Hangke Technology released its half-yearly report for 2024 on the evening of August 29th, according to the "Star Daily" on the Science and Technology Innovation Board.

In the first half of this year, Hangke Technology's revenue was 1.891 billion yuan, a year-on-year decrease of 10.85%. The net income attributable to the parent company was 0.269 billion yuan, a year-on-year decrease of 43.39%.

In terms of quarterly performance, Hangke Technology's net profit for the second quarter was 96.3 million yuan, a year-on-year decrease of 63.71% and a quarter-on-quarter decrease of about 44.51%.

Regarding the decline in performance, the company attributed it to the intensified competition in the domestic market and the extension of the acceptance period, resulting in a year-on-year decline in revenue. The report stated, "Due to the confirmation period of 9 to 12 months for the company's revenue, most of the orders confirmed during the reporting period were signed in 2023, when the market conditions were poor and the competition was fierce, resulting in a year-on-year decline in gross margin."

At the same time, due to the fluctuation of foreign exchange rates, there was an exchange loss of 8.41 million yuan in the first half of 2024, while in the first half of 2023, there was an exchange gain of 96.38 million yuan due to the depreciation of the renminbi. The significant difference in exchange impact led to a significant year-on-year decline in net profit for the first half of 2024.

Since its establishment, Hangke Technology has been engaged in the design, development, production, and sales of various rechargeable batteries, especially lithium-ion batteries, as well as the design, development, and production of post-treatment systems, including charging and discharging machines and internal resistance testers, providing integrated solutions for lithium-ion battery production lines.

In terms of revenue composition, revenue from charging and discharging equipment in the first half of the year reached 1.455 billion yuan, accounting for 76.95% of total revenue. Other equipment accounted for 21.62% of total revenue, mainly including automated logistics equipment and standalone testing equipment.

In terms of customers, in the field of consumer electronics, it includes Korean companies such as Samsung, LG, Japanese company Murata, Eve Energy Co.,Ltd., Sunwoda Electronic, etc.; in the field of power batteries, it includes Korean companies LG, SK, BYD, Gotion High-tech, etc.

In terms of production capacity, as of the end of the reporting period, the company has six large production areas in China, with a total construction area of approximately 0.55 million square meters. It has invested in the construction of factories in South Korea and Japan overseas. The Japan factory is located in Osaka and is mainly used to meet small-scale customer demand. The South Korea factory is located in Fuyu County and mainly serves the expanding production needs of Korean customers in the US market.

In the first half of the year, Zhejiang Hangke Technology's R&D investment totaled 0.113 billion yuan, a decrease of 9.25% compared to the same period last year. There are a total of 17 ongoing research projects, among which the 'Solid State Battery High Pressure Fixture Machine' is expected to have a total investment scale of 16 million yuan, with a cumulative investment of 7.7768 million yuan. It is currently in the experimental verification stage.

With the fierce competition in the domestic lithium battery industry, going overseas has become a trend. According to EVTank data, as of June 2024, Chinese lithium battery industry chain enterprises have announced overseas investment amounting to 564.8 billion yuan, with Europe accounting for 37%, and the rest mainly in Southeast Asia and the United States.

Looking at Zhejiang Hangke Technology, the company's overseas revenue in the first half of the year was 0.879 billion yuan, a year-on-year increase of 23.99%.

The 'Star Daily' noted that the company's overseas business is doing well. Recently, the company announced that it has received contracts generated by the bidding system from Volkswagen Spain and Volkswagen Canada. The above-mentioned contracts are for the purchase of post-battery equipment for lithium batteries produced by the Volkswagen Group in Spain and Canada. The total amount of the contracts exceeds 45% of the company's audited revenue in the previous year.

According to the company's disclosed 2023 annual report, it achieved operating revenue of 3.932 billion yuan last year, a year-on-year increase of 13.83%. Based on this calculation, the total amount of this contract is approximately 1.77 billion yuan.

At the same time, the company has multiple ongoing projects to prepare for going overseas.

The 'Cell Self-discharge Parameter Testing System' project has currently obtained an order from a South Korean customer and has been shipped to the customer's site for testing. In addition, this system solution is currently being negotiated with customers in Japan, South Korea, and Europe and America.

The 'Pre-pressure Self-discharge Testing Machine' project will be mass-produced for use in projects with customers in Japan, South Korea, and North America.

The 'Soft Pack Battery Loading and Unloading System Based on Stacker Model' project has currently seen bulk production of the stacking machine model clamps by a South Korean customer, completing this part of the design. Zhejiang Hangke Technology can introduce this equipment to first-line overseas customers.

The 'Soft Pack High-voltage Direct Current Busbar Battery Capacity Integrated Machine' project is being developed for technical verification. It will prepare for the bidding of the linebody by South Korean customers and also for competition in the industry's power soft pack market.