Anda Technology plans to expand production of Ferric Phosphate and Lithium Iron Phosphate by 354 million BYD to participate in subscription

On the evening of April 2, Anda Technology (830809), a manufacturer of new three-plate cathode materials, released its annual report that the company achieved operating income of 92.6053 million yuan last year, down 39.71% from the same period last year. The net profit belonging to the shareholders of the listed company was-183 million yuan, which was lower than the loss in the same period last year.

It is reported that since August 2019, Anda Technology has launched an intelligent technical transformation project of 20,000 tons of lithium iron phosphate, and the equipment installation, commissioning and product verification of the project will be completed at the end of 2020. As the company used the old production line for production in 2020, the starting load was insufficient, and the shipment volume decreased significantly compared with the same period last year.

According to public data, Anda Technology is mainly engaged in the production and sales of positive materials and precursors of new energy vehicle power batteries-lithium iron phosphate and iron phosphate products, which have formed a production scale of 40,000 tons of iron phosphate and 25000 tons of iron phosphate per year. It is the main supplier of BYD, AVIC Lithium Power, ZTE Pareng, Anchi and other enterprises.

With the decline of government subsidies, lithium iron phosphate has obvious advantages in price, safety and environmental protection compared with other mainstream lithium battery cathode materials, especially in the current industrial chain "reducing cost and increasing efficiency" and the increasing application of module-free technology. low-cost lithium iron phosphate batteries will gain a higher market share in the new energy vehicle market, energy storage market and other fields in the future.

On the same day, Anda Technology issued a targeted stock offering prospectus, intending to issue nearly 140 million shares at an issue price of 2.53 yuan per share, raising 354 million yuan. BYD (002594) and other 29 investors have confirmed to participate in this subscription.

Anda Technology said that in order to respond to changes in the market situation and meet customer needs, this fund-raising was used for the expansion and construction project of the iron phosphate and lithium iron phosphate production line of the company and its wholly-owned subsidiary Guizhou Kaiyang Anda Science and Technology Energy Co., Ltd., in order to promote the company's business growth, enhance the company's comprehensive competitiveness, and ensure the realization of the company's business objectives and future development strategy.

Among them, the technical renovation project of 20, 000 tons / year lithium iron phosphate and supporting 30, 000 tons / year iron phosphate production line in Zone B and C of Anda Science and Technology plans to invest RMB 144 million. The source of the project is 100 million yuan (the entrusted loan funds involved in the debt-to-equity swap), self-owned funds and bank loans.

The construction project of Kaiyang Anda 30,000t / a Lithium Iron Phosphate and its supporting production Line, a wholly owned subsidiary of Anda Technology, plans to invest RMB 520 million yuan in this project. The source of funds for the project is 254 million yuan raised in this issue (50 million yuan in entrusted loans involved in the debt-to-equity swap. And this issue intends to actually raise 204 million yuan in cash), BYD pays 200 million yuan in advance to the company, its own funds and bank loans. After the project is completed and put into production, the company will add four new production lines with an annual production capacity of 7500 tons of lithium iron phosphate, with a total annual production capacity of 30, 000 tons and 6 production lines with an annual production capacity of 10000 tons, with a total annual production capacity of 60, 000 tons.

It is reported that on March 5, Anda Technology announced that the company and BYD recently signed a "strategic cooperation agreement", the two sides on lithium ferrous phosphate supply, deposit payment and other issues, reached a strategic cooperation agreement. In accordance with the agreement, Anda Technology will steadily supply BYD with cooperative quantity of products (including basic quantity and predetermined quantity) in accordance with the market pricing principle and the principle of no higher than the lowest price of similar products sold to any other customer. BYD pays a special deposit of RMB 200 million to the company according to the agreement, which can be refunded by deduction and cash payment, etc. if the company fails to provide the cooperative quantity of products to BYD as agreed, BYD has the right to require the company to be liable for breach of contract in accordance with the original agreement.