The trillion lithium power giant has made another big move to sign a long-term supply agreement with Tesla, and its share price has soared by 50% in three months.

Yesterday night, Ningde Times announced that the company and Tesla signed an agreement on June 25, 2021 that the company would supply Tesla with lithium-ion power battery products from January 2022 to December 2025.

The announcement shows that the signing of the agreement indicates Tesla's further recognition of the company's power battery product quality and production capacity, which helps to strengthen the long-term and stable cooperative relationship between the company and Tesla, which is in line with the interests of the company and shareholders. Ningde Times believes that it is expected to have a positive impact on the company's operating results in the relevant years.

In addition, Ningde Times announced that the implementation of the agreement will not adversely affect the company's business independence, and the company will not become significantly dependent on customers as a result.

As early as February 3 last year, Ningde Times announced that the company planned to sign an agreement with Tesla that Ningde Times would supply Tesla with lithium-ion power battery products from July 1, 2020 to June 30, 2022. After the announcement, Ningde Times harvested two trading boards in succession. Combined with the signing of this agreement, the supply agreement between Ningde Times and Tesla will be extended from two years to five and a half years.

Public data show that the main business of the Ningde era is the power batteries used by new energy vehicles. According to statistics from South Korea's new energy analysis agency SNE, Ningde Times has ranked first in the number of power batteries installed in the world for four years in a row. In 2020, the global installed capacity of power batteries in Ningde era is 34 GWh, and the market share is close to 1/4.

Recently, Cui Dongshu, secretary general of the bus Federation, said at the 34th World Electric vehicle Congress that the penetration rate of new energy vehicles in China exceeded 10% in May, and there is still great demand potential in the sinking market. In overseas markets, the US government will spend $500 billion a year on zero-emission vehicles, and tighter carbon emissions in Europe will also boost sales of electric vehicles, which will further boost demand for power batteries.

Guoxin Securities previously analyzed that from the market capitalization of less than 50 billion yuan on the gem at the beginning of 2018, it broke through trillion yuan at the end of May 2021, and the market expectation was gradually raised, with a nearly 20-fold increase in three years. Ningde has become a benchmark enterprise in the industry by new energy Dongfeng. Similar to Tesla's "anchor positioning", its business progress and valuation have become one of the weather vanes for the development and investment of new energy vehicles.

Fupan Ningde's growth road, standing on the market capitalization of more than one trillion yuan, the core driving factors are 4 points (1 external cause + 3 internal cause):

First, the high-prosperity track with a card position of a hundred times over the past decade (the power battery industry is the meeting point of energy, transportation and industry; the compound growth rate of new energy vehicles is 30% and 40% in the next five years. Among them, the power battery, which accounts for 40% of the cost, is the most flexible pure increment link in three years.

The second is to achieve full coverage of the supply chain of mainstream automobile enterprises (half of the country is at home and 20% of the market share is expected to be overseas);

Third, the vertical layout forms the strategic layout of the industrial chain (opening up the links of raw materials, battery manufacturing, operation services, material recycling, and continuous cost reduction);

Fourth, the technology continues to iterate to maintain competitiveness (CTP, high nickel, fuel cell, sodium ion battery, etc.).

In terms of performance, the revenue of Ningde era last year was 50.3 billion yuan, and the net profit was close to 5.6 billion yuan. In the first quarter of this year, the company's revenue was 19.1 billion yuan, an increase of 112% over the same period last year, and its net profit was 1.9 billion yuan, an increase of 163% over the same period.

In terms of capacity, by the end of 2020, Ningde era battery system capacity 69.1 GWh, battery capacity under construction is 77.5 GWh, its plant in Germany is expected to start production by the end of this year. In addition, according to the information revealed by Ningde Times' online performance conference in May, the company currently has a total investment of more than 90 billion yuan in capacity under construction.

Ningde times shares have risen all the way since the end of march, up more than 50 per cent. In intraday trading yesterday, the company's share price reached an all-time high of 500. the latest closing price is 493.9 yuan, with a total market capitalization of more than 1.1503 trillion yuan.

By the end of the first quarter of this year, the total number of shareholders in Ningde era was as high as 180000.