Farasis Energy(SH:688567)2021-04-29 16:00Company Overview - In 2020, the company successfully listed on the STAR Market, becoming the first stock of soft-pack lithium-ion power batteries[2]. - The company was approved as a National Enterprise Technology Center, leading innovation in new energy technology[2]. - The company has committed to providing green energy and building an intelligent world as part of its mission[2]. - The company aims to continue its "second entrepreneurship" journey in 2021, focusing on technological innovation and customer value creation[2]. - The company has established long-term partnerships with leading automotive manufacturers, including Daimler and Beijing Benz, enhancing its customer resource advantage[73]. Financial Performance - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2020, representing a year-over-year growth of 25%[15]. - The company's operating revenue for 2020 was CNY 1,119,652,306.75, a decrease of 54.29% compared to CNY 2,449,628,725.50 in 2019[22]. - The net profit attributable to shareholders was a loss of CNY 331,004,259.32, representing a decline of 352.24% from a profit of CNY 131,227,665.49 in 2019[22]. - The net cash flow from operating activities was a negative CNY 943,857,818.04, a decrease of 295.2% compared to a positive CNY 483,521,769.03 in 2019[22]. - The company achieved a revenue of 1.119 billion yuan in 2020, a decrease of 54.29% compared to the previous year, with a net profit attributable to shareholders of -331 million yuan[74]. Research and Development - Research and development expenses accounted for 15% of total revenue, amounting to RMB 180 million in 2020[15]. - The company has invested approximately ¥371.87 million in R&D in the current year, a 37.31% increase from the previous year, with R&D expenses accounting for 33.21% of operating income[56]. - The company holds 104 domestic patents and 16 foreign patents, with 92 additional patents currently under application[52]. - The company is focusing on high-nickel ternary pouch battery technology to balance energy density, low-temperature performance, safety, cost, and recyclability[50]. - The company has established global R&D partnerships with top institutions and companies, including Argonne National Laboratory and Stanford University[70]. Production and Capacity Expansion - The company plans to expand its production capacity by 50% in the next two years to meet increasing demand[15]. - The company has a production capacity of 8GWh that began ramping up in the second half of 2020, supplying batteries for models from GAC, which received positive market feedback[74]. - The theoretical capacity of the Ganzhou factory reached 5GWh, while the Zhenjiang factory completed its first phase of 8GWh and began production in June 2020, with plans for further expansions in 2021 and 2022[79]. - The company plans to gradually increase its production capacity to a total of 24GWh in the coming years, focusing resources on strategic customers like Daimler[76]. - The company aims to achieve a combined capacity of 120 GWh through a joint venture with Geely Technology, with at least 20 GWh expected to start construction in 2021[142]. Market Position and Competition - The company is positioned in a highly competitive market, with significant market share held by leading firms in China, Japan, and South Korea[39]. - CATL held a dominant market share of 50.09% in China's power battery sector in 2020, maintaining its position as the top player[40]. - The company aims to enhance the penetration rate of soft-pack batteries, which currently holds a 6% market share in China, as global demand for electric vehicles increases[38]. - The competitive landscape in the power battery industry is intensifying, with increased entry of foreign companies and a need for domestic firms to reduce production costs and enhance product performance[107]. - The market for new energy vehicles in China is shifting from policy-driven to consumer-driven, with significant growth observed in the second half of 2020[46]. Risks and Challenges - The company has outlined various operational risks and corresponding countermeasures in its report[6]. - The company is facing risks related to declining sales prices of power batteries due to subsidy reductions and increased competition in the electric vehicle market[90]. - The company is exposed to market demand fluctuations, as the penetration rate of new energy vehicles remains low, and factors such as short range and high costs may hinder consumer acceptance[106]. - The company has recognized a need for impairment provisions totaling approximately 155 million yuan for certain inventories and receivables, negatively impacting profits[77]. - The ongoing COVID-19 pandemic has negatively impacted the company's operations, affecting supply chain logistics and customer demand, which may influence overall performance[108]. Governance and Compliance - The company has committed to a share restriction agreement from July 17, 2020, to July 16, 2023, involving major shareholders and related parties[160]. - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed as cash dividends if there are no major investment plans[154]. - The company has maintained a commitment to transparency in its financial reporting and shareholder communications[159]. - The company will ensure compliance with the relevant laws and regulations for any share reduction activities[169]. - The company has implemented a comprehensive internal management system based on its Articles of Association, ensuring accurate and timely information disclosure without any corrections or supplements during the reporting period[198].