Lecron Industrial Development Group Co.Ltd(300343) which won a large order of Contemporary Amperex Technology Co.Limited(300750) last year has passed the supplier access audit and will provide it with PVDF products in short supply in the market. With the production capacity gradually climbing this year, this order may become an important source of revenue for the company.
on March 2, Lecron Industrial Development Group Co.Ltd(300343) ( Lecron Industrial Development Group Co.Ltd(300343) ) announced that its subsidiary Warner new materials officially entered the Contemporary Amperex Technology Co.Limited(300750) supply chain system, mainly providing lithium battery grade PVDF products
According to the previous agreement, under the condition that the quality, price and delivery of Huaan Xincai lithium battery grade PVDF meet the requirements of Contemporary Amperex Technology Co.Limited(300750) requirements, Contemporary Amperex Technology Co.Limited(300750) guarantees that the quantity of Huaan Xincai lithium battery grade PVDF purchased every year is 80% of the total annual output of PVDF. Both parties have implemented and completed the product delivery in February in accordance with the agreed terms.
Lecron Industrial Development Group Co.Ltd(300343) also said that Contemporary Amperex Technology Co.Limited(300750) adopted the mode of "overall planning and decentralized procurement by the headquarters" according to the actual output of Hua'an new materials, and the purchase orders of related production bases agreed on the quantity, price, delivery term, payment method and other specific contents. Among them, the product price shall be subject to monthly pricing according to the framework agreement of both parties.
PVDF is an auxiliary material needed in the production of power battery, which is mainly used as binder and so on. Although the consumption is small, due to the shortage of production capacity, the price of this raw material increased several times last year. According to xinlune lithium battery data, on March 2, the average price of ternary PVDF reached 850000 yuan / ton, and lithium iron phosphate PVDF reached 675000 yuan / ton. Xinlune lithium battery expects that PVDF will still be in short supply this year, and the price will continue to be high.
After Lecron Industrial Development Group Co.Ltd(300343) and Contemporary Amperex Technology Co.Limited(300750) signed the agreement in December 2021, Shenzhen Stock Exchange also issued a letter of concern, asking the company to specify whether the supplied products have completed the Contemporary Amperex Technology Co.Limited(300750) supplier access process. Today's announcement means that the supply has been determined.
in addition, both parties did not agree on the price and quantity of PVDF at the time of signing the agreement Lecron Industrial Development Group Co.Ltd(300343) explained that PVDF had not been officially supplied at that time. The company has said that in August 2021, 30 million tons of PVDF capacity has entered trial production. The later 5000 tons of capacity is planned to be put into operation from June to July this year, and the later 6000 tons of PVDF is planned to be put into operation at the end of this year or early next year
According to the rough estimation of purchasing 4000 tons of PVDF this year with an average price of 700000 yuan / ton, the procurement plan of Contemporary Amperex Technology Co.Limited(300750) will bring Lecron Industrial Development Group Co.Ltd(300343) a revenue of 2.8 billion yuan The Lecron Industrial Development Group Co.Ltd(300343) third quarterly report shows that the company's operating revenue in the first three quarters was 1.236 billion yuan. This means that the revenue from this PVDF order has more than doubled the revenue in three quarters.
In addition to PVDF, the above agreement also involves the purchase of another product refrigerant R142b. Both parties agree that the total purchase quantity shall not be less than 1700 tons before the end of December 2021; Not less than 7200 tons in 2022.
It is worth mentioning that Lecron Industrial Development Group Co.Ltd(300343) previously, its main business included digital marketing and new chemical materials. However, as the development of digital marketing business was far from expected, the company made strategic adjustment in 2019 and basically completed the stripping of this sector by the end of 2020. At present, the company's main products include fluorine-containing new materials and polyurethane new materials.
Lecron Industrial Development Group Co.Ltd(300343) in the above announcement, it is suggested that the performance period of the framework agreement is long, and there may be risks such as changes in the macro environment, changes in the purchase quantity, less than expected qualified products and product price fluctuations.
In terms of share price performance, Lecron Industrial Development Group Co.Ltd(300343) once set off a sharp rise with the upsurge of new energy sector last year, and the share price rose more than 7 times from July to September last year. Then the share price fluctuated continuously. So far, the latest closing price was 16.39 yuan per share, down 4.65%, with a total market value of 18.832 billion yuan.
