Guizhou Anda Energy Technology, which is regarded as a major technology company of national importance in China, was formally listed on the Beijing Stock Exchange on March 23. With a stock code of 830809, Anda issued 50 million shares with the price of RMB 13 per share at its IPO. In the end, the company raised around RMB 650 million at its IPO. The proceeds are expected to be fund the development of a LFP project with a production capacity of 60,000 tons per year. Also, the calculations of the total share capital and the issuance price find that the market value of the company has reached around RMB 7.95 billion.
Residing in the upstream of the industry chain for Li-ion batteries, Anda develops, manufactures, and sells cathode materials and precursors. Its products are mainly purposed for LFP batteries that are equipped in new energy vehicles and energy storage systems.
Anda has been involved in the field of LFP batteries since 2009, and it began to manufacture related cathode materials and precursors in 2011. Hence, the company has accumulated many years of expertise in products such as phosphoric acid, iron(III) phosphate, lithium iron phosphate, and LFP battery cells. In other words, its expertise also encompasses a significant breadth of the industry chain. Furthermore, the company possesses numerous critical production-related technologies.
In terms of financial performance, Anda’s revenue figures for 1H19, 1H20, 1H21, and 1H22 reached RMB 154 million, RMB 93 million, RMB 1.577 billion, and RMB 2.902 billion respectively. Its net profit figures for the same four periods, in order, were negative RMB 224 million, negative RMB 186 million, RMB 231 million, and RMB 612 million. Hence, the company’s financial performance kept getting stronger and eventually turned to profit in 2021. According to its prospectus, the company’s annual total revenue for 2020 soared by 315.80% YoY to RMB 6.558 billion. Its profit attributable to parent company for the same year came to RMB 811 million, showing a massive YoY growth of 251.52% as well.
Anda manufactures its primary products such as lithium iron phosphate in-house. The materials that it provides go to battery suppliers for the manufacturing of battery cells. Eventually, its materials serve applications such as new energy vehicles and energy storage systems. More than 90% of the company’s revenue stream comes from products related to LFP batteries. The amount of revenue generated by products related to LFP batteries reached RMB 141 million for 1H19, RMB 81.5479 million for 1H20, RMB 149 million for 1H21, and RMB 212 million for 1H22. The revenue shares for the same four periods, in order, came to 99.22%, 95.68%, 94.61%, and 92.00%.
Anda’s main clients are the major Chinese battery suppliers such as BYD, CALB, CATL, and PYLONTECH. Anda has adopted the model of direct sales, so this means that it enters into supply agreements with its clients. According to its prospectus, BYD is its biggest client in 1H19, 1H21, and 1H22, while CALB interrupted this trend 1H20 by providing the largest amount of demand for that period. CATL was also among Anda’s top five clients for 1H21 and 2H22, emerging as the second largest in the former period and slipped to being the third largest in the latter period.
Regarding capacity expansion activities, Anda is currently working on two projects. One project has 50,000 tons per year of production capacity for lithium iron phosphate and auxiliary materials. The other one is the aforementioned project that has a production capacity of 60,000 tons per year for LFP cathode materials. The first project is near completion, while the phase 2 of the second project is scheduled to enter operation this September. By that time, Anda will possess around 150,000 tons per year for lithium iron phosphate and an equal amount of production capacity for iron(III) phosphate.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.