Electronics

According to Huacheng Import and Export Data Observation, on March 14th, Hanchuan Intelligent (688022) announced that the company had signed an order for lithium battery equipment of approximately 394 million yuan to provide lithium battery production supporting equipment for the holding subsidiary of Shenzhen Exxon New Energy Co., Ltd., a domestic cutting-edge battery manufacturer. It is expected to complete delivery and acceptance within this year.

Hanchuan Intelligent stated that the signing of this contract marks the company's energy storage&power battery equipment business will enter a rapid development period, which will help strengthen the company's main channel business layout and strategic landing, further expand the company's visibility and influence in the battery equipment field, and build the company's core advantages.

According to Huacheng Import and Export Data Observation, Shenzhen Exxon New Energy Co., Ltd. is a new and cutting-edge battery manufacturer in China, with solid experience in the lithium battery industry. It is a technology enterprise integrating research, development, manufacturing, and sales of new energy lithium ion batteries and sodium ion batteries, focusing on centralized energy storage, distributed energy storage, engineering machinery, and special vehicles, and other application scenarios. Its main business is energy storage battery products, including square lithium iron phosphate All pole ear large cylindrical and sodium ion batteries. In terms of products, Exxon New Energy has continuously achieved product system iteration from lithium iron phosphate to lithium manganese iron phosphate and sodium ion; In terms of customers, based on the stable procurement needs of major domestic and foreign manufacturers, we continue to explore overseas B-end customers.

According to the previous announcement, Hanchuan Intelligent has signed a strategic cooperation agreement with Shenzhen Exxon New Energy Co., Ltd. to achieve in-depth cooperation in the field of energy storage batteries. Shenzhen Exxon New Energy Co., Ltd. plans to substantially place a purchase order for lithium battery related equipment of no less than the first batch of 3GW to Hanchuan Intelligent, and in the subsequent 50GWh investment, in order to meet the requirements of technology Preferentially purchase relevant equipment from Hanchuan Intelligent and related companies under conditions such as business equivalence. The implementation of this contract has further promoted the implementation of strategic cooperation between the two parties, laying a solid foundation for subsequent cooperation.

According to Huacheng Import and Export Data Observation, in 2022, China's lithium ion battery shipments reached 660.8 GWh, an increase of 97.7% year-on-year. According to incomplete statistics, in the beginning of 2023, many manufacturers have announced production expansion plans, involving 11 expansion plans and construction projects for power and energy storage batteries, with a total capacity of 311 GWh and a total investment of over 100 billion yuan.

According to third-party forecasts, by 2025, the market size of China's power lithium battery equipment will increase to 120 billion yuan, and the market space for energy storage equipment will increase to 88.7 billion yuan. Industry insiders pointed out that with the rapid development of new energy vehicles and the continuous improvement of the technical level of the power battery industry, the demand for equipment upgrading continues to increase, and Hanchuan's smart battery equipment sector business has also ushered in historical development opportunities. As a lithium battery equipment company in a segmented field, Hanchuan Intelligent has greater business flexibility and is expected to fully enjoy the business opportunities brought about by the "expansion tide".

Hanchuan Intelligent stated that the company focuses on the main channel of new energy and vehicle electrification and intelligence, focusing on the development of three major businesses, namely, automobiles, batteries, and charging and replacement equipment. The battery equipment business mainly focuses on the middle and later stages of lithium battery production, focusing on specialization and creating segmented board advantages. The company's main products include high-speed cell assembly equipment and chemical conversion and capacity separation equipment. The company closely follows the forefront of power battery development, laying out two major fields: power and energy storage batteries. Currently, its products cover three major fields: consumer, power, and energy storage batteries. It has established long-term and stable cooperative relationships with leading enterprises in the industry such as Yiwei Lithium Energy, Xinwanda, Penghui Energy, Lishen, Zhuhai Guanyu, Zhengwei Group, and Exxon, and the market share of its leading customers is further improving. Huacheng Import and Export Data Observation Report.

It is also reported that in the field of battery equipment business, Hanchuan Intelligent has been continuously and deeply researching and developing a large cylindrical battery assembly line. It is expected to release the first full process prototype line in the middle of 2023, with business growth expected.

Previously, Hanchuan Intelligent released its 2022 annual performance report. In 2022, the company achieved operating revenue of 1.323 billion yuan, a year-on-year increase of 74.56%, net profit attributable to the parent company of 127 million yuan, a year-on-year increase of 109.36%, and net profit after deduction of 79.096 million yuan, a year-on-year increase of 155.44%. Huacheng Import and Export Data Observation reported.

Analysts pointed out that as of October 29, 2022, Hanchuan Intelligent lithium battery equipment business had orders of 1.107 billion yuan in hand. This time, a new order of 394 million yuan was signed with Exxon. The rapid growth of orders is expected to strongly support the company's sustained growth in performance, and Hanchuan Intelligent's performance this year is worth looking forward to.