Farasis Energy(SH:688567)2021-06-09 16:00Company Achievements and Innovations - Fuan 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] - In 2020, Fuan Technology accelerated its globalization efforts by partnering with leading new energy vehicle manufacturers[3] - Fuan Technology aims to continue its "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] - The company has established global R&D partnerships with top institutions and companies, including Argonne National Laboratory and Stanford University[70] - The company is a leading manufacturer of ternary soft-pack lithium-ion batteries, with a strong focus on R&D and innovation in the industry[68] Financial Performance - The company reported no cash dividends, stock bonuses, or capital reserve transfers for the 2020 profit distribution plan[9] - 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[24] - 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[24] - The net cash flow from operating activities was a negative CNY 943,857,818.04, compared to a positive CNY 483,521,769.03 in the previous year, marking a decrease of 295.20%[24] - The company's total assets increased by 31.77% to CNY 15,417,645,005.75 at the end of 2020, up from CNY 11,700,389,963.90 at the end of 2019[24] - The basic earnings per share for 2020 was -CNY 0.35, a decrease of 333.33% from CNY 0.15 in 2019[25] - The weighted average return on net assets was -3.98%, a decrease of 5.86 percentage points from 1.88% in 2019[25] Research and Development - Research and development expenses accounted for 33.21% of operating revenue, an increase of 20.22 percentage points from 12.99% in 2019[25] - The company has increased its R&D investment by 37.31% year-on-year, totaling approximately ¥371.87 million, which now accounts for 33.21% of its operating revenue[57][58] - The company is actively involved in several major government-funded research projects aimed at developing high-safety, high-energy lithium batteries and modular battery systems[55] - The company aims to balance energy density, low-temperature performance, safety, cost, and recyclability through its focus on high-nickel ternary pouch battery technology[52] Market Trends and Challenges - The company faces various operational risks, which are detailed in the report's fourth section[7] - 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[24] - The company anticipates a potential decline in battery prices due to subsidy reductions and increased competition in the new energy vehicle market[90] - The company is facing risks related to the decline in sales of new energy vehicles, which could impact its revenue due to reduced demand from automakers[87] - The competitive landscape in the battery industry is intensifying, with increased entry from foreign companies and a need for domestic firms to reduce production costs and enhance product performance[107] Production Capacity and Expansion - The company plans to expand its production capacity by 50% in the next two years to meet increasing demand for lithium-ion batteries[17] - The company's production capacity at the Ganzhou factory reached a theoretical capacity of 5GWh, while the Zhenjiang factory completed its first phase of 8GWh and began operations in June 2020, with further phases planned for 2021 and 2022[80] - The company has a production capacity of 8 GWh that began ramping up in the second half of 2020, supplying batteries for models from GAC, which received positive market feedback[75] Strategic Partnerships and Collaborations - The company has established strategic partnerships with qualified suppliers to ensure price stability and supply security through joint technology development[35] - The company has signed strategic cooperation agreements with multiple new clients, including a joint venture with Geely Technology aiming for a combined capacity of 120GWh, with at least 20GWh expected to start construction in 2021[83] - The company has established long-term partnerships with major automotive manufacturers, including Daimler and Beijing Benz, enhancing its customer resource advantage[73] Corporate Governance and Compliance - The board of directors confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements[6] - The company has a long-term commitment to address related party transactions and competition issues, ensuring compliance with regulations[162] - The company has established a comprehensive internal management system based on its Articles of Association, ensuring accurate and timely information disclosure[199] Future Outlook - The future outlook for the new energy vehicle industry is optimistic, with policies supporting growth and a projected rapid increase in market demand[137] - 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[147] - The company is committed to maintaining technological leadership and improving product competitiveness by streamlining the entire process from R&D to sales[148]