On July 22, the fifth anniversary of the opening of the sci-tech innovation board was celebrated. As of July 21, 2024, the sci-tech innovation board has gathered 573 listed companies, and the cumulative total market value has exceeded CNY540.75 billion, becoming an important force in promoting China's technological innovation and industrial upgrading.

"Going abroad or be eliminated." Currently, electric passenger vehicles, lithium batteries, and solar cells have become the "new three exports," and sci-tech innovation board companies are accelerating their overseas expansion with the dual drive of technology and capital. By deeply cultivating strategic emerging industries such as new generation information technology, high-end equipment, new materials, and new energy, sci-tech innovation board companies are gradually evolving from low-price competition to technology and capital going abroad to overseas expansion.

"Since the establishment of the sci-tech innovation board five years ago, Chinese companies have achieved a series of successes in going abroad. Overseas companies are gradually evolving from low-price competition to technology and capital going abroad. The strength of overseas companies is stronger, showing the transformation of "Made in China" to "Created in China. "" Some insiders told the reporter of the Sci-tech Innovation Board Daily.

The achievements of companies from multiple industries going abroad are outstanding.

Currently, China's photovoltaic leading companies are guiding overseas markets, from early raw materials, technology, and markets being three main factors to achieve manufacturing scale, installation volume, and power generation volume "three world firsts."

Up to now, the sci-tech innovation board has gathered the top three global photovoltaic component suppliers: JinkoSolar, Trina Solar Co., Ltd. and Arctech Solar Holding. According to statistics, photovoltaic component leaders JinkoSolar, Trina Solar, and Arctech Solar are actively deploying overseas businesses and rank first, second, and fifth respectively in the global photovoltaic component shipments in 2023.

Among them, Trina Solar has a business presence in more than 170 countries and regions worldwide, with photovoltaic product manufacturing bases in Thailand and Vietnam, and integrated production capacity of 6.5GW for wafers, cells, and modules. Since 2023, Trina Solar has added production capacity projects planned in the United States, Indonesia, and the United Arab Emirates.

The overseas business of photovoltaic industry chain enterprises also performed well. Recently, Arctech Solar Holding announced that the scale of its tracking bracket system business has maintained continuous growth since 2023. As of June 30, 2024, the company's on-hand orders amounted to approximately CNY666.9 million (excluding tax), of which tracking brackets accounted for approximately CNY554.9 million, a year-on-year increase of approximately 183.11%. According to disclosure, CNY526.6 billion of the order came from overseas.

Ningbo Ronbay New Energy Technology is promoting globalization strategy, and its wholly-owned subsidiary JS Co., Ltd. in South Korea is the only large cathode material factory invested by domestic enterprises overseas. The first-phase project was officially put into production in 2023, and its production has steadily increased.

Photovoltaic companies are expanding their overseas energy storage market. Arctech Solar said that as of the end of the first quarter of this year, it has a reserve of 56GWh of energy storage system orders, including signed long-term service agreements. The amount of signed orders on hand is USD2.5 billion. Currently, it has delivered more than 5GWh of energy storage solutions to markets in North America, Europe, and Asia-Pacific regions.

In terms of household energy storage, in June of this year, Arctech Solar reached an agreement with the largest residential real estate developer D.R. Horton in the United States to provide solar and energy storage products for communities in California.

The overseas market has also become a place where lithium battery companies are competing to layout. Currently, 14 power battery companies such as cathode materials, anode materials, lithium battery equipment, and integrated battery factories have successively listed on the sci-tech innovation board, and the industrial agglomeration effect has begun to show.

According to data from the 2023 annual report, in the current situation where the performance of the power battery industry chain is under pressure, the gross profit margins of most companies such as Farasis Energy (Gan Zhou) Co., Ltd., Zhuhai Guanyu, Liyuanheng, and Tianneng Holdings overseas are significantly higher than those of domestic ones.

In the field of consumer electronics, Shenzhen Transsion Holdings Co., Ltd. (TECNO, itel, Infinix) went public on the Sci-Tech Innovation Board in 2019 and has maintained a stable position in the top 10 of the board since 2023. This emerging market leader in the mobile phone market products mainly focuses on smartphones and feature phones of the TECNO, itel, and Infinix brands. It has been deeply cultivating the African market for many years and has vigorously developed emerging markets such as South Asia and Southeast Asia in recent years. Revenue from overseas markets accounts for over 95% of its total revenue.

