Hubei Wanjun Science and Technology Board Pass: BYD Battery's positive supplier, operating cash flow has deteriorated year by year

Source: Company Research Office

Text: cooking

On June 13, the Shanghai Stock Exchange issued the results of the 48th review meeting of the 2022 Municipal Party Committee of the Shanghai Stock Exchange announced that the premiere meeting of Hubei Wanrun New Energy Technology Co., Ltd. (referred to as "Hubei Wanrun") was expected to be within 6 months. Listing.

Hubei Wanrun's IPO's sponsorship is Donghai Securities Co., Ltd., which is the first IPO project for the successful sponsor of Donghai Securities in 2022.

01 In the first quarter, income increased 4 times, and the gross profit margin fell by 9 percentage points

Hubei Wanrun is mainly engaged in the development, production, sales and services of lithium battery positive materials. The main products include iron phosphate, lithium iron phosphate and lithium manganate.

Since 2021, it has benefited from the strong demand for downstream new energy vehicle markets and the proportion of lithium iron phosphate power battery installed capacity. The supply of lithium iron phosphate orthopedic materials in Hubei is in short supply and income has increased significantly.

From 2019 to 2021, Hubei Wanrun's revenue was 751 million, 675 million, and 2.190 billion, respectively. In the first quarter of 2022, Hubei Wanrun revenue was 1.540 billion yuan, an increase of 445%year -on -year.

From the perspective of income composition, lithium iron phosphate is the main source of the company's main business income. During the reporting period, the proportion of the company's overall income is more than 90%.

From 2019 to 2021, Hubei Wanrun Mao's margin rates were 20.73%, 17.25%, and 31.19%, respectively. In the first quarter of 2022, the gross profit margin was 24.99%, a year -on -year decrease of 9.76 percentage points.

From 2019 to 2021, Hubei Wanrun's net profit was -073 million, -043 million, and 353 million, respectively. In the first quarter of 2022, the company's net profit was 232 million, a year -on -year increase of 261%.

In the past two years, due to the surge in downstream market demand, Hubei Wanrun's income and net profit have achieved rapid growth. At the same time, as the cost of upstream raw materials further increased, the company's gross profit space was squeezed, resulting in a decline in gross profit margin.

02 The shortage of funds, the expansion speed of the capacity is not as good as the same

The outbreak of Hubei Wanrun's performance is more mainly benefited from the increase in the market share of lithium iron phosphate batteries.

According to the data of China's automotive power battery industry innovation alliance, in 2021, the proportion of lithium iron phosphate installed capacity increased from 38.3%in 2020 to 51.7%. In the same period, the installed capacity of the ternary positive materials accounted for from 61.1%in 2020 to 61.1%to the 2020 to 61.1%to the 61.1%to the 61.1%in 2020 to 61.1%to 48.1%.

According to the prospectus, from 2018 to 2020, Hubei Wanrun's market share in domestic lithium iron phosphate orthopedic materials was 19.1%, 16.7%, and 13.5%, respectively. third.

Since 2019, domestic positive electrode materials such as Hunan Yuneng and Germany nano have accelerated the production capacity of new lithium iron phosphate orthopedic materials. However, Hubei Wanrun suffered a shortage of funds due to the shortage of funds, which caused the company's production capacity to expand. The occupation rate has declined.

In this listing, Hubei Wanrun plans to raise 1.262 billion yuan. Among them, 800 million yuan was used for Hongmai Hi -Tech High -Performance Lithium -ion battery material project, 62.088 million yuan for Hubei Wanrun New Energy Lithium Battery Create Materials R & D Center, and 400 million yuan to supplement mobile funds.

03 The power of discourse in the industrial chain is weak, and the operating cash flow deteriorates

Hubei Wanrun is in the midstream of the new energy battery industry chain. Its upstream is mainly minerals such as Ganfeng Lithium and Tianqi Lithium Industry. The downstream is lithium battery manufacturing enterprises such as Ningde Times. The terminal is the new energy vehicle and energy storage industry.

Based on the location of Hubei Wanrun in the industrial chain, the company has a certain dependence on upstream and downstream, and its bargaining ability in the industrial chain is weak.

For upstream, Hubei Wanrun mainly procure raw materials through prepayment form; negotiate and sign the annual production capacity cooperation framework agreement or confession agreement to lock the supply on the downstream, and sign up the supply of downstream customers to the downstream, to ensure the production needs of downstream customers. , The main settlement model is the pre -collection of accounts+tickets for 30 days/monthly payment.

From 2019 to 2021, Hubei Wan Run came from the top five customers to revenue to 88.87%, 84.56%, and 92.21%, respectively. Among them, the proportion of income from Ningde Times and BYD accounted for 70.09%, 68.12%, and 80.63%, a higher concentration.

From 2019 to 2021, the company's proportion of bills of receipts in the sales of bills to customers accounted for current operating income (including tax) of 91.18%, 90.08%, and 100.72%, respectively.

Due to this collection and payment model, from the downstream customers received the bills, and then endorsed the upstream raw material suppliers, engineering and equipment suppliers, and discounting to the bank, which led to the increase in the profit of Hubei Wanrun in recent years, but the operating cash flow has been very very popular. Ugly.

From 2019 to 2021, the company's net profit was -073 million, -043 million, and 353 million, respectively, and the net cash flow was 176 million, -093 million, and -366 billion, respectively.

The performance increase, but the company's cash flow not only did not improve, but deteriorated. This is the hidden concern of Hubei Wanrun.

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