"Leveraging" CATL, Fulian Precision's stock price has increased over 40% in 12 trading days

How is the global energy transition driving the stock price of Fulian Precision Engineering to soar against the trend?

As the global energy narrative enters a new phase, the renewable energy sector is regaining vitality. Benefiting from this, Fulian Precision Engineering, which is deeply tied to CATL, is also sharing in this market dividend. At the same time, the transformation intentions of company founder An Zhifu have also come to the fore.

Under the pressure of high oil prices, the renewable energy sector, characterized by a clear substitution logic, is becoming a new favorite for capital, and naturally, Fulian Precision Engineering, closely linked to CATL, has also become one of the beneficiaries.

On March 24, Fulian Precision Engineering’s stock price closed at 23.26 yuan/share, up 4.49%. From March 9 to March 24, Fulian Precision Engineering rose over 40% in just 12 trading days.

The surge in Fulian Precision Engineering’s stock price is backed by the rise in global energy prices triggered by conflicts in the Middle East, making energy substitutes a hot topic, which in turn drives the price of lithium carbonate up, leading to a collective excitement in related sectors. As a core enterprise in the lithium iron phosphate field, the products of Fulian Precision Engineering are well-suited to the current market demand for fast-charging batteries, thereby pushing the company’s stock price into a fast upward trajectory.

In addition to the rise in old energy prices, the unexpectedly good performance disclosed by CATL on March 10 may have also stimulated numerous industry chain stocks, and naturally, Fulian Precision Engineering, deeply tied to “King Ning,” benefits from this.

With the rise in Fulian Precision Engineering’s stock price, many shareholders who had positioned themselves early naturally reaped substantial rewards, including the well-known investor Zeng Guangsheng. When it comes to why so much capital chooses to “huddle” around Fulian Precision Engineering, the reason may lie in the company’s close relationship with CATL.

Lithium Battery Recovery******“Flying High” with Fulian Precision Engineering******

Amid the overall sluggish market recently, Fulian Precision Engineering has successfully surged against the trend, thanks to its deep cultivation in the lithium battery sector.

According to Tonghuashun data, as of the close on March 24, 2026, Fulian Precision Engineering reported 23.26 yuan/share, with a daily increase of 4.49%. Recently, Fulian Precision Engineering has successfully achieved eight consecutive days of gains.

Public information shows that Fulian Precision Engineering’s main business is the research, development, production, and sales of automotive engine components, smart electric control systems for new energy vehicles, and new energy lithium battery cathode materials. The company’s main products are automotive engine components, smart electric control systems for new energy vehicles, and new energy lithium battery cathode materials.

In fact, the main factor supporting this round of upward momentum for Fulian Precision Engineering is its lithium-related business. It is reported that high-pressure dense lithium iron phosphate has long been a “hard currency” in the lithium battery industry. Previously, the “Catalog of Technologies Prohibited or Restricted from Exporting” in China even included the preparation technology of high-pressure dense lithium iron phosphate in the restricted export list, with control standards locking in key parameters of powder compact density ≥2.58g/cc under 300MPa. This illustrates the market’s emphasis on this technology.

Currently, high-pressure lithium iron phosphate has become a key tool for enhancing battery fast-charging performance while balancing high energy density, becoming the core track for technological competition among industry chain enterprises. Despite strong demand, high-end capacity remains in the hands of a few companies, with Fulian Precision Engineering being one of them. In August last year, Fulian Precision Engineering revealed on an investor platform that it had already achieved a capacity of 300,000 tons of high-pressure dense lithium iron phosphate.

More imaginatively, on March 10, Fulian Precision Engineering stated on an interactive platform that its subsidiary Jiangxi Shenghua currently has a capacity of 300,000 tons of high-pressure dense lithium iron phosphate cathode materials, and is advancing the construction of new capacity for 350,000 tons of high-pressure dense lithium iron phosphate cathode materials and 500,000 tons of high-end energy storage lithium iron phosphate capacity annually. Currently, the company is achieving full production and sales, further confirming the extreme vigor of downstream demand.

