The revenue of Funeng Oriental lithium power equipment in the first half of the year is about 672 million, accounting for more than 85% of the main business income.

On July 31st, Funeng Oriental (300173) released its semi-annual report for 2021. In the first half of this year, the company achieved revenue of 791 million yuan, an increase of 256.88% over the same period last year, and the net profit belonging to shareholders of listed companies was 25.6382 million yuan, up 841.58% from the same period last year. Among them, the revenue of the company's lithium battery automatic production equipment is about 672 million yuan, accounting for 85.09% of the main business income.

It is reported that Funeng Oriental is mainly engaged in the research and development, production, sales and service of high-end intelligent manufacturing equipment such as lithium battery automation equipment, 3C and non-standard automation equipment.

Among them, Funeng Oriental holding subsidiary Chaoye Precision mainly produces lithium battery production equipment, the products are mainly suitable for digital lithium battery and power lithium battery production field. After years of experience in the industry, Chaoye Precision has formed a stable and good cooperative relationship with leading lithium battery manufacturers such as ATL, CATL, Funeng Technology, Guanyu Battery, Carney New Energy and Vico Battery, which basically covers the leading medium and large lithium battery manufacturers in the domestic market, and has accumulated rich high-quality customer resources.

Data show that the cumulative revenue of Chaoye Precision in the first half of this year was 672 million yuan, an increase of 495 million yuan, or 281%, over 177 million yuan in the same period last year. This is mainly due to the delay of super precision and customer start-up affected by the spread of COVID-19 's epidemic in the first half of 2020. The after-sales service of products that have been sold has been forced to stagnate due to the epidemic, resulting in many projects not being able to complete the acceptance work as planned. In the first half of 2021, the company increased its acceptance work, by strengthening the training of staff skills, constantly optimizing the technological process, constantly improving product quality and after-sales service process, timely understanding of customer needs, and providing quality service to customers, achieved good acceptance results, and confirmed a substantial increase in revenue in the first half of 2021.

Funeng Dongfang said in the semi-annual report that in the field of power lithium batteries, as the new energy vehicle industry has entered a stage of rapid industrialization, the demand for power lithium batteries and lithium battery equipment is increasing continuously. It is expected that 2021-2025 will be the peak period for lithium battery enterprises to expand production. With the gradual replacement of traditional cars by new energy vehicles, the steady increase in demand for consumer electronic products, and the promotion of lithium batteries in the field of energy storage applications, The capacity demand for lithium batteries is expected to be further expanded, and the market demand for automatic production equipment for lithium batteries will remain high.

It is worth noting that on June 7, Funeng Oriental announced that the total amount of daily operation contracts signed by the company's holding subsidiary Chaoye Precision and Funeng Technology (Zhenjiang) Co., Ltd. reached 403 million yuan from January 1, 2021 to June 4, 2021, and the cumulative amount of orders exceeded 50% of the company's audited operating income in the most recent fiscal year, and the absolute amount exceeded 100 million yuan. The object of the contract is the electric core assembly line, Degas cutting and ironing equipment, etc.

Funeng Oriental said that the smooth implementation of the contract will help the company to open up a broader market space in the lithium power equipment business, improve the company's revenue scale and profitability, and is expected to have a positive impact on the company's operating results this year and beyond.