The Sunwoda Electronic Co.Ltd(300207) (300207, SZ), which is busy investing in power batteries, has brought in relevant capital of China’s new car making forces to do business together.
Recently, Sunwoda Electronic Co.Ltd(300207) issued a capital increase announcement. The board of directors and board of supervisors of the company reviewed and approved Jiangsu chehejia Automobile Co., Ltd. (hereinafter referred to as “chehejia”), sky top LLC (hereinafter referred to as “sky top”) Proposal of 19 companies including Suzhou Weirui venture capital partnership (limited partnership) (hereinafter referred to as “Weirui investment”) to increase capital by 2.43 billion yuan to Sunwoda Electronic Co.Ltd(300207) Electric Vehicle Battery Co., Ltd. (hereinafter referred to as ” Sunwoda Electronic Co.Ltd(300207) automobile battery”) under Sunwoda Electronic Co.Ltd(300207) .
It is understood that the legal representative of Che Hejia is Shen Yanan, co-founder and President of ideal automobile. According to latepost, people close to the transaction said that sky top is an affiliated entity of Xiaopeng automobile. Through the penetration of equity at all levels, Weirui investment can be seen as a “Weilai” enterprise.
According to incomplete statistics, Sunwoda Electronic Co.Ltd(300207) has invested more than 50 billion yuan in the field of power batteries in recent years. When the company’s power battery business also attracted investment from three new forces of car making, Weilai, ideal and Xiaopeng. How will this affect the future development of Sunwoda Electronic Co.Ltd(300207) ? What impact will it have on the current pattern of power battery industry?
relevant capital of “Wei Xiaoli” enters the market, and new forces of car making enter the market
After the capital increase, the proportion of Sunwoda Electronic Co.Ltd(300207) automobile battery equity indirectly held by Sunwoda Electronic Co.Ltd(300207) will be reduced from 71.5315% to 57.5475%.
Chehejia, sky top and Weirui investment will increase the capital of Sunwoda Electronic Co.Ltd(300207) automobile battery by 400 million yuan, 400 million yuan and 250 million yuan respectively, and the shareholding ratio will be 3.218%, 3.218% and 2.0113% respectively.
Behind the car and home is the ideal, behind the investment of Weirui is Weilai, and sky top is suspected to be an affiliate of Xiaopeng. These three car companies are not only the representatives of China’s new forces in car manufacturing, but also the enterprises that ranked among the top in the sales of new energy passenger vehicles in China last year.
According to the data of the passenger Federation, in the ranking list of retail sales of all Shanxi Guoxin Energy Corporation Limited(600617) passenger vehicles in 2021, Xiaopeng automobile ranked seventh, with sales of 98155 vehicles, Weilai automobile ranked ninth, with sales of 91429 vehicles, ideal automobile ranked 10th, with sales of 90491 vehicles.
The data of the passenger Federation also shows that the total retail sales of Shanxi Guoxin Energy Corporation Limited(600617) passenger cars in 2021 was 2.989 million, which also means that the total sales of the above three car companies have accounted for nearly 10%.
So what is the impact of this capital increase on Sunwoda Electronic Co.Ltd(300207) ? Sunwoda Electronic Co.Ltd(300207) said in the announcement that through this transaction, it is conducive to the further development of Sunwoda Electronic Co.Ltd(300207) automobile battery, optimize the financial structure, reduce the debt burden, enhance the anti risk ability of Sunwoda Electronic Co.Ltd(300207) automobile battery, meet the strategic development needs of the company’s automobile power battery business and improve the company’s overall profitability in the future.
It can be seen that Sunwoda Electronic Co.Ltd(300207) is only explained from the perspective of financial funds, and does not extend to the level of business cooperation with the capital increasing party. This may mean that the cooperation between Weilai, Xiaopeng, ideal and Sunwoda Electronic Co.Ltd(300207) in the field of power battery is still uncertain.
The market share of is only 1.3%. Is Sunwoda Electronic Co.Ltd(300207) stable?
Today, the market structure of the power battery industry is clear, Contemporary Amperex Technology Co.Limited(300750) (300750, SZ) and Byd Company Limited(002594) (002594, SZ) are firmly in the first echelon, while companies such as China Innovation Airlines (AVIC lithium battery), Gotion High-Tech Co.Ltd(002074) (002074, SZ), Eve Energy Co.Ltd(300014) (300014, SZ), Farasis Energy (Gan Zhou) Co.Ltd(688567) (688567, SH) and Sunwoda Electronic Co.Ltd(300207) are in the second and third echelons.
According to the data of China automotive power battery industry innovation alliance, the top 10 enterprises in China Shipbuilding Industry Group Power Co.Ltd(600482) battery loading volume in 2021 are: Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , China Innovation airlines, Gotion High-Tech Co.Ltd(002074) , LG new energy, honeycomb energy, Eve Energy Co.Ltd(300014) , Tafel new energy, Farasis Energy (Gan Zhou) Co.Ltd(688567) , Sunwoda Electronic Co.Ltd(300207) .
Among them, Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) power battery loading volume are 80.51gwh and 25.06gwh respectively, accounting for 52.1% and 16.2% of the total national power battery loading volume respectively.
