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The business of changing the battery of riders is very low-key, but the market space is really large. At present, there are more than 11 million instant delivery riders in China, and at a glance on the street, yellow, blue, and black **plus helmets are takeaways, errands**, and urgent delivery in the same city.
Text丨Financial gossip female author: Deng Biluo's small waist
Two days ago, in a financial group, a branch president said an interesting story:
She once sent a flash, from the financial street to Shunyi to send documents, fifty kilometers, kindly asked the little brother "Is the battery life enough to return to the city", but the little brother "glanced at it", and said "I have never seen the world" in his eyes.What the president's sister didn't know was that the pain point of the rider's battery life had already been solved by someone - battery replacement. Moreover, the companies that do this business are already hitting the IPO.
Recently, the company behind the two-wheeled electric vehicle battery swap app "this lithium battery swap" - Hangzhou Yugu Technology Co., Ltd. has entered the GEM IPO sprint stage.
From the Internet of Things to rider battery swapping,
The entrepreneurial road of a female teacher in a small town
Although Yugu Technology is a "little brother" business, the founder is a post-70s female teacher named Liu Aiming.
When she first graduated, she worked as a mathematics teacher at the Coal Mine Children's Middle School in Tianhe Town, Ji'an County, Jiangxi Province.
Three years later, she left the town to work as a propaganda officer at the state-owned 4380 factory in Nanchang, the provincial capital, where she met Xiao Jie, the factory's deputy technical director, who later became her husband.
In 1996, Liu Aiming left the 4380 factory and went to Hangzhou. The next year, her husband also resigned and followed.
When he arrived in Hangzhou, Liu Aiming worked as an assistant to the general manager and a human resources manager, all of whom were working for others.
In 2001, Liu Aiming and his wife founded Zhejiang Yusong Technology, whose main products are on-board film and television equipment on public transportation such as high-speed rail, airplanes, and buses.
In 2012, Liu Aiming established Yugu Technology, mainly undertaking some of the Internet of Things software and hardware business of Yusong Technology, which also laid the foundation for Yugu Technology to enter the battery swap industry.
In 2017, Yugu Technology sold the first charging pile and officially launched the charging business.
In 2019, Yugu Technology's first self-developed lithium battery was put on the market, and the battery swap business began.
In December 2020, Yugu Technology won with 797340,000 yuan acquired the charging and swapping business of Yusong Technology.
From the Internet of Things to the charging pile to the battery swap, Yugu Technology finally made a clear direction, just did the battery swap, and then made an all-out bet.
According to the prospectus of Yugu Technology, the revenue in the past three years has increased 12 times, from more than 80 million in 2020 to more than 400 million in the first half of 2023 alone, and the proportion of battery swap business has also increased from 46% in 2020 to 98% in 2022.
Yugu Technology Prospectus.
At the same time, in 2020, Yugu Technology only has 360,000 users, and now it is approaching 400,000, which is not an exaggeration to call this growth rate "explosive".
In the three years before listing, Yugu Technology has also gone through 5 rounds of financing, with 17 investors
Data**: Tianyancha.
The last round of financing before the IPO took place in August 2022, and Yugu Technology received a total investment of more than 600 million yuan from Shenzhen Venture Capital, CITIC**, Yuhong Investment and other institutions, with a post-investment valuation of 4.7 billion yuan.
According to the issuance plan disclosed in the prospectus, the IPO Yugu Technology plans to raise 109.4 billion yuan, and the number of new shares to be issued to the public does not exceed 1,0000000000 shares, accounting for not less than 25% of the total share capital after issuance. Based on this calculation, the company's issuance valuation will reach 437.6 billion yuan.
At present, Liu Aiming directly and indirectly holds 34 of the company's total share capital after the issuance86%, according to this calculation, it is expected to be worth more than 1.5 billion yuan after listing.
Swap the battery for the rider and make a low-key get-rich-your-rich business
The business of changing the battery of riders is very low-key, but the market space is really large.
At present, there are more than 11 million instant delivery riders in China, and at a glance on the street, yellow, blue, and black **plus helmets are takeaways, errands**, and urgent delivery in the same city.
According to iResearch's "Research Report on the Trend of China's Instant Delivery Industry (2022)", the order scale of China's instant delivery service industry will be close to 100 billion yuan in 2026, reaching 957800 million orders, with a compound growth rate of 28 from 2021 to 20260%。
And their battery life has long been no longer dependent on eight-hour charging piles, relying on the yellow, blue and green battery swapping cabinets all over the street.
Yugu Technology Prospectus.
The process of battery replacement is similar to that of a shared charging treasure, scan the code, take out a fully charged battery, insert the dead battery into it, and it will take half a minute to resurrect the full battery.
At present, the leader in the industry is Tower Energy, with more than 900,000 users in 2022 (now more than one million), 570,000 battery swapping cabinets.
In terms of Yugu Technology, as of the end of June 2023, its battery swap business has been deployed in 66 cities including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Chengdu, with more than 390,000 online users370,000 battery swapping cabinets.
However, according to the little brother in Beijing, this lithium battery swap (Yugu Technology's battery swap app) is 300 per month, and the tower is 350 per month, which is 50 yuan more expensive.
The industry expects that the current battery swap market, the high growth is far from peaking, in addition to the market of the rider brother, there are many people to be explored will use the battery swap.
