Under the pressure of raw material cost, Farasis Energy (Gan Zhou) Co.Ltd(688567) revenue doubled, but the loss expanded year-on-year. This year will be a critical period for second-line power battery manufacturers to compete for market share, and Farasis Energy (Gan Zhou) Co.Ltd(688567) also raised funds to expand production capacity through fixed increase.
On February 27, Farasis Energy (Gan Zhou) Co.Ltd(688567) ( Farasis Energy (Gan Zhou) Co.Ltd(688567) ) released the performance express, which realized a revenue of 3.403 billion yuan in 2021, a year-on-year increase of 203.97%; However, the annual net loss was 974 million yuan, an increase compared with the loss of 331 million yuan last year, with a loss of 1.285 billion yuan after deduction.
Farasis Energy (Gan Zhou) Co.Ltd(688567) the main product is three yuan soft pack battery. The revenue growth is due to the mass production of downstream customers last year. Daimler is one of Farasis Energy (Gan Zhou) Co.Ltd(688567) core customers. The company supplies power batteries for EQs, EQA, EQB and other models. In order to meet Daimler’s demand, Farasis Energy (Gan Zhou) Co.Ltd(688567) has built a production base with an annual capacity of 24gwh in Zhenjiang.
In addition, Guangzhou Automobile Group Co.Ltd(601238) customers’ purchase of Farasis Energy (Gan Zhou) Co.Ltd(688567) also increased significantly Farasis Energy (Gan Zhou) Co.Ltd(688567) previously revealed that the cooperation models with GAC include aion V and s plus, and the latest fixed-point models of aion s 500 and aion y Farasis Energy (Gan Zhou) Co.Ltd(688567) downstream customers also include Geely Automobile, Dongfeng Automobile Co.Ltd(600006) , BAIC new energy, etc.
According to the data of China automotive power battery industry innovation alliance, the Farasis Energy (Gan Zhou) Co.Ltd(688567) loading volume in 2021 was 2.45gwh, with a market share of 1.6%, ranking ninth among Chinese manufacturers. In January this year, Farasis Energy (Gan Zhou) Co.Ltd(688567) ranked 7th, with loading volume of 0.34gwh, accounting for 2.11% of the city; It ranks third in the field of ternary battery, second only to Contemporary Amperex Technology Co.Limited(300750) and China Innovation airlines.
Although the sales volume has increased, the price of power battery has decreased Farasis Energy (Gan Zhou) Co.Ltd(688567) explained that in the past few years, the overall price of power battery has shown a downward trend. In addition, in the early stage, based on the market trend of raw materials from 2018 to 2020, the company negotiated pricing with customers, the sales price is low, and provided certain price concessions to key customers. The company said that at present, the selling price of most customers’ products has been adjusted.
The price rise of power battery raw materials ran through the whole year of last year. According to the data of xinlune lithium battery, the price of lithium carbonate soared from 50000 yuan / ton at the beginning of 2021 to 470000 yuan / ton recently, an increase of more than 8 times; Ternary precursor (type 523) increased from 83500 yuan / ton to 142500 yuan / ton, an increase of 74%; In addition, copper foil, PVDF, diaphragm and other materials have increased in varying degrees.
However, it was difficult for power battery manufacturers to transmit prices to vehicle manufacturers. Until the end of the year, there were news of price increases from many manufacturers, including Farasis Energy (Gan Zhou) Co.Ltd(688567) , Byd Company Limited(002594) and other companies. Insiders said that in the middle of the year, most manufacturers bear cost pressure in order to seize the share. At the end of the year, they began to readjust the price at the node of signing new orders. The price increase is also reflected in the final consumption link. At the beginning of this year, Tesla, Byd Company Limited(002594) , Xiaopeng automobile and other brands have announced price increases.
In addition to the pressure on profits caused by price, Farasis Energy (Gan Zhou) Co.Ltd(688567) said that in 2021, the company’s Zhenjiang phase I and phase II plants were successively converted to fixed assets and put into use. The investment in new production line equipment was large, resulting in a large increase in depreciation. Moreover, due to the climbing of production capacity and other reasons, the production capacity has not been fully released, and the scale effect has not been fully shown yet. In addition, sales expenses and R & D investment have also increased.
It is generally believed in the industry that the second tier power battery echelon of Farasis Energy (Gan Zhou) Co.Ltd(688567) will launch a market competition this year, and the stability of capacity supply will be the key competitiveness. Therefore, Farasis Energy (Gan Zhou) Co.Ltd(688567) in February issued a fixed increase plan, which plans to raise 4.52 billion yuan, of which 3.92 billion yuan is invested in the high-performance power lithium battery project, corresponding to the 12gwh power battery production project in Wuhu, Anhui Province, and another 600 million yuan is used as the science and technology reserve fund.
As of the latest closing, Farasis Energy (Gan Zhou) Co.Ltd(688567) reported 30.6 yuan per share, with a total market value of 32.762 billion yuan.
