Affected by customer orders, the performance of power battery system power source technology in the first half of this year has regressed sharply, and the company is still applying for listing on the Hong Kong Stock Exchange on the 8th of this month in the case of "injury", but it is obviously limited in its attractiveness to investors.
Affected by the cut orders, the company's revenue fell by 53% year-on-year in the first half of this year9% to 11200 million yuan, a loss of 377 during the period30,000 yuan, compared with a net profit of 32.59 million yuan in the same period last year.
In order to reverse the weakness, Miyuan Technology has not only bet on the Indian and US markets, but also actively explored business opportunities with other customers, such as establishing a closer cooperative relationship with Jiangzhun Automobile.
This article was written by Luo Xiaoqin.
The former "national god car" Wuling Hongguang MINI EV, with a deedMiyuan Technology Holdings***In recent years, the revenue has jumped, but since the end of last year, after the termination of the new energy vehicle purchase subsidy policy (referred to as the national subsidy), the company's A00 battery business was cut by Wuling Hongguang, and the performance is like a roller coaster.
The founder, executive director, chairman and CEO of Miyuan Technology is Zhou Peng, who once servedTesla(tsla.US) Chief Engineer of Model S Powertrain, with 17 years of experience in the power battery industry. According to the Frost & Sullivan report, in terms of shipments, Miyuan Technology was the third largest power battery system supplier of passenger pure electric vehicles in China last year, with a market share of 96%γ
According to the companyListing application documentsshows that the revenue for the three fiscal years from 2020 to 2022 is 10200 million yuan, 25$700 million and $55700 million yuan, an increase of 4 in three years5 times, the loss during the period increased from 88.94 million yuan in 2020 and 65.92 million yuan in 2021 to a loss of nearly 1 last year100 million yuan, the performance is almost in sync with the sales of Wuling Hongguang MINI EV.
Since its launch in July 2020, the Wuling Hongguang MINI EV series has quickly earned the reputation of "National God Car", with cumulative sales exceeding 1.15 million units so far, and has been the top seller of pure electric vehicles of Chinese brands for 28 consecutive months. The hot sale of this car has driven the market of the smallest A00 power battery in China, and last year, the A00 class pure electric model accounted for 26% of the total sales of pure electric passenger cars, of which the Wuling Hongguang MINI EV was 5540,000 units sold accounted for half of the total sales of A00 electric vehicles.
However, since the end of the national subsidy policy at the end of last year, the monthly sales of Wuling Hongguang MINI EV have fallen from a high of 50,000 units to less than 20,000 units for many months this year. In October this year, sales of Wuling Hongguang MINI EV fell by 57% year-on-year51%, although the sales of Wuling Hongguang MINI EV increased month-on-month in November, it failed to get rid of the year-on-year decline. According toSAIC(600104.sh)Production and marketing announcementsIt shows that in the first 11 months of this year, Wuling's production and sales fell by 14 percent year-on-year7% and 145%γ
Miyuan Technology explained in the listing application document that the "change of face" in the first half of the year was mainly due to the fact that a major customer reduced the purchase of A00-level battery orders, because the customer adjusted its business strategy and focused more on the passenger car market of new A0-level power batteries. In the first half of this year, this large customer brought only 2400 million yuan in revenue, but its contribution reached 25 percent last year600 million yuan. Although Miyuan Technology did not disclose the identity of the customer, from 2020 to 2022, the customer accounted for at least 46% of the company's total revenue, and the identity of the largest customer of Wuling Hongguang and its companies is about to come out.
Downstream sales were cold, and naturally cut orders for battery system business Miyuan Technology, which caused its revenue in the first half of this year to fall by 53% year-on-year9% to 11200 million yuan, the profit turned into a loss of 377 during the period30,000 yuan, compared with 32.59 million yuan in the first half of last year. Equally worrying is the fact that in the first half of this year, the company's operating activities recorded 1The cash outflow of 4.4 billion yuan reversed the cash inflow from operating activities in the previous three years.
In the face of declining performance, Miyuan Technology still went to Hong Kong to be listed on the main board in the first half of this year, which shows its urgent need for capital. How to rectify the number of beautiful plates, the company has two preparations, one is to bet on the Indian market, in the first half of this year, the revenue from the Indian market accounted for 219%, compared to only 16%, the second is to explore other customer business opportunities, such as replacing Wuling Hongguang's large customers this yearJiangzhun Automobile(600418.sh), but none of them seem to be a powerful tool.
The development of the new energy vehicle market by Chinese companies in India involves extraordinary commercial or market risks, such as military conflicts on the Sino-Indian border, India's business environment is extremely unfriendly to Chinese enterprises, and India's power generation infrastructure is not yet perfect, and the charging facilities are insufficient, which has hindered the development of the new energy vehicle market. However, with the rapid rise of India's economy in recent years and the rising demand for power batteries, it is difficult to ignore the potential business opportunities in the world's most populous country.
At present, Miyuan Technology mainly sells power battery systems for non-passenger new energy vehicles such as buses and trucks to India. Last year, the average price of power battery systems sold in India was 1250,000 yuan, compared with the average price of 11 two years ago80,000 yuan, up 65%γIn the first quarter of this year, the company began production at its new production facility in India, with an initial capacity of 2GWh.
According to the listing documents, the company currently has five factories in China, namely the Hefei factory.
The first and second phases, Anqing plant, Putian plant and Liuzhou plant, have one factory in Pune, India, with an initial production capacity of 160,000 units, and the company plans to expand production to 3 by the end of 2025550,000, in addition to the second phase of the Hefei plant expansion 1In addition to 30,000, the expansion of production in the same period was lower than that of the three factories in Anqing, Putian and Liuzhou, and it is obvious that Miyuan Technology has not invested in the Indian market.
The company is also building a plant in the U.S., which will begin operations next year with an initial annual production capacity of 180,000, with the aim of seizing the opportunity of subsidy and meeting the market demand of local customers.
With Wuling Hongguang's large-scale slashing of orders, another major customer, JAC Motors, has become the largest customer, and its contribution to Miyuan Technology's revenue has increased from 236% to 35 in the first half of this year5%, but JAC's sales of pure electric passenger cars in the first 11 months of this year fell by nearly 2% year-on-year to nearly 170,000 units, and it may reduce purchases from Miyuan Technology in the future. However, JAC announced this year that it would cooperate with Chinese technology giant Huawei to build cars, which means that the company may squeeze into Huawei's ** chain to get a piece of the pie, and it will be interesting to see if it can succeed.