Chang Jiang Shang Bao·2025-06-08 23:10Core Viewpoint - The cooperation between Fulin Precision (富临精工) and CATL (宁德时代) has significantly expanded, with a focus on increasing lithium iron phosphate (磷酸铁锂) production capacity and extending the cooperation period, which is expected to enhance the company's financial performance and market position [1][2][3]. Group 1: Cooperation Agreement - Fulin Precision's subsidiary, Jiangxi Shenghua, signed a supplementary agreement with CATL, increasing the annual production capacity from 7.5 million tons to 16 million tons at the Jiangxi base and adding 20 million tons at the Sichuan phase three [2][3]. - CATL will pay a prepayment of 500 million yuan to support the capacity expansion, with a commitment to complete the Jiangxi base construction by April 30, 2025, and achieve an annual production capacity of 80,000 tons by June 30, 2025 [2][3]. - The cooperation period has been extended from three years (2025-2027) to five years (2025-2029), with annual procurement quantities adjusted to be no less than 80% of the promised capacity [2][3]. Group 2: Financial Performance - In Q1 2025, Fulin Precision's lithium iron phosphate business turned profitable, achieving a net profit of 124 million yuan, a year-on-year increase of 211.85% [1][5]. - The company's total revenue for 2024 reached 8.47 billion yuan, a year-on-year growth of 47.02%, with a net profit of 397 million yuan, recovering from a loss of 543 million yuan in 2023 [5]. - The net profit has shown a continuous doubling trend over three consecutive quarters, with significant increases of 326.4% and 161.23% in Q3 and Q4 of 2024, respectively [5]. Group 3: Market Position and R&D Investment - Fulin Precision's revenue from automotive parts has steadily increased from 1.788 billion yuan in 2020 to 3.641 billion yuan in 2024, more than doubling over four years [4]. - The company has consistently increased its R&D investment, with expenditures rising from 181 million yuan in 2022 to 220 million yuan in 2024, totaling 605 million yuan over three years [4]. - As of June 6, 2025, Fulin Precision's stock price reached 13.14 yuan per share, approximately 1.7 times higher than a year ago, with a total market value of 22.466 billion yuan [5].