BYD and CATL’s Battery Material Supplier Anda Initiates Application for IPO – EQ Mag
Guizhou Anda Energy Technology formally initiated its application for share subscription and IPO on March 13. The company intends to be listed on the Beijing Stock Exchange. Anda will issue shares at a price of RMB 13 per share. The P/E ratio will reach 34.44.
For the upcoming IPO, Anda will offer no more than 50 million shares (excluding the overallotment option) and aims to raise RMB 650 million. This amount will be used to develop a project for manufacturing lithium iron phosphate. The production capacity of the project is set at 60,000 tons per year. CITIC Securities has been tapped as the sponsor for the listing.
Established in 1996 and based in Guiyang, China’s Guizhou Province, Anda is a major supplier for cathode materials and precursors. Specifically, the company develops, manufactures, and sells products related to lithium iron phosphate and iron(III) phosphate. Its main shareholders include the major Chinese manufacturers of electric vehicles.
According to its prospectus, Anda’s main offerings are purposed for LFP batteries that power electric vehicles and energy storage systems. Based on its financial reports, products related to lithium iron phosphate represent the main portion of Anda’s revenue stream. It is also worth noting that it manufactures raw materials in-house.
In the aspect of product development, Anda’s offerings have advanced to third generation. The company continues to commit a significant amount of resources in R&D so as to ensure that batteries featuring its solutions are only consistent in quality and excellent in performance but also suitable for a wide range of applications in addition to electric vehicles and energy storage systems.
In the aspect of technological innovation, Anda has maintained a R&D system that encompasses the entire supply chain for LFP batteries and possesses the critical production-related technologies. Going forward, the company will continue with the in-house development and optimization of the manufacturing processes and products (e.g., phosphate, iron phosphate, and lithium iron phosphate). All in all, Anda has already laid the foundation for building a strong competitive position in the market for Li-ion batteries.
Regarding Anda’s client base, it comprises the major Chinese battery suppliers such as BYD, CALB, CATL, and Pylontech. Anda has become one of their main suppliers for production-related materials. Furthermore, Anda’s solutions have been adopted for batteries that power passenger vehicles, pure electric buses, logistical vehicles, forklifts, and energy storage equipment.
According to the prospectus, Anda’s top customer in 2019, 2021, and 2022 was BYD. In 2020, CALB was the top customer. As for the first half-year periods of 2021 and 2022, CATL was one of Anda’s top five customers. CATL was ranked second for the first half of 2021 and third for the first half of 2022. Also, for the first half-year periods of 2019, 2020, 2021, and 2022, Anda’s transactions with BYD came to RMB 74.4425 million, RMB 27.1469 million, RMB 962 million, and RMB 1.116 billion. BYD accounted for 48.47% of Anda’s revenue for the first half of 2019, 29.31% for the first half of 2020, 61.01% for the first half of 2021, and 38.48% for the first half of 2022.
Anda’s revenue has risen rapidly over the past three years. For the whole 2021, the company made a total of RMB 1.58 billion and posted a titanic year-on-year growth of 1,600%. For the first half of 2022, Anda’s revenue reached RMB 2.9 billion, or almost a doubling of the revenue for the entire previous year.