The loss of lithium electricity business: Tianneng Power shares plunged 17 percent in a day

On September 3, Tianneng Power held 2018 half-year performance conference in Hong Kong. On the one hand, revenue growth is 27%; On the other hand, shares tumbled 17%.

Day what happened, why would be selling, three months fell 40%, fell 17% on September 3rd.

Can see notice, in the company in annual report and interim results briefing, as the media and investors the most familiar faces, day can drive two executives, Chen Minru and Zhikun Wang today did not appear.

Power of several familiar day to see that day power vice President Zhikun Wang has resigned recently. Zhikun Wang to power while is not day chairman secretary, but within the day to be able to power in fact responsible for equities.

Four months ago, the day can power announcement, on May 18, to work in the day for the last fifteen years Chen Minru executive director, vice President resign.

As a core business veteran, executive Chen Minru popular Zhang Tianren trust, in the day can be in charge of the important areas of business for a long time, he is leaving battery industry a mystery.

In addition to the change of management, Zhang Tianren has to face another cruel fact that he had high hopes of lithium electricity far from expected.

In the first half of this year, the day can power lithium electricity revenue only 277 million yuan, plunged nearly 40% year-on-year. Center daily news, according to the day lithium battery business boasts six academicians, four national one thousand program specialist, thousands of developers, but this report card, it is difficult to satisfy investors.

But he has always been as the biggest rival Amd power (00951 HK) lithium electricity were nearly doubled in the first half of the business revenue growth.

Two rivals lithium electricity performance of a minus one, transformation reflects the day's big problem. The long-term occupation of what happened to the battery topped the list of the enterprises in China?

The first challenge

Lithium electricity business lost

From now look back, lead-acid battery boss day into lithium electricity market is not too late.

In the Chinese academy of sciences institute of physics, Dr. Yuqun Zeng second startup, getting rid of the ATL car power department in 2011, was established in Fujian Ningde CATL era (Ningde) before Zhang Tianren realized the broad prospects of lithium-ion batteries.

The tasks of the day can lithium electricity development to the energy of the day was established in 2004, the first major research and development production of nickel metal hydride batteries, beginning around 2008 into lithium battery business. To power in 2013, Zhang Tianren day put forward "three fast a steady" strategy, the steady development of electric bicycle batteries, speed up the development of new energy vehicles tiny electric car battery and lithium battery, waste battery recycling business.

But the bibcock of lead-acid battery halo, has hindered the development of day power emerging industries.

Until 2015, the day can power lithium electricity sales began to have significant improvement, the li-ion battery plate into a growth performance of the biggest highlights of the company, annual sales income 556 million yuan, surged 209% year-on-year. In 2016, the day can lithium electricity business achieve sales revenue 616 million yuan, up 10.74% from a year earlier.

In 2017, the day can lithium electricity business to return to high growth, achieve revenue 1.223 billion yuan, up 98.86% from a year earlier. According to China association of power sources, 2017 day lithium ion batteries installed capacity of 0.524 GWh, ranking 13th in the country.

But from the point of shipments on the relative data, day energy is only ranked first at that time, the second era of Ningde, BYD, installed capacity of about 1/20 and 1/10.

Seemingly said revenue in the past, but hidden behind the huge hole, 2016 and 2017 for two consecutive years, the day the energy losses of up to 170 million yuan, this three years ago was spun off from listed company, had planned a separate listing of assets, and eventually sold to a listed company.

As can be seen on August 29 wrote that article (lead-acid batteries to power giant day of "the winner's curse" : the lithium battery business in trouble) talk about the day to lithium electricity business already in trouble. On August 31, the day can power released 2018 ZhongBao further proves the judgment.

Although it can power sales revenue grew 28% to 14.507 billion yuan in the first half of this year, net profit rose 15.8% to 534 million yuan, hit a record high, but cannot hide the lithium electricity business.

In the first half of this year, the day can lithium electricity business sales income is 278 million RMB, drop a drop of nearly 40%, dropped to 2% of the total sales revenue accounted for. In 2017, the day to lithium battery business sales income is 1.223 billion yuan, the proportion of total sales revenue is 4.55%.

The lithium electricity industry downturn? The answer is obvious.

This is not a particularly strong seasonal industry, in the first half of 2018, China's new energy automobile production finished 413000 and 412000, respectively, 94.9% and 111.5% year-on-year growth. New energy vehicles increased sales lead battery installed capacity increases, the first half of 2018Power battery capacity is 15.45 GWh, year-on-year growth of nearly 150%.

Is the industry overcapacity? Fierce competition? Troubled the lion technology (002684 SZ) chairman Chen Lewu to is for yourself to find a good reason - China power battery capacity of 101 GWH, 2016, 2020 will reach nearly 250 GWH, and corresponding to the demand side, only 27 GWH, 37, respectively, 2016, 2017 GWH, and in 2020 was only 101 GWH. Overall supply is demand for the number of times, industry structural overcapacity is extremely serious.