Sunwoda Electronic Co.Ltd(300207) ranked 10th last year, and the loading volume of power battery was 2.06gwh, accounting for 1.3%. Among the top ten enterprises, enterprises with loading volume accounting for between 1% and 2% also include Farasis Energy (Gan Zhou) Co.Ltd(688567) , Eve Energy Co.Ltd(300014) and Tafel new energy. It can be seen that in this echelon, the difference of enterprise strength is not obvious and faces strong competition.
From the list over the years, Sunwoda Electronic Co.Ltd(300207) does not seem to play a stable role in the field of power batteries. According to the data of power battery application branch of China National Chemical Engineering Co.Ltd(601117) and physical power industry association (hereinafter referred to as “power battery application branch”), in 2019, Sunwoda Electronic Co.Ltd(300207) ranked tenth with a market share of 1.04%. But in 2020, Sunwoda Electronic Co.Ltd(300207) even fell out of the top 20.
Why does the market share fluctuate greatly? Previously, the reporter called the Sunwoda Electronic Co.Ltd(300207) securities department as an investor to inquire. The staff said that there may be only a few customers who will really produce and deliver in 2020 (the company’s power battery products), such as Geely and Dongfeng. If one or two customers delay the delivery plan due to the epidemic, the impact on the whole income will be more obvious. But the situation will be much better in 2021, because the customer base covers a wider range.
If the comprehensive degree of customer coverage has a great impact on the sales of Sunwoda Electronic Co.Ltd(300207) power battery products, the capital increase of Sunwoda Electronic Co.Ltd(300207) automobile battery by “weixiaoli” may become an important link for Sunwoda Electronic Co.Ltd(300207) to further expand user coverage.
behind the planned investment of more than 50 billion yuan, Sunwoda Electronic Co.Ltd(300207) faces challenges
At present, the “300024 {battery” and other “smart phone” products mainly provide power to 300024} players in the field of “mopping up the road”. According to Forbes China last May, Sunwoda Electronic Co.Ltd(300207) smartphone batteries ranked first in global shipments, accounting for about 30% of the market share.
The accumulation of technology in the field of consumer batteries may also be a major reason for Sunwoda Electronic Co.Ltd(300207) to have a solid foundation for cross-border power batteries.
“The advantage of Sunwoda Electronic Co.Ltd(300207) lies in the technology of battery pack and battery module, which is its starting skill. It has a very deep accumulation in this regard. Although the pack of consumer battery (referring to the battery pack, or the process of assembling cells into battery pack) is relatively simple, it wants to do Sunwoda Electronic Co.Ltd(300207) ” Such a position is not easy. Follow the pack of consumer batteries and achieve the pack of power batteries. It still has a foundation. “
However, Merco also said that the technical development of power cell also needs the corresponding historical details and the accumulation of knowledge achievements, Sunwoda Electronic Co.Ltd(300207) there may still be some deficiencies in this aspect.
From the company’s existing business structure, the proportion of power battery business is not high. The historical announcement shows that Sunwoda Electronic Co.Ltd(300207) formulated the strategic plan of power battery in 2016 and proposed to fully enter the power battery industry in 2017. However, until the end of 2020, the revenue of Sunwoda Electronic Co.Ltd(300207) power battery business has never exceeded 1 billion yuan. In the first half of 2021, the company’s automobile and power battery revenue accounted for only 3.66%.
At the same time, the layout of power battery business has also affected the performance of the company in previous years. From 2018 to 2020, the net profit deducted from Sunwoda Electronic Co.Ltd(300207) power battery business was -146 million yuan, – 305 million yuan and -607 million yuan respectively. In the first half of 2021, the net profit deducted from Sunwoda Electronic Co.Ltd(300207) power battery business reached -403 million yuan.
Merco believes that it is certain to lose money in the past few years to make power batteries. It requires a lot of investment in the early stage, and it also takes some time to get feedback.
In December 2021, Sunwoda Electronic Co.Ltd(300207) announced that its subsidiary Sunwoda Electronic Co.Ltd(300207) automobile battery plans to establish a project company to invest in the construction of “Zaozhuang power battery, energy storage battery and supporting projects with an annual capacity of 30gwh”, with an estimated total investment of about 20 billion yuan. According to the incomplete statistics of the reporter of the daily economic news, the planned investment amount of Sunwoda Electronic Co.Ltd(300207) in power batteries and other fields has exceeded 50 billion yuan.
The loss performance in the past few years and the huge investment announced make Sunwoda Electronic Co.Ltd(300207) overweight in the field of power batteries look more like a bold attempt. However, Mercure also said that most battery factories may exaggerate slightly when announcing the expansion plan, but when it comes to investment, they will still carry out it more carefully in combination with market demand and their own situation.
By the end of the third quarter of 2021, Sunwoda Electronic Co.Ltd(300207) monetary funds on the account were 5.421 billion yuan, short-term loans were 6.603 billion yuan, total assets were 37.444 billion yuan, and the asset liability ratio was 74.79%.
Cover image source: Visual China Group Co.Ltd(000681)
