SMM News: on May 27, German Nano (300769) released the 2018 annual work report of the board of directors, saying that in 2018, the company was in good condition, and the production and sales of nano-lithium iron phosphate, its main product, continued to grow considerably. During the reporting period, the company's production of nanometer lithium iron phosphate reached 17479.51 tons, an increase of 52.61 percent over the same period last year, and sales exceeded 16802.69 tons, an increase of 49.05 percent over the same period last year.
German Nano is mainly engaged in the development of nanometer lithium ion battery material preparation technology, and the production and sales of related products, including lithium iron phosphate, carbon nanotube conductive electro-hydraulic and so on. In 2018, the company realized operating income of 1.053649 billion yuan, an increase of 23.26 percent over the same period last year; an operating profit of 112.7419 million yuan, an increase of 6.00 percent over the same period last year; and a net profit of 98.1162 million yuan, an increase of 5.81 percent over the same period last year. At the end of 2018, the company's total assets exceeded 1.0183681 billion yuan, an increase of 13.64 percent over the end of last year, and its net assets reached 497.2897 million yuan, an increase of 24.58 percent over the end of last year. From January to March 2019, the company achieved operating income of 220.8916 million yuan, a decrease of 8.44 percent over the same period last year, and a net profit of 24.5003 million yuan attributable to shareholders of listed companies, an increase of 70.06 percent over the same period last year.
It is worth noting that in order to consolidate the company's position in the new energy vehicle industry chain, the company signed a "joint venture agreement" with Ningde era on May 11, 2019. It is proposed to jointly increase the capital of Qujing Lintie Technology Co., Ltd. (hereinafter referred to as "Qujinglin Iron").
According to the announcement, qu Jinglin Iron is a wholly owned subsidiary of German Nano, with a registered capital of 50 million yuan (the following yuan refers to RMB yuan). The company has actually paid 10 million yuan, and German Nano will supplement its registered capital of 40 million yuan. This capital increase, Ningde era contributed 40 million yuan, the company contributed 10 million yuan. After the completion of the capital increase, the joint venture company registered capital of 100 million yuan, the company contributed 60 million yuan, accounting for 60% of the registered capital, Ningde era contributed 40 million yuan, accounting for 40% of the registered capital.
Qu Jinglin iron first phase of the planned annual production of 10,000 tons of lithium iron phosphate, after the completion of the first phase of construction, the two sides will further negotiate new production capacity. In order to promote the joint venture to be completed and put into production as soon as possible, German Nano intends to provide a loan of 118.5 million yuan to replenish the liquidity of qu Jinglin Iron after the capital increase. In addition, Ningde Times will purchase lithium iron phosphate from qu Jinglin Iron, and according to the purchase volume, the purchase amount will not exceed 131.5 million yuan in advance.
On April 24, German Nano approved a bill on the use of raised funds to provide loans to wholly owned subsidiaries for the implementation of fund-raising projects. The company intends to use the raised funds to provide interest-free loans to Foshan Defang Nano Technology Co., Ltd., a wholly owned subsidiary, for the implementation of the fund-raising investment project "the annual output of 15000 tons of nanometer lithium iron phosphate project." The total amount does not exceed RMB 237.9733 million yuan.