As a “fruit chain” battery supplier, Sunwoda Electronic Co.Ltd(300207) ( Sunwoda Electronic Co.Ltd(300207) . SZ) plans to invest 10 billion to further expand the business territory of power battery, trying to become the first tier of power battery manufacturers.
On March 1, Sunwoda Electronic Co.Ltd(300207) announced that the company planned to invest in the construction of ” 3 Mesnac Co.Ltd(002073) 0gwh power battery production base project (tentative)” in Zhuhai, with a total investment of about 12 billion yuan, including a total investment in fixed assets of about 10 billion yuan.
Sunwoda Electronic Co.Ltd(300207) as early as 2015, it formulated the development plan of power battery business, but in the latest reporting period, this business accounted for less than 4% of the total revenue. Compared with Contemporary Amperex Technology Co.Limited(300750) , Eve Energy Co.Ltd(300014) and other leading manufacturers of first and second-line power batteries, Sunwoda Electronic Co.Ltd(300207) invested heavily to expand production capacity, how effective is it?
“fruit chain” supplier invested 10 billion to build power battery
According to the announcement, Zhuhai municipal government provides about 800 mu of land for the continuous project, and Sunwoda Electronic Co.Ltd(300207) subsidiary Sunwoda Electronic Co.Ltd(300207) Electric Vehicle Battery Co., Ltd. will set up Zhuhai Sunwoda Electronic Co.Ltd(300207) new energy Co., Ltd. to invest in the construction of ” 3 Mesnac Co.Ltd(002073) 0gwh power battery production base project (tentative)”, which is mainly engaged in the R & D, design and Production and sales, responsible for organizing the investment, construction and operation of power battery project.
Sunwoda Electronic Co.Ltd(300207) did not mention the source of investment funds in the announcement, and the company’s own financial situation could not afford 10 billion investment. As of the first three quarters of 2021, Sunwoda Electronic Co.Ltd(300207) had monetary capital of 5.421 billion yuan, short-term liabilities of 6.603 billion yuan, and non current liabilities due within one year of 1.177 billion yuan, with an asset liability ratio of 74.79%.
The financial report shows that 3 Kairuide Holding Co.Ltd(002072) 015 started the layout of power battery. After the subsidy decline period from 2017 to 2019, the company mainly reserves two mature products: HEV and Bev.
According to the company’s 2021 semi annual report and 2020 annual report, Sunwoda Electronic Co.Ltd(300207) said that the company’s Bev ternary VDA and MEB product models have been fully applied in the market and entered the European market in batches; Multiple model certification of lithium iron phosphate products has been completed.
From the perspective of clients, Sunwoda Electronic Co.Ltd(300207) since entering the field of power battery cells in 2017, overseas customers are mainly Renault Nissan, ejit, Volvo, etc; Chinese customers are mainly Geely, GAC passenger cars, Dongfeng Liuqi, Xiaopeng, Yundu, etc.
At present, Sunwoda Electronic Co.Ltd(300207) ‘s power battery business is still losing money. From January to June 2021, the company’s automobile and power battery business achieved an operating revenue of 574 million yuan, a year-on-year increase of 344%, accounting for 3.66% of the total revenue. During the reporting period, in the reporting period, three of the three subsidiaries that are engaged in power battery business, the Sunwoda Electronic Co.Ltd(300207) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\164 billion yuan 158 million yuan, 132 million yuan
Since August last year, Sunwoda Electronic Co.Ltd(300207) has repeatedly thrown out a 10 billion investment plan for power batteries, with a total investment scale of more than 50 billion yuan. On December 14, 2021, Sunwoda Electronic Co.Ltd(300207) announced that it plans to invest about 20 billion yuan in Zaozhuang national high tech Industrial Development Zone to build production lines and related supporting facilities for power batteries and energy storage batteries with an annual capacity of 30 GWH, and Sunwoda Electronic Co.Ltd(300207) automobile batteries will establish relevant project companies.
