Compare the top ten lithium battery production brands in China

The following is a comparative analysis of the most important lithium battery companies in China.

1.1.1 major lithium power companies

NO.1 BYD -- complete vehicle + lithium battery

Date of establishment: 2006

BYD's power battery business is mainly distributed in Huizhou and Shenzhen two bases, the main product is lithium iron phosphate power battery. The current effective capacity is 4.5gwh, of which Huizhou 1Gwh and Shenzhen Kenzi 3.5gwh are expected to reach 6Gwh by the end of 2015 and expand to 10Gwh in 2016. BYD's power batteries are for its own use only. BYD's power battery business earned about 3 billion yuan in the first half of 2015.

Why it makes the list: BYD is absolutely the leader of domestic power batteries. Driven by the group's new energy automobile business, its power battery business is far ahead of its competitors in terms of scale. In terms of technical system, BYD, which has always adhered to the technical route of lithium iron phosphate, recently chose ternary material battery in the next generation of vehicles. It is reasonable to believe that no matter what technical route BYD takes, it will be able to do a good job in battery production relying on its years of experience in battery production. In terms of the industrial chain, BYD adheres to the strategy of the whole industrial chain. From materials to batteries, motors, electronic control and vehicles, BYD chooses to do it by itself. The closed-loop development model of the industrial chain can only be played by a company of BYD's size.

NO.2CATL -- Japanese and Korean competitors

Date of establishment: 2011 headquarters: Ningde, Fujian province

CATL, based on ATL, is headquartered in Ningde, Fujian province, and has a production base in qinghai province, with a total capacity of 1.4Gwh. Its main customers include Baic, brilliance BMW, Geely, Faw, CSR era, Xiamen Jinlong, Zhengzhou Yutong and Zhongtong buses. CATL power battery sales revenue was about 860 million yuan in 2014 and 950 million yuan in the first half of 2015.

Why we love it: as Japan and South Korea power battery enterprise to mark only one competitor, domestic CATL comprehensive competitiveness in the field of power battery is the leading at home, although, at present, on the scale of power battery cannot ranking industry leader, but its battery technology and quality first recognised by the BMW international luxury brands, is the first and the only domestic an enterprise to international depot supporting power battery. In addition, CATL has a fairly complete layout in the industrial chain, from materials (Dongguan Kaixin, Jiangxi Zichen, TNS) to battery packs (cell, BMS, battery system) to recycling applications (Guangdong Bangpu), and even in the field of lithium electric equipment. Different from ATL's low profile, CATL also spares no effort in enterprise promotion and publicity, and its upcoming series of capital operation will be a major event in China's lithium electric industry in the future.

Ningde times spends 5% of its revenue on R&D every year. The number of PHDS in the company reaches more than 120 (including more than 20 overseas returnees), and the number of talents with master's degree exceeds 900. As of 2015, the number of technology patents of battery products of Ningde times is as high as 335.

No.3 Guoxuan -- listed companies and key state support

Founded in 2005, headquarter: Hefei, Anhui province

Hefei Guoxuan high-tech power energy co., LTD. (hereinafter referred to as "Guoxuan") was founded in 2005 by Zhuhai Guoxuan trading co., ltd. and Hefei Guoxuan marketing planning co., LTD. Its main product is lithium iron phosphate power battery.

The company is headquartered in Hefei, Anhui province, and is building new production bases in Kunshan, Nanjing and Wuhan. The industrial chain covers lithium iron phosphate anode material, cell production, BMS, PACK and other links. The current effective capacity of Guoxuan high-tech is 1.5gwh, which is mainly composed of square and cylindrical power cells. Guoxuan's main customers include Nanjing Jinlong, Jianghuai automobile, Ankai bus, Zoomlion, Shanghai Shenwo, Dongfeng motor, Hebei Yujie, etc. In the first half of 2015, the operating income of Guoxuan high-tech power battery was about 750 million yuan.

Reason: in 2015, Guoxuan high-tech became the purest power battery standard of a-share listed companies after backdoor Dongyuan electric appliance was listed. The heat of new energy vehicles in the capital market also made Guoxuan high-tech market value as high as 25 billion yuan. From the perspective of customers, Guoxuan high-tech mainly focuses on commercial vehicles, and mainly focuses on Ankai and Jianghuai. The number of orders in the field of passenger vehicles is relatively small, and the improvement of competitiveness in the future depends on its performance in the field of passenger vehicles. In the case of other power battery enterprises are small profit, Guoxuan high-tech can maintain high gross margin, is also a lithium power battery industry "strange flower".

