Ningde Times new engine: overseas and energy storage business surge

In 2020, Ningde Times achieved total operating income of 50.32 billion yuan, an increase of 9.90% year-on-year, and the net profit attributable to shareholders of listed companies was 5.58 billion yuan, a year-on-year increase of 22.43%.

On the evening of April 27, Ningde Times released 2020 reports. Annual report show that overseas business and energy storage business are the main highlights of Ningde Times:

The energy stored service sales reached 2.39GWh, an increase of 236.62% year-on-year;

The overseas business revenue was 7.908 billion yuan, and the revenue ratio reached 15.71%, while this figure was only 4.37%, which was increased by 295.30%.


Performance performance

Under the influence of the epidemic last year, the revenue of Ningde is still growing.

In 2020, Ningde Times achieved total operating income of 50.32 billion yuan, an increase of 9.90% year-on-year, and the net profit attributable to shareholders of listed companies was 5.58 billion yuan, a year-on-year increase of 22.43%. Last year, Ningde Times achieved a sales of lithium-ion batteries at 46.84 g wh, an increase of 14.36% year-on-year, of which the power battery system sales were 44.45 GWH, a year-on-year increase of 10.43%.

Source: Ningde Times Finance

The new energy models announced by the Department of Working in the 2020, a total of more than 6,800 models, including more than 3,400 models of the Ningde Times, accounting for about 50%, which is the most powerful battery manufacturer of the supporting model.

According to the passenger license data of the whole vehicle, in 2020, China’s power battery installed is 63.6GWH, of which Ningde Times is 31.9GWH, and the market share is 50%.

2020 affected by the epidemic, the operating income in the third quarter of Ningde Times has declined significantly, and net profit is also negative year-on-year.

This data is reddriting in the fourth quarter, and the annual camp is increased by 10%, and the net profit has gross growth, which has increased in the first three quarters.

Source: Oriental Wealth Network


The price is significant, the cost is difficult

With revenue and sales, it is also possible to calculate the price. The average price of the Ningde Times Power Battery System is 0.89 yuan / WH in 2020, and this figure is 0.94 yuan / WH in 2019, 2018 is 1.15 yuan / WH.

According to the operating cost of the power battery 28.956 billion yuan, the average unit price cost of the 2020 movement battery system in Ningde Times is about 0.65 yuan / WH, and the number of Ningde Times in 2019 is 0.67 yuan / WH, and the decline is small.

First, the power battery cost has entered a bottleneck period, and it is difficult to have a big breakthrough in the short term; the second is that the price of raw materials in the 2020 movement battery is too fast, and the battery cost is pushed.

After all, since the second half of 2020, the prices of the upper reaches of the lithium battery have begun to rise rapidly, for example, the price of raw materials such as lithium carbonate, electrolyte, and lithium hexafluorophosphate has doubled, and the manufacturing cost of power battery production is high.


Botility and overseas income growth

In 2020, the highlight of Ningde Times grows in the energy storage and overseas market.

(1) The energy storage ushered in a substantial growth

With the gradual landing of the early energy storage market, Ningde Times realized the sales revenue of energy storage system last year was 1.943 billion yuan, an increase of 218.56% year-on-year.

According to the annual report, Ningde Times Power Battery System sales 44.45GWh, the sales volume of the battery system after the article is 46.84, which is known that its energy storage system is 2.39GWH, and this data is only 0.71GWH last year.

Moreover, the gross profit margin of Ningde Times can be found that the gross profit margin of the energy storage system in 2019 and 2020 is significantly higher than that of the power battery system.

In 2019 and 2020, the gross profit margin of the power battery system was 28.46% and 26.56%, while the gross profit margins of the energy storage system were 37.87% and 36.03%, respectively.

Source: Ningde Times Finance

From the data, the Ningde Times energy storage market has begun more significant growth in 2018, especially in 2020 achieved breakthrough growth.

Source: Ningde Times Finance

Annual report show that in the overseas market, the Ningde Times energy storage market will provide components to the transformation of the battery system. At present, it is currently based on long-life battery technology, liquid-cooled CTP electric box technology, and has launched outdoor systems Enerone products. Safety, economy Waiting for the industry leadership.

In the domestic market, the first national high-quality engineering and power generation side, the leading power side, the leading generation, the leading electricity side, and the Qinghai Province Hainan State EHF Trunage Base Configuration Project Tarra Beach 1st Section 1000MW PV power station configuration AC energy storage project is shipped.

In addition, Zhuhai Hengqin Storage FM Project in Ningde is shipped, helping the storage of the reservoir and black launch of the 9F combustion engine test successfully.

Ningde Times energy storage products

Source: Ningde Times Finance

(2) Overseas business explosions growth

In 2020, the overseas business revenue in Ningde Times was 7.908 billion yuan, and the revenue ratio was 15.71%, and the number of 2019 was only 4.37%, which was increased by 295.30%.

Source: Ningde Times Finance

This is mainly due to the Ningde Times won a number of key customers key platforms, and the 811 system products achieve large quantity delivery overseas. International car companies currently cooperated in Ningde Times include BMW, Toyota, Daimler, Modern, Jaguar, PSA, Volvo, etc.

Source: Ningde Times Finance

Ningde Times overseas market growth has continued to expand this year.

According to the high-employment lithium-e-electric report, Ningde Customs Statistics show that Ningde Times declared the export power battery value of Ningde at Ningde Customs in Ningde Times, which was 2.8.7 times higher than the year.


