Fulin Seiko plans to increase funding by 1.5 billion plus intelligent electric control and lithium cathode materials project

On June 18, Fulin Seiko (300432) announced a plan to raise no more than 1.5 billion yuan by issuing shares to specific objects. the funds raised are mainly invested in the new energy vehicle intelligent electric control industry project, the annual output of 50, 000 tons of new energy lithium cathode materials project and supplementary liquidity

According to the announcement, Fulin Seiko will raise no more than 1.5 billion funds this time, of which 860 million will be used for the construction of intelligent electronic control industry projects for new energy vehicles; 272 million will be used for the construction of a project with an annual output of 50, 000 tons of new energy lithium cathode materials, and the rest will be used to supplement liquidity.

It is reported that Fulin Seiko, which is mainly engaged in the research, development, production and sales of auto parts and new energy lithium cathode materials, is the only global supplier among domestic counterparts that can develop new technologies for Synchronize, a world-class vehicle manufacturer such as General Motors, PSA, Volkswagen, Audi and so on. With the general trend of automobile electrification and intelligence, Fulin Seiko is constantly speeding up the layout of intelligent electronic control industry and new energy lithium cathode materials.

In terms of auto parts, Fulin Seiko has initially formed three product series: precision engine parts based on VVT and tappet, intelligent electronic control system based on electronic water pump, solenoid valve, electronic oil pump and intelligent controller, and new energy vehicle electric drive system based on reducer.

Among them, Fulin Seiko established the Sichuan New Energy vehicle Drive system Engineering Technology Research Center, relying on the core advantages of precision intelligent manufacturing and mechatronics accumulated over the years, it has carried out an active layout in electronic drive, new energy vehicle electric drive, intelligent thermal management system and other aspects, and has established cooperative relations with Huawei, United Electronics, Honeycomb Transmission, Great Wall Automobile and other well-known enterprises in the field of new energy vehicles.

As the accelerated replacement of new energy vehicles for traditional fuel vehicles has gradually become an industry consensus in the industry and policy level, the company's earlier development strategy of "upgrading from traditional precision machining to intelligent electronic control and mechatronics" is facing the market pressure of accelerated implementation, so it is time for the company to accelerate the implementation of the transformation and upgrading strategy.

In terms of new energy lithium cathode materials, Fulin Seiko acquired a 100% stake in Hunan sublimation Technology at a price of 2.1 billion in 2016, officially cutting into the new energy vehicle industry chain, while the company raised no more than 1.5 billion yuan. It is used for the construction of "sublimation lithium battery cathode material lithium iron phosphate industrialization project" and supplement the company's liquidity.

Sublimation Technology was originally a research and development, production and sales in one of the lithium cathode material manufacturing enterprises, the main products are lithium iron phosphate and ternary materials. Fulin Seiko through the acquisition of sublimation technology, the main business transformation from automotive engine precision parts business to automotive engine precision parts and new energy vehicle power battery cathode materials business co-exist.

At the beginning of this year, in order to promote product technology upgrading, expand the market scale of the company's lithium cathode materials, and meet the market demand, Jiangxi sublimation, a subsidiary of Fulin Seiko, invested in the construction of a project with an annual output of 50,000 tons of new energy lithium cathode materials in Shehong, Sichuan. At present, Jiangxi sublimation has established cooperative relations with well-known customers such as Ningde era, Honeycomb Energy, Penghui Energy, Polyfluorodo, Xing Heng Power supply, and most of its annual production capacity of 12000 tons of lithium iron phosphate cathode materials is used to supply Ningde era.

In addition, in order to give full play to and integrate the resource advantages of all parties, and realize in-depth cooperation and industrial layout in the field of new energy lithium cathode materials, on January 11, Fulin Seiko together with Ningde era, Ningde era, and Changjiang Morning Road jointly subscribed for 500 million yuan of registered capital increased by Jiangxi sublimation. The capital increase will be used for the construction of 50,000 tons of new energy lithium cathode materials project and supplementary current funds, and the project products will be given priority to supply Ningde era and its designated main body.

Battery Network learned that on February 5, research institute EVTank, together with Yiwei Economic Research Institute and China Battery Industry Research Institute, jointly released the "White Paper on the Development of China's New Energy vehicle Industry (2021)." the white paper raised the global sales forecast of new energy vehicles in 2025 to 16.4 million vehicles, and the overall penetration rate will exceed 20%. In addition, Li Xiang, chairman and CEO of ideal Motor, Wang Chuanfu, chairman and president of BYD, and Li Bin, founder and CEO of Weilai, have respectively said that sales of new energy vehicles will grow rapidly in the future.

Thus it can be seen that the new energy vehicle industry has ushered in a full outbreak, and in the strong demand for new energy vehicles, upstream lithium iron phosphate material enterprises are full of orders, the head enterprises have to speed up production expansion plans. The two projects raised by Fulin Seiko are "just the right time".

Fulin Seiko said that the new energy vehicle intelligent electric control industry project and the annual production capacity of 50,000 tons of new energy lithium cathode material project are the company's focus on the new energy vehicle sector. the aim is to adapt to the needs of new energy vehicle customers for new technologies and new products, and to turn the R & D advantages of reserve products into market advantages as soon as possible. At the same time, comply with the fast-growing demand of downstream customers, expand production capacity, actively seize market share, and re-establish the company's market dominant position in the field of lithium cathode materials.