Source: Sina Sina Finance / Wang Qian
Last year,it is great time to the new energy vehicle market.Yinhe techology company, lithium battery equipment manufacturers, benefit from the favorable industry, announced the listing in the Shenzhen Venture Board. As the first listed companies in lithium battery equipment field,YInhe technology company’s stock price from the issue price of 12.41 yuan / share, rose to the current 70.88 yuan / share.Gaining profit from the capital market, Yinhe technology company acquisition of two companies of the same industry in succession, and planning additionally build the center of research and development to expand production capacity and promote the innovation of the whole line of lithium battery production equipment line, the leading position of the industry is more stable. However, behind the prosperity of the industry,the problem of overcapacity and backward technology has emerged,it can hardly be avoided reshuffling the lithium battery industry .as lithium battery equipment manufacturers ,how to gain a foothold in the coming storm, recently,YInhe technology company Chairman Mr. Wang Weidong to accept the interview of reporter of Sina Financial, to share his strategy and long-term plan.
The following is an interview with the original:
The lithium battery equipment market into stage of procuring the entire line .
Sina Finance: how to understand the "turnkey" mode, lithium battery equipment production line of delivery of orders? Your company's announcement shows that the majority of customers purchase from one machine to segment or whole line,how to understand purchase the whole line ? What kind of products and service do you provide for your customers?
Wang Weidong: the entire line of procurement is planning, configuration, production, delivery and service of the entire lithium battery production line equipment, which include from the front of the lithium battery material mixing, to the middle of the battery automatic assembly line, to the rear section of batteries sorting ,Pack, etc.In the past, customers purchase lithium battery production equipment line need more than 10 suppliers, and third party to provide transportation services of material, it is difficult for product suppliers to dock system ,and they are not willing to open ports to each other.
And procuring the whole line can solve the above problems, not only improve the efficiency of the lithium battery manufacturers, enhance product performance, reduce costs, and fundamentally solve the problems of after-sales service.The manufacturer who provide the whole line procurement with comprehensive technical advantage, at the same time, manufacturers should not only have a certain financial strength, but also need to have the ability to integrate resources.as long as the customer offer the technical requirements, the rest of the project are construction by the equipment provider. In the whole line of procurement in this area, we have most comprehensive technology in industry, as a listed company, the financing costs is relatively low ,can meet the financial requirements.
Sina Finance: what is the specific impact of change of order on the company's profit, what is the change in the gross profit margin of a single transaction?
Wang weidong:The specific impact on the company's profit is increasing in sales, fixed costs such as depreciation, management labor is declining,In the early stage, we design the production line according to the morphology of the products, the R & D investment will be relatively large, have an impact on gross margin, but as the the platform of development become mature, further investment is relatively stable. gross margin of a single transaction will be raised, the proportion of raising is different as different transaction of specific equipment.
Sina Finance: your company recently had a total price of 235 million yuan of equipment orders, accounting for revenue of last year of 64%,your company disclosed the situation that production capacity is Insufficient last year, at present, the company production capacity whether it can meet such a large order?
Wang Weidong: currently we have production capacity to meet the requirements of the large orders, Does exist in the past that our capacity is insufficient, therefore In parts processing, we produce the core parts, standardized parts is outsourced.
In the future, Huizhou and Jiangxi Industrial Park will be put into use, to ease the strain production capacity of company.
Sina Finance: last year, your company announced Huizhou Industrial Park will begin production in August 2015 , Jiangxi Industrial Park in October 2015. At present, how are two industrial park progressing? How much is expected to increase production capacity?
Wang Weidong: two industrial park in June 2016 basically can be put into use, is expected to increase production capacity of about 5~6 billion.
With the help of the capital market, to carry out acquisition of industry
Sina Finance: what is Areconn that your recent major asset restructuring, acquisitions in Donguan position in the industry ?what impact of the synergies after restructuring?whether the industry structure change? What are your criteria for acquisitions?
Wang weidong: the acquisition of Areconn will realize powerful combination of both sides, the complementary advantages, resource sharing, give full play to the synergy of both sides in the brand, technology, research and development, channels, customers, suppliers, through combing the development of both the focus, to avoid vicious competition, the effective management of both productivity and asset allocation to form the scale effect, after the completion of the acquisition, which will build the stronger foundation of to be strongest provider of Lithium ion battery intelligent production line solution in domestic.The transaction will also help improve the technical level and profitability of listed companies, the overall profitability of the group is expected to increase 50-80%.Yinhe technology company will make full use of the capital market platform, through the horizontal merger, the longitudinal extension of the main industry,which realize the diversification of new energy related industries, to achieve both industry and capital drive, to build ten billion industry in 5 years, become a benchmark for enterprises in the new energy industry and the field of high-end equipment of industrial automation.
