Zhong Guo Ji Jin Bao·2025-09-29 16:17Core Viewpoint - Fulin Precision and CATL plan to increase capital and expand shares in Jiangxi Shenghua, which is expected to constitute a major asset restructuring, signaling CATL's strategic move into the upstream materials industry [1][3]. Company Summary - Fulin Precision announced a capital increase of 1 billion yuan in Jiangxi Shenghua, acquiring an additional registered capital of 813 million yuan, while CATL plans to invest 2.563 billion yuan for a new registered capital of 2.084 billion yuan [3]. - Before the capital increase, Fulin Precision held a controlling stake of 79.57% in Jiangxi Shenghua, while CATL owned 18.74%. Post-expansion, CATL will become the controlling shareholder with a 51% stake, and Fulin Precision will hold 47.41% [5]. - The board of directors of Jiangxi Shenghua will consist of 7 members, with CATL appointing 4 and Fulin Precision appointing 3. The chairman will be appointed by CATL [8]. Industry Summary - The lithium iron phosphate (LFP) industry is expected to enter a new growth phase. Jiangxi Shenghua's capital increase will enhance its operational capabilities and competitive advantages [9]. - Jiangxi Shenghua's revenue for 2022, 2023, and 2024 is projected to be 4.879 billion yuan, 2.808 billion yuan, and 4.829 billion yuan, respectively, with net profits of 288 million yuan, -1.053 billion yuan, and -283.61 million yuan [9]. - As of June 30, 2025, Jiangxi Shenghua's revenue reached 3.958 billion yuan, with a net profit of 63.78 million yuan, driven by increased sales of lithium iron phosphate [10]. - Jiangxi Shenghua has a production capacity of 300,000 tons of high-pressure dense lithium iron phosphate, which is expected to enhance battery fast-charging performance and increase market share [12].