Bick power, which once ranked first in the segment of Shanxi Guoxin Energy Corporation Limited(600617) automobile cylindrical power battery market, once again returned to the stage because of Anhui Xinli Finance Co.Ltd(600318) ‘s “breaking the appointment” and Zhejiang Hangke Technology Incorporated Company(688006) ‘s “generosity”.
On April 1, Zhejiang Hangke Technology Incorporated Company(688006) announced that the company received 187674 million yuan paid by BIC power on March 31, 2022. So far, the payment agreement has been fully fulfilled, and the company voluntarily gives up the rest of the payment except 367674 million yuan paid by BIC power.
Since 2019, BIC power’s “bad debt” broke out, pushing the second-line power battery enterprise to the cusp of the storm. With the resolution of the debt crisis, BIC power has shown signs of clearing the clouds and seeing the sun. But just at this time, BIC power encountered a new “trouble” in the capital market – on the day before the Zhejiang Hangke Technology Incorporated Company(688006) announcement, Anhui Xinli Finance Co.Ltd(600318) announced the termination of planning to buy 756234% of the equity of BIC power. This means that BIC power failed to hit A-Shares for the third time.
“The operation of the enterprise itself will not be affected by the failure of reorganization.” Bik told the associated press, “bik will not stop exploring the capital market.”
“debt clearing” action continues
Since its establishment in 2001, BIC power is one of the battery manufacturers engaged in the development and production of power battery technology earlier. It once ranked sixth in China with 1.77gwh power battery installed capacity in 2018.
However, as the main customers Zhongtai automobile and Huatai Automobile successively fell on the eve of the outbreak of the new energy vehicle market, bick power also fell into a dark moment. According to the data, the two car companies in the lower reaches alone have generated accounts receivable of nearly 900 million yuan, and BIC power has also caused a series of explosions among the three listed companies due to its arrears in the payment of Ningbo Ronbay New Energy Technology Co.Ltd(688005) , Beijing Easpring Material Technology Co.Ltd(300073) and Zhejiang Hangke Technology Incorporated Company(688006) .
“The debt problem has not caused a major crisis. In the past two years, with the adjustment of business strategy and the improvement of operation, the debt problem has not affected the normal operation of the company. In addition, with the promotion of seeking legal protection of creditor’s rights, the debt problem has been further improved.” Bick power told reporters.
Zhejiang Hangke Technology Incorporated Company(688006) is the last of the three upstream enterprises to solve the related debts. As early as April 19, 2021, Beijing Easpring Material Technology Co.Ltd(300073) announced that the company had received the second arrears of Shenzhen BIC and Zhengzhou BIC, and the company had recovered 733521 million yuan of arrears of BIC battery by that day; On June 29 thereafter, Ningbo Ronbay New Energy Technology Co.Ltd(688005) announced that as of June 28, 2021, the company’s overdue accounts of bicker power totaled 208 million yuan, which had been fully recovered by means of cash collection and payment offset. As of the disclosure date of this announcement, the balance of accounts receivable of bicker power was zero.
As for the receivables, bike power said, “according to the Zotye Automobile Co.Ltd(000980) reorganization plan, all the creditor’s rights of bike to Zhongtai automobile have been converted into A-share shares of Zhongtai automobile. The arrears of Huatai Automobile are still being collected through judicial channels”. However, BIC did not disclose its specific information on the conversion of Zhongtai auto debt into equity.
On August 5, 2019, BIC filed a lawsuit against Hangzhou Jieneng power (a three-level subsidiary of Zhongtai), Zhongtai new energy automobile, Yongkang Zhongtai and Zhongtai automobile by Hangzhou intermediate people’s court, with a lawsuit amount of 621 million yuan. After filing the case, Hangzhou Jieneng power signed the settlement agreement with BIC and promised the specific payment amount and date. Based on this, bik withdrew the case. However, due to the other party’s failure to perform the agreement, on September 2 of that year, BIC filed a lawsuit again with the above four companies and applied for property preservation.
On December 28, 2021, Zotye Automobile Co.Ltd(000980) announced that the company received the civil ruling of Jinhua intermediate people’s Court (“Jinhua intermediate people’s court”) on December 28, and Jinhua Zhongyuan ruled that the implementation of Zhongtai automobile restructuring plan was completed.
three times of “punching a” failed
In the view of industry insiders, BIC’s continuous “debt clearing” action is for the company’s own business needs on the one hand, and for landing in the secondary market on the other hand.
Public information shows that after giving up independent listing, BIC power has tried to “backdoor” listing of A-Shares three times.
In March 2017, Wuhu Token Sciences Co.Ltd(300088) plans to acquire 75% shares of BIC power by issuing shares, paying cash and raising matching funds. Five months later, due to the unclear regulatory policies on the spin off assets of overseas listed companies returning to A-share listing, Wuhu Token Sciences Co.Ltd(300088) decided to suspend the restructuring plan and purchase some shares in cash.