On August 9, 2021, Sunwoda Electronic Co.Ltd(300207) announced that it planned to invest 20 billion to build a power battery project within the jurisdiction of Nanchang Economic Development Commission. The project will be constructed in four phases and will be implemented in 2021, 2022, 2024 and 2026 respectively.
power battery manufacturers continue to “ask for money” from the market
The market seems to have long been used to the “internal rolling” 10 billion expansion of power batteries. On March 2, Sunwoda Electronic Co.Ltd(300207) shares closed down 3.25% to 35.16 yuan, down 36.07% from the record high set on November 10 last year (55 yuan, former resumption of rights), with a total market value of 60.4 billion yuan.
2021 is a year when the Chinese Shanxi Guoxin Energy Corporation Limited(600617) automobile market really breaks out. According to the data of the Ministry of industry and information technology, the sales of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in the middle of the year reached 3521000, an increase of 160% year-on-year. Meanwhile, the sales of new energy vehicles in the Chinese market ranked first in the world for seven consecutive years.
In the era of new energy vehicles, the continuous growth of sales volume poses a challenge to the supply capacity of power battery manufacturers. Both traditional car enterprises and new forces in car manufacturing have an increasingly strong demand for power batteries. In order to ensure the stability of battery capacity supply, many new force car enterprises are increasing the layout of power battery links.
Earlier, on February 24, Sunwoda Electronic Co.Ltd(300207) announced the completion of a capital increase of 2.43 billion yuan, and Weilai, Xiaopeng and ideal or their affiliated enterprises appeared in the list of 19 shareholders. Among them, ideal automobile affiliated company Jiangsu chehejia, Xiaopeng automobile affiliated company skytop LLC and Weirui investment of Weilai automobile affiliated company increased the capital of Sunwoda Electronic Co.Ltd(300207) automobile battery by 400 million yuan, 400 million yuan and 250 million yuan respectively.
It should be noted that the new energy vehicle industry is in a period of rapid development, but the operating cash flow of lithium battery manufacturers can not cover the huge capital scale required for production expansion. Against the high debt ratio of the financial side and the ideal development prospect after expansion, lithium power plant manufacturers reach out to the market to “ask for money” has not only become a necessary path for development and growth, but also taken it for granted
From the content of the investor interaction platform, the next step is Sunwoda Electronic Co.Ltd(300207) or to alleviate the financial pressure of high debt through equity financing. On March 2, an investor asked a question on the investor interaction platform: the asset liability ratio is close to 75%, which is relatively high in the whole manufacturing field how can the company resist the industry cycle trough and industry fluctuation and ensure the healthy operation of the company with such a high debt ratio
Sunwoda Electronic Co.Ltd(300207) replied that company will adopt equity financing to optimize the capital structure , increase the proportion of medium and long-term debt financing and optimize the debt structure.
On the other hand, the head listed companies integrate the industrial chain more intensively. Half a month ago, Yunnan Yuntianhua Co.Ltd(600096) ( Yunnan Yuntianhua Co.Ltd(600096) . SH), Yunnan Energy New Material Co.Ltd(002812) ( Yunnan Energy New Material Co.Ltd(002812) . SZ), Eve Energy Co.Ltd(300014) ( Eve Energy Co.Ltd(300014) . SZ) and Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) . SH) four lithium battery material head institutions planned to jointly promote the formation of the whole industrial chain cluster of new energy batteries in Yuxi City, with a total investment of more than 50 billion yuan.
On November 22 last year, Yunnan Energy New Material Co.Ltd(002812) disclosed the fixed increase plan. The total amount of funds to be raised (including the issuance cost) is no more than 12.8 billion yuan, which is intended to be used for the expansion of the production of power battery diaphragm. At present, the application for fixed increase has been accepted by the CSRC.
The power battery industry has formed a situation in which Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) . SZ) is the oligarch and Eve Energy Co.Ltd(300014) , Gotion High-Tech Co.Ltd(002074) ( Gotion High-Tech Co.Ltd(002074) . SZ), Farasis Energy (Gan Zhou) Co.Ltd(688567) ( Farasis Energy (Gan Zhou) Co.Ltd(688567) . SH) and other second tier manufacturers compete.
From Shenzhen Huaqiang Industry Co.Ltd(000062) Beifa’s Sunwoda Electronic Co.Ltd(300207) earned the first pot of gold for mobile phone battery OEM. Under the wave of automobile electrification, it still needs time to verify whether the company’s transformation can succeed.
