The net profit skyrocketed by 104x / invest 20 billion to expand production! Lithium leading enterprises have issued 20 announcements in succession!

On the evening of August 9, lithium power leader Xinwanda (300207) issued 20 announcements in one go, including "2021 semi-annual report", "announcement on foreign investment of subsidiaries", "announcement on capital increase and equity change of holding subsidiary Nanjing New Energy", "announcement on capital increase and related party transactions of Xinwangda Electric vehicle Battery Co., Ltd." and so on.

The reported net profit skyrocketed by 104 times

According to the 2021 semi-Annual report, Xinwangda achieved operating income of 15.682 billion yuan in the first half of 2021, an increase of 36.25 percent over the same period last year. The net profit belonging to shareholders of listed companies was 617 million yuan, up 10391.43 percent over the same period last year. Net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 222 million yuan, an increase of 437.55 percent over the same period last year.

Specifically, with the decline in overall shipments in the global mobile phone market in the first half of 2021, Xinwanda's mobile digital lithium-ion battery module business continued to grow, with revenue of 9.395 billion yuan, an increase of 42.5% over the same period last year; notebook computer lithium battery business achieved revenue of 2.187 billion yuan, an increase of 29.30% over the first half of 2020; Revenue from the smart hardware business reached 1.935 billion yuan, down 6.03% from the same period last year.

In terms of power battery business, Xinwanda had a good momentum of development in the first half of 2021, with an income of 574 million yuan, an increase of 344.27% over the same period last year. According to the announcement, Xinwangda added 15 new models to the announcement catalogue in the first half of this year, and has successively obtained fixed point letters from many car companies, such as Dongfeng Liuqi Lingzhi CM5EV, Dongfeng E70, GAC A9E, Geely PMA platform, Geely GHS2.0 platform, SAIC GM Wuling Hongguang mini and so on. At the same time, in addition to the above-mentioned designated letter car companies, car companies that have established cooperative relations also include: Renault, Nissan, Egett, Xiaopeng and so on.

In terms of energy storage business, Xinwangda's total installed capacity exceeded 554MWH in the first half of 2021, winning African 13.3MWh, Shanxi Datong 30MWh and other energy storage projects above 10MWh level.

From the above data, it is not difficult to see that Xin Wanda has a good momentum of business development, but in fact, it is not. Behind the 104-fold increase in net profit, there are several places worth thinking about.

First of all, let's take a look at the data reported in 2021, the net profit of return to the mother was 617 million yuan, an increase of 104 times over the same period last year, but after deducting non-recurrent profits and losses, the net profit decreased to 222 million yuan, that is to say, the net profit of Xinwanda was directly cut by 395 million yuan.

What is the reason for such a big gap between deducting non-net profit and net profit?

In Xinwangda's non-main income, the income from asset disposal is 231 million yuan, which is the transfer of land use rights in Huizhou. At the same time, the government subsidy is 121 million yuan, and the investment income is 55 million yuan.

Let's take a look at the gross profit margin. Xinwanda gross profit margin in the first half of this year was 16.64%, up 1.76% from the same period last year. Among them, the gross profit margin of mobile digital products was 19.08%, an increase of 2.02% over the same period last year, ranking first, followed by precision structural products, with a gross profit margin of 18.46%, an increase of 0.80% over the same period last year. On the other hand, the gross profit margin of notebook computers, smart hardware, cars and power battery products have all declined, of which the gross profit margin of automotive and power battery products has declined the most, down 4.55% from the same period last year, and, at present, the business accounts for only 3.66% of revenue.

It can be said that Xinwanda power battery business is still in the growth period and has not yet contributed greatly to the overall revenue.

Invest 20 billion to expand production

According to the announcement on the Foreign Investment of subsidiaries, Xin Wanda deliberated and passed the "Bill on Foreign Investment of subsidiaries." Agree with Xinwanda subsidiary Xinwanda Electric vehicle Battery Co., Ltd. (hereinafter referred to as "Xinwanda car battery") and Nanchang Economic and technological Development Zone Management Committee (hereinafter referred to as "Nanchang Economic and technological Development Commission") to invest in the construction of Xinwangda Nanchang power battery production base project (tentative) within the jurisdiction of Nanchang Economic Development Committee, and jointly funded by both parties to establish Nanchang Xinwangda New Energy Co., Ltd.

