IPO of Fangyuan Co., Ltd. plans to raise 1.05 billion yuan to build a lithium hydroxide project for precursors and batteries after the meeting.

On December 29, the Shanghai Stock Exchange announced the results of the 126th Review meeting of the Kechuang Board listing Committee in 2020, and Guangdong Fangyuan Environmental Protection Co., Ltd. (hereinafter referred to as "Fangyuan shares") was approved for the first time. China International Capital Corporation is his sponsor.

The company plans to raise 1.05 billion yuan to build a project with an annual output of 50, 000 tons of high-end ternary lithium battery precursors and 10, 000 tons of battery lithium hydroxide

Fangyuan Environmental Protection is mainly engaged in the research, development, production and sales of lithium battery ternary cathode material precursor and nickel battery cathode material, and the products are mainly used in the manufacture of lithium battery and nickel battery, and finally used in the fields of new energy vehicle power battery, power tools, energy storage equipment and electronic products.

Among the main questions asked by the Shanghai Municipal Committee, Science and Technology Innovation Board Stock listing Committee asked Fangyuan shares: (1) to analyze the net cash flow of operating activities, the book value of inventory and the proportion of accounts receivable to current assets in the reporting period. It shows that it mainly depends on the operating risks under the structure of a single customer and a single supplier. (2) explain the relevant fund-raising risks in combination with the current production capacity and capacity utilization rate of major products, customer demand and so on. Please recommend the representative to make clear comments.