Can also is excess capacity, rising star Ningde era (300750 SZ) in the first half of this year to achieve the business income reached 9.36 billion yuan, rose as high as 48.69%;Button after the net income of 697 million yuan, increased 36.55% year-on-year.

Day may say, the Ningde age not lead-acid batteries, there is no problem of transition, no burden of history.

But be Zhang Tianren as one of biggest rival Amd power, in the first half of lithium battery business revenue of 178 million yuan, an increase of about 88%.

Obviously, the day can lithium electricity encountered and insufficient for the humanitarian situation.

The second challenge

Competitors tight

In the battery industry circles, Amd power my chairman and Zhang Tianren each other as one of the biggest rivals.

Over the years, the two companies try to overtake each other in revenue.

In 1986, Zhang Tianren in Changxing county, Zhejiang province, a village does a battery factory. In 1988, because of mismanagement, battery factories face a collapse of the crisis of bankruptcy, the 26-year-old Zhang Tianren with borrowed 5000 yuan boldly took over this hot potato, founded the group later day.

In 1985, the Changxing Zhang Tianren person of hometown, r my just 17, was admitted to the department of Hangzhou normal college. Hangzhou normal university is a school of talented people, in 1984, r my brother jack ma, after three times of the university entrance exam finally was admitted to Hangzhou normal college of English major.

Sophomore year the summer vacation, hung in r my father about the chemical battery in the study of more than 50 professional books biting off more than half. The university four years, it is about the principle of battery every version of the library to see.

Shortly after graduation, he still felt "big stick" battery, so the decision to quit hong creek middle school teachers' position, in August 1995 to return to their hometown Changxing, like Zhang Tianren, established factory, lead-acid batteries and they all do.

R my startup capital more than Zhang Tianren 3000 yuan, 8000 yuan in all.

At that time, the Zhang Tianren day can have business for 7 years.

After a long period of time, Changxing villagers Zhang Tianren r my chasing him.

In 2013, r my than the Zhang Tianren, Amd internal excited. That year, Amd power to achieve the business income is 14.973 billion yuan, up 56.6% from a year earlier, the profit of 310 million yuan, down 37.5% year-on-year, the day can achieve revenue of 13.635 billion yuan, up 37.9% from a year earlier, the profit of 135 million yuan, plunged 80.9% year-on-year.

Since 2013, the two companies of price war broke out, the spy, slander, poaching. Day staff to denigrate Amd, and even allow local JC intervention, the government to coordinate the two large taxpayers also took some energy.

Under the power of the Zhang Tianren, finally, in 2016, the day to be able to power ahead the amd power, erect.

In 2016, the day can achieve revenue of 21.481 billion yuan, up 20.65% from a year earlier, the profit of 859 million yuan, up 40.6%; Amd achieve revenue of 21.455 billion yuan, up 13.7% from a year earlier, the profit of 504 million yuan, up 51.8% from a year earlier.

Almost at the same time of the day can step in lithium electricity business, r my began with lithium electricity business.

But since the two companies began to do lithium electricity business, look from the results, have been leading Yu Chaowei day. Even in 2017, the day can lithium electricity sales income is 1.223 billion yuan, accounting for the proportion of total revenue of 4.55%, and Tianwei lithium electricity sales revenue of 232 million yuan, accounting for the proportion of total revenue is only 0.94%.

In the first half of this year, while it is day to lithium electricity business leading Yu Tianwei, but just 277 million yuan, for the revenue plunged nearly 40% year-on-year, while Amd lithium electricity business revenue although only 178 million yuan, is compared to the sharp increase of 88%.

Add a drop, is two companies lithium electricity the great changes in the business competition.

Except r my Zhang Tianren also need to face to face with another rival, the era of Ningde Yuqun Zeng, although Yuqun Zeng power battery only seven years, in the first half of 2018 revenue also only two-thirds of the day, but profits have more than the day.

In the past three years, Yuqun Zeng started the era of Ningde revenue growth reached 557%, 160% and 34.4%, respectively, in the first half of this year at close to 50%.

Subversives often come from different areas, according to this speed, another two years, Yuqun Zeng will probably exceed Zhang Tianren, secure the battery industry.

Snowball netizen "investment from entry to master said:"

"Day power over Amd power, whether should enjoy high valuation, I think of an old story, beat gome suning, and did not see the Jingdong and Alibaba. Yes, the day can be also addicted in lead-acid batteries, Ningde era is coming."

Ningde era has come, to power belongs to the day of the new era and where is it?This may well explain the day to be able to power a slump in share prices today.

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