The registered capital of the company is 484.8 million yuan, of which Nanchang Economic and Development Commission platform Company contributed 4.8 million yuan, holding 0.99%, and Xinwanda car battery contributed 480 million yuan, holding 99.01%. Xinwanda car battery is the company's controlling shareholder.

At the same time, the two sides plan to sign the Project Investment Agreement. The total investment of this project is about 20 billion yuan, which is divided into four phases. The project includes power battery battery, battery module, battery PACK, battery system and so on.

Among them, the first phase of the project plans to lease mass entrepreneurship and innovation Technology Industrial Park and invest in the construction of 4GWh cell and 4GWh battery system production line and related industries; the second phase of the project is planned to be implemented in 2022. The project will add new 10Gwh cell and 10Gwh battery system production lines; the third phase of the project is planned to be implemented in 2024. The project will add new 16Gwh cell and 16Gwh battery system production lines; the fourth phase of the project is planned to be implemented in 2026. The project will add 20Gwh cell and 20Gwh battery system production lines. In the fourth phase, a total of 50GWh cell and 50GWh battery system capacity will be built.

There is a market view that this investment will help to expand the scale of Xin Wanda's car battery business, and the new 50Gwh battery and system capacity after the completion of the project will provide greater flexibility for the company's revenue. At the same time, the company's core revenue mobile phone digital lithium-ion battery and notebook computer battery business to maintain rapid growth, future performance growth is expected.

On the evening of July 28th, Xinwanda announced that the wholly-owned subsidiary Xinwanda car Battery, Geely Group and Zhejiang Geerun jointly invested in the establishment of a joint venture Shandong Geely Xinwanda Power Battery Co., Ltd., layout HEV (including 48V) power battery package. Among them, Zhejiang Geerun holds 41.5%, Xinwanda car battery holds 30%, and Geely Group holds 28.5%.

Two subsidiaries increase capital

According to the announcement on capital increase and equity change of Nanjing New Energy, a holding subsidiary, Xinwanda car battery and Nanjing Runke respectively contributed RMB 1.02 billion and 660 million yuan in cash to increase capital for Nanjing Xinwangda.

At the same time, Xinwanda car battery, Nanjing Runke and Huaxia Happiness signed an "equity transfer agreement", and Huaxia Happiness transferred 11.194% of its stake in Nanjing Xinwangda to Xinwangda car battery. After the completion of the transfer, Huaxia Happiness no longer holds a stake in Nanjing Xinwangda, Xinwanda car battery holds 68.2836%, and Nanjing Runke holds 31.7164%.

According to the announcement on Capital increase and related Party transactions of Xinwanda Electric vehicle Battery Co., Ltd., Xinwanda agreed with Xinrui Hongsheng, former Haihanlong, Xinrui Hongrui and Tianjin Harmony to subscribe for Xinwanda car battery with a total of 750 million yuan in currency to subscribe for a new registered capital of 750 million yuan. After the completion of this capital increase, the registered capital of Xinwanda car battery will be increased from 3.64 billion yuan to 4.39 billion yuan.

In this transaction, Xinrui Hongsheng will subscribe for 8.200% equity with 360 million yuan; Xinrui Hongrui will subscribe for 3.485% equity with 153 million yuan; former Haihanlong will subscribe for 1.982% equity with 87 million yuan; and Tianjin Harmony will subscribe for 3.417% equity with 150 million yuan. As of the date of announcement, the parties to the above transaction have signed the Capital increase Agreement.

After the completion of this transaction, the proportion of shares held by Xinwanda Huizhou New Energy Co., Ltd., a subsidiary of Xinwanda, has been changed from 100% to 82.916%. Xinwanda automotive batteries still belong to the holding subsidiary within the scope of the company's consolidated statements.

It is worth noting that Xinrui Hongrui is mainly the shareholding platform of Xinwanda management team, and Xinrui Hongsheng is mainly the shareholding platform of employees related to Xinwangda power battery business.