On July 4, Ruitai New Materials issued an announcement announcing that Zhangjiagang Guotai Huarong Chemical New Materials Co., Ltd. (hereinafter referred to as "Huarong Chemical"), a subsidiary of the company, signed an agreement with FREYR Battery Norway AS (hereinafter referred to as "FREYR"). Sales Volume and Price Booking Agreement.

According to the agreement, Huarong Chemical will supply FREYR with lithium-ion battery electrolyte products from 2023 to 2028. The total amount of the agreement is about 526 million US dollars, or about 3.419 billion yuan.

According to the announcement, FREYR's main business is the development and production of energy storage systems designed to provide industrial-scale clean battery solutions for the fast-growing global markets of electric vehicles, energy storage and marine applications.

Ruitai New Materials said that the signing of this agreement will bring a positive effect to the company's expansion of the international market, which is in line with the company's development strategy and win-win cooperation with customers. At the same time, this agreement is expected to have a positive impact on the company's operating performance in the coming years.

According to the data, Ruitai New Materials was established in 2017 and is a holding subsidiary of Jiangsu Guotai. It was listed on the GEM of the Shenzhen Stock Exchange on June 17 this year. It is mainly engaged in lithium-ion battery electrolytes, lithium-ion battery electrolyte additives, and supercapacitors. Research and development, production and sales of new chemical materials such as electrolyte and silane coupling agent.

The main products of Ruitai New Materials include lithium-ion battery electrolytes, silane coupling agents, lithium-ion battery electrolyte additives and ultra-electric products, among which lithium-ion battery electrolyte shipments have ranked among the top three domestically and globally in the last three years.

In terms of customers, Ruitai's customers mainly include CATL, LG Chem, New Energy Technology, Yiwei Lithium Energy, Panasonic and other companies. From 2019 to 2021, the revenue of the company's top five customers accounted for 79.37%, 78.04% and 86.96% of operating revenue, respectively, with a high degree of customer concentration.

Among them, the revenue of Ruitai New Materials from CATL in 2021 will be 2.575 billion yuan, an increase of 8 times compared with 2020, and the proportion of revenue will increase from 15.71% to 49.48%.

In terms of production capacity, Ruitai's current lithium-ion battery electrolyte production capacity is 70,000 tons/year; Poland Huarong's new Prusice 40,000-ton/year lithium-ion power battery electrolyte project has entered the trial production stage; other projects are being actively promoted middle. The company will arrange production according to customer and market demand. At present, the electrolyte order is sufficient.

It is worth mentioning that Ruitai New Materials is still actively expanding production. On January 27 this year, Jiangsu Guotai announced that Ruitai New Materials plans to set up a wholly-owned subsidiary, Quzhou Ruitai New Materials, with an annual output of 500 million yuan, and invest in the construction of a lithium-ion battery electrolyte project with an annual output of 300,000 tons. The total investment of the project is 15.1 billion.

On May 30, Jiangsu Guotai announced that Huarong Chemical, a subsidiary of Ruitai New Materials, plans to set up a wholly-owned subsidiary Zigong Guotai Huarong New Materials Co., Ltd. with an annual output of 300,000 tons for the investment and construction of lithium-ion batteries with an annual output of 300,000 tons. Electrolyte and recycling 2000 tons of solvent project. The total investment of the project is 1.511 billion yuan.

Prior to this, Ruitai New Materials also vigorously expanded the production of lithium hexafluorophosphate and other materials. In December 2021, Ruitai New Materials established a joint venture with Xintai Materials and New Energy Technology. It plans to invest in a production and sales project with an annual output of 30,000 tons of lithium hexafluorophosphate, lithium fluoride, calcium chloride and other lithium salt materials. The total investment is expected to be 3 billion yuan.

According to the plan, during the "14th Five-Year Plan" period, Ruitai New Materials will also invest in and build a number of key projects in Zhangjiagang, Fujian, Zhejiang, Sichuan, Europe and other places in Jiangsu to further expand production capacity.

In terms of performance, Ruitai New Materials' lithium-ion battery electrolyte sales have achieved sustained and rapid growth. From 2019 to 2021, the company's main revenue will have a compound annual growth rate of 77.36%. In 2021, the operating income of Ruitai New Materials will be 674 million yuan, a year-on-year increase of 186.66%, and its net profit will increase by 126.12% year-on-year.

In the first half of this year, Ruitai New Materials' lithium-ion battery electrolyte and other products sold well. It is expected to achieve operating income of 3.5-3.9 billion yuan, a year-on-year increase of 96.88%-119.38%; net profit of 540-590 million yuan, a year-on-year increase of 215.66%- 244.89%.