Farasis Energy(SH:688567) Zheng Quan Shi Bao Wang·2025-01-03 01:26Core Viewpoint - The company, Funeng Technology, is undergoing significant changes, including a potential transfer of shares that may lead to a change in its controlling shareholder and actual controller, amidst ongoing financial struggles and management issues [1][18][19]. Group 1: Share Transfer and Control Changes - On January 1, 2025, Funeng Technology announced a suspension of trading due to plans by its controlling shareholder, Hong Kong Funeng, and its concerted party, Ganzhou Fuchuang, to transfer part of their shares [1]. - The current actual controllers of Funeng Technology are YU WANG and Keith D. Kepler, who together own 100% of Hong Kong Funeng [2]. - Following the lifting of restrictions on original shareholders' shares on July 17, 2023, Hong Kong Funeng and Ganzhou Fuchuang began planning a share transfer, which ultimately did not proceed [3][12]. Group 2: Financial Performance and Challenges - Funeng Technology has shown a stark contrast in profitability before and after its IPO, with significant losses reported, particularly during the booming lithium battery market in 2021 and 2022, averaging annual losses of 900 million yuan [5][7]. - The company has faced pressure on its revenue due to a lack of customer orientation, which has affected its performance in the iron-lithium market [8]. - Despite the low profitability requirements of the Sci-Tech Innovation Board, the ongoing losses need to be addressed eventually [11]. Group 3: Market Position and Industry Dynamics - Funeng Technology's revenue has grown significantly from 1.1 billion yuan in 2020 to 16.4 billion yuan in 2023, positioning it among the leading ternary battery manufacturers in China [28]. - However, the market share of ternary batteries has been severely impacted by the rise of lithium iron phosphate batteries, with the latter's share increasing to 73.6% by November 2024 [23][29]. - In the first three quarters of 2024, Funeng Technology experienced an 18% decline in revenue, marking its first decrease since 2021 [30]. Group 4: Management and Structural Changes - Funeng Technology has been undergoing internal restructuring since the second half of 2023, including changes in key management positions across various departments [31]. - The company has been identified as one of the two firms in the Wind power battery sector that have consistently reported losses from 2020 to the third quarter of 2024 [20]. - The potential change in controlling shareholders may provide a more direct and effective influence on the company's operations, which could be beneficial for investors [35].