More than 461 R&D personnel. Among them, the number of master and doctoral students accounts for more than 50%. R&D spending is about 5 per cent of revenues.

According to the final equity incentive plan, the company grants more than 14 million restricted stock shares to more than 160 incentive objects, who are all directors, senior managers, middle managers and core technology (business) personnel of the company who served in the implementation of the plan.

Up to now, the company has applied for more than 500 patents and granted nearly 300 patents, covering the whole process of battery preparation and application including the preparation of cathode materials, battery preparation technology, grouping technology, screening technology, PACK technology and design of raw and auxiliary materials

No.4: Wanxiang A123 systems co., LTD

Date of establishment: 2011 headquarters: Hangzhou, Zhejiang

Zhejiang Wanxiang yineng power battery co., ltd. is a Sino-foreign joint venture established in July 2011 by Wanxiang group and Ener1Inc., the United States, with a registered capital of $120 million. The main business of Zhejiang Wanxiang Yineng power battery co., ltd. is the design, service and technology upgrade of lithium ion battery and lithium ion battery system assembled by power battery. The company's patented technology is from Ener1, which USES Ener1's automatic battery pack assembly technology.

Wanxiang A123 system co., ltd. was founded after Wanxiang acquired A123 and re-integrated A123 and Wanxiang electric vehicle power battery business. Currently, it is the new platform of Wanxiang group in power battery business. Wanxiang A123 adopts the technical route of flexible packaging lithium iron phosphate and ternary materials, and its current effective production capacity is about 1Gwh. The main customers are saic motor, chery automobile, gac group, Nanjing Jinlong, Xiamen Jinlong, Yutong bus, Shanghai Shenwo, CSR era and so on. In the first half of 2015, the revenue of Wanxiang power battery business was about 350 million yuan.

Reasons for ranking: there are still many problems to be solved for Wanxiang A123 after its business restructuring in 2015. Personnel integration and enterprise culture integration are all problems that need to be solved by the new Wanxiang A123. However, as the leading domestic soft-pack power battery enterprise, Wanxiang power battery has certain competitiveness in technology and quality. More importantly, relying on the industrial chain layout of Wanxiang group, the industry is also worth looking forward to. The upstream invested in Guangzhou Tianci, the downstream invested in gac group, and through Wanxiang Qian Chao invested in Tianjin Songzheng. It is believed that with the gradual profit of Wanxiang electric vehicle and power battery business, it will be sooner or later that Wanxiang money will be loaded into the listed company.

No.5 god of strength -- strong strength

Date of establishment: 1997 headquarters: Tianjin

Tianjin Lishen is a subsidiary of China electronics science and technology group. Its power battery production base is located in Tianjin, and it plans to build a new power battery production base in Wuhan, Qingdao and other places. Its power battery products cover lithium iron phosphate square and cylinder, ternary square and cylinder, etc. The current effective capacity is about 1Gwh, the main customers include Jianghuai, Geely, Faw, Dongfeng motor, Nanjing Jinlong, Xiamen Jinlong, Zhongtong bus, Tianjin Qingyuan, etc. In the first half of 2015, its power battery business earned about 570 million yuan.

Why it makes the list: 2015 was an extremely important year in the development history of Lishen. Cnooc, the major shareholder, withdrew from the company, and China electronics technology group (CECT) became the controlling shareholder of Lishen again. After the change of ownership, Lishen battery still hasn't got rid of the mechanism of the central enterprise. Compared with competitors, Lishen always takes a step slower. But as leading enterprises of lithium ion battery, Lishen on technologies and products still have quite competitive, and 2015 through large-scale supply Jianghuai cylindrical woti-meeting momentum three yuan 18650 batteries, and recent rumours Lishen in a series of capital operation, only from the mechanism reform, god can further improve its competitiveness.

