Huan Qiu Lao Hu Cai Jing·2025-09-30 02:58Core Viewpoint - The announcement of a capital increase and share expansion by Fulian Precision and CATL in Jiangxi Shenghua New Materials is expected to constitute a significant asset restructuring, with CATL becoming the controlling shareholder post-expansion [1][2]. Company Summary - Fulian Precision plans to invest 1 billion yuan in Jiangxi Shenghua, acquiring 813 million yuan of new registered capital, while CATL will invest 2.563 billion yuan for 2.084 billion yuan of new registered capital [1]. - Before the capital increase, Fulian Precision held a 79.57% stake in Jiangxi Shenghua, while CATL held 18.74%. After the increase, CATL will control 51.00% and Fulian Precision will hold 47.41% [1]. - CATL will manage Jiangxi Shenghua, with a board of 7 members, 4 appointed by CATL and 3 by Fulian Precision [1]. Financial Performance - As of June 30, 2025, Jiangxi Shenghua's total assets are 7 billion yuan, with a net asset size of 1.189 billion yuan. Revenue for 2024 and the first half of 2025 is reported at 4.829 billion yuan and 3.958 billion yuan, respectively, with net profits of -28.36 million yuan and 63.78 million yuan [2]. - The company specializes in high-pressure dense lithium iron phosphate cathode materials, with a production capacity of 300,000 tons [2]. Industry Context - The lithium iron phosphate industry is currently facing significant losses due to rapid capacity expansion and declining raw material prices, leading to a restructuring of the industry landscape [2]. - According to Zhongyin Securities, the traditional lithium iron phosphate market is highly competitive, with some outdated capacities ready for elimination. High-pressure dense lithium iron phosphate has high technical requirements, with only a few leading companies achieving mass production [3]. - It is anticipated that by 2025, the lithium iron phosphate market will further concentrate among leading and low-cost enterprises [3].