The production capacity utilization rate is slightly lowered

In recent years, the capacity growth of Ningde Times has grown very rapid. In 2015, it has only 2.6GWH, and by 2020, this data increased to 69.1GWH, but the capacity utilization is reduced by 90% to 74.83%, which should be affected by the epidemic.

Ningde Times Culture Capacity (GWH)

Source: Ningde Times Finance; “Electric Car Observer” calculation

In addition, the Ningde Times is based on 5.75 billion yuan, and the important project budget is 49.2 billion yuan, and the Ningde Times has announced over 150 billion investment plans. This shows that the capacity of Ningde Times will also increase significantly. According to Zeng Qun, production capacity will soon enter the TWH era.


R & D investment continues to rise

At the same time as business income grows, the R & D investment in Ningde Times not only does not reduce the proportion, but also presents growth trends.

In 2020, Ningde Times has reached 7.09% in revenue, with 5,592 R & D technicians.

As of 2020, Ningde Times and their subsidiaries have 2,969 domestic patents and 348 overseas patents, and 3,454 have been applied. In addition, the 21C Innovation Labs in Ningde Times will target international first-class laboratories, research directions including metal lithium batteries, full solid state batteries, sodium ion batteries, etc. Next generation batteries.

Source: Ningde Times Finance

Source: Ningde Times Finance


Cash flow reserve is rich

In 2020, the Ningde Times had a total of 1.169 billion yuan, and the government subsidy is 1.136 billion yuan. The two are close, so the profit is basically reactive. The impairment of 2020 includes 342 million credit impairment losses, 625 million deposited prices, 0.59 billion long-term equity investment impairment losses and 1.43 million fixed assets impairment loss.

However, the cash flow in Ningde Times is very abundant. In 2020, Ningde Times’s operating cash flow was 18.43 billion yuan, a year-on-year increase of 36.8%, which was 3.02 times the net profit, of which the operating cash flow in 2020 was 8.124 billion yuan, an increase of 158.1% year-on-year, an increase of 81% from the previous year; The reason for the report is that the main product sales are good, and some customers pay the prepayment.

Source: Ningde Times Finance

Perhaps it is because of the full amount of gold, the Ningde Times has the ability to further expand the industrial chain. At the same time as the annual report, Ningde Times also released another announcement, in order to fit the long-term development needs of the company, promote the global strategic layout, guarantee the supply of key resources, the company intended to focus on the main business, with securities investment methods Industrial chain quality listed companies carry out investment, total investment does not exceed 19 billion yuan or equivalent currency species.


Strategic direction with alternative fossil energy

In the 2020 report, there is a very obvious change in Ningde Times upgraded the development strategy.

In 2020, Ningde Times focused on new energy vehicle power battery systems, the R & D, production and sales of energy storage systems. Today, it adjusts strategies to alternatives of fossil energy.

In the 2020 annual report, Ningde Times clarified three strategic development directions and four innovation systems.

The three strategic directions are: replacing the renewable energy and energy storage energy replacement, with power battery as the core of mobile fossil energy, with electricity + intelligent as the core application scenario.

At the 125th anniversary of the Shanghai Jiaotong University, Zeng Qun has conducted in-depth interpretation of these three strategic directions.

First, it is desirable to combine with energy storage and power generation, especially new solar cells. The goal is to replace the fixed fossil energy, “is the burning coal all day.”

In terms of energy storage and solar energy, the Yongfu shares of Ningde Times is representative.

As early as December last year, Ningde Times has launched equity cooperation with Yongfu Shares. On December 8, last year, Yongfu’s share announcement company’s control shareholders signed the “Shares Transfer Agreement” in Ningde, and the company held 14.57 million shares (accounting for 7.9998%), and the price of 212 million yuan is transferred to Ningde Times. At present, Ningde Times will become the third largest shareholder of Yongfu Shares.

Yongfu Shares have layout in the construction of energy storage technology and integrated charging stations, which is in force on large energy storage power plants.

In February this year, Yongfu Shares issued an announcement to cooperate with the company’s shareholders in Ningde Times, investing in Fujian Yongfu Electric Technology Development Co., Ltd. to achieve the new energy field (especially photovoltaic + energy storage) Deep cooperation and industrial layout of the field). Second, I hope to use the power battery as the core, the goal is to replace the mobile fossil energy. For example, the equipment that moves to the car or robot needs to use a battery. The battery is an efficient energy storage device.

Third, intelligent and electric cooperation in specific areas, such as mines, can be smart unharminated from mining to the mine to the mine.

Specifically, in 2020, Ningde Times and Henan Juma Intelligent Machinery Co., Ltd. established a joint venture company is a typical case. By integrated resources, the two sides provides full process solutions for electric wisdom unmanned mines technology research and development and industrial promotion.

On this basis, Ningde Times put forward four innovation systems.

First, in-depth material microscopic mechanism, develop high-performance materials for material system innovation; Second, through system optimization to achieve system energy consumption, efficiency, cost reduction system structure innovation; third is committed to building flexible, Efficient, low-cost, high quality, self-upgrade ultra-limited manufacturing innovation; four is to innovate in business models from raw materials, battery manufacturing, operations, and materials recycling.

This strategic adjustment is explained, why is Ningde Times grow rapidly in the energy storage area, and future energy storage services may not be lower than the power battery business.

In the overall performance, last year, Ningde Times is quite good. In the case where the revenue and net profit for three consecutive quarters, in the fourth quarter, it is fully recovered, and it is not easy to achieve the whole year. It can be seen that the potential of Ningde Times is still very large, overseas customers and energy storage will become another growth engine in its future.


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