NO.6 Watmar -- acquired by Jianrui fire

Date of establishment: 2002 headquarters: Shenzhen, Guangdong

Shenzhen Watma battery co., LTD. Was founded in 2002. At present, the company has more than 1300 employees and more than 300 R&D personnel, with a daily output of 220,000 32650 type 5Ah cells. The planned production capacity of the new plant is 500,000 32650 type 5Ah cells per day. It is one of the earliest domestic enterprises that successfully developed lithium iron phosphate new energy automobile power batteries and took the lead in realizing large-scale production and batch application of lithium iron phosphate batteries.

The main cooperative customers of power battery are Wuzhou dragon, Jinlong, Yangzhou Yaxing, Zhengzhou Haima, Zoomlion and so on.

No.7 Avic -- with deep background

Date of establishment: 2009 headquarters: Luoyang, Henan province

Avic lithium electric production base is located in Luoyang, with an overall effective capacity of about 2Gwh. Avic lithium electric is currently carrying out phase iii project construction in Luoyang industrial park, with a planned capacity of 5Gwh. In addition, it plans to invest 12.5 billion yuan in Jiangsu for power battery production. At present, the main customers include Dongfeng motor, Henan shaolin, land ark, Nanjing Jinlong, Sichuan mustang, Zhongtong bus, Chongqing Ruichi and so on. In the first half of 2015, its power battery business revenue was about 400 million yuan.

List reason: as one of the few state-owned lithium battery companies in China, avic lithium battery is the most listed power battery company in China. However, customers mainly focus on commercial vehicles and can quickly increase their performance in the short term. After all, commercial vehicles are unlikely to continue to grow at a high speed, and the driving force of future growth depends on passenger vehicles. On the other hand, avic lithium power needs a lot of capital for large-scale investment in Jiangsu and Luoyang, etc., which may not be satisfied by additional issuance by the parent company alone. In the future, Avic lithium power will have a large space for large-scale capital operation with Avic lithium power as the core.

Power -- princes of Shandong

Date of establishment: 2006 headquarters: Shouguang, Shandong

Shandong Huaneng environmental protection power supply co., ltd. was founded in 2006, is a subsidiary of Shandong Huaneng environmental protection power supply (group) co., LTD. Shandong Weineng environmental protection group has five branches: Shandong Weineng environmental protection power supply co., LTD., Qingdao Weineng electric vehicle electronic control co., LTD., Qingdao diaphragm new material co., LTD., Beijing Wuhe power technology co., LTD., and Kunshan Weineng environmental protection power supply co., LTD.

Huaneng has power battery production bases in Shouguang and Qingdao, Shandong province. It mainly produces lithium iron phosphate and square cells made of Ternates. At present, its total production capacity is 1Gwh. In the first half of 2015, Huaneng power battery business revenue was about 200 million yuan.

List reasons: Huaneng environmental protection orders are basically all from the commercial vehicle sector, passenger cars only Zotye cars in the use of Huaneng environmental protection of the three-yuan battery. The rapid growth of Huaneng environmental protection also benefits from the blowout of the commercial vehicle market in 2014 and 2015. The future growth potential also depends on its layout in the field of passenger vehicles.

NO.9 micro macro -- maverick

Date of establishment: 2006 headquarters: Huzhou, Zhejiang

Weihong power system Huzhou co., LTD., founded in 2006, is a high-tech chemical and energy products supplier with profound research and development capabilities. The company is engaged in the research and development, production and sales of new energy and energy storage technology products, and is committed to providing clean energy solutions for different application fields.

Micromacro power is a subsidiary of Microvast corporation and its production base is located in Huzhou city, Zhejiang province. Micro - macro power to fast charge lithium titanate power battery. At present, the total capacity is about 1.5gwh, and the second-phase capacity under construction is 4Gwh. The main customers are Beiqi Foton, CSR era, land ark, Nanjing Jinlong, Xiamen Jinlong, Zhongtong bus and Chongqing Hengtong. In the first half of 2015, the output value of micro-macro power battery business was about 450 million yuan.

List reason: micro macro power is the main fast charge fast release lithium titanate power battery, targeted at the market for commercial vehicles, especially in the field of public transport and bus, micro macro power received a lot of goods. But how to break through in the field of passenger vehicles is something micro macro power should consider, after all, the future growth potential of new energy vehicles or from passenger vehicles.

