AutoBeta(AutoBeta.net)08/26 Report--

In the face of the current downward trend of the car market, it simply cannot be worse. In July, the domestic narrow passenger car market declined to varying degrees compared with the same period last year and month-on-month. Although the opposite new energy vehicles maintained an upward growth trend in the first half of the year. But it was also rare to see a 3.8% year-on-year decline and a 51.3% month-on-month decline in July. The main reason is the decline of the subsidy policy for new energy vehicles, many car companies have raised their prices, and consumers are holding money to wait and see.

The main parts of new energy vehicles are power batteries, but under this trend, the performance of Ningde era, as the leading power battery company in China, continued to be beautiful in the first half of the year, in line with market expectations.

According to the financial report for the first half of 2019 released by Ningde Times, the company's total operating income was 20.264 billion yuan, an increase of 116.50% over the same period last year, and the net profit belonging to shareholders of listed companies was 2.102 billion yuan, an increase of 130.79% over the same period last year.

But this is thanks to rising sales of new energy vehicles in the first half of the year. The main businesses of Ningde era include power battery systems, energy storage systems and lithium battery materials. The company's main source of revenue is power batteries, which include batteries, modules and battery packs. According to the statistics of China Automobile Research Institute, the production and sales of new energy vehicles in China in the first half of 2019 were 609000 and 601000 respectively, up 60.1 per cent and 85.6 per cent year-on-year.

The sharp increase in sales of new energy vehicles has led to an increase in the number of batteries installed. The total installed capacity of power battery in the first half of 2019 was 30gwh, an increase of nearly 93.6% over the same period last year; the company's sales revenue of power battery system was 16.892 billion yuan, an increase of 135.01% over the same period last year. Among them, the installed electricity of Ningde era is 13.8GWh, which accounts for half of the country, accounting for 46%.

In addition to the improvement of performance, Ningde era also laid out multi-party cooperation. Including Volkswagen, BMW, Daimler and Toyota, there are more in China. Batteries are also likely to be used in Ford's mass-produced electric vehicles in the future. Under the signing of a number of supply agreements, Ningde era increased early investment. It has agreed to expand its investment in European production and R & D base projects.

However, behind the rapid growth of business volume, Ningde era is also faced with some unstable risk factors.

The new energy vehicle industry has developed rapidly in recent years, but it will face the impact of subsidies and other policies, resulting in a slowdown in growth. In this regard, Ningde Times said that it will give full play to its advantages of core technology and independent research and development capabilities, improve product performance, reduce costs, and reduce the impact of reduced sales of new energy vehicles on the sales of power battery products.

According to the 2019 semi-annual report of BYD, one of the three major battery manufacturers in China, the revenue from the rechargeable battery and photovoltaic business, one of the company's main businesses, is about 4.453 billion yuan, accounting for 7.16% of the company's total revenue. In June, BYD was selected into Toyota's power battery supply system, and its competitiveness in power batteries is also on the rise.

In addition, with the relaxation of domestic power battery policy, a large wave of foreign companies will become the biggest competitors in Ningde era, including LG Chemical, Panasonic, Samsung and so on. Earlier, a report predicted that Panasonic, LG Chemical, Samsung SDI, Ningde Times and SKI will surpass 50GWh in production capacity and occupy 80 per cent of the battery market by 2021. By 2050, LG Chemical will become the top five battery manufacturers against the Ningde era.

Therefore, with the rapid changes in the automobile market, the iteration of power batteries is even faster, and how long can the "era" of Ningde era last? No one can tell, but for now, the Ningde era still has the upper hand.

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