Mianyang Fulin Precision Machining Co LtdStock price fell 9.25% on July 8, cumulative decline 38% from high; private placement dilutes existing shareholders despite CATL subscription.
Fulin Precision's application to issue shares to a specific investor has been accepted for review by the Shenzhen Stock Exchange. The company plans to raise no more than 3.175 billion yuan through a private placement, with CATL subscribing to the entire amount in cash in a single lump sum. The funds raised will be used for projects including an annual output of 500,000 tons of high-end energy storage lithium iron phosphate, key components for new energy vehicle electric drive systems, integrated electric joints for robots, key components for intelligent chassis by-wire systems, and key components for low-altitude aircraft power systems. After the issuance, CATL will become a shareholder holding more than 5 percent, constituting a related legal entity, but the company's actual controller An Zhifu will still control 34.58 percent of the voting rights, and control will not change. The company's sales to CATL as a proportion of total sales rose from 35.65 percent in 2023 to 68.04 percent in 2025, highlighting significant customer concentration risk. Despite the deep ties with CATL, Fulin Precision's stock price still fell sharply by 9.25 percent on July 8, bringing the cumulative decline from its late April high to 38 percent.
Mianyang Fulin Precision Machining Co LtdStock price fell 9.25% on July 8, cumulative decline 38% from high; private placement dilutes existing shareholders despite CATL subscription.
Contemporary Amperex Technology Co Ltd Class ACATL subscribes to full 3.175 billion yuan private placement, gaining >5% stake in Fulin Precision, deepening strategic ties.