Farasis Energy (Gan Zhou) Co.Ltd(688567) (Ganzhou) Co., Ltd
The explanation (Revised Version) on the investment of the raised funds in the field of scientific and technological innovation Farasis Energy (Gan Zhou) Co.Ltd(688567) (Ganzhou) Co., Ltd. (hereinafter referred to as " Farasis Energy (Gan Zhou) Co.Ltd(688567) " or "the company") in accordance with the measures for the administration of securities issuance and registration of companies listed on the science and Innovation Board (Trial Implementation) and other relevant regulations, and in combination with the actual situation of the company, This paper studies whether the investment of the funds raised by issuing shares to specific objects in 2021 belongs to the field of scientific and technological innovation, and formulates the description on the investment of the funds raised in this time belongs to the field of scientific and technological innovation (hereinafter referred to as "the description"), with the specific contents as follows:
1、 Main business of the company
Farasis Energy (Gan Zhou) Co.Ltd(688567) is not only a provider of overall technical solutions for power battery system of new energy vehicles, but also a manufacturer of high-performance power battery system. Farasis Energy (Gan Zhou) Co.Ltd(688567) since its establishment, it has been focusing on the R & D, production and sales of lithium-ion power batteries and vehicle battery systems for new energy vehicles, and providing overall solutions for power batteries for new energy vehicle enterprises. At present, it has become one of the leading enterprises of ternary soft pack power batteries in the world.
The company's main products are batteries, modules and battery packs of ternary soft pack power batteries, covering battery systems for pure electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles and 48V micro hybrid battery systems. The application field is mainly new energy passenger vehicles. According to the statistics of the Institute of advanced industry research (GGII), in 2019 Farasis Energy (Gan Zhou) Co.Ltd(688567) ranked first in the installed capacity of soft pack power batteries in China with a market share of 22.04%; According to the data of spir, in 2020 Farasis Energy (Gan Zhou) Co.Ltd(688567) ranked first in the installed capacity of soft pack power batteries in China for four consecutive years with a market share of 20%, maintaining the leading position of soft pack batteries in China.
2、 Investment plan of the raised funds
(I) use plan of the raised funds
The total amount of funds raised in this issuance shall not exceed 4520 million yuan (including this amount). After deducting the issuance expenses, the net amount of funds raised is planned to be invested in the following projects:
Unit: 10000 yuan
No. project name total investment amount proposed to be invested with raised funds
1 high performance power lithium battery project 525625.90 392000.00
2. Science and technology reserve fund 60000.00 60000.00
Total 585625.90 452000.00
Before the funds raised from this issuance to specific objects are in place, the company can invest in advance with self raised funds according to the actual progress of the projects to be invested by the raised funds, and replace them in accordance with the procedures specified in relevant laws and regulations after the raised funds are in place. After the funds raised from this issuance to specific objects are in place, if the actual raised funds after deducting the issuance expenses are less than the total amount of the funds raised from the above projects, the board of directors or the authorized person of the board of directors will, within the scope of the above-mentioned investment projects with raised funds, according to the actual situation such as the progress of the investment projects with raised funds and the demand for funds, Adjust the priority of the investment of the raised funds and the specific investment amount of each project. The insufficient part of the raised funds shall be solved by the company with its own funds or self raised funds.
(II) basic information of investment projects with raised funds
1. High performance power lithium battery project
(1) Project overview
In combination with the iterative evolution trend of new energy battery technology, the latest production process of new energy battery and the upgrading needs of downstream customers, the company will obtain land in Sanshan Economic Development Zone, Wuhu City, Anhui Province, build a high-performance power lithium battery project, and purchase advanced power lithium battery production equipment to meet the needs of the company through the construction of production plants and supporting facilities, After the completion of the project, the annual production capacity of 12gwh power battery system will be realized. After the implementation of the project, the company can further industrialize the core technology, grasp the growth opportunities of the downstream new energy vehicle market, deepen the partnership with high-quality customers at home and abroad, provide development momentum for the company to deeply participate in the future industrial reform, and help the country achieve the goals of "carbon peak" and "carbon neutralization".
