Bankruptcy And Liquidation Of Power Media: Power Battery Industry Accelerated Shuffle

The once promising industry rookie, Shenzhen water Battery Co., Ltd. (hereinafter referred to as "water horse") has reported bankruptcy liquidation in the past year or more after workers' holiday and shutdown.

On the evening of November 13th, Shenzhen's Intermediate People's court decided in November 7, 2019 to accept Huang Ziting's application for bankruptcy and liquidation of Shenzhen water Battery Co., Ltd. (300116).

The announcement shows that Shenzhen's water Battery Co., Ltd. has an external debt of about 19 billion 700 million yuan, and 559 suppliers owe 54 billion yuan in debt. Affected by the "exploding thunder" of the water horse, Kenneth can achieve a profit of 430 million yuan in the first three quarters, a decrease of 87.86% compared with the same period last year, a net profit of -26.1 billion yuan, and a net profit of -24.8 billion.

Faced with the company's financial problems, Kennedy said that if the people's court ruled that Waterma entered the bankruptcy liquidation process, it would have a positive impact on the company's current debt crisis.

Of course, once the failure of reorganization, whether it is water Morgan or Kenneth power will "farewell" power battery industry.

In the past, the power battery giant is about to enter bankruptcy proceedings. At the same time, the Beek battery, the top ten of the domestic power battery, is also deeply involved in the capital chain crisis, and is being collectively pursued by the upstream suppliers.

Since November 7th, the four upstream businesses of lithium battery cathode materials R & D, Yung technology, hang Ke technology, and new state have issued a suggestive announcement on the risk of accounts receivable, suggesting that there is an unrecoverable risk for Beek battery receivables. Among them, the maximum amount of promotion is 379 million yuan.

And Beek's power to recover money from Chung Tai and other mainframe factories has been going on for months. In the first three months, Beek power has launched two lawsuits against the Zhongtai automobile, which owed 600 million yuan, to the Hangzhou intermediate people's court, but it has not yet been resolved.

On the evening of November 12th, Beek power issued a statement saying that the main reason for not paying the suppliers' money was that there was a certain pressure of cash flow, which was mainly affected by the unpaid loans of Tai motor and Huatai motors.

Publicly available data show that at present, the arrears of Zhongtai motor to Beek power are about 600 million yuan, and Huatai motor is about 300 million yuan, totaling 900 million yuan.

The collapse of Waterma and the "sandwich bond" of Beek battery may be just a microcosm of the current development of domestic power battery enterprises. With the gradual fading of heat, the dividend policy will disappear, the capacity structure is surplus, and the cash flow is insufficient. The power battery enterprises are facing a new round of shuffling.

Industry begins to shuffle

"This year, the entire power battery industry chain is coming to the darkest hour, and the black swan is flying everywhere." On November 15th, Fang Jianhua, partner and President of the new energy automotive venture capital sub fund of the national science and Technology Achievement Transformation Fund, pointed out in the speech of the Fourth International Summit on power battery applications. The occurrence of this "black swan" incident is the inevitable result of the transition from the barbaric growth to the high quality development in the past.

Fang Jianhua believes that in the meantime, when the subsidy goes downhill, our government is also stepping up its efforts to open up, introducing foreign capital enterprises into China, and stacking multiple factors.

In fact, in the early days of the development of China's power battery industry, a number of battery enterprises emerged. In the past few years, the market has already made a round of liquidation.

Data show that in 2016, the number of power battery enterprises in China was 155, and in 2017, it was reduced to about 130. In 2018, there were only 100 left over. In 2019 1-9, there were 69 power battery enterprises with installed data, compared with 89 in the same period last year. This also means that in a single year, 20 battery companies may have withdrawn from the field of new energy vehicles, or at least temporarily withdrew this year. Some experts predict that in the next few years, this figure will continue to decline.

The impact of "cold winter" in car market is far more serious than imagined. Sales of new energy vehicles have declined for four consecutive months, and the decline has been expanding. To a large extent, it "killed" power battery enterprises.

"In 2019, the whole electric vehicle and power battery industry chain is facing great pressure and challenges." Zhang Yu, Secretary General of the power battery application branch of the China chemical and physical power industry association, believes that the challenge comes from two aspects: on the one hand, the host plant is facing enormous financial pressure, and it has higher requirements on the cost and safety performance of power battery selection; on the other hand, the power battery enterprises bear a severe pressure to reduce costs, but they can not fully digest themselves, and need the synergy of all circles of the lithium battery industry chain.

It is understood that most of the current power battery enterprises rely on the host plant to survive. Once the sales volume of the main plant is down or the capacity is adjusted, the performance of the battery manufacturer will be affected.

The direct consequence of relying too much on the host plant is that a financial crisis at the main engine plant will directly affect the power battery enterprises. The huge amount of money can not be recovered in time, which makes the power battery enterprises exert great pressure in production procurement, capacity expansion, R & D investment and equipment upgrading, so that enterprises have to reduce operating rate and reduce expenditure.

