HNZK Electric.(SZ:300035) Chang Jiang Shang Bao·2025-12-18 01:41Core Viewpoint - Zhongke Electric plans to invest approximately 7 billion RMB in a new integrated project for the production of 300,000 tons of lithium-ion battery anode materials in Luzhou, Sichuan, to meet the growing market demand for lithium battery anodes [1][2]. Group 1: Investment and Expansion Plans - The project will be constructed in two phases: the first phase aims for an annual capacity of 200,000 tons with an investment of about 4.7 billion RMB, while the second phase will add another 100,000 tons with an investment of approximately 2.3 billion RMB [2]. - The funding for this project will come from the company's own funds and self-raised funds, although there is uncertainty regarding the timely availability of these funds [2][3]. Group 2: Financial Performance - As of September 2025, Zhongke Electric reported cash and cash equivalents of 485 million RMB, with short-term borrowings amounting to 2.883 billion RMB [3]. - The company experienced a net cash flow from operating activities of -1.096 billion RMB in the first three quarters of 2025, compared to -185 million RMB in the same period the previous year [3]. Group 3: Market Position and Revenue Growth - Zhongke Electric is a leading manufacturer of anode materials, with its revenue from the lithium battery anode segment increasing from 234 million RMB in 2017 to 5.192 billion RMB in 2024, representing a growth of approximately 21.19 times [4]. - In the first half of 2025, the anode business generated revenue of 3.444 billion RMB, accounting for 95.32% of the company's total revenue [4]. Group 4: Strategic Partnerships - The company is in the process of introducing strategic investors, specifically the Kaibo Chengdu Fund, which has a total scale of 2 billion RMB after recent fundraising [6]. - The strategic investors include entities with state-owned backgrounds from Sichuan and Chengdu, as well as leading companies in the lithium battery industry [6].