Recently, Miyuan Technology Holdings*** referred to as "Miyuan Technology") submitted a listing application to the Hong Kong Stock Exchange, and the sponsors are HSBC and CICC. The company said that the net proceeds from the IPO will be mainly used for the continuous development of technology, the expansion of total annual production capacity, as well as working capital and general corporate purposes.
According to the prospectus, the company is an enterprise focusing on the design, manufacture and sales of customized battery systems for electric vehicles, as well as providing energy storage solutions and battery management systems (BMS). As of June 30 this year, the company's battery system has powered more than 1 million electric vehicles in China, including about 1 10 pure electric vehicles and more than 1 3 A00 class passenger pure electric vehicles in China in 2022.
According to the Frost & Sullivan report, in terms of shipments, the company is the third largest supplier of power battery systems for passenger pure electric vehicles in China in 2022, with a market share of 96%。In the passenger pure electric vehicle market, the company is the largest power battery system supplier of A00 class passenger pure electric vehicles in China in terms of shipments, and according to the Frost & Sullivan report, this segment accounted for about 26% of the total sales of passenger pure electric vehicles in China in 2022.
Empower the powertrain value chain
Different from the standardized battery cell products under the same power battery concept, the power battery system is a rechargeable power storage system developed for electric vehicle manufacturers to provide drive energy based on the customized product design and process flow of specific vehicle models, with battery cells, thermal management systems, electrical components, structural components, and BMS as the main raw materials.
Relying on a strong power battery system, Miyuan Technology has become a powerful adhesive linking the upstream and downstream of the new energy system, and some leading domestic car-making forces are long-term customers of Miyuan Technology.
According to the data, as of the end of June this year, the company has designed power battery systems for 116 electric vehicle OEM customers, and in 2022, it will also maintain close business ties with 13 of the top 15 Chinese battery manufacturers in terms of shipments.
Since 2021, Miyuan Technology has become the battery system and technology of cylindrical battery cells for CATL's designated automotive OEM customers, and was hired to develop a power battery system for prismatic cells in 2023.
Miyuan Technology said that the company's cooperation with the top five customers is stable. Since the power battery system is usually customized according to the proprietary technology of the first supplier, and it takes a considerable time for the new first company to develop and deliver the power battery system, the power battery system first supplier faces a relatively low substitution risk, and the interdependence creates a stable and sustainable business relationship.
SoftBank and other strong capital support
The stability of leading OEM partners has laid the foundation for its scarcity in the industryThe scarcity of the business model and the sustainability of the track have made Miyuan Technology have a strong "circle of friends" in the new energy vehicle industry chain, which has attracted the favor of the capital market.
According to the data, since March 2010, the cumulative financing amount of Miyuan Technology is about 1US$4.9 billion, attracting venture capital and private equity** in the United States, China, South Korea and other regions, including SoftBank China Capital**, Samsung Ventures and South Korean venture capital firm KB Investment. In addition to this, the investor base also includes the semiconductor company NXP Bv. SAIC Capital, the venture capital arm of SAIC Motor, etc.
In the last round of investment in September 2022, Miyuan Technology was valued at 69.8 billion US dollars, equivalent to about 5 billion yuan.
Profitability will be sustainable in the future
In terms of finance, the prospectus shows that the revenue of Miyuan Technology from 2020 to 2022 will be 101.5 billion yuan, 256.7 billion yuan, 557.4 billion yuan, net profit of 1 in 20220.8 billion yuan.
China's new energy vehicle market is in full swing, driving the rapid growth of upstream and downstream markets. After landing in the port ** market, the help of capital will better promote the innovation ability of Miyuan Technology, so as to bring the sustainability of profits.
According to the prospectus, the company has developed a power battery system that provides round and square cells, and designed 108 sets of customized power battery systems in 2022, covering passenger, commercial, transportation cargo and other scenarios.
The emphasis on product research and development and the innovation of business models make Miyuan Technology's profitability more stable and sustainable in the future. In the prospectus, the company proposed to expand the diversified application of the company's battery system, and enhance the product matrix provided by the company for the fast-growing plug-in hybrid electric vehicles and hybrid electric vehicle segments, as well as the smaller but underserved non-passenger pure electric vehicle segments. At the same time, it is also planned to replicate the success of China's A00 class passenger pure electric vehicles to the A0 and A segments.
Original**: China ** Daily, China Securities Network.