(2) Project investment estimate
The investment estimate of the project is as follows:
Unit: 10000 yuan
No. project or cost name investment amount in total investment proportion
1. Construction cost 443193.04 84.32%
1.1 construction and installation works 139185.79 26.48%
1.2 equipment purchase and installation 289551.18 55.09%
1.3 land use fee 11373.60 2.16%
1.4 other expenses of project construction 3082.48 0.59%
2. Basic reserve fund 22159.65 4.22%
3. Initial working capital 60273.21 11.47%
The total investment of the project is 525625.90 100.00%
(3) Estimated economic benefits of the project
After calculation, the after tax static investment payback period of the project is 6.95 years, and the after tax internal rate of return is 12.80%.
(4) Implementation subject, project site selection and construction period
1) Implementation subject
The implementation subject of the project is Farasis Energy (Gan Zhou) Co.Ltd(688567) a wholly-owned subsidiary to be established in Anhui Wuhu Sanshan economic development zone. 2) Project site selection
The target plot of the project site is located in Anhui Wuhu Sanshan economic development zone.
3) Construction planning
The project is planned to be completed in 18 months.
(5) Project filing and EIA
On October 14, 2021, the company has obtained the notice on Approving the registration and filing of high-performance power lithium battery project of Farasis Energy (Gan Zhou) Co.Ltd(688567) (Wuhu) Co., Ltd. (SJF [2021] No. 359) issued by the Economic Development Bureau of the Management Committee of Wuhu Sanshan Economic Development Zone, Anhui Province.
The issuer implements the construction of high-performance power lithium battery project on the existing land of Anhui Wuhu Sanshan economic development zone. On November 16, 2021, the company won the right to use state-owned construction land with parcel No. (III) 202118 in Wuhu Sanshan Economic Development Zone by listing, and signed the transaction confirmation on the same day. Up to now, the company has signed the transfer contract of state-owned construction land use right with Wuhu natural resources and Planning Bureau, paid the land transfer fee, and will handle the land use certificate later.
The issuer has obtained the approval document of environmental impact assessment (wuhuanshen [2021] No. 248) on December 8, 2021.
2. Science and technology reserve fund project
(1) Project overview
The company plans to raise 600 million yuan for science and technology reserve fund projects through the issuance of shares according to the current actual operation situation and in combination with the future development plan. Specific investments include but are not limited to: research and development of new products, research and development of product supporting materials, optimization of product performance, development of optimal process route, expansion of existing production line, technological upgrading, etc.
(2) Implementation subject
The main body of the project is Farasis Energy (Gan Zhou) Co.Ltd(688567) (Ganzhou) Co., Ltd.
(3) Fund utilization arrangement
High performance power lithium battery is an important part of the issuer's sales revenue. According to the current actual business situation, the company plans to use the raised funds to further invest in product material research and development, product performance improvement, production process development and production line technology upgrading, so as to further develop and build an integrated technical scheme of new energy vehicle power battery system and high-performance lithium battery intelligent manufacturing base in line with the industry-leading level. At the same time, the issuer plans to support the corresponding infrastructure and professional team around multiple forward-looking R & D directions, so as to quickly promote the R & D and industrialization of new products and improve the sustainable development ability of the company. (III) necessity and feasibility of the implementation of projects invested by raised funds
1. Necessity of project construction
(1) High performance power lithium battery project
1) In response to the national "double carbon" goal and energy conservation and emission reduction policies, the power battery industry ushered in development opportunities
At present, the global "double carbon" goal has basically reached a consensus, and energy conservation and emission reduction is the focus of China's short-term carbon neutralization policy. The new energy vehicle industry can effectively alleviate the pressure of energy and environment, promote the transformation of economic development mode and sustainable development. According to marklines data, in the first half of 2021, the global new energy vehicle EV and PHEV achieved a total sales volume of 2.3887 million, a year-on-year increase of 169.30%, of which the sales volume of EV was 1.6609 million, a year-on-year increase of 178.80%, and the sales volume of PHEV was 727800, A year-on-year increase of 149.90%. According to the data of China Automobile Association, in the first half of 2021, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles was 1.206 million, a year-on-year increase of 139.3%, of which the sales volume of new energy vehicles was 1.14 million, a year-on-year increase of 217.40%. The penetration rate of new energy vehicles increased from 5.40% at the beginning of this year to 9.40% in the first half of this year, of which the penetration rate in June has exceeded 12%. It is expected that the Shanxi Guoxin Energy Corporation Limited(600617) automobile penetration rate will continue to increase in the future.
