Another manufacturer of ternary cathode materials, gem IPO, will have a meeting.

After 3 suspensions and 5 rounds of inquiries, Xinxiang Tianli Lithium Energy Co., Ltd. (hereinafter referred to as "Tianli Lithium Energy") has finally taken another step forward. On February 25, according to the official website of the Shenzhen Stock Exchange, Tianli LiNeng made its debut on the gem.

General situation of the Application of funds raised by Tianli Lithium Energy IPO (unit / ten thousand yuan)

According to the prospectus, IPO, Tianli LiNeng intends to issue no more than 30.5 million RMB common shares to the public, raising 836 million yuan to be invested in the Huaibei Sanyuan cathode material construction project (proposed to raise 628 million yuan) and Xinxiang Ternary cathode material construction project (proposed to raise 208 million yuan).

Data show that Tianli LiNeng is one of the earliest domestic enterprises engaged in R & D and production of ternary materials, with integrated R & D and production capacity of ternary materials and their precursors. The company's products include NCM333, NCM523, NCM622, NCM811 and other series, covering almost all types of ternary materials, the main production base is located in Xinxiang, Henan and Huaibei, Anhui, covering a total area of 150000 square meters. The company has a comprehensive production capacity of 20000 tons per year and ranks first in the application field of ternary materials for small power lithium batteries for many years. While focusing on the field of small power lithium batteries, relying on stable product quality and performance, some of the company's products have entered the new energy vehicle market. Supply to key customers including Xingheng Power supply, Honeycomb Energy, China New Airlines (formerly AVIC Lithium), Hengdian East Magnetic, Penghui Energy, etc., and has formed a certain scale.

In recent years, with the continuous growth of demand for lithium batteries in electric vehicles, electric bicycles and power tools, ternary materials, as the main cathode materials of lithium-ion power batteries, have ushered in a huge market space. According to the "White Paper on the Development of Ternary cathode material precursor and Ternary cathode material Industry in China (2022)" recently released by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute, shipments of ternary cathode materials in China reached 422000 tons in 2021, an increase of 79.6% over the same period last year. In 2021, global shipments of ternary cathode materials reached 718000 tons, an increase of 70.9 percent over the same period last year.

Tianli LiNeng has been committed to the research and development, production and sales of lithium battery cathode ternary materials, but with the continuous growth of sales, the saturation of the existing production line continues to increase. The company admitted that the market demand for major products continues to be strong. Production equipment and workers are in a state of high load, and the company has adopted the form of commissioned processing to make up for the lack of its own production capacity. The production capacity of existing equipment has been difficult to effectively meet the rapidly growing demand of the downstream market. Therefore, the company plans to further expand production capacity by expanding new product lines. After reaching production, the Huaibei project of the IPO, company can achieve an annual output of 10000 tons of high-nickel ternary material products, with an estimated total investment of 644 million yuan; after reaching production, the Xinxiang project can achieve an annual output of 3600 tons of high-nickel ternary material products, with an estimated total investment of 213 million yuan. After the fund-raising project is officially put into production, it will effectively enhance the company's production capacity and order-taking capacity, break through the existing capacity bottleneck, reduce the proportion of foreign commissioned processing, and promote the rapid development of the company's main business.

It is worth noting that the white paper issued by EVTank particularly emphasizes that driven by the demand for high-end passenger cars and overseas markets for high-energy density batteries, the proportion of high-nickel ternary (mainly 8 series) has increased from 22% in 2020 to 36% in 2021, and the trend of high nickel content of ternary cathode materials has been further clarified. The design capacity allocation of Tianli LiNeng Huaibei project and Xinxiang project are mainly high nickel ternary materials, and the project can also produce 5 series, 6 series and other ternary materials related products according to the new developments of lithium battery market and the demand changes of different customers. The implementation of the two projects will greatly enhance the production capacity of the company's high-nickel ternary materials, help to further enrich the company's product structure, and comply with the future development trend of the industry.

While focusing on increasing production capacity and enriching product structure, Tianli LiNeng also attaches great importance to R & D investment, which is on the rise with the expansion of the company's sales scale. In 2018,2019,2020 and January-June 2021, the company's R & D investment was 32.0409 million yuan, 34.0364 million yuan, 38.8901 million yuan and 29.8246 million yuan respectively, with a cumulative R & D investment of 134.792 million yuan. As of June 30, 2021, the company has a total of 67 R & D personnel, accounting for 16.67% of the total number of employees. At present, the company has 29 domestic patents, including 6 invention patents and 23 utility model patents.

In terms of performance, although affected by torrential rains and floods in the third quarter of 2021, there was a seasonal loss in the third quarter, but from the overall performance, Tianli LiNeng still maintained a good profitability. In 2021, the company expects to achieve operating income of 1.62 billion yuan to 1.7 billion yuan, an increase of 30.32% to 36.76% over the same period last year, and a net profit of 82 million yuan to 87 million yuan, an increase of 43.56% to 52.31% over the same period last year. Net profit attributable to shareholders of the parent company after deducting non-recurring profits and losses was 105 million yuan to 110 million yuan, an increase of 94.81% to 104.09% over the same period last year.

Tianli LiNeng said that the company's revenue growth in 2021 is mainly due to the boom in the downstream market of new energy, the price of ternary materials has risen sharply; the increase in net profit is due to the continuous rise in the price of ternary materials, the company's gross profit margin has increased year on year, and its profitability has been enhanced. At the same time, the company received more government subsidies in the fourth quarter of 2021, which to a certain extent made up for the loss caused by the flood, resulting in a substantial increase in net profit in 2021 compared with the same period last year.

According to the plan, in the next three years, Tianli LiNeng will continue to expand production capacity on the basis of existing production capacity, combined with market conditions, provide a solid production capacity foundation for the development of major customers, and strive for sustained sales growth in the next three years; constantly optimize customer structure and product structure to enhance the company's overall profitability. At the same time, the company will continue to increase investment in scientific research, continue scientific and technological innovation, continue to introduce industry experts and innovative talents, achieve breakthroughs in key technologies, and build the enterprise into a professional industrialization base of lithium-ion ternary materials.