the annual output of 100000 tons of lithium iron phosphate cathode material production line project, located in Yuxi, Yunnan Province, with a total investment of 1.860 billion yuan, plans to use the raised funds of 800 million yuan, the project construction period of 12 months, after reaching production capacity of 100000 tons of lithium iron phosphate. Fengyuan Co., Ltd. expects that the after-tax internal rate of return will reach 14.45% after the project is fully put into production, with good economic benefits. The total investment of the project
with an
annual output of 50,000 tons of high-energy cathode materials for lithium-ion batteries is 1 billion yuan. The construction period of the project is 12 months. It is planned to use the raised funds of 800 million yuan. The implementation site is located in Taierzhuang District, Zaozhuang City. After the project reaches its production capacity, it will form an annual production capacity of 50,000 tons of high-energy cathode materials for lithium-ion batteries. According to the disclosure, the after-tax internal rate of return of the project is 13.53%. Fengyuan shares are full of confidence
in investing heavily in expanding the production capacity of cathode materials for lithium batteries.
Fengyuan said that the lithium battery industry has become a new development outlet, benefiting from the rapid development of new energy vehicles and new energy storage industries. According to the statistics of China Association of Automobile Manufacturers, the production and sales of new energy vehicles in 2022 were 7.058 million and 6.887 million respectively, up 96.9% and 93.4% respectively from the same period last year, and the development of electric vehicles has been accelerating. In terms of energy storage, by the end of 2022, the total installed capacity of power energy storage projects in operation in China was 59.8GW, accounting for 25% of the total global market, with an annual growth rate of 38%.
From the perspective of market competition pattern, due to the high requirements of downstream head battery enterprises for lithium iron phosphate production enterprises, they need to complete the factory inspection procedures before they can be included in the qualified supplier system, and in the process of supplier selection, effective capacity is one of the important considerations. Therefore, for lithium iron phosphate production enterprises, the first expansion of production capacity is a necessary condition to obtain sufficient orders.
"In order to meet the rapid growth of market demand, do a good job of forward-looking layout, enhance the scale advantage, and further enhance the company's industry status, is the inevitable choice for the company's business development." Fengyuan shares said. In the
first half of 2002, the reporter of
economic report learned that Fengyuan shares were founded in 2000, and since its establishment, the oxalic acid industry has been deeply cultivated for more than 20 years, and the downstream customers are well-known enterprises in Japan and Korea. However, after the listing in 2016, the company took advantage of its technical advantages and management experience in fine chemicals for many years to enter the lithium battery cathode material industry, which made profound changes in the company's business structure.
According to the disclosure, Fengyuan has three major bases in Zaozhuang, Shandong, Anqing, Anhui and Yuxi, Yunnan, and the production capacity of cathode materials for lithium batteries has begun to take shape and is steadily expanding as planned. The 2022 annual report shows that the operating income of Fengyuan's lithium battery cathode materials is 149621 0.49 million yuan, accounting for 86.20% of the company's total revenue; the operating income of oxalic acid products is 23941 0.79 million yuan, accounting for 13.79% of the company's total revenue.
From the perspective of customer resources, Fengyuan Co., Ltd. has continued to cooperate with BYD since 2021, and has become one of the important suppliers of BYD's lithium iron phosphate cathode materials. Fengyuan Co., Ltd. has carried out product performance upgrade test projects with BYD by taking advantage of the company's R & D advantages to promote in-depth cooperation in product R & D. At the same time, the company continues to promote the cooperative relationship with Penghui Energy, and has achieved batch supply since 2018. In the future, it will accelerate the product docking with leading customers in Ningde Times, Xiamen Haichen, LG and other industries, and further improve the company's market share.
In terms of performance, the net profit of Fengyuan shares has increased substantially in recent years, with 35726 of 0.39 million yuan, 80304 of 0.77 million yuan and 173573 of 0.25 million yuan from 2020 to 2022. Net profits attributable to shareholders of listed companies were-29.203 million yuan, 53.0902 million yuan and 15090 of 0.4 million yuan, respectively.
However, in the first quarter of 2023, Fengyuan shares suffered a large loss, realizing a 86441 of 0.66 million yuan in operating income and a 13341 of 0.57 million yuan in net profit attributable to shareholders of listed companies. The performance forecast on the evening of July 14 shows that the net profit attributable to shareholders of listed companies in the first half of 2023 is expected to be a loss of 93 million yuan to 123 million yuan, compared with a profit of 94.42 million yuan in the same period last year.
"The company's new production capacity of cathode materials is mostly in the trial production and climbing period, the scale effect has not been fully reflected, coupled with the fluctuation of upstream raw material prices, resulting in a sharp decline in the gross profit rate of the company's products." Fengyuan shares explained the performance changes, in addition to the sales of cathode materials less than expected, the cost, the company's new investment led to a significant increase in expenditure compared with the same period last year.
It is worth noting that the rapid development of new energy vehicles and energy storage industry in recent years has greatly driven the expansion of battery manufacturers. At the same time, in order to meet the downstream market demand, many cathode material manufacturers have carried out forward-looking layout, while various chemical enterprises have also joined the cross-border competition, and the industry competition has become increasingly fierce.
"With the continuous improvement of the technical threshold of the industry and the gradual decline of various subsidies, the concentration of downstream battery manufacturers has gradually increased, and cathode material enterprises have begun to differentiate." Some insiders told reporters of economic reports that in this case, Fengyuan shares are also facing the risk of intensified market competition.
"According to the data published at present, the overall capacity scale of the industry is planned to be large, and it is expected that structural overcapacity will be formed in the future, that is, overcapacity of low-end products." As for the problem of overcapacity that may arise from the expansion of production, Zhao Guanghui, chairman of Fengyuan Stock Company, said that the company has always been committed to providing high-end products with good comprehensive performance according to the needs of core customers, and that the company's capacity planning will be adjusted in time according to industry trends and customer needs.
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