Intense competition and high reputation for double-killing lithium battery industry

Reporter: First, there are Baihua Village, and then to Guangyi Technology. This week, another company has revised down its net profit by 42.11 yuan due to the provision for impairment of goodwill. In a few days, many companies have turned huge losses from profit. One company after another seems to be worse than the one who made the goodwill.

Xiao Xu: The goodwill "mine" that was prompted by last week's column is constantly being detonated. Once again, everyone is reminded that there are nearly 250 listed companies with goodwill of more than 1 billion yuan. Any company that shows signs of decline in performance should be vigilant, especially the companies with signs of decline in the industry as a whole.

Reporter: After the expansion of the polysilicon industry, more than half of the enterprises were eliminated by the market. After shuffling and survived, there are only a few companies. You have talked many times before that the current lithium battery industry is similar to the polysilicon industry of the year. At the office. In the past two years, due to the heat of the lithium battery industry, many listed companies have acquired high-value-priced lithium-ion battery-related assets. The above-mentioned company is the first commercial mine in the lithium battery industry to be detonated, but it will never be the last one?

Xiao Xu: In the next 1-3 years, such a situation will continue to emerge. Take the lithium battery separator industry that we have mentioned many times as an example. After the industry's endless expansion, the hidden dangers are constantly emerging.

The annual report of Cangzhou Mingzhu 2017 shows that the company's "annual production of 6,000 square meters of wet lithium-ion battery diaphragm project" was successfully completed as planned, and the two production lines were completed and put into production in April and July 2017 respectively. A production line in the 10500 square meter wet lithium-ion battery diaphragm project was completed and put into operation in July 2017. Judging from the above data, Cangzhou Mingzhu has greatly improved its production capacity in the second half of 2017, but in the first half of 2017, the company's lithium battery diaphragm product revenue was 212 million yuan, and in the second half of the year this figure was 220 million yuan. After the increase in production, the company's lithium battery diaphragm product revenue did not increase significantly.

In 2016, the gross profit margin of Cangzhou Mingzhu lithium battery separator products was 63.61%, and the gross profit margin of this product in 2017 was 47.75%, a sharp drop of 15.86 percentage points. In fact, in the first half of 2017, the company's lithium battery separator products revenue was 2.12 yuan, operating at 100 million yuan, and the gross profit margin was 57.96%. In 2017, the company's lithium battery separator products revenue was 4.32 yuan. The operating profit is 2.25 yuan and the gross profit margin is 47.75%. According to this calculation, the operating income of lithium battery separator products in the second half of 2017 is 2.20 yuan, the operating income is 1.37 yuan, and the gross profit margin is only 37.94%. Compared with 63.61% in 2016, the decline is very obvious.

Reporter: Xingyuan Material is also a listed company with lithium battery separator as its main business. However, in 2017, the company's net profit increased by 158.13% year-on-year, which seems to be good.

Xiao Xu: The source of material in the first quarter of 2018 has two major factors. One of them: a dry diaphragm production line in the company's fund-raising project “The third-generation high-performance power lithium-ion battery separator production line expansion project” was completed and put into operation. Second: the company received government awards of 5,000 yuan.

The company expects net profit for January-June 2018 to be approximately 12,705,500,000 to 13,954.61 yuan. According to the company's net profit of 894,354.54 yuan from January to March of 2018, its net profit for April-June 2018 is approximately 37.602 million. Yuan Wan -5011.07 yuan, while the company's net profit for the same period last year was 3,262.94 yuan. Although the company's net profit in the second quarter of 2018 continued to grow, the growth rate declined rapidly compared with the first quarter, and the company's performance growth was based on a dry diaphragm production line in the “3rd Generation High Performance Power lithium ion battery Diaphragm Production Line Expansion Project”. On the basis of the gradual release of the production capacity of the company's holding subsidiary Hefei Xingyuan Wet Diaphragm, the company's second-quarter performance growth was obviously insufficient.

Reporter: Although the gross profit margin of the lithium battery separator industry has dropped sharply in 2017, the gross profit margin of lithium battery separator products such as Xingyuan material is still as high as 51.85%. With the increase of production capacity, the company's profit can still be improved. With the same production capacity, what will happen to the company's profitability?

Xiao Xu: In 2017, the sales volume of lithium battery separator products of Xingyuan material was 152,261,700 square meters, an increase of about 12% from the previous year's 13,868.02 square meters, but the company's net profit dropped sharply from 155 million yuan in the previous year to 107 million yuan. The drop was as high as 31.29%. Without increasing production capacity, the company's profitability will decline immediately, and with increased production capacity, the company's profits will temporarily increase. However, after the endless expansion of the production, the price war will lead to further decline in the overall gross profit margin of the industry. The company's performance is bound to be greatly negative. In March 2018, Xingyuan Material announced that it plans to invest 3 billion yuan to further expand the company's lithium battery separator. The decline in production capacity, gross margin and endless expansion, the current lithium battery separator industry is in a dilemma.

Reporter: Going back to the topic of goodwill again. Following the acquisition of Hongtu diaphragm by Jinguan Electric in 2017, this week, Innovative Shares acquired lithium battery separator company Shanghai Enjie was approved, and the lithium battery separator industry in a dilemma will continue to decline if the profitability of the lithium battery separator industry continues to decline. The huge goodwill generated by the acquisition of listed companies will face The risk of large amounts of accruals.

The page contains the contents of the machine translation.