AutoBeta(AutoBeta.net)07/16 Report--

As the third largest battery manufacturer in China, Guoxuan Gaoke has been reported that Volkswagen will take a stake since last year. As the news of Volkswagen's stake is gradually confirmed, its share price and trend are gradually improving. However, the industry's favored battery supplier has recently suffered from a sharp drop in profits, suspected violations and a decline in rankings.

According to the performance forecast for the first half of the year recently disclosed by Guoxuan High-tech, the net profit of the company in the first half of the year was 30.5 million yuan-39.5 million yuan, down 88.76%-91.32% year-on-year, and the profit for the same period in 2019 was about 350 million yuan. Obviously, such performance for Guoxuan high-tech is not ideal, equivalent to net profit plummeted by about 90%.

In response to the unsatisfactory performance, the Company stated that it was affected by the COVID-19 epidemic and market sales, resulting in a decline in the demand for power batteries of the Company. On the one hand, due to the slow recovery of downstream customers 'production and operation, the company's production orders and product shipments declined to a certain extent; on the other hand, the new production capacity of domestic power battery manufacturers was gradually released, the market demand was less than expected, and the competition became increasingly fierce, all of which led to a significant decline in the company's net profit compared with the same period last year.

Some data show that the overall production and sales volume of new energy automobile market in China declined in a cliff-like manner in the first half of the year due to the influence of Xinguan, and did not recover slowly until the second quarter, but it was still in a depressed state. From January to June this year, the installed capacity of power batteries was only 17.54GWh, down 42% year-on-year; among them, the installed capacity in the first quarter decreased by about 53.84% year-on-year, only 5.68GWh. The highest annual installed capacity was 4.71 GWh in June, accounting for 26.85% of the total installed capacity in the first half of the year. It can be seen that the overall market performance is in a bad turn.

Although the data has picked up, but compared with the same period last year or a large decline. In addition to Ningde era ranking first this year, the ranking of the top ten installed machines has changed significantly. Although the installed capacity of passenger cars in the first half of Guoxuan High-tech was better than last year, Guoxuan High-tech achieved 481MWh installed capacity in the passenger car field in the first six months, accounting for 72.9% of its total installed capacity in the first half of the year, up 18.7% year-on-year.

However, since the beginning of this year, foreign-funded battery manufacturers have accelerated penetration in the domestic market, resulting in the installed capacity of power batteries in the first half of Guoxuan High-tech for 661MWh, ranking fifth in China. Among them, LG chemical installed capacity is 2.51GWh, accounting for 14.2%, ranking second; Panasonic installed capacity in the first half of the year 362.36MWh, into the top ten, ranking sixth.

This also shows that the competition in the power battery industry is increasing day by day. As one of the top three, the living space of Guoxuan High-tech has been gradually squeezed. According to the data, in 2019, the installed capacity of Guoxuan High-tech Power Battery is about 3.2GWh, and the domestic market share is 5.2%, ranking the third in the industry in China; among them, the installed capacity of lithium iron phosphate battery is 2.9GWh, ranking the second in China, and the installed capacity of new energy special vehicles ranks the first in China.

It is worth mentioning that the Jiangsu Supervision Bureau of China Securities Regulatory Commission issued the Decision on Ordering Corrective Measures to Guoxuan High-tech Co., Ltd. to Guoxuan High-tech Co., Ltd., showing that Guoxuan High-tech has 4 violations and was ordered to rectify.

Guoxuan Gaoke said in the announcement that the company attaches great importance to the problems mentioned in the decision, will rectify according to the requirements of the regulatory authorities, and submit a written rectification report to Anhui Securities Regulatory Bureau within the specified time, this administrative supervision measure will not affect the normal production and operation management activities of the company.

Although, on May 28 this year, Guoxuan Gaoke announced that Volkswagen China will invest about 1.1 billion euros to acquire 264.7% of the company's shares and become its largest shareholder. However, some analysts believe that: "The participation of multinational automobile enterprises has a certain positive effect on the future development of the company, which is expected to further increase the proportion of installed capacity, but the specific situation still depends on their cooperation progress."

According to the public data of Guoxuan High-tech, Gaoxuan High-tech has provided power batteries for new energy passenger cars of automobile enterprises such as Beiqi New Energy, Chery, Jianghuai, Chang 'an, Fengsheng and Hezhong New Energy. Compared with last year, Fengsheng and SAIC GM Wuling passenger cars were newly installed. Among them, Guoxuan Gaoke started to supply Wuling Hongguang MINI from May, reaching 180,000 cells in June and expected to reach 300,000 cells in July. Thanks to this, the installed capacity and market share of Guoxuan High-tech have been continuously improved for four consecutive months.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat