The new energy vehicle war continues to rise.
On the evening of December 24, Funeng Technology issued an announcement saying that recently, Funeng Technology and Geely Technology signed a strategic cooperation agreement to establish a joint venture to build a power battery production plant to jointly promote the construction of power battery production capacity and engage in electric R&D, manufacturing and sales of cores, battery modules and battery packs.
It is understood that the establishment of the joint venture company will help Funeng Technology to expand its production capacity and help Funeng Technology reach its production capacity target of 120GWh. According to the agreement, construction of no less than 20Gwh will start in 2021.
At the same time, it announced that the joint venture company will provide a stable supply of new energy vehicles from Geely Technology Group and its holding subsidiaries and Geely Commercial Vehicle Group. The supply is not less than the demand of Geely Technology and Geely Commercial Vehicle Group. 80%.
Foneng Technology focuses on the R&D, production and sales of lithium-ion power batteries for new energy vehicles and vehicle battery systems. It is a leading enterprise in ternary soft pack power batteries. On July 17 this year, Funeng Technology It became the first stock of power battery on the Sci-tech Innovation Board.
Since its listing, Funeng Technology has been facing constant doubts.
From 2017 to 2019, Funeng Technology’s revenue growth rate was 185.72%, 70%, and 7.65%, respectively, showing a sharp decline year by year. The third quarter report of 2020 shows that the company’s revenue for the first three quarters of 2020 was 558 million yuan, down 64.94% year-on-year; net profit was -293 million yuan, down 4.51 times year-on-year; net profit attributable to the parent was -377 million yuan, down 20.03 times year-on-year .
In addition to unsatisfactory performance, Funeng Technology’s dependence on vehicle companies is becoming more and more serious.
From 2017 to 2019, the company’s sales to the top five customers accounted for 99.78%, 99.77%, and 95.82% of the main business revenue, respectively. Compared with the CATL, at the time of its IPO in 2017, the concentration of its top five customers was only 60%.
On the first day of listing, Funeng Technology rose to as high as 37 yuan per share, with a total market value of more than 30 billion yuan. Since then, the stock price has fluctuated and fallen.
However, with the gradual recovery of the new energy vehicle market, the power battery market is once again promising.
Funeng Technology announced that the signing of this agreement will lock the company’s long-term orders from Geely Technology, its controlled subsidiaries and Geely Commercial Vehicle Group, which will provide certain protection for the company’s business growth and help improve the company. Operating income.
Affected by this good news, Funeng Technology’s share price has risen and is now up over 5%.