On the evening of April 29, China’s leading soft pack battery company Farasis Energy (Gan Zhou) Co.Ltd(688567) ( Farasis Energy (Gan Zhou) Co.Ltd(688567) . SH) released its annual report for 2021. In 2021, the company achieved a revenue of 3.5 billion yuan, a year-on-year increase of 212.60%, a new high in recent five years. Among them, the revenue in the fourth quarter was 1.535 billion yuan, a year-on-year increase of 173.32%.
According to the data of Gaogong lithium battery, in 2021, the company ranked seventh in the ranking of China Shipbuilding Industry Group Power Co.Ltd(600482) battery installed capacity, with a market share of 1.69%, slightly higher than the ninth place in the previous year. From the perspective of subdivided fields, the company ranks first in the industry in terms of the installed capacity of ternary soft pack power batteries and soft pack power batteries in China.
In 2021, the strong demand in the downstream of the industry promoted the sharp rise in the price of upstream raw materials, resulting in pressure on the profits of battery production enterprises. Connectivity datayes! It shows that in 2021, Farasis Energy (Gan Zhou) Co.Ltd(688567) gross profit margin is only – 3.35%. The company said that with the completion of price increase in the first quarter of 2022, a more reasonable price linkage mechanism has been formed with customers, and the gross profit margin has been increased to 6.81%, with a month on month increase of 10.16 percentage points and a year-on-year increase of 2.92 percentage points. At the same time, the company also locked the price and raw material supply by signing long orders with upstream Ningbo Ronbay New Energy Technology Co.Ltd(688005) , Zhejiang Huayou Cobalt Co.Ltd(603799) , Ningbo Shanshan Co.Ltd(600884) , etc.
According to the company, the production capacity was gradually released during the reporting period, including the full production capacity of phase I, phase II and phase III of the 8gwh project of Zhenjiang plant, which are expected to be put into operation by the end of 2022; Anhui Wuhu 24gwh new energy battery project was launched; In addition, the existing capacity of Ganzhou base is 5gwh.
The improvement of production line maturity is conducive to the rapid and efficient release of production capacity. According to the announcement of the company’s fixed increase reply letter, the product qualification rate reached 92.14% in the first three quarters of 2021. Considering the upward trend of monthly qualification rate, Minsheng securities is expected to be close to 95%.
In terms of customers, the company signed a long-term cooperation agreement with Daimler in 2018. In 2021, the products supporting Daimler’s eva2 and mfa2 platforms were successively offline and delivered, and mass production and supply were carried out according to the orders of Daimler and Beijing Benz, covering EQs, new EQA, EQB and other models. During the reporting period, the company’s contractual liabilities increased by 177423% year-on-year at the end of the period, mainly due to the company’s advance payment from Daimler customers.
The company has carried out cooperation with GAC on several platforms and models, including aionv, aionsplus, aiony and other key models. The cooperation between the two sides is expected to expand to Guangzhou Automobile Group Co.Ltd(601238) homologous car enterprises and affiliated car enterprises.
Minsheng securities expects that in 2022, Daimler EQA / EQB / EQE / EQS and GAC aion series have high volume certainty, and the shipment demand is about 15gwh. Under the condition of full production and full sales, the company may turn losses into profits in 2022.
