Article from WeChat public account:Car Cloud (ID:cheyunwang), author: Shi Wenjie, head Figure from: vision China
The “era” that belongs to the Ningde era is passing.
On October 15, Ningde released the first three quarters of results announcement. In the notice, the Ningde era maintained the normal state of high-speed growth in the past. The data shows that in the first three quarters of this year, the company’s net profit attributable to shareholders of listed companies is expected to reach 3.092 billion yuan to 3.568 billion yuan, an increase of 30% to 50%. Such high profits have made many battery companies in the industry far behind.
But don’t be too happy.
The Ningde era also announced the third-quarter performance forecast. It is written in the net profit attributable to shareholders of listed companies, and the profit decline will reach 20%.
Ningde Era Third Quarter Earnings Expected Screenshots
Many people think that this is a rare decline in performance in the Ningde era. In fact, this is not the first time, and it is unlikely to be the last time.
In the fourth quarter of 2018, Ningde Market’s net profit attributable to listed companies was 1.008 billion yuan, down 31% from the third quarter.2%. Since 2019, the net profit attributable to shareholders of listed companies in the first two quarters was 1.047 billion yuan and 1.055 billion yuan respectively. Although it has not declined, it has only achieved a slight increase.
The third quarter will be the first decline in net profit since the Ningde era in 2019, which will make it feel more crisis again.
From 2017 to the present, Ningde era has established joint ventures with a number of vehicle manufacturers such as SAIC, Geely, Dongfeng, FAW, and Guangzhou Automobile, and quickly established their own battery industry empire.
Half a month ago, the SAIC Ningde production base, which was 3.5 kilometers away from the Ningde era, was officially completed. Zeng Yiqun, Chairman of Ningde Times, attended the celebration as a special guest. More than a year ago, the new car company Weimar chose its production base in Wenzhou, 230 kilometers away from Ningde City, Fujian Province.
In the past few years, more and more vehicle companies have gathered around the city centered around Ningde City, Fujian Province. It is hard to say that this is not related to the Ningde era.
In the past days, people are willing to believe that the era of the Ningde era has arrived.
Now, the “era” of the Ningde era is slowly disappearing.
Marriage with car companies Sweet or no longer
In 2011, Zeng Yiqun joined the second venture and was founded in Ningde era. With the cooperation with BMW, Ningde era successfully jumped into the field of automotive power batteries. When the mobile phone battery started, he followed the previous business model and quickly expanded the market by deeply binding with the car companies.
With the high-quality battery supply as the weight, Ningde era has established a deep relationship with SAIC, FAW, Dongfeng and other car companies, car companies and partners occupy more than half of the circle of friends.
This end of the planet seems to be hot, and on the other end, an electric car company and a deeply bundled partner are trying to tear each other’s relationship.
The relationship between US electric car company Tesla and its old partner Panasonic is in a state of rupture.
In 2014, Tesla and its battery supplier Panasonic reached a partnership and joint venture to build a battery factory for Tesla. At that time, Panasonic CEO Zeng Jinhong congratulated him as “a Tesla battery supplier. Panasonic’s investment in a super factory is the only wise choice”
Tesla founder Musk (left) and Panasonic CEO Tsugai Hiroshi (right)
After five years, when asked if he regretted the decision, Jin Honghe had a short answer “Yes.”
Tesla’s cooperation with Panasonic is somewhat like the current Ningde era and the car companies.
According to relevant reports, Matsushita revealed that Musk has frequently requested Panasonic’s battery price cuts, while Jin Honghe insisted on raising the battery price while ensuring Tesla’s profit.
Panasonic is Tesla’s only long-term deep-binding supplier, and as one of the world’s battery giants, it monopolizes the supply of the entire Tesla battery. At the price Tesla is passive. In China, with the excellent quality as the weight, the Ningde era also has strict requirements for car companies.
A person familiar with the matter told Che Yun that the overall pricing in the Ningde era was 15% to 20% higher than the industry average. In fact, the actual cost of battery production is lower than the industry average of about 10%. With low cost and high pricing, the profit of Ningde era is 25% to 30% higher.
It’s still the case for mainstream manufacturers, and it’s tougher on the attitude of new car companies. According to unconfirmed news, Ningde era requires that new car companies must pay the full payment in advance before they are willing to supply.
In addition to the price of the throat was suppressed by Panasonic, another reason for the outbreak of conflict is that Musk believes that Panasonic battery supply can not keep up with the production of Model 3.
Insufficient capacity also makes the Ningde era like a sleepy beast. Ningde era has publicly stated in the prospectus that “insufficient capacity is one of the company’s competitive disadvantages.”
This reminds Car Cloud of another thing. Not long ago, a car owner responded to the car cloud. Wei Lai had promised that the owner mentioned the 84-degree version of the ES6 in August. In fact, the owner did not actually pick up the car until October, which was delayed by two months than the agreed time. In order to make up for the owner, Weilai used the method of giving 2000 points per day as compensation.
In pure electric vehicles, the core MoToo much battery system, Weilai uses Ningde era battery, whether it is due to the “late” impact of the battery delivery, it is easy to cause Lenovo.
This is also a side-by-side indication of the succession of the battery supply in the Ningde era. Weilai has not established a joint venture relationship with the Ningde era. According to the “iron law” that Ningde has always followed, only the joint venture company has the priority supply right, and the rest of the company can only obtain it under the condition of abundant production capacity.
The original Weilai ES6 was the first to announce that it will be equipped with NCM811 batteries. However, the second half was robbed by GAC New Energy Aion S. Just two days after the appearance of the ES6 in 2018, Ningde Times announced the establishment of the era of Guangqi Power Battery Co., Ltd. with the Guangzhou Automobile Group.
New car companies face serious funding problems. Among them, the Ningde era is also “indispensable.” According to unconfirmed news, the Ningde era required new car companies to pay the full amount in advance before they were willing to supply. Among them, there are many mainstream new car companies such as Hezhong and Xiaopeng.
No matter the whole vehicle company or the new car company, they are embracing the bundle with Ningde era, just like Musk and Panasonic.
Muske certainly does not want to be constrained, so in the past six months, there have been repeated rumors that the battery factory will be built. One of the most striking is that some media say Tesla is producing battery manufacturing equipment in a laboratory in Fremont. This directly provoked the nerves of Panasonic.
At this point, the “sweet” relationship between the Ningde era and the car companies is also loose. Many car companies, like Tesla, are looking for alternatives and even the idea of building their own factories:
In December 2018, Geely and Ningde Times announced that they would jointly establish a joint venture company. In fact, as early as 2017, Geely has acquired LG’s subsidiary in Nanjing and established Hubei Geely Hengyuan New Energy Technology Co., Ltd. in Wuhan with a total investment of 8 billion yuan. The company’s main business is to produce power batteries.
Even after Geely chose to cooperate with power battery companies for the time being, Ningde era is not the first choice for Geely. In 2016, Geely signed a contract with Zhejiang Hengyuan New Energy Technology Co., Ltd., a subsidiary of Hongqiao Group, to plan a new energy vehicle power battery assembly project in Zhejiang. In June 2018, due to the revision of the two sales agreements reached by Zhejiang Hengqiao, Geely switched to cooperate with the Ningde era.