Farasis Energy(SH:688567)2021-05-14 16:00Company Overview - Fudi Technology successfully listed on the STAR Market, becoming the first stock of soft-pack lithium-ion power batteries[3]. - The company was approved as a national enterprise technology center, leading innovation in new energy technology[3]. - Fudi Technology is committed to a "second entrepreneurship" journey in 2021, focusing on technological innovation and customer value creation[3]. - The company emphasizes the importance of organizational vitality and transformation empowerment in its operational strategy[3]. - Fudi Technology aims to lead energy transformation and contribute to a better life for humanity[3]. 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%[16]. - 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 295.20% compared to a positive CNY 483,521,769.03 in 2019[22]. - The company reported a significant increase in financing activities, with net cash flow from financing activities rising to RMB 425,953.22 million, up 1,167.73% from RMB 33,599.55 million[118]. Research and Development - Research and development expenses accounted for 15% of total revenue, amounting to RMB 180 million in 2020[16]. - The company has invested CNY 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, which balances 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]. Market Position and Strategy - The company ranks seventh in domestic power battery installed capacity, with a monthly increase in output following the ramp-up of its production base[39]. - The company has secured partnerships with three major automotive manufacturers to supply battery systems, projected to generate an additional RMB 500 million in revenue[16]. - The company is actively expanding its customer base, including major automotive brands such as Volkswagen, Audi, and Toyota[83]. - The company has established long-term partnerships with major automotive clients, including Daimler and Beijing Benz, enhancing its market position[73]. - The company aims to achieve a combined capacity of 120 GWh with the joint venture with Geely Technology, with at least 20 GWh expected to start construction in 2021[143]. Operational Challenges and Risks - The company experienced a significant decline in sales due to the pandemic, with a notable drop in demand for key models in the first half of 2020[22]. - The company faced significant operational challenges in the first half of 2020 due to the COVID-19 pandemic, impacting production and sales[74]. - The company faces risks from declining sales prices of power batteries due to subsidy reductions and intensified competition in the new energy vehicle market[90]. - The company is exposed to market demand fluctuations, as the penetration rate of electric vehicles remains low, and factors such as high costs and inadequate charging infrastructure may hinder consumer acceptance[106]. - The company has experienced turnover of core technical personnel, which could adversely affect its production and R&D capabilities[95]. Corporate 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[161]. - The company will comply with regulations regarding share reduction after the lock-up period, ensuring the reduction price does not fall below the IPO price[170]. - The company has established a comprehensive internal management system based on its Articles of Association, ensuring accurate and timely information disclosure[199]. - The company adheres to the Company Law and Securities Law, ensuring a robust corporate governance structure and compliance with regulations[199]. - The company will actively accept social supervision regarding its public commitments made during the IPO process[182]. Future Outlook - The future outlook remains positive, with a projected revenue growth rate of 30% for 2021[16]. - The company plans to expand production capacity and develop new business models, including a joint venture project with Geely Technology and the establishment of an energy storage division[153]. - The company anticipates significant growth in the power battery market driven by global carbon reduction strategies and the increasing demand for electric vehicles[139]. - The company aims to enhance high-quality development through strategic planning and execution, focusing on new business areas such as energy storage and expanding into high-growth segments[148]. - The company plans to gradually increase its production capacity to a total of 24GWh in the coming years, focusing on strategic customers to stabilize orders[76].