Fulin Precision: Fulin Era Plans to Increase Capital by RMB 1.004 Billion to Advance 500,000-ton Lithium Iron Phosphate Project

Radar Finance Text | Yang Yang Edited | Li Yihui

On March 18, Fulin Precision Industry (300432) announced that its subsidiary Jiangxi Shenghua New Materials Co., Ltd. signed a “Capital Increase Agreement” with Beijing Qianyuan Huizhi New Energy Technology Co., Ltd. and Shanghai Jiebao Investment Management Co., Ltd. The agreement aims to increase capital in Inner Mongolia Fulin Era New Materials Co., Ltd. to promote the construction of an annual 500,000-ton high-end energy storage lithium iron phosphate project. Jiangxi Shenghua increased its capital by 779 million yuan, Qianyuan Huizhi by 150 million yuan, and Jiebao Investment by 75 million yuan, totaling 1.004 billion yuan.

After the capital increase, Jiangxi Shenghua holds 77.6119% of the joint venture, Qianyuan Huizhi holds 14.9254%, and Jiebao Investment holds 7.4627%. The project is expected to have a total investment of 6 billion yuan, aiming to optimize the company’s lithium iron phosphate cathode material capacity layout and enhance its industry position and competitiveness.

According to Tianyancha, Fulin Precision Industry was established on November 10, 1997, with a registered capital of approximately 1.70976 billion yuan. The legal representative is Wang Zhihong, and its registered address is No. 37 Fenghuang Middle Road, Mianyang High-end Manufacturing Industrial Park, Sichuan Province. Its main business includes automotive engine parts, new energy vehicle intelligent electronic controls, and new energy lithium battery cathode materials research, production, and sales.

Currently, the company’s chairman is Wang Zhihong, the secretary is Wang Weixian, with 5,250 employees. The actual controller is An Zhifu.

The company has stakes in 12 subsidiaries, including Hunan Shenghua New Materials Technology Co., Ltd., Hunan Shenghua Technology Co., Ltd., Mianyang Fulin New Energy Co., Ltd., Sichuan Fulin New Energy Materials Co., Ltd., and Changzhou Fulin Precision Transmission Co., Ltd.

In terms of performance, the company’s revenue for 2022, 2023, and 2024 was approximately 7.347 billion yuan, 5.761 billion yuan, and 8.470 billion yuan, respectively, with year-over-year growth of 176.57%, -21.58%, and 47.02%. Net profit attributable to shareholders was about 645 million yuan, -543 million yuan, and 397 million yuan, with year-over-year changes of 61.67%, -184.12%, and 173.11%. During the same period, the company’s asset-liability ratio was 42.04%, 55.89%, and 55.55%.

Regarding risks, Tianyancha data shows the company has 69 internal Tianyan risks, 220 surrounding risks, 57 historical risks, and 226 warning alert risks.