NO.10 super large lithium power -- customized NO.1 special lithium power supply system

Date of establishment: 2002 headquarters: Dongguan, Guangdong

Dongguan major big electronics co., LTD., founded in 2002, is a collection of lithium ion battery module, independent research and development, production and sales as one of national high-tech enterprises and military industry qualification, the company since its inception, has always been to serve the global special power supply, power energy storage power, industrial power supply and consumption power users as own duty, after fifteen years of development, has now become the leading global lithium electricity customized solutions and products provider.

The company is committed to improving according to the special environment, special properties and special requirements of users in-depth special customized research and development ability, the existing lithium electricity customized solutions and products are widely used inspecial,special carrier equipment,special,special, high-energy physics, railway infrastructure, public security, electricity, communication, medical electronics, commercial finance, security, communications, transportation, logistics, exploration and surveying and mapping, photovoltaic energy storage and 3 c consumer electronics and other fields, Andspecial science and industry,special science and technology, Chinaspecial industry corporation, China heavy industry,specials factories in China, China's electricity, China electronics, ZhongWuYuan, Chinese academy of sciences, JunKeYuan, MOTOROLA, Toshiba, Fujitsu, Varta, Foxconn, Lenovo, Changhong, Jiuzhou, Hikvision, Mindray medical, and many other respected users to achieve a comprehensive long-term strategic cooperative relations.

Lithium battery industry is still a growth industry, there are some domestic lithium battery manufacturers ranked in the middle of the enterprise's income and asset growth. The lithium battery manufacturers that rank high in the ranking have excellent performance in business performance, corporate governance and brand. There is a large space for future growth. However, the relative ranking of domestic lithium battery manufacturers is not stable.

1. Guoxuan high-tech co., LTD., the leader of listed lithium battery

The production capacity in 2015 is 750 million ampere hours and the sales volume is 2.2 billion. In 2016, the production capacity is expected to reach 1.85 billion ampere hours, among which 650 million ampere hours are three-element batteries.

2015 annual report, 2.14 billion lithium battery revenue, gross profit 1.04 billion, 550 million power transmission and distribution, gross profit 1.5, total net profit is 547 million, lithium battery is 478 million net profit. Net profit margin was 21.5 per cent in 2015. Net profit in the first quarter was 25%.

Lithium electricity revenue, 2.1 billion in the first half of 2016

In the first half of 2015, the operating income of Guoxuan high-tech power battery was about 750 million yuan.

Comments: Guoxuan's technology is in a leading position, and it is shortlisted for national key research projects and industrial intelligent pilot projects. Guoxuan is the only lithium battery enterprise with a full ecological chain in the comparison of several enterprises. In addition to lithium battery, there are also anode materials and diaphragm. Anode materials have been put into production, and diaphragm will be put into production in 2017. Through the whole ecology, on the one hand, the overall quality can be controlled, on the other hand, the cost can be controlled, and the ability to resist the price fluctuations of raw materials is stronger. Guoxuan has a clear strategy. At present, it is at the stage of technology maturation. It does not take capacity expansion as the first strategy, but ramps up technology, market, manufacturing and the ecology of the upper and lower industrial chains before large-scale production expansion. It is a very stable business model.

200 million wei lithium energy

The two technical routes of lithium iron phosphate and lithium ternary power of the company are mainly based on lithium iron phosphate in Jingmen, Hubei province. Currently, the production capacity is about 0.5gwh. At the same time, we will expand the production of ternary cylindrical 18650 batteries in Huizhou, and plan to build the second phase of the world-class automatic production line of ternary lithium ion batteries. The total construction scale of the second phase is 2.5GWh, which is expected to be completed in the first half of next year. By the end of next year, the company's total lithium-ion battery capacity is 4.5GWh.

The raw materials of the company's power battery come from important domestic manufacturers, such as Dangsheng technology, Shanshan co., LTD., Jinhe co., LTD

At present, the main customers are Huatai, Zotye, Nanjing Jinlong, Opengbach and so on.

Yiwei lithium energy has transferred from consumption lithium battery to power lithium battery, and the current production capacity is low, only 0.5gwh of lithium iron phosphate is available. Ternary battery is to be completed next year, and the planned production capacity is relatively large. However, the matching test of battery and automobile still needs some time, so the actual performance may not be generated until 2018.

Comments: as a second - and third-tier player in power battery, Yiwei lithium energy has no obvious technical and customer advantages. At present, its production capacity is very small, and its future expansion scale is huge.

