Tianli Lithium Energy gem IPO has passed!

It was accepted as early as July 8, 2020, and an inquiry was made on August 5 of the same year, followed by a silence of one and a half years.

On February 25, 2022, the gem IPO of Xinxiang Tianli Lithium Energy Co., Ltd. (referred to as "Tianli Lithium Energy") was finally approved by the municipal party committee.

Data show that Tianli Lithium Energy was established in March 2009, mainly engaged in lithium battery ternary materials and their precursors of research and development, production and sales, used in new energy vehicles, electric bicycles, power tools and 3C and other related fields.

According to the prospectus, Tianli LiNeng is one of the earliest domestic enterprises engaged in R & D and production of ternary materials, with integrated R & D and production capacity of ternary materials and their precursors.

Tianli lithium energy products include NCM333, NCM523, NCM622, NCM811 and other series, covering almost all types of ternary materials. The company has focused on the field of small power lithium battery for many years, and its downstream customers include Xing Heng Power, Tianneng Co., Ltd., Changhong New Energy, Haisida, Hengdian East Magnetic, Solar Power, Penghui Energy and other domestic well-known enterprises in the field of lithium battery.

Statistics show that in the field of lithium batteries for electric bicycles and power tools, Tianli lithium-related products ranked first in 2019 and 2020.

While focusing on the field of small power lithium batteries, relying on stable product quality and performance, some of Tianli lithium energy products have entered the new energy vehicle market. supply to key customers including Xingheng Power supply, Honeycomb Energy, AVIC Lithium Power, Hengdian East Magnetic, Penghui Energy, etc., and has formed a certain scale.

This time, IPO, Tianli LiNeng plans to issue 30.5 million shares and raise 836.46 million yuan for Huaibei three-yuan cathode material construction project and Xinxiang three-yuan cathode material construction project.

In terms of performance, due to the impact of heavy rain in Xinxiang in July 2021 and the company suffered floods, Tianli LiNeng fixed assets are expected to lose 32.9792 million yuan, resulting in a net profit loss of 26.7449 million yuan in the third quarter of 2021.

However, the seasonal loss in the third quarter of 2021 is caused by one-time temporary losses caused by torrential rains and floods and will not affect the company's sustainability.

In 2021, Tianli LiNeng is expected to achieve operating income of 1.62 billion yuan to 1.7 billion yuan, an increase of 30.32% to 36.76% over the same period last year, and a net profit of 82 million yuan to 87 million yuan, an increase of 43.56% to 52.31% over the same period last year. After deducting non-recurring profits and losses, the net profit belonging to the shareholders of the parent company is 105 million yuan to 110 million yuan, an increase of 94.81% to 104.09% over the same period last year, still maintaining good profitability.

For the growth of revenue and net profit, Tianli LiNeng analysis said that it is mainly due to the boom in the downstream market of new energy, the price of ternary materials has risen sharply, while the company's gross profit margin has increased compared with the same period last year, and its profitability has been enhanced. In addition, Tianli Lithium received more government subsidies in the fourth quarter of 2021, which to some extent made up for the losses caused by the flood, resulting in a sharp increase in net profit in 2021 compared with the same period last year.

In terms of customers, Xingheng Power supply is the largest customer of Tianli Lithium Energy. In each period of the report, the sales proportion of Xingheng Power supply was 26.56%, 32.17%, 25.55% and 15.95% respectively. During the reporting period, the proportion of Xing Heng Power's purchase of ternary materials from the company to its total ternary materials was 50%, 50%, 90%, 95%, 70%, 85% and 65%, respectively.

In addition, from January to June in 2021, Tianli LiNeng's second to fifth largest customers are Changhong Sanjie, Hengdian Dongjie, Haisida and Tianneng Shuai Fuda.

With regard to this fund-raising and production expansion, Tianli LiNeng said that the expansion project can effectively solve the problem of insufficient existing production capacity of the company. At the same time, fund-raising projects are related to the field of high-nickel ternary materials, which will help the company to further improve product performance, improve the company's product categories, enhance the company's core technology level, and effectively meet the needs of downstream customers of the company for high-nickel ternary materials, so as to improve the company's industry position and market competitiveness, and realize the transformation of the company from a leader in the field of small power lithium batteries to a first-class ternary material manufacturer at home and abroad.