New and old suppliers of Apple lithium battery

Every time Apple products are released, it will trigger a round of capital market speculation, and this year is no exception. Lithium battery supplier Xinwangda's share price rose by 10.5% in August due to media reports that it will cut into the iPhone6 industry chain. In fact, as early as 2011, Xinwangda cooperated with ATL, the global lithium-ion battery giant, to supply batteries for iPhone3 and iPod. Will this return to Apple and bring more benefits to Xinwangda? What is the impact on Desai batteries that are also suppliers of Apple batteries? Overall, the fierce competition in the smart phone market is also driving battery manufacturers to upgrade their technology to adapt to change.

Every time Apple releases new products, the corresponding concept stocks in the Apple industry chain will be heated. In this year's dazzling Apple concept stocks, lithium battery concept stocks are eye-catching, lithium battery supplier Xinwangda Instead of Taiwanese manufacturer Shunda cut into the large-size 5.5-inch iPhone6 industry chain, it is particularly eye-catching.

Affected by the rumors of cooperation with Apple, Xinwangda's share price has continued to rise recently. As of September 1, it has risen to 33.30 Yuan.

It is worth noting that since May this year, many shareholders in Xinwangda have reduced their shareholdings. Under the background of considerable performance in the semi-annual report, the practice of reducing shareholding by major shareholders is puzzling. Industry insiders pointed out to reporters that battery products will become a must for smart devices, and the lithium battery industry will be further promoted. However, companies that are among the Apple industry chains are enjoying the benefits as well as the crisis.

Was taken away by Desai Apple share

According to foreign media reports, this year Apple will order 20 million ultra-thin lithium batteries from Xinwangda. The battery is said to be priced at 40 Yuan, mainly for the 5.5-inch iPhone6.

In an interview with the media, Xinwangda’s secretary-general Sun Wei said that since the company signed a confidentiality agreement with domestic and foreign customers, he neither acknowledged nor denied the relevant data in the above rumors.

According to industry researchers familiar with Xinwangda, the news that the company has entered the Apple industry chain is not new. As early as last year, the results of Xinwangda, Desai Battery and Apple have already been achieved. It is because the related products started to ship.

It is understood that in April 2011, Xinwangda, which was listed on the "Supply of Apple 20% iPhone and iPod Battery", entered the Apple and Amazon supply chain in 2011 through cooperation with ATL, the global lithium-ion battery giant. At that time, Xinwangda accounted for 20% of Apple's iPhone3 and iPod battery supply, but it didn't last long. For various reasons, the company did not receive the iPhone4's supply qualification in 2012, and the previously supplied iPhone3 also went into production.

As we all know, the apple iPhone4 is a classic work of Steve jobs, innovative introduction of multi-touch (Multi-touch) touch screen interface, is also a technology pioneer of the iPhone as a smart phone, a technical leap from iPhone3S to 4. Since upgrading to the iOS4 system has added many new features, such as the new mode of multitasking, you need to provide higher speeds; for example, HD video and editing, the display resolution is increased to four times that of the iPhone3GS. Similar to these features, there are high requirements for their batteries.

According to the data released on WWDC2010, the iPhone4 battery has increased to 1470mAh, while Apple promises to increase the number of hours without reducing the use time - 7 hours of video calls, 10 hours of video playback, 300 hours of standby, compared to the official iPhone3GS Parameters, iPhone4 extended the life of 2 hours in the case of 3G calls.

As a result, industry insiders speculate that the reason why Xinwangda and Apple passed by is probably because its technology did not keep up with Steve Jobs pace. Therefore, in the share of Apple, Xinwangda was gradually overtaken by Desai battery. In 2012, Xinwangda's share of Apple's supporting products was basically taken away by Desai battery.

One industry analyst, who declined to be named, told reporters that unlike other battery makers, Desai has been involved in the consumer electronics industry for a long time. It has been an early step in the consumer electronics industry. With its own efforts and the support of the group company, it has gradually formed a technical advantage.

According to the above mentioned person, the biggest customer of Desai battery is Apple, followed by Samsung, which accounts for 60% of Desai's overall revenue. Apple has purchased a large number of smart battery modules and power management systems since 2010, and Samsung has purchased the company's power management system.

“In recent years, Desai has invested the most in research and development. On the one hand, the demanding requirements of the Apple supply system for products, and the technical reserve of the company itself to meet the trend of consumer electronics.” The above-mentioned person said that the current Desai battery is in Apple. The share of the iPhone supply system is stable, and this part of the business also forms the basis for the long-term growth of the company's performance.