3. Jianrui fire (Watmar)

In 2015, Watma achieved operating income of 2.173 billion yuan and net profit of 276 million yuan, with a net profit margin of 12.7%.

Watmar was acquired and approved by Jianrui fire.

In addition to power batteries, Watma also has energy storage batteries, focusing on lithium iron phosphate batteries.

The company is now more than just a battery manufacturing enterprise, but seeks to guide the development of the industry. The company initiated and established the innovation alliance of new energy vehicles, whose members include core materials and components enterprises of the industrial chain. In terms of technology, we cooperated to innovate and formed a closed loop. Through this move, the company has a global understanding of new energy technology and market development direction, from passive development to active traction of industry development. Linfen model was formed.

Comments: Watma is a typical barbaric growth. It has cooperated with local governments to build industrial parks everywhere, which has produced a huge effect. However, this model is not a real market model after all, and there are great hidden dangers. It remains to be seen whether it will last.

In the field of technology, Watma has not become a technology leader, but has been developing only in the field of iron curtain phosphate technology. In terms of ternary battery, although it claims to have technology accumulation, it has not seen the actual capacity of related ternary battery. If the company misses out on the three-way battery's first-mover advantage, future growth could be limited.

4. Smart energy

Jiangxi Forster, founded in 2009, mainly produces 18650 ternary lithium batteries, and the sales scale of this product ranks first in China. Forster power battery products have been highly recognized by downstream customers. Currently, Forster is one of Zotye's two core power battery suppliers and the only power battery supplier of Jiangling automobile. The company, which currently has a daily production capacity of 1.25 million units, is expanding two production lines for ternary power batteries to 250,000 units per unit, with one line due to hit production in July and the other in the first half of 2017. Foster's production is expected to reach 1.5m units a day by the end of the year (65% for power cells and 35% for consumer ones). By the end of 2017, the daily production capacity will reach 1.75 million units (80% for power batteries and 20% for consumer batteries).

In December 2015, smart energy completed the wholly-owned acquisition of Jiangxi Forster at the price of 1.2 billion yuan, and successfully entered the field of ternary power battery. Jiangxi Forster has promised to make net profits of 75 million yuan, 95 million yuan and 130 million yuan respectively from 2015 to 2017.

Forster had revenue of 1.076 billion yuan in 2015, net profit of 114 million yuan and net profit margin of 10.6%. In the first three months of this year, the company achieved operating income of 243,371,445.48 yuan and net profit of 44,289,520.14 yuan. The net profit margin is 18%

Forster expects to ship 1.2GWh, 2.1GWh and 3.3GWh of ternary power battery in 2016-2018.

Far east foster downstream supporting customers for Zotye, Shaanxi Tongjia and other well-known passenger vehicles and logistics vehicles, explosive. Based on the shipment volume of more than 1GWh, the operating income in 2016 is expected to reach 2.5 billion yuan, of which the income of power battery and PACK is 1.9 billion yuan, and the income of consumption battery is 600 million yuan, with power battery accounting for more than 70%. The profit contributed by far east foster can reach 200 million yuan, and the profit of other businesses of smart energy nearly 400 million yuan. The contribution of far east foster accounts for 33.3%.

Comments: the acquisition of foster's lithium battery business accounts for less than 1/3 of the company's overall profit and is not the main business of the company. Forster in jiangxi, customers are mainly concentrated in Jiangxi, the national radiation is small. Capacity is relatively small, and technology does not belong to the first echelon, capacity expansion planning is not aggressive. It belongs to the second echelon.

5. Ningde era -- not yet listed

Founded after only 4 years, that is, into the first echelon, rapid development, outstanding achievements, can be called a miracle, reflects the barbaric growth of Fujian people. Of course, the main reason is that the Ningde era (CATL) was born in ATL, and ATL 3C battery technology is at the first level in China. Mobile phones of apple, Huawei, Xiaomi, OPPO and other brands use ATL battery, and inorganic products of DJI also use CATL battery. Therefore, CATL has a profound technical background and accumulation.

In 2015, its power battery accounted for more than 10% of China's power lithium battery market share, annual sales of 2.4GWh, only Panasonic (5.5GWh), BYD (3GWh), ranked third in the world. This year, 7.5GWh production capacity has been achieved, with lithium iron phosphate and ternary each accounting for half and balanced development.