Sina Finance: Shenzhen Sinpo automation equipment Co. Ltd,the new acquisition of your company last year, is committed that net profit of not less than 42 million yuan in three years. But the announcement shows that in 2015 1-10 months, Sinpo’s net profit of only 4 million 590 thousand yuan, if it is difficult to commit this performance?
Wang weidong:We choose Sinpo is think high of their research and development ability, pre profit can not reflect the actual circumstances of the enterprise. Moreover, the accountant audit, the 2015 annual Sinpo company completed the net profit of more than 6 million yuan, in 2016 1-4 month Sinpo company has sufficient orders, monthly shipments is more than 10 million yuan, the company operating in good condition.
Sina Finance: in recent years, the rapid development of new energy automotive industry, driven by the demand for lithium battery blowout, in 2016 ,major lithium battery manufacturers have announced the news of expand production. What do you think of the prospects of lithium battery equipment industry and the market size of industry in China?
Wang Weidong: I learned that the net profit of most of the new energy automotive industry chain company have achieved growth, which led to the rapid development of equipment industry. According to the national and provincial policies to promote new energy vehicles, new energy vehicles in 2020, the country put into use will achieve several times of the year than at present, which will lead the development of field of lithium power battery equipment and its upstream .The agency expects the lithium battery equipment in 2016 is expected to have 12 billion of the sales market, is expected in 2020, the market size of 35 billion 600 million yuan , production value of domestic equipment will reach 28 billion 500 million yuan. I am optimistic to the prospect of the industry.
Sina Finance: in 2015, the lithium battery industry ushered in the growth peak, but the industry analysts that as the new energy vehicle sales growth decline, there is oversupply.At the same time, the decline in government subsidies will have a impact on the lithium battery industry, exacerbated by the industry differentiation,what do you think?
Wang Weidong: in my opinion, the future of lithium battery equipment industry may be a reshuffled,Some follow the trend and no innovative enterprises will emerge the problem of overcapacity, but the industry competition is conducive to the survival of the fittest, relying on innovation and quality of survival of enterprises will have considerable development.New energy vehicles is the established national strategy, a decline in the growth rate does not represent the trend of change, and the new energy vehicles base will become increasingly large. Government subsidies decline is normal , which is the adjustment of national policy, on the other hand also said that the industry has gradually entered the stage of promote the development mainly rely on the enterprise strength and innovation ability.
Sina Finance: what are your company's measures in innovation of R & D ?
Wang Weidong: the amount of we invest to R & D is more than 5% of sales amount, and we have set up a research center in Japan, will set up a research institute in Shenzhen and Dongguan in the future,to research and develop equipment of lithium battery .it will greatly enhance the company's R & D strength after acquisition.To set up a research center in Japan, is considering the automation technology in Japan walking in the international forefront, hoping to promote our entire line of innovation. At the same time, this research center can also procure standardized parts products directly in Japan, excluding the middlemen, as we reduce the purchase cost of 30%-40%.We hope that in the future, we are not only based on the lithium battery product to updates and design equipment, but by our R & D innovation to promote the development of lithium battery product.
In 2016, the sales target is 650 million -8 billion
Sina Finance: last year, your company achieved operating income of 365 million yuan, an increase of 62.29%; net profit of 60 million 226 thousand and 400 yuan, an increase of 19.21%. this year, what is your company's performance objectives?
Wang Weidong: in 2016, our sales revenue target of 650 million -8 million, total profit target of 120 million -1.5 million.
Sina Finance: at present, 100% of the company's customers are domestic enterprises, the future will consider the development of foreign markets?
Wang Weidong: on the surface, we just sell equipment in the domestic, in fact from 2011 our equipment with write-off way sold to Russia, Germany and other foreign markets. In the past, our production capacity is Insufficient and there is no direct export, with the subsequent release of production capacity, there is a surplus of production can provide services to foreign customers who set up factories in the domestic.Along with the lithium technological level of domestic and foreign is more and more close, the product security decline, in addition price of the domestic products is lower than products in Japan and South Korea,foreign customers purchase domestic products is the inevitable trend ,Yinhe is ready to develop the international market.
Sina Finance: what is the vision for the future development of the company?
Wang Weidong: at present our country compare to foreign automation equipment is relatively backward,Yinhe company on the basis of existing technologies of lithium battery automation production line,,combined with MES, integrated motion control, image processing, laser measurement, robot technology to enhance product innovation and development, actively import the concept of industrial 4, build industrial robots and large data centers, establish the collaborative platform of the whole value chain, accelerate the construction of intelligent enterprise. Committed to the implementation of advanced manufacturing industry 2025 and 4 goals, so as to promote the transformation from manufacturing business from traditional manufacturing to intelligence.YInhe committed to the realization of advanced manufacturing 2025 and the goal of industrial 4.0,promoting the company's business change from traditional manufacturing to intelligent manufacturing,and become a leader in the new energy industry.