In February 2018, Jiangsu Zhongli Group Co.Ltd(002309) originally planned to purchase 100% equity of bike power at a price of 10 billion yuan, and then announced that the transaction was terminated due to the large fluctuation of the secondary market, deleveraging and other macroeconomic environmental factors, combined with the actual situation of the target company and the great uncertainty caused by the company’s future development plan.
This time, BIC power was “selected” by Anhui Xinli Finance Co.Ltd(600318) . According to the plan, Anhui Xinli Finance Co.Ltd(600318) plans to sell out the equity of the company mainly engaged in financial businesses such as financing guarantee, microfinance, pawn and financial leasing, and replace the equivalent part of all the equity of the target company held by bike power or Tibet haoze, and finally be undertaken by the controlling shareholder of the listed company, Xinli group or a third party designated by it.
However, with the announcement of Anhui Xinli Finance Co.Ltd(600318) 3 on March 31, bick fell in front of the A-share market again. In the announcement, Anhui Xinli Finance Co.Ltd(600318) mentioned the reasons for terminating the reorganization, “as the company and the main counterparty of this transaction cannot reach an agreement on some core transaction terms of this major asset reorganization, in order to effectively safeguard the interests of the company and the majority of investors, after friendly negotiation and careful research, the company and the main counterparty decided to terminate the planning of this major asset reorganization.”
For Anhui Xinli Finance Co.Ltd(600318) restructuring, the Shanghai Stock Exchange once issued an inquiry letter on November 28, 2021, requiring Anhui Xinli Finance Co.Ltd(600318) combined with the cost of raw materials, to explain the reasons and rationality of the large loss of BIC power; A series of issues, such as the necessity of conducting this transaction without making a profit, whether this transaction meets the restructuring conditions in Article 43 of the administrative measures for major asset restructuring of listed companies, and whether it meets the interests of listed companies and minority shareholders.
The financial position of Zeng bike was disclosed in the announcement on November 1, 2021. The announcement shows that in the past two years and the first period, the net profit of bike power was -768 million yuan, – 1001 million yuan and -170622 million yuan respectively, with continuous operating losses.
fully bet on large cylindrical battery
For the A-share market to fail again, bick said that in 2021, the company’s revenue was 2.5 billion yuan, turned losses into profits and increased in a large proportion, and the fundamentals continued to improve. “BIC will not stop exploring the capital market. In the next few years, we will have greater goals in capacity expansion, enterprise development and market layout at home and abroad.” Bick said that the realization of this goal requires not only the development of its own business, but also the help and support of capital.
Today, with the explosive growth of power battery loading, BIC power undoubtedly hopes to seek a larger market through capital support, and the focus is undoubtedly one of BIC power’s main products – large cylindrical battery.
Sealand Securities Co.Ltd(000750) in the latest research report, the trend of large-scale cell is clear, and the prospect of large cylinder route is promising. Compared with the previous generation 2170 cylindrical battery, the 4680 large cylindrical battery adopts a larger 46mm 80mm cell and the electrodeless ear technology with smaller internal resistance, which makes the 4680 increase energy by 5 times, mileage by 16%, power by 6 times and production cost by 14% on the basis of 2170. The large cylindrical battery continues the characteristics of high consistency, good safety and compatibility with high energy density materials. The large-scale cell also brings the advantages of high group efficiency, low difficulty of BMS and adaptability of high-voltage platform.
Similar to Sealand Securities Co.Ltd(000750) view, Tianfeng Securities Co.Ltd(601162) also said in the research report that the large cylindrical battery will be in large quantity soon, and is optimistic about the investment opportunities of silicon cathode and derived new materials; Guotai Junan Securities Co.Ltd(601211) quoted the data of lithium battery of Gaogong as saying that by 2025, the large cylindrical battery cell will account for more than 30% of the power battery, i.e. 480gwh, which has exceeded the total demand of global power battery in 2021.
According to the information disclosed by fan Wenguang, vice president of BIC power battery, at the China electric vehicle hundred people’s meeting, BIC currently has 46 series and 26 series of all pole ear large cylindrical battery products, of which 26105 aluminum shell cell is in the B-like stage, with an energy density of 270wh / kg and a power density of more than 2000W / kg, which can achieve a endurance of more than 700km, a endurance of 500km in 12 minutes and a pure fast charging cycle life of more than 800 times. In addition, BIC will mass produce 285wh / kg energy density cells in 2024.
According to BIC’s plan, the large cylindrical battery under research is in the stage of sample batch delivery. Small batch mass production will be realized in the second half of this year and large-scale mass production and supply will be realized in 2023. In the next few years, 80gwh battery capacity will be expanded at home and abroad in two stages.
“Bike is in a new energy industry with rapid development and broad prospects. The research and development progress of large cylindrical battery is obvious to all, and the attention of capital is continuous.” Bik once again showed its desire to embrace the capital market, “I believe it will eventually achieve a win-win situation for partners based on a consistent understanding of the development direction.”