The strong demand of the new energy vehicle terminal market has driven the rapid development of the power battery industry, and the power battery industry has ushered in unprecedented development opportunities. According to the statistics of the global power battery installed capacity database released by GGII, the global power battery installed capacity in the first half of 2021 was about 100.49gwh, a year-on-year increase of 141%. According to the statistics of new energy vehicle traffic compulsory insurance caliber, the installed capacity of China Shipbuilding Industry Group Power Co.Ltd(600482) battery in the first half of 2021 was about 46.39gwh, a year-on-year increase of 177%. According to SNE research data, the installed capacity of global power batteries in 2020 was 137gwh, and the average annual compound growth rate from 2018 to 2020 was about 32.3%; In 2020, the installed capacity of China Shipbuilding Industry Group Power Co.Ltd(600482) battery was 63.6gwh, and the average annual compound growth rate from 2018 to 2020 was about 20.6%. SNE research predicts that the global power battery demand will reach 2956gwh in 2030, with an average annual compound growth rate of 33% from 2020 to 2030, and China Shipbuilding Industry Group Power Co.Ltd(600482) battery demand will reach 449gwh and 1022gwh in 2025 and 2030 respectively.
In the reply of the Ministry of finance to the recommendation No. 2284 of the fourth session of the 13th National People's Congress, the Ministry of Finance mentioned: support the development of China's Shanxi Guoxin Energy Corporation Limited(600617) automobile industry by means of new energy vehicle purchase subsidies and exemption from purchase tax, charging pile infrastructure incentives, new energy bus operation subsidies and so on. The launch of various government support policies and the expansion of the downstream market of the industrial chain under the "double carbon" goal will drive the rapid growth of the power battery industry. The implementation of this fund-raising project will help the company seize good market development opportunities and promote the sustainable development of the company.
2) The company has made steady progress in cooperation with a number of strategic customers, and the demand for power batteries has increased rapidly
The company is one of the world's leading enterprises of ternary soft pack power batteries and the first batch of enterprises in China to realize mass production of ternary soft pack power batteries. With the advantages of high energy density, good safety performance, long cycle life and excellent low-temperature performance of ternary soft pack power battery, the company has established long-term cooperative relations with many high-quality vehicle enterprises at home and abroad, and continues to provide high-quality power battery products for the electric vehicle platforms of Daimler, GAC, Geely, togg, Dongfeng, Jiangling, great wall and other customers, Covering multiple models of the above customers.
At the end of 2018, the company signed supply agreements with strategic customers Daimler and Beijing Benz. In April 2021, the power batteries provided by the company for some Daimler models have achieved mass production, and will enter the stage of large-scale supply in the future. In 2020, the company received the project fixed point of Zhejiang Cfmoto Power Co.Ltd(603129) as the power battery supplier of its six model platforms; The company received the project designation of brilliance Xinri New Energy Vehicle Co., Ltd. as the power battery supplier of its w32h project; The company signed a strategic cooperation agreement with Turkey togg group to provide power battery solutions and related services for customers in the region. In 2020, the company was designated by Dongfeng Automobile Co.Ltd(600006) Group Co., Ltd. as the power battery supplier of lantu h56 project, the global main platform of Dongfeng Group's pure electric vehicle, to undertake its development and future supply. In 2021, the company received the fixed-point notice of Le model project of GAC Mitsubishi Automobile Co., Ltd., and developed and supplied the power battery of Le model for it. In 2021, the company received the letter of intent from Liuzhou Wuling, informing the company to become its supplier of lithium battery system assembly and provide power battery systems for many of its models.
At present, the company's capacity scale should cope with the above customers
