Zhongchuang Xinhang (03931) fell more than 7% during trading, and as of press time, it fell 3.31%, to HKD 14, with a turnover of HKD 6.7768 million.

West Beef Securities released a research report, stating that the group has continuously lost market share since the fourth quarter of last year, and the group's power battery shipments increased by 3.6% year-on-year in the first four months of 2024, but the market share has fallen sharply to 6.4%, returning to the level of 2022. In terms of installations, in the first quarter of 2024, Xiaopeng was the main customer of Zhongchuang Xinhang, and GAC retreated to the second largest customer.

The bank pointed out that by the end of 2023, as the Paff battery factory of GAC officially launches, it is expected to complete the introduction of all production lines and meet the installation demand of 600,000 vehicles by the end of 2025. As one of the group's main customers, the impact of GAC Paff Battery is expected to gradually become apparent, leading to the group's installation growth lower than the market.

The bank also pointed out that due to the continuous weak sales prices caused by the decline in raw material costs, the uncertainty of capacity utilization caused by capacity growth and major customers, and the further increase in expected liabilities leading to financing costs remaining at a high level, Zhongchuang Xinhang is trapped in a dilemma of unable to achieve price, quantity, and profit margin at the same time.