CATL power battery sales revenue was about 860 million yuan in 2014 and 950 million yuan in the first half of 2015. Online data is 2015 sales of 5 billion, Ning DE's boss Zeng Yuqun said that $1 billion power battery, $1.7 billion 3C battery. Since it is not a listed company, it feels like running a train with your mouth full. Several others reported net profits of $1 billion in 2015. ,

Comments: Ningde era production capacity first, technology and Guoxuan have their own merits, belong to the strongest technology. Since Ningde is not yet listed, it is awash in inflated production and sales figures. However, in 2016, Ningde will expand its production capacity on a large scale. Will the expansion of production capacity be too fast to keep up with all aspects, especially the market and technical verification?

Ningde era is from Fujian Ningde started, also fully reflects the characteristics of Fujian people, a bit of barbaric growth character, too much pursuit of scale. The Internet is full of Ningde era's sales hit 20 billion yuan in 2016 and exceeded 5 billion yuan in 2015. In fact, the production capacity and sales volume of power batteries in 2015 were only slightly larger than Guoxuan's. The sales volume of 5 billion yuan is relatively large. In 2016, the so-called impact of 20 billion yuan is the slogan of the great leap forward.

Ningde has not yet gone public, and there are always plans to do so.

Ningde as boss of domestic lithium battery, this year's focus is to expand capacity, no self-built lithium battery cathode material, diaphragm, such as building ecosystem, look from the good aspects is to seize the moment to expand their capacity, never looked good, is to get rich quick, no solid foundation, more the pursuit of short-term effect, give up certain long-term effects. This may also have something to do with Ningde's eagerness to get a good price on the market.

6. Tianjin Lishen -- not listed

Tianjin Lishen battery co., ltd. aims at the broad prospect of the new energy automobile industry, from the small cell phone battery to the large car power battery, to seize the market through continuous innovation. The electric vehicle power battery expansion project under construction will add an annual output value of more than 4 billion yuan after it goes into operation in 2017, driving the development of the city's new energy automobile industry chain. The continuous accumulation of power battery technology of Lishen has won the recognition of Yutong, Jinlong, faw, Jianghuai and other domestic and foreign enterprises. The sales revenue of Lishen power battery shows a blowout growth. In 2014, the sales revenue of Lishen power battery was 100 million yuan, and jumped to 2 billion yuan in 2015.

In 2015, the company's operating income was about 4.2 billion yuan and its net profit exceeded 200 million yuan. Among them, the operating income of power battery is about 2 billion yuan; Operating income of 3C lithium battery is about 2.2 billion yuan, with a loss of about 50 million yuan. In 2015, the company's power battery production is about 2 billion Wh, three-yuan batteries accounted for 30-40%, three-yuan batteries are basically all supplied to passenger cars, almost no buses. In terms of capacity expansion, the company started to build a new lithium iron phosphate production line with a capacity of 4 billion Wh in 2016, which is expected to be put into production in 2017. In addition, a 3C lithium battery production line is upgraded with a capacity of 600 million Wh.

In 2015, the profit margin of power batteries was 12.5%

Comments: in 2015, Tianjin Lishen's 3C lithium battery revenue of 2.2 billion yuan brought a loss of 50 million yuan, indicating that 3C battery entered excessive competition and the market did not grow in step. Lishen as the first echelon (Ningde era, the porch and force the god as the first echelon), shortlisted for the national key research projects, technical capacity also is in the first tier, but Tianjin Lishen's two biggest problems, one is the mechanism of state-owned enterprises, make the limited energy, has not been listed on the second, the lack of funding and public brand, credibility.

1.1.3 why is Guoxuan the most worthy lithium battery investment

By comparing the above data, we can make further analysis:

1. Why the net profit margin of Guoxuan is far better than that of other enterprises.

In 2015, the net profit margin of Guoxuan's power battery was as high as 21% and 25% in the first quarter, while the net profit margin of Watma in 2015 was 12.7% and foster's in 2015 was 10.6%. Net profit margins were 18% in the january-march period. Ningde times is somewhere between 10 and 15 percent ($1 billion for power batteries, 1 billion yuan for net profit, and $1.7 billion for 3C batteries), and Tianjin Lishen's net profit margin in 2015 was 12.5 percent.