In the past few years, China's new energy vehicle has been developing rapidly in the past few years, and more resources are inclined to head enterprises. And BYD used to sell itself, so the Ningde era became a "pastry" for car companies, and almost signed a strategic cooperation agreement with all the mainstream car companies. Ningde era and other enterprises have gradually grasped the market discourse power, and the two or three echelon battery enterprises lack resources for vehicle enterprises.

In addition, the power battery related enterprises are also facing a lot of development pressure. This pressure comes not only from the upgrading of overcapacity, but also from the adjustment of the new energy industry's subsidy policy.

With LG chemical, SKI, Samsung SDI, Panasonic and other foreign battery brand influx, and at the same time master the strong voice of the host plant is also extending to the upstream, which makes the market space of the small two or three tier enterprises, the situation seems to be more difficult.

Where are the opportunities for the two or three tier enterprises?

Statistics of power battery monthly database released by the Institute of high technology and industry (GGII) showed that in the 1-9 top ten enterprises of the power battery installed capacity in 2019, except for Li Shen, Fu Neng technology and Beek, they were in negative growth compared with the same period last year, and the remaining seven power battery enterprises maintained positive growth in varying degrees.

From the perspective of enterprises, the total installed capacity of the top ten enterprises in the first 9 months of this year is about 37.51Gwh, accounting for 88.7% of the total installed capacity. Among them, the installed capacity of Ningde times reached 21.43Gwh, accounting for 50.64% of the total; the installed capacity of BYD was 8.76Gwh, accounting for about 20.7% of the total.

Although the Ningde era and BYD occupy more than 70% of the market share, showing a clear "28 law", but in the industry view, this does not mean that the two or three tier Chinese power battery suppliers do not have market opportunities.

"The concept of market shuffling does not mean that only a few companies can survive. Shuffle is not to wash the number of enterprises less and less, shuffling is that we are more rational to do a right thing. " In November 18th, Wang Zidong, Deputy Secretary General of the innovation alliance of China automotive power battery industry and the director of the power battery testing center of the former National 863 electric vehicle special field, said in an interview with reporters: "the development of the power battery industry is from a government led to a market-oriented one, and the future development trend is determined by the market. Only those enterprises that can produce products that meet the needs of the market will have the chance to live."

In the eyes of Prince winter, the formation of China's power battery enterprises has been formed under the stimulation of China's home subsidies in the past few years, but with the gradual marketization of the battery industry, new enterprises are still competing in the power battery competition.

In addition, from the traditional fuel to the new energy vehicle transformation process, the traditional car giants do not want to leave the stage center. The Volkswagen, which is energetically promoting the electrification, decided to have more core power battery technology in its own hands, not only to spend nearly 1 billion euros to build its own battery factory, but also to acquire new technology by acquiring battery companies. The Great Wall car will also produce power battery honeycomb energy independent to go out, ready to market it, in the future will not only supply to the Great Wall car.

"The current oligopolistic pattern of the industry is because there is no full market competition, but it is inevitable to move towards market competition. Measures such as abolition of the white list and so on are also pushing the industry towards competition. We think this is an opportunity, which has left a great opportunity for the later high-end power pool enterprises. We believe that there will be new high-end power battery enterprises breaking the original pattern." In November 18th, Yang Hongxin, general manager of beehive Energy Technology Co., Ltd., told reporters on twenty-first Century economic report.

In Yang Hongxin's view, a notable feature of the development trend of the power battery industry is the structural overcapacity, the shortage of high-end resources, and the number of battery powered batteries that really satisfy the needs of vehicles. Therefore, the future industry competition shuffle is inevitable. In order to survive, the power battery enterprises in the future must truly develop technological research and development, truly develop products according to the quality standards of vehicle regulations, establish corresponding capacity guarantee capabilities, and grasp the cutting-edge technologies of the next generation of products, so as to achieve sustainable development.

In addition, with the continuous improvement of battery energy density, the quality, cost, safety and technology upgrading of power batteries will be the focus of competition in the power battery industry, and will also be the key to the competition of the new energy vehicle industry.

In view of the competition situation of the domestic power battery industry, Liu Yanlong, Secretary General of the China chemical and physical power industry association, held on the 15 day of the international summit on power battery applications, said that in the next few years, the enterprises in the upstream and downstream industries of China's power battery industry will have a very difficult time. The power battery enterprises should put the quality and safety of the products in the first place, and the whole industrial chain should work together to tide over the difficulties. The leading enterprises should continue to be bigger and stronger. The two or three tier enterprises must identify themselves and occupy the relevant market through product superiority.

Upgrading the quality and reducing the cost can promote the popularization of electric vehicles, and then stimulate the demand for high-end power batteries, thus forming a virtuous cycle. The strong competitors from Japan and South Korea come in to promote the return of the price to the market, especially the return of the high-end power battery to the market, and promote the quality improvement of our domestic enterprises and promote our cost control ability. Yang Hongxin said.