On the one hand, there are the residents. The number of small electric donkeys in China has now exceeded 3500 million, people who ride small electric donkeys, far more than riders, the battery life is only thirty or forty kilometers, counting back and forth, in Beijing even the fourth ring can not be out, if you can change the battery, then the battery life is unlimited, so the market space is huge.
On the other hand, there is the courier industry next door. The eighth sister asked the courier brother on Beijing Financial Street that the tricycles in their entire outlets began to eliminate old batteries in the second half of last year, and now all of them are using battery swap services. The battery swap market of express tricycles is close to the rider's brother, and once the outlets or companies decide to use it, they will buy it collectively directly, which is a big order.
If you open a battery swap app, you can find that the battery swap cabinets in Beijing, Shanghai, Shenzhen, Hangzhou and other big cities are densely packed all over the city, and they are too many to count
As early as 2019, Meituan Distribution signed a strategic cooperation with Tower Energy to "deepen cooperation in the field of electric vehicle battery swap services". At that time, the tower spent a lot of money to build charging cabinets, which was regarded as repairing infrastructure for Meituan's takeaway boys.
According to Frost & Sullivan's "China Electric Two-Wheeler Battery Swap Service Market Research Report (2023)", the market size of China's electric two-wheeler battery swap service in 2022 will be 45300 million yuan.
With the development of the habit of battery swap consumption, coupled with the mandatory policy of "charging without entering the household" successively launched in various regions, the penetration rate of electric two-wheeled vehicle battery swap service in China still has a large room for growth. Some institutions predict that in 2026, the penetration rate of the battery swap market will rise to 541%。
The outlook is promising, but there are hidden concerns
Now the capital circle is very optimistic about the battery swap market, and has invested so many small targets in Yugu Technology, from the start to the expansion of only a few years, it has given a valuation of nearly 4.4 billion.
Yugu Technology's revenue and profit growth are also gratifying.
From 2020 to the first half of 2023, Yugu Technology's operating income was 9,383570,000 yuan, 22,879850,000 yuan, 55,873500,000 yuan and 40,734540,000 yuan, and the net profit was 1,525690,000 yuan, 3,304730,000 yuan, 8,134260,000 and 5,944040,000 yuan. In 2022, Yugu Technology's operating income will increase by 14420%, net profit increased by 146% year-on-year14%。
However, the industry is not "so pretty" either. In this regard, Yugu Technology also mentioned the crisis behind it in the prospectus.
First, there are more and more competitors.
According to the data of Zhiyan Consulting, the number of domestic two-wheeled vehicle battery swap enterprises has reached more than 300, including more than 30 large-scale enterprises such as tower battery swap, Xiaoha battery swap, and Haro battery swap.
In the prospectus of Yugu Technology, several others were also mentioned, such as Shanghai Smart Rent, Shenzhen Yimotor, etc. Latecomers will also find distribution platforms to cooperate, such as Shanghai Smart Leasing's Smart Rent Battery Swap, which joined hands with Dada Express in June last year and entered Dada Express Rider**.
Yugu Technology Prospectus.
In fact, there are more cross-bank competitors, which are not written in the prospectus.
For example, in 2019, together with CATL and Ant Financial, "Xiaoha Battery Swap" was established to capture the battery swap market. As of September 2021, Xiaoha has laid smart battery swapping cabinets in more than 300 cities across the country, operating millions of batteries.
Among the two-wheeled electric vehicle manufacturers, there is a brand called Mammoth, which directly launched the ** of "buying an electric car 1499 + 59 monthly battery changes every month", which is too fragrant than an average of 300 a month for e-commerce, and the eighth sister bought this car if she has a friend.
In May 2021, Yadea announced that it would jointly establish "Love for Energy" with Grand Yangtze River Group, which mainly provides battery swap services for electric motorcycles, electric light motorcycles and electric bicycles.
Therefore, although the battery swap market has a high growth rate, there are many wolves, and it is the time when the smoke of gunpowder is everywhere.
Second, gross profit began to decline.
This can be seen from the financial report of Yugu Technology.
In the 2020-2022 annual report and the 2023 interim report, the gross profit margin of Yugu Technology is: 58%, declining. For the decline in gross profit margin, Yugu Technology explained that the purchase of raw material cells and the advance investment of equipment led to an increase in costs.
Gross profit has declined, and the battery swap business is a heavy asset, with high costs and rapid expansion, but it is becoming more and more difficult to make money.
According to the prospectus of Yugu Technology, there are 3 wholly-owned subsidiaries that are in a loss-making state, namely Hangzhou Lithium Technology, Hangzhou Lithium Technology, Hangzhou Gang Express Technology, and the net profit of each company is -108440,000 yuan, -961340,000 yuan, -25780,000 yuan.
Yugu Technology Prospectus.
Of course, the current loss of this amount of money is sprinkled compared with the revenue of about 500 million.
However, since the beginning of development in 2017, it has only been less than 7 years, and some companies have begun to withdraw from the market.
According to industry insiders, in the next three years, the electric vehicle battery swap market may usher in a "big reshuffle".
Many times, behind the seemingly fiery appearance, the "blue ocean" and the "red ocean" are only one step away.
Reference: A female teacher in a small town started a business, with an annual income of 500 million, supporting an IPO! Zhejiang Economic Television.
Industrial collaboration unlocks a new development milestone in the industry, and the domestic two-round battery swap ecological alliance was established in Nanjing", China.com.
The volume of shared mopeds is imminent, and the battery swap service space is broad - Shared mopeds & battery swap research topics", Zhongtai**.