The net profit margin of Guoxuan far exceeds its competitors, mainly due to the corporate governance structure of Guoxuan, do not put the pursuit of scale in the first place, long-term technical accumulation, Guoxuan is the only one from the beginning of positioning in the automotive power battery, rather than from 3C battery with power battery. As a listed company, Guoxuan pays attention to the long-term development of the enterprise, the short-term profitability and long-term profitability of the enterprise.

Power battery has considerable technical barriers, forming a technological advantage requires strong research and development capabilities and long-term accumulation. Watma is a typical pursuit of scale, the pursuit of the market, in the technical advantages of insufficient investment.

2. Can Guoxuan maintain such a good net profit margin?

In the current market, major lithium battery enterprises are expanding their production capacity in a crazy way. Sooner or later, the production capacity of lithium battery will be excessive. At present, it is already a structural surplus. But the overall profit of the industry will gradually decline, and Guoxuan can maintain the best profit in the industry, because Guoxuan's back hand -- lithium battery material self-supply will soon play a role in efficiency, positive material and diaphragm self-production, which can also improve the profit margin to a considerable extent.

3. Why did Guoxuan fall behind the first batch of 2012-2013 to the third and fourth place?

In many power lithium battery enterprises, Guoxuan is the most pure power lithium battery enterprises, and other enterprises from 3C lithium battery with power lithium battery is not the same, Guoxuan from the beginning of the establishment is to do power battery. From 2012 to 2013, Guoxuan was the leader of lithium battery. However, since 2014, Ningde era and Watma began to expand production at full speed, which was super conventional. On the contrary, Guoxuan was also expanding production, but it was a step by step. Ningde era and Watma on the one hand to expand production, on the one hand to grab the market at a low price, so the country attributes to continue to maintain a good profit, and Ningde era and Watma profit is relatively low. Personally, I think this is the advantage of Guoxuan, which is reflected in the following aspects

A) Guoxuan, as a listed company, pays more attention to the overall profit. If it tries to grab the market at a low price like Ningde times and Watma, the profit will immediately plummet and be reflected in the stock price. And Ningde times and Watma did not go on the market, is to sell a good price, so expand the scale at the expense of profits, the pursuit of barbaric growth, as we all know, barbaric growth may curve overtaking, but the greater probability is that the growth is not coordinated, once the storm comes, is a fatal disaster. Guo xuan did not sacrifice long-term development because of short-term interests, which is a century-old practice, worth long-term investment.

B) at the same time of expanding production, Guoxuan increased R&D investment, which increased from 45 million yuan in 2014 to 135 million yuan, and increased production investment in anode materials and diaphragm to ensure high profits.

C) Watmar was acquired by Jianrui fire protection co., ltd. in 2016. Once the process was completed, it was necessary to merge the financial statements. According to the acquisition agreement, the net profit of 2016-2018 was no less than 403 million yuan, 505 million yuan and 609 million yuan. In 2015, the net profit was only 274 million yuan, and in 2016 it was expected to reach 400 million yuan. This year, affected by the implementation of the new energy vehicle policy, the overall market was not so good, and Watma had no capital to grab the market at a low price. As for the Ningde era, this year's capacity expansion is huge. Under the circumstances of the current market is not very prosperous, it should also face some pressure of capacity digestion. Listing requires a relatively good profit situation, and the impulse of dumping at low prices should be restrained. Therefore, the era of Watma and Ningde will slightly restrain the expansion of production. Competition for lithium-ion batteries will be limited to a few big players.

D) the capacity expansion of Guoxuan has always been a very strategic plan. For example, the capacity expansion in 2016 is mainly the expansion of ternary batteries, which have customers identified by Baic, Jac, etc. Meanwhile, lithium battery of Korea is not included in the list. Guoxuan's plan is to expand production on a large scale in 2018, that is, to expand production on the basis of all aspects of the road.

4. Lithium battery pattern in the future?

The future pattern of power lithium battery should be the strong constant strong, eliminate the weak, this is a national strategy, the country has clearly to foster several potential development of power battery enterprises. The first step is to force the lithium battery catalog, so that the basic not included in the catalog will be eliminated, the second step, dynamic adjustment of the catalog, the lithium battery does not meet the specifications of the catalog, so that the production and marketing of lithium battery more focused on the enterprise to support.