In the same year that Apple missed it, Amazon adjusted its shipping schedule to delay its orders, which caused the low performance of Xinwangda in 2012. The profit of Desai Battery and Anjie Technology, which were both Apple suppliers, increased significantly. The performance of Xinwangda began to decline.

According to the company's annual report, Desai Battery achieved operating revenue of 3.195 billion Yuan in 2012, a year-on-year increase of 42.24%, net profit attributable to shareholders of listed companies was 143,365,500 Yuan, an increase of 20.38%; Xinwangda realized operating income of 1.412 billion Yuan during the period. The year-on-year increase was 36.87%, and the net profit attributable to the parent company was 714.893 million Yuan, a year-on-year decrease of 13.53%.

As part of Xinwangda, some of the reasons are due to the delayed delivery of some orders from customers, resulting in a slight decrease in the company's main business income in the first half of 2012, which has a certain impact on profits. In the second half of the year, with the start of new projects for some customers, Sales orders continued to expand and business resumed.

In 2012, after missing the big tree of Apple, Xinwangda began to avoid the risks of a single customer, and opened up new high-quality customers in the mobile digital market. Through the “first year of the rise of Chinese smart phones”, Xinwangda is in the domestic market. The development was exceptionally smooth, and it has won core customers such as Huawei, ZTE, Lenovo, Xiaomi, Meizu and OPPO. Among them, Xinwangda is one of its major suppliers on Lenovo's main cross-border flat panel YOGA.

Xinwangda is exposed to accept iPhone6 product certification

According to outside analysis, there may be two reasons for Xinwangda to win Apple's favor again. The external cause is the change of Apple's supply chain. The internal cause is the accumulation of Xinwangda in the domestic and foreign markets in the past few years.

After Apple and Samsung terminated their cooperation, Apple's supply chain has changed in 2013, and Apple has expanded the number of suppliers. The original supply part of Samsung was divided by other manufacturers. In addition, it is reported that Xinwangda is an alternative to Taiwanese manufacturers to become an iPhone6 partner.

A well-known securities research institute TMT researcher told the Daily Economic News that Xinwangda has become an Apple partner to benefit from the industry background. The downstream module business of Taiwanese battery is irreversible to the mainland, because in terms of labor cost, gross profit margin and internal expense management, mainland battery module manufacturers are competing with Taiwanese companies such as Shunda and Sinpu has been in a dominant position.

For this reason, research institutions predict that Xinwangda's acquisition of Apple's supply rights in 2014 is a high probability event. According to sources, Xinwangda is currently accepting iPhone6 product certification. In fact, after missing the iPhone4 and 5 contracts, Xinwangda is getting better and better in the domestic and foreign markets. According to the data of Xinwangda's 2013 financial report, the operating income during the reporting period was 2.203 billion Yuan, a year-on-year increase of 56.07%, and the net profit attributable to shareholders of listed companies was 81.03 million Yuan, an increase of 13.35%.

On January 6, 2014, Xinwangda said on the investor interaction platform that the company's cooperation with Mi Mobile is stable and the order volume will increase with the development of customers. It is reported that Xinwangda and Lenovo, Huawei, ZTE, Mi and other enterprises supply mobile digital lithium-ion battery module orders are in a state of saturation.

In addition, since its entry into Amazon's product supply chain in 2011, Xinwangda has been the main supplier of its e-book battery module products, accounting for 40% to 60% of Amazon's flat battery modules. According to Localytics mobile application analysis, Kindle Fire computers accounted for 37% of the US market in early 2013. With the Kindle Fire sales, it also drove the performance of Xinwangda.

"Compared with domestic customers, Apple's profit margin is much better, which also means that the company's technology and strength have been recognized by the best customers." Researchers in the research report on the cooperation between Xinwangda and Apple is quite certain.

At the same time, the above researcher said, "Xinwangda's power management system has the core competence and is now self-sufficient and has started to sell independently. In the field of electric vehicles, it can also implement Tesla's power management system, and sample production has been achieved. In addition, the company has established a long-term cooperative relationship with ATL and other multi-home appliance suppliers. Through its database of 18 major lithium-ion battery factories around the world, Xinwangda can quickly find the best value for money. With the expansion of the scale, the bargaining power can be improved."

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