On the evening of December 31, 2021, Zhenyu Science and Technology (300953) announced that the company intends to invest in the second phase of Zhenyu new energy battery structure project in Yibin, Sichuan, with a total investment of 500 million yuan. The company said that the purpose of this investment is to improve the company's production capacity in the field of precision structure manufacturing of power lithium batteries and to better meet the needs of customers' production capacity.
Data show that Zhenyu Technology was founded in 1994 and officially listed on the gem in March 2021. Its main business includes precision progressive stamping dies, motor cores and precision structural parts of power lithium batteries.
Zhenyu Technology customers cover Ningde era, BYD, Gree, Midea, Haier, Huichuan, Panasonic, Haili, Electric, Siemens, Schneider Electric and many other well-known enterprises at home and abroad. Among them, the company's lithium structure customer model is in the form of "1x 3N", including one core customer, three strategic customers and N reserve customers.
Battery network noted that Zhenyu science and technology lithium structure income is basically from the Ningde era. In August 2021, Zhenyu Technology announced that from March 18, 2021 to August 13, 2021, the company signed purchase orders with Ningde Times and its holding subsidiaries totaling 677 million yuan, accounting for 56.73% of the company's audited operating income in 2020. It is reported that in 2020, the company's sales to the Ningde era were 572 million yuan, accounting for 47.9% of the company's total revenue.
The day before Zhenyu Science and Technology announced its plan to invest in the construction of the second phase of Zhenyu new energy battery structure in Yibin, Sichuan Province, Ningde Times once again announced its plan to expand the capacity of Yibin base: on December 30, 2021, Ningde Times announced that through its wholly-owned subsidiary Sichuan Times New Energy Technology Co., Ltd., it plans to invest in the construction of Phase 7-10 project of power battery Yibin manufacturing base in Sanjiang New area, Yibin City, Sichuan Province. The total investment of the project is no more than 24 billion yuan and covers an area of about 3200 mu. It is reported that Ningde Times has successively signed Sichuan Times Power Battery Phase 1 to Phase 6 projects with Yibin City, with a total investment of more than 30 billion yuan.
In addition, Zhenyu Science and Technology held the 2020 annual shareholders' meeting on May 18, 2021 to examine and approve the "Bill on proposed overseas Investment". It is agreed that the company will invest in the construction of precision structural components of new energy-powered lithium batteries in Liyang, Jiangsu, Ningdefuan, and Yibin, Sichuan. The total investment of Jiangsu Liyang project, Ningde Fu'an project and Sichuan Yibin project is 1.6 billion yuan, 400 million yuan and 500 million yuan respectively.
Everbright Securities previously reported that Zhenyu Technology, as one of the main suppliers of lithium electric structures in Ningde era, benefited from the rapid growth of global power battery production in Ningde era and the continued increase in supply share of Zhenyu Technology in Ningde era. Zhenyu science and technology capacity expansion, Ninghai, Fu'an, Liyang, Yibin base new production capacity will be released next year, large-scale is expected to enhance cost competitiveness, volume premium to achieve rapid growth.
In terms of performance, with the continuous growth of demand in the new energy vehicle and drive motor industry, Zhenyu Technology achieved good results in the third quarter of 2021. In the first three quarters of 2021, the company achieved operating income of 1.934 billion yuan, an increase of 174.92% over the same period last year. The net profit belonging to shareholders of listed companies was 118 million yuan, up 73.30% from the same period last year.