As these new capacities are gradually released, they will directly translate into sustained growth in operating revenue and profit for Fulian Precision Engineering in the coming years, providing a highly certain guarantee for high growth in performance.

The enthusiasm on the industrial side naturally spread to the secondary market, and Fulian Precision Engineering’s hot stock performance is also inseparable from capital support. From the list of the top ten circulating shareholders, several public funds and the well-known investor Zeng Guangsheng are present. In March 2022, Zeng Guangsheng entered the top ten circulating shareholders of Fulian Precision Engineering through a private placement, and over the next two to three years, he continuously increased his holdings in Fulian Precision Engineering. By the end of the second quarter of 2025, Zeng Guangsheng held as many as 20.7584 million shares of Fulian Precision Engineering. According to data from Kanjugu, Zeng Guangsheng is estimated to have earned over 200 million from investing in Fulian Precision Engineering.

Binding******“King Ning”******

The optimism of public funds and investors towards Fulian Precision Engineering, in addition to the inherent value of the listed company itself, may also be due to the endorsement of CATL.

After sorting through a series of actions between Fulian Precision Engineering and CATL, it can be noted that as early as March 2021, CATL had related transactions with Fulian Precision Engineering’s subsidiary Jiangxi Shenghua. At that time, Fulian Precision Engineering introduced investors led by CATL while increasing its investment in Jiangxi Shenghua. As a result, CATL and its designated parties acquired an 8.89% stake in Jiangxi Shenghua.

In February 2022, CATL further subscribed to Jiangxi Shenghua for 144 million yuan, increasing its shareholding to 20%.

Surprisingly, in August 2024, Fulian Precision Engineering suddenly announced plans to buy back 20% of the shares held by CATL and other shareholders of Jiangxi Shenghua, increasing its ownership in Jiangxi Shenghua to 96.27%. Adding to this, at the end of 2024, Fulian Precision Engineering increased its investment in Jiangxi Shenghua through a debt-to-equity swap, ultimately raising its stake in Jiangxi Shenghua to 97.92%.

Then, six months later, in March 2025, CATL re-entered Jiangxi Shenghua as a strategic investor. According to Fulian Precision Engineering’s announcement, CATL plans to spend 400 million yuan to acquire an 18.74% stake in Jiangxi Shenghua, reducing Fulian Precision Engineering’s stake in Jiangxi Shenghua from 97.92% to 79.57%.

In September 2025, Fulian Precision Engineering announced plans to jointly increase capital and expand shares in Jiangxi Shenghua with CATL. If the transaction is completed, CATL’s stake in Jiangxi Shenghua will increase from 18.74% to 51%, while Fulian Precision Engineering’s stake will decrease from 79.57% to 47.41%, meaning that Jiangxi Shenghua, originally a subsidiary of Fulian Precision Engineering, will become a controlling subsidiary of CATL.

However, CATL soon abandoned this plan in favor of further capital increases. In February 2026, Fulian Precision Engineering announced that it would jointly increase capital and expand shares in its controlling subsidiary Jiangxi Shenghua with CATL.

Specifically, Fulian Precision Engineering plans to convert its 500 million yuan debt to Jiangxi Shenghua into equity, subscribing to an additional registered capital of 406.5 million yuan. CATL will inject 747.1 million yuan in cash and subscribe to Jiangxi Shenghua’s newly increased registered capital of 607.4 million yuan. After this capital increase is completed, Fulian Precision Engineering’s stake in Jiangxi Shenghua will decrease from 79.57% to 64.37%, while CATL’s stake will increase from 18.74% to 33.00%, still making it the second-largest shareholder.

In addition to co-investing in Jiangxi Shenghua with Fulian Precision Engineering, CATL also chose to further bind directly with Fulian Precision Engineering. In January 2026, Fulian Precision Engineering announced that CATL planned to subscribe to 230 million shares of the company at a price of 13.62 yuan/share, raising a total of 3.175 billion yuan. CATL intends to fully subscribe in cash and will become a shareholder holding more than 5% of Fulian Precision Engineering after the issuance is completed.