At present, there are less than ten power battery suppliers that can enter the supply chain of mainstream automobile enterprises. In the future, the competition among these ten suppliers is mainly about technology, customers, service and capital. Guoxuan is one of the most competitive companies in these aspects. Technology belongs to state-sponsored enterprises, with stable customers, and shares in new energy automobile enterprises, such as Baic. Guoxuan has the financing advantages of listing on the one hand and abundant profits to form the endogenous growth and development of self-hematopoietic.

The future is mainly the competition between Ningde era, Guoxuan and Lishen, but more importantly, the competition between Ningde era and Guoxuan. Force god due to mechanical problems, is likely to fall into the second echelon. The first echelon is Ningde era and national Xuan. Watma, Avic, Yiwei lithium energy will become the second echelon. There are other third echelons, such as smart energy, biker, universal, and so on. After that, it may be difficult to enter the mainstream car supply chain.

5. Will the power battery repeat the vicious competition of 3C battery?

In 2016, the scale of power battery expansion is huge, and the capacity expansion planned by various enterprises is even more amazing. Will power cells repeat the vicious competition of 3C batteries? Tianjin Lishen 3C battery lost 50 million yuan on revenue of 2.2 billion yuan in 2015, which is a shocking example.

I think the profit of power battery will gradually decline, which is an irreversible trend, but not to 3C battery this vicious competition. The reasons are as follows:

1. There are considerable customer barriers and technical barriers for the power battery. The power battery needs to be matched with the model. Nor will prices be the only factor. As for technical barriers, the technology of power battery is continuously evolving, and the speed of evolution is much faster than 3C battery. The energy density ranges from 130wh/kg of lithium iron phosphate to 165wh/kg of ternary elements, and it is expected to reach 330wh/kg in 2020. Whoever has micro-innovation and micro-breakthrough in energy density, charging consistency, charging and discharging times and other technologies will have competitive advantages. This requires strong research and development capabilities, such as the latest graphene cathode. Guoxuan has started mass production, but due to limited costs, mass production is not large.

2. The growth rate of power battery demand. If new energy vehicles are still developed in accordance with the scale of national planning, the growth rate of power battery demand almost doubles every year.

3. There will be no more than 10 power battery enterprises that can enter the supply chain of mainstream automobile enterprises, and three echelon companies will be formed. Each echelon is 2-4 companies, so there will be a tacit understanding among the same echelon companies.

4, the scale and profit decline of the race, see who runs faster, capacity expansion of the overall revenue increase can offset the decline in profits, see which factor is greater.

5. From the above analysis, the market concentration degree of power battery will be higher and higher in the future, and it will not exceed 5 mainstream manufacturers in the end, and other manufacturers will be in the specific market or make up for omissions. And these 5 mainstream power battery enterprises will participate in the international competition, now Guoxuan has entered the international top 10. And these five will grow, which is also a national strategy. From the state subsidies and policy level will be developed in this way, such as subsidies policy in the opening just before the pepper way, focus on key enterprises. If the future is such a model, then Guoxuan must be one of the five, and the scale of revenue doubled every year, combined with all the factors, Guoxuan is the most certain.

1.1.4 will Guoxuan's development be smooth sailing?

Guoxuan's recent stock price adjustment is related to the reduction of shareholders' holdings, but also related to the month-on-month decline in performance. Guoxuan will eventually grow into the first echelon of lithium electric enterprises, but the road in the middle may not be smooth, and the most important thing is that it may be affected when the industry reshuffle, especially when overcapacity.

In 2016, the planned capacity expansion is very large, but the actual capacity expansion is not large. Guoxuan has expanded from 750 million an hour to 1.85 billion an hour, Ningde era has expanded from 3GWh to 7.5Gwh, and Tianjin Lishen actually cannot put into production in 2016.

But in 2017 and 2018, will be the capacity expansion of large-scale reaches producing lithium electricity industry, if 2016 is a structural surplus, the excess may be comprehensive, 2017/2018 lithium electricity companies face shuffle comprehensively, and the porch at first will be affected by certain affected, such as the earnings decline, but the porch technology, material supply can let hin impregnable, and advantage in the shuffle, stable in the first camp, may even ranks in the first camp.