Guangdong Fangyuan New Materials (SH:688148) Shang Hai Zheng Quan Bao·2025-09-25 19:36Core Viewpoint - Guangdong Fangyuan New Materials Group Co., Ltd. has signed a technical export cooperation agreement with a Japanese company to develop and produce NCMA/NCA/NCM precursors in Japan, which is expected to positively impact the company's revenue and net profit in the current and subsequent years [2][17]. Summary by Sections Cooperation Details - The cooperation involves technology output and equity participation, with the company providing technology and processes to the target company, which will implement the project [2][5]. - The total technical service fee, design fees, and operational technology usage fees to be received by the company amount to 4.8 billion yen (approximately 229.85 million RMB) [2][5]. - The company has already received 132.25 million yen (approximately 6.42 million RMB) as information and development fees, which have been included in the current other business income [2][18]. Financial Impact - The company expects to receive an additional 1.24 billion yen (approximately 59.38 million RMB) in 2025, excluding the previously received amount [2][18]. - This cooperation is anticipated to have a significant positive impact on the company's operating income and net profit for the current and future years [2][17]. Project Implementation - The project will involve the construction of a factory with a monthly production capacity of 1,600 tons of precursor products [12]. - The Japanese company is expected to invest between 9 billion and 12 billion yen, while the company plans to invest between 1 billion and 1.5 billion yen (approximately 47.89 million to 71.83 million RMB) [5][12]. Risk Factors - The cooperation is subject to obtaining necessary approvals from relevant authorities, which introduces uncertainty regarding the timeline for project implementation [3][19]. - There are risks associated with information confidentiality, foreign exchange fluctuations, and potential geopolitical impacts that could affect project progress [3][19]. Strategic Importance - This collaboration allows the company to expand its overseas market presence while minimizing risks associated with overseas operations, such as land acquisition and personnel management [17]. - The project is expected to enhance the company's cash flow stability and diversify its revenue sources, contributing to its long-term growth and technological innovation [17].