TU-TESL

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The competition of power battery industry has entered the deep water area, and more and more cross-border "giant enterprises" have emerged. In recent years, Shanghai Electric, which has frequently acted in the field of power battery, is showing its "appetite" in the field of new energy through joint venture / merger and acquisition. On the evening of November 11, Shanghai Electric (601727) announced that it planned to transfer 9.73% of the equity of Evonik technology to RMB 959 million. After completion, Shanghai Electric will become the controlling shareholder of Evonik technology. On the same day, the company also signed a subscription agreement with Yinghe technology, and the company plans to subscribe its non-public shares with no more than 2 billion yuan. According to the analysis of the insiders, as a comprehensive equipment manufacturing enterprise group, Shanghai Electric attaches great importance to the development of equipment enterprises in relevant fields, including the new energy equipment enterprise target under its management, which conforms to the company's development strategy, and also becomes an important part of the company's deployment of the power battery industry. In fact, Shanghai Electric's expansion of the power battery industry did not come out of the blue. As early as 2017, the news of Shanghai Electric's joint venture came out. Although it was finally confirmed to be a rumor, since then, Shanghai Electric's "ambition" to enter the new energy field has been demonstrated. In the following time, from battery to equipment, a series of actions show that its territory in the power battery industry has been formed. Shanghai Electric's layout in the field of power battery has been restored. It has initially formed the prototype of "new energy manufacturing equipment - cell module pack". The market mainly focuses on the field of energy storage and vehicle power, and the results are beginning to show. In fact, Shanghai Electric's march into power batteries dates back to 2011. At that time, Shanghai Electric signed a contract with Taiwan lithium Technology Co., Ltd. to establish "advanced energy storage battery research and development laboratory" and a joint venture company in Shanghai, hoping to improve professional technology, accelerate commercialization, and market lithium battery market of electric vehicles in China and even in the world. In May 2017, Shanghai Electric and GuoXuan Hi Tech Co., Ltd. jointly established Shanghai Electric GuoXuan New Energy Technology Co., Ltd. to focus on the advanced key materials of lithium battery, battery, battery management and the whole industrial chain layout of system integration, and committed to energy storage solutions of lithium battery storage system products. In November of the same year, the two sides planned to invest 3 billion yuan to build energy storage system base in Nantong. In December of the next year, the foundation of the base project was laid, and the planned annual output of 8gwh lithium-ion battery energy storage system was constructed in two phases. In March 2019, the bidding for 5gwh core production line project of the energy storage system base will be started. The good news came immediately. At the end of March 2019, Shanghai electric power station group and new energy branch of Huadian Xinjiang Power Generation Co., Ltd. signed a 100mwh energy storage cooperation framework agreement in Urumqi, Xinjiang. Since the first half of this year, Shanghai Electric is also actively promoting the construction of smart energy demonstration projects in Shanghai Minhang Industrial Park and Anhui Jinzhai and qingermu energy storage demonstration projects. After the energy storage market has established a solid foundation, Shanghai Electric will focus on the field of new energy vehicle power battery. The ideas also cover the fields of equipment and power battery. In June 2019, Shanghai Electric acquired the controlling shares of Anhua automation. The core technologies of Anhua automation in the field of new energy include battery module and pack assembly line, new energy electric vehicle (motor) assembly and test solutions, etc. In July 2019, Shanghai Electric Co., Ltd. and Tianji Automobile Co., Ltd. established a joint venture, focusing on independent research and development of power battery system related technologies, and mass production of power battery system and key components. In addition, this time, it will be beneficial to give full play to the advantages of industrial coordination, promote the rapid transformation of scientific research achievements of Shanghai Electric, improve efficiency and enhance the overall strength of the company. As the leading comprehensive equipment manufacturing industry, what's the logic behind Shanghai Electric's massive increase in power battery industry chain in 2019? According to the data, Shanghai Electric mainly focuses on four sectors: industrial equipment, efficient and clean energy equipment, service industry, new energy and environmental protection equipment. Financial data shows that Shanghai Electric achieved a total revenue of 75.22 billion yuan from January to September, a year-on-year increase of 7.6%; the net profit attributable to shareholders of listed companies was 2.212 billion yuan, a year-on-year increase of 1.97%. In fact, according to the "report card" submitted by the company in 2018, the operating profits of the four main business sectors have shown "ups and downs", which also reflects the fierce market competition in the comprehensive equipment manufacturing industry. Among them, as the pillar profit sector, industrial equipment and modern service industry are showing a year-on-year downward trend, while new energy and environmental protection equipment sector is the only sector with the fastest profit growth and the only positive growth in gross profit margin among the four main businesses. Based on the weak growth of profitability of industrial equipment and modern service industry, the sharp rise of profitability of new energy and environmental protection equipment, as well as the new energy vehicles driving upstream demand as a national emerging strategy, this has also become an important logic behind the power battery industry chain of Shanghai Electric. In the field of energy storage business, Shanghai Electric aims to "be a leader in the domestic energy storage industry, and change from a manufacturer of energy storage battery to a general contractor of energy storage products manufacturing and Engineering". Around this, Shanghai Electric launched a series of strategic deployment in the field of energy storage. Hi Tech lithium battery learned that in the battery sector, energy storage battery and vehicle power battery are the focus of the next development of Shanghai Electric. As the energy storage battery market is still in the early stage of large volume, the layout of automotive power battery industry will be one of the plates that the company pays more attention to. Therefore, in a short period of time, Shanghai Electric Co., Ltd. has successively cooperated with Tianji Automobile Co., Ltd. to bring Anhua automation and Evonik technology under its management. This series of actions are not difficult to understand as the urgent entry of automotive power battery. From Anhua automation to Evonik technology, the company has almost realized the full coverage of manufacturing equipment from the whole cell line to the module and pack automation line, which has also become an important deployment of the company's vehicle power battery manufacturing link. From the perspective of industrial collaboration, relying on the digital design technology, servo and motion control technology, MES technology, etc. which are stored by Shanghai Electric, these technologies can effectively transform, and improve the production efficiency of the target enterprise. Hi Tech lithium understands that Shanghai Electric has always been paying attention to and collecting information about the power battery industry chain. The acquisition of equipment enterprises is only the first step in the layout of power battery manufacturing links, and the company also continues to pay attention to the field of battery cells and materials. This also means that Shanghai Electric will further deepen the layout of the power battery industry chain through a series of merger and acquisition / joint venture actions.