① Changjiu Logistics New Energy put into operation the first phase of the new production line after the acquisition of Guangdong Dido New Energy. ② The first phase of the production line is expected to have an annual production capacity of 1.5 GWh this year (not put into operation in the first quarter), with a planned annual production capacity of 2 GWh; ③ The company said it will continue to invest in the project based on customer orders and the development of new markets, and is currently developing overseas markets.
Financial Services Association, April 18 (Reporter Hu Haoqiong) After Changjiu Logistics (603569.SH) acquired Guangdong Dido New Energy, the first phase of the new energy production line was officially put into operation today. According to the company, the production line is expected to bring significant improvements to this year's results, and the pace of future market development will determine the space for this business segment to expand production.
“In the future, we are also planning to open additional Phase II and Phase III production lines. According to current standards for daytime work, the first phase of the production line is expected to have an annual production capacity of 1.5 GWh this year (not put into operation in the first quarter of this year). As the number of orders increases, production capacity can be doubled if night work is added in the future.” Yan Chao, general manager and director of Changjiu Logistics, told the Financial Federation reporter.
A reporter from the Financial Services Association saw on the scene that the production line that has already started is highly automated, and only the battery cell gluing process needs to be completed manually. According to field staff, this production line is an automated module PACK production line, which can automate about 80%, and the efficiency is 4 times higher than traditional production lines.
A CFA reporter learned that the Chuzhou factory of Changjiu Logistics has a plant area of 10,000 square meters. The overall design functions are divided into battery pack disassembly lines, battery pack assembly lines, cell sorting rooms and product aging chambers, R&D laboratories, and various warehouses for raw materials and finished products that meet national industry standards. The total design capacity is 5 GWh per year.
The first phase of production line includes the aforementioned automated module PACK line, a semi-automated module PACK line, and a battery pack disassembly line. Both assembly lines are compatible to assemble 50-304Ah batteries. The production line efficiency is 10 PPM (pice per minute), and the planned annual production capacity is 2 GWh. The main products are industrial and commercial energy storage products, as well as energy storage products for overseas household use, and power supply for parking air conditioners for freight vehicles.
Long-term logistics automation module PACK line (photo by Financial Federation reporter)
According to the Financial Services Association reporter, the production line was located in Chuzhou, mainly taking into account Chuzhou's location advantages in terms of long-term logistics, and the new energy industry is a key industry built by Chuzhou Suchu Industrial Park. A large number of upstream and downstream enterprises have gathered in the park, such as BYD (002594.SZ), Lishen Battery, Xingheng Power, Longji Green Energy (601012.SH) (PV), and Xuhe Technology.
Yan Chao further analyzed that the area around Chuzhou is expected to form a regional recycling center for the entire business format. Its location advantage can cover the entire Jiangsu and Anhui regions, making logistics costs more advantageous. Furthermore, since this year, Anhui Province has adjusted the price difference between industrial and commercial peak and valley electricity, which is beneficial to the market promotion of industrial and commercial energy storage products.
At the same time, Changjiu Logistics also launched L1 liquid-cooled energy storage cabinet products. The single rated capacity is 233 kWh. The aforementioned on-site staff told the Financial Federation reporter that such products are mainly used in industrial and commercial energy storage-related projects, production enterprises that consume a lot of electricity, data computer rooms that use a lot of electricity, and 4S store parks for optical storage and charging inspection.
As for the second and third phase production plans, Yan Chao said that he will continue to invest in the project based on customer orders and the development of new markets. However, the specific production capacity scale and implementation time plan still need to be based on market and customer needs.
Regarding the increase in profits in this business segment, Yan Chao said that the decision is mainly based on the pace of market development. “Last year was the first year of domestic industry and commerce, and there was a trend of poor pricing. Costs are falling drastically, and it is important who can develop (application) scenarios. Furthermore, the current cost of purchasing related equipment from abroad is higher than the cost of self-development, and having our own core technology will further reduce production costs.”
Judging from the industry's development prospects, Yan Chao said that there has been pressure to remove inventory recently in South Africa, but it is expected that inventory removal will end in May. Market demand is also shifting from household storage to industrial and commercial energy storage, and the company has also begun developing industrial and commercial customers. Currently, the company is expanding the market in Nigeria, South America and other joint “Belt and Road” countries, developing industrial and commercial energy storage markets and developing new product routes.