Over 258 million dollars! Enjie shares lithium diaphragm re-sign large overseas orders

On the evening of June 10th, Enjie (002812) announced that Shanghai Enjie New material Technology Co., Ltd. (hereinafter referred to as "Shanghai Enjie"), a subsidiary of the company, signed GENERAL TERMS AND CONDITIONS (for the procurement of lithium battery separators on June 9, hereinafter referred to as "the contract", based on the willingness of both sides and in order to achieve stable and long-term cooperation. It is agreed that Ultium Cells,LLC will purchase more than 258 million US dollars of lithium battery isolation membrane from Shanghai Enjie from the date of signing the contract to the end of 2024.

According to the announcement, Ultium Cells,LLC is a joint venture between LG Chemical and General Motors, with a total investment of 2.3 billion US dollars, mainly engaged in the production and manufacture of lithium batteries for electric vehicles. Ultium Cells,LLC will use the most advanced lithium battery manufacturing technology to supply electric vehicle batteries to General Motors in North America.

Enjie shares said that the company is the leading enterprise of wet lithium battery isolation membrane, the products are widely recognized by a number of well-known customers at home and abroad, the market competitiveness advantage is obvious. The signing of the contract indicates that the company has made positive progress in the overseas market development of power battery separator, which will help to further enhance the company's profitability and consolidate the company's competitive advantage in the international market.

According to Enjie's 2020 annual report, the main overseas customers of Enjie Power Lithium Battery separator include Panasonic, Samsung, LG Chem and so on. Among them, Shanghai Enjie and LG Chem,Ltd. A "purchase and sales contract" for the purchase of lithium battery separator products was signed in 2019, with a total contract amount of no more than US $617 million and a contract duration of 5 years. At present, in the normal performance of the contract, the sales revenue confirmed in 2020 is RMB 474 million yuan; by the end of 2020, the cumulative sales income recognized is RMB 705 million yuan, and the balance of accounts receivable is RMB 224 million yuan; as of March 17, 2021, the cumulative refund has been RMB 123 million yuan, accounting for 55.04%, and the progress of the repayment is normal.

In terms of overseas markets, Enjie also launched the Hungarian wet lithium battery isolation membrane production line and supporting plant project in 2020, with an estimated total investment of about 183 million euros. It is planned to build four fully automatic imported film production lines and more than 30 coating production lines, with an annual production capacity of about 400m square meters to meet the growing demand for lithium battery isolation membranes in the European market.

In terms of performance, in 2020, the company's wet diaphragm shipment volume was about 1.3 billion square meters, and its market share continued to maintain the industry's leading level. the company's wet diaphragm income was 2.891 billion yuan, a substantial increase of 48.83% over the same period last year. By the end of 2020, Enjie has 46 wet diaphragm production lines in Shanghai, Zhuhai, Jiangxi, Wuxi and Suzhou, with a production capacity of 3.3 billion square meters, ranking first in the world.

According to the Minsheng Securities Research report, Enjie's 2021Q1 gross profit margin was 48.51%, up 1.13% from the same period last year, 5.88% higher than the previous quarter, and the net profit rate was 31.62%, up 4.03% from the same period last year and 2.26% higher than the previous quarter. The increase in gross profit margin is mainly due to changes in income structure, one is the high-speed growth of diaphragm products with high gross margin, and the other is the increase in the proportion of overseas customers in diaphragm products.

In addition, Enjie shares said on the investor interactive platform on June 7 that the company's diaphragm products are also suitable for sodium ion batteries. The proposal of sodium ion has no negative impact on the company's diaphragm products, and sodium ion battery can have the advantages of low cost and good safety, which is expected to be used in energy storage, base stations, low-speed cars, low-end passenger cars and other markets in the future. At the same time, according to the company, the current annual production capacity of the company's aluminum and plastic film business is 24 million square meters, and the planned annual production capacity will reach 400 million square meters in 2024. At present, it is in stable batch supply to 3C soft-pack battery customers, and the domestic power soft-pack battery customers are in the stage of sample delivery and small batch testing. Core materials have been developed to local suppliers, and stable batch use.