It is important to note that the two companies also frequently collaborate at the industrial level. As early as August 2024, they reached a business cooperation agreement, stipulating that CATL would pay a certain amount of advance payments to Jiangxi Shenghua to support the latter’s construction of a 75,000 tons/year capacity at its Jiangxi base. At the same time, CATL committed to purchasing at least 140,000 tons of lithium iron phosphate products from Jiangxi Shenghua every year from 2025 to 2027.

In June 2025, Jiangxi Shenghua and CATL revised their previous business cooperation agreement to expand the scale of advance payment-supported capacity, changing the cooperation volume from 140,000 tons/year between 2025 and 2027 to a procurement volume of no less than 80% of Jiangxi Shenghua’s capacity from 2025 to 2029. In September of the same year, CATL paid a total of 1.5 billion yuan in advance to Jiangxi Shenghua to lock in the supply of lithium iron phosphate and support Jiangxi Shenghua’s layout of raw material construction. According to a recent announcement from Fulian Precision Engineering, in the next three years, CATL will purchase no less than 3 million tons of lithium iron phosphate from Fulian Precision Engineering.

An Zhifu’sTransformation Layout

Fulian Precision Engineering originally focused on the research and manufacturing of automotive engine components, and behind its successful transformation, perhaps is the layout of its founder An Zhifu.

Public information shows that An Zhifu left his job early on to start a down jacket factory with 2,000 yuan, accumulating his first pot of gold. He then shifted to real estate in Mianyang, establishing Fulian Industrial Group in 1995. Two years later, he founded Fulian Precision Engineering, entering the automotive components field, and successively acquired Mianyang Second Transport Company, Jetta Company, and Fuhua Company through controlling stakes and mergers. In 2010, Fulian Transportation was listed on the Shenzhen Stock Exchange, becoming An Zhifu’s first listed company; five years later, Fulian Precision Engineering was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in March 2015, marking his second IPO.

At that time, it coincided with the rise of new energy vehicles, and An Zhifu decisively chose to transform. In 2016, Fulian Precision Engineering made acquisitions totaling 2.1 billion yuan to acquire 100% of Hunan Shenghua Technology Co., Ltd., officially entering the new energy vehicle sector. However, due to the sluggish industry impact, Jiangxi Shenghua’s performance fell short of expectations, even dragging down Fulian Precision Engineering’s performance.

It wasn’t until 2021 that Fulian Precision Engineering and Jiangxi Shenghua, through technological breakthroughs and large-scale production of high-pressure dense lithium iron phosphate materials, gained recognition from CATL and gradually achieved bulk supply, and only then did the results of Fulian Precision Engineering’s transformation begin to show, soon surpassing the automotive component sector to become Fulian Precision Engineering’s largest business segment.

However, in recent years, the deep adjustment in lithium carbonate prices has once again impacted Fulian Precision Engineering. Perhaps in consideration of smoothing out performance curves, An Zhifu has begun to layout the humanoid robot sector in recent years.

It is reported that in February 2025, Fulian Precision Engineering signed an “Investment Cooperation Agreement for Humanoid Robot Application Projects” with Zhiyuan Robotics, Juxing New Materials, Wen Hongjie, and Annu Chuangxiang, with all parties jointly investing to establish a joint venture company to implement the humanoid robot project. Fulian Precision Engineering is responsible for providing key hardware such as precision reducers and intelligent electric joints for the robot’s R&D, production, and manufacturing.

In August of the same year, Fulian Precision Engineering and Zhiyuan Robotics reached a project cooperation worth tens of millions, and nearly a hundred WZ A2-W robots will land in Fulian Precision Engineering’s factory, becoming one of the first cases of scaled commercial signing of embodied robots in the domestic industrial field. Additionally, in a recent announcement regarding private placement, Fulian Precision Engineering emphasized that part of the raised funds will be used for the robot integrated electric joint project.

Overall, under An Zhifu’s leadership, Fulian Precision Engineering’s transformation has been quite effective, but whether the company can achieve further breakthroughs still needs market validation.

Editor | Chen Bin