China Zhongji Investment completes a targeted investment in "Fulin Precision Manufacturing"
Recently, China Zhongji Investment completed a targeted investment in Mianyang Fulin Precision Co., Ltd. (hereinafter referred to as Fulin Precision, stock code: 300432.SZ). Fulin Precision's main businesses include automotive parts and lithium battery cathode materials. The company has been a leader in the automotive parts industry for many years and is the only domestic company that can simultaneously develop new technologies for world-class automakers such as General Motors, PSA, Volkswagen, and Audi. In 2016, the company acquired Hunan Shenghua Technology Co., Ltd., to expand into the lithium battery cathode material industry.
As a traditional automotive parts company transitioning to the new energy vehicle sector, Fulin Precision is a key supplier in the field of intelligent electric controls for Huawei, United Electronics, and major new energy vehicle manufacturers. In terms of lithium battery cathode materials, its subsidiary, Jiangxi Shenghua, is a core supplier of lithium iron phosphate cathode materials to CATL, with whom it has established a strategic partnership. CATL has invested in Jiangxi Shenghua. Jiangxi Shenghua's annual production capacity of lithium iron phosphate is 62,000 tons, of which 50,000 tons of production capacity at the Shehong base was achieved in December 2021. The 60,000-ton project within the 250,000-ton annual production capacity expansion plan for lithium iron phosphate cathode materials that started in July 2021 is progressing rapidly. The company expects its total production capacity to reach 122,000 tons in the second half of 2022.
Tan Runzhan, Partner and Managing Director of China Zhongji Investment, stated that in recent years, global government support for the new energy vehicle industry has remained high, and the industry shows high growth potential. Under the background of "carbon neutrality," the long-term prosperity of the industry is more guaranteed. With the development trend of automotive electrification and intelligence already established, the overall development of the domestic automotive parts market is favorable. At the same time, the industry is entering a new stage of "deep domestic substitution," especially in the field of core components, where the situation dominated by international manufacturers is gradually being broken, and the status of domestic component manufacturers is steadily improving. Deep domestic substitution will bring new development opportunities to local component manufacturers with advanced manufacturing capabilities. This issuance will help the company expand its scale while achieving synergistic benefits and enhancing its ability for high-quality development. It will also help the company open its second growth curve while maintaining its core customer and market position advantages.
