CATL locks in a 1.5 billion yuan advance payment to secure supply, Fulin Precision briefly surges nearly 8%, company responds

In early trading, Fulian Precision Engineering's stock price surged by nearly 8%. On the news front, Fulian Precision Engineering announced on September 18 that its controlling subsidiary Jiangxi Shenghua had signed a "prepayment agreement" with Ningde Times. Ningde Times will make a prepayment of 1.5 billion yuan to Jiangxi Shenghua for locking in the supply of lithium iron phosphate and supporting the raw material construction layout of Jiangxi Shenghua. The agreement is valid from the date of signing until December 31, 2026. A person related to Fulian Precision Engineering responded that the company's high-voltage high-density lithium iron phosphate cathode material products are favored by high-end customers, with Ningde Times being the main customer. If the prepayment agreement is successfully implemented in the future, with the continuous increase in production capacity and expansion of sales orders, the scale effect of production lines will further show, thus having a positive impact on the lithium battery material business.