Various companies are seizing opportunities to develop overseas emerging markets.

The editors of the "Sci-Tech Innovation Board Daily" have noticed that the overseas emerging markets in Asia, Africa and Latin America are becoming increasingly active, representing a new “holy land” for Sci-Tech Innovation Board enterprises to compete and expand abroad.

Taking the photovoltaic industry for example, due to influences such as Europe's inventory reduction and the U.S. "double reverse" policy, many companies are increasing their layout in other emerging markets. The Middle East has become a new favorite for China's photovoltaic companies to go global.

Recently, JinkoSolar announced that its wholly-owned subsidiary, Jinko Middle East, and Vision Industries Company, a wholly-owned subsidiary of the Public Investment Fund (PIF) of Saudi Arabia, had signed a "shareholder agreement" to establish a joint venture in Saudi Arabia to build a 10GW high-efficiency battery and component project. The total investment of the project is about SAR 3.693 billion (approximately USD 0.985 billion). Earlier, Trina Solar Co., Ltd. planned to build a 0.05 million ton silicon material, 30GW crystalline silicon wafer, and 5GW battery component plant in the United Arab Emirates in three phases.

At the same time, Arctech Solar Holding announced that it had received overseas orders worth RMB 5.522 billion, of which orders from the Middle East and North Africa and the East Asia-India region accounted for a large proportion.

"Chinese photovoltaic companies' investments in the Middle East are not only a layout for the market, but also an important embodiment of technology output and the practice of the Belt and Road Initiative," said an industry insider to the editors of the "Sci-Tech Innovation Board Daily".

JinkoSolar Chairman Li Xiande once mentioned, "The Middle East is the world's largest fossil energy exporter, with 70% of Saudi Arabia's income coming from oil and natural gas. However, they have launched the 2030 Vision Plan, which means that 50% of their energy will come from new energy by 2030, bringing unprecedented new opportunities to new energy."

The inverter market has also rebounded recently. Among them, a person from the securities department of Jiangsu Goodwe Power Supply Technology Co., Ltd. told the editors of the "Sci-Tech Innovation Board Daily", "The second-quarter operation showed some improvement on a quarter-on-quarter basis, including photovoltaic and energy storage products. Several inverter companies have mentioned that the significant increase in demand in emerging markets such as Asia, Africa, and Latin America is an important reason for the improvement in performance."

Consumer electronics manufacturers are also expanding their layout in emerging markets such as Asia, Africa, and Latin America.

"Focusing on the African market in the future is still a long-term strategy for the company." At the earnings conference held by Transsion Holdings Co., Ltd. on May 20, the company's chairman and general manager Zhu Zhaojiang said, "The penetration rate of intelligent phones in emerging market countries such as Africa is relatively low compared to North America, Western Europe, mature Asia-Pacific and Chinese markets, and the switching from feature phones to smartphones is still an important factor driving the growth of the intelligent phone market in emerging markets such as Africa. With the improvement of economic development level and per capita consumption ability, under the trend of smart phone development, the intelligent phone market potential in emerging markets such as Africa is significant."

Zhuhai GY Battery Technology Co., Ltd. recently announced that its wholly-owned subsidiary Yoonish Technology (Malaysia) Co., Ltd. plans to invest in and establish the Malaysia GY Battery New Energy Project, with a total investment of no more than RMB 2 billion. This investment is an important measure based on the needs of the company's consumer customers and the perfecting of the company's overseas industrial layout strategy.

"Currently, the consumer battery business is still the main business of the company and has the highest proportion. The main overseas business of the company is still concentrated in the consumer battery business in Malaysia." A person in charge of Zhuhai GY Battery Technology Co., Ltd. told the editors of the "Sci-Tech Innovation Board Daily".

"Laying out in emerging countries represents the deepening development of Chinese enterprises' overseas layouts. Among them, as the main force of new production factors, Sci-Tech Innovation Board enterprises are expected to take greater initiative in going global and reshape the pattern of going global relying on their cutting-edge technology and capital vitality." said an industry insider to the editors of the "Sci-Tech Innovation Board Daily".