According to the "Star Daily" on November 27 (Reporter Yu Jiaxin), "Currently, competition in the lithium battery equipment industry is gradually concentrating among leading enterprises. As a leading enterprise in post-processing equipment for lithium batteries, the company has strong competitiveness among first- and second-tier battery manufacturers both domestically and abroad, especially with close cooperation with battery manufacturers in South Korea and Japan such as LG, SK, Samsung, AESC, BYD, eve energy co.,ltd., sunwoda electronic, gotion high-tech, and Zhuhai Guanyu." This was mentioned by Yu Pingguang, director and general manager of zhejiang hangke technology incorporated, at the earnings conference in the third quarter of 2024.

Since the fourth quarter of last year, zhejiang hangke technology incorporated has seen a continuous decline in performance year-on-year. In the first three quarters of this year, zhejiang hangke technology incorporated achieved revenue of 2.671 billion yuan, a decrease of 19.27%; and realized a net income attributable to the parent company of 0.376 billion yuan, a decrease of 47.34% year-on-year.

At the earnings conference, Fu Fenghua, deputy general manager, chief financial officer, and board secretary of zhejiang hangke technology incorporated, stated that the company's revenue in 2024 is expected to decline, mainly due to a decrease in domestic demand for lithium battery expansion since the second half of 2023, along with an extended acceptance period leading to a revenue decline. In terms of profit, the decline in revenue size, coupled with intense market competition in 2023 leading to a decrease in order gross margin, as well as foreign exchange losses increasing compared to the same period last year due to foreign currency exchange rate fluctuations, all contributed to a year-on-year decline in net income for this period.

In terms of business, Yu Pingguang, director and general manager of zhejiang hangke technology incorporated, stated that in recent years, as customer demands have changed, the company has continuously accumulated technology and sought new technological transformations, including in circular testing equipment, large cylindrical battery equipment, small steel shell battery equipment, and solid state battery equipment.

"With the rapid development of the lithium battery industry, the company has sold a significant amount of existing equipment, generating considerable maintenance and modification demands in recent years. The company has established a dedicated team responsible for the maintenance of existing equipment, and with the increasing demand for maintenance and modifications, it is expected to bring considerable service business in the future," Yu Pingguang stated.

Regarding the solid state battery field that investors are concerned about, Yan Lei, chairman of zhejiang hangke technology incorporated, stated that the specific advantages of solid state batteries, such as high energy density and high safety, are the main direction for future battery development. Semi-solid state batteries and solid state batteries are a reflection of the iteration of lithium battery technology, and this iterative upgrade is conducive to increasing equipment demand and optimizing the industry structure.

It was mentioned that in the company's research projects for 2024, there is a project for the "large pressure clamp machine for solid state batteries," aimed at conducting preliminary research based on the process characteristics that require high-strength pressure for solid state batteries and adequately preparing technological reserves. "Currently, the company has cooperated with several relevant manufacturers both domestically and abroad for experimental lines or pilot lines of solid state batteries and has gradually delivered equipment."

From the perspective of overseas markets, Yan Lei stated that in 2023, market demand in the usa and europe has begun to grow. The global expansion led by the battery manufacturers in japan and south korea has brought about significant equipment demand. At the same time, the trend of automakers building their own battery factories has become more prominent. In the medium to long term, there is still ample and long-term market demand in overseas markets.

"Chinese lithium battery companies accelerating their overseas layout has become a necessary path for their global strategy. In the future, the international development of chinese lithium battery products will gradually shift from export to overseas ventures, and from being trade-oriented to focusing on local development through overseas investment. Therefore, the focus of future lithium battery equipment demand will continue to shift outward, and overseas markets will become a new driving force for the industry."

In terms of specific layout, Yan Lei, the chairman of zhejiang hangke technology incorporated, stated that the company has deeply cultivated the japan and south korea markets for many years. Additionally, they have secured a significant order from Volkswagen this year, achieving a major breakthrough in the european market. Furthermore, the indian market is also starting to gain momentum, with large enterprises in india such as Tata Motors and Reliance Group also beginning to lay out the lithium battery industry, which is expected to bring new equipment demands.

In August of this year, zhejiang hangke technology incorporated announced that they received contracts generated through the bidding system from Volkswagen in Spain and Volkswagen in Canada, with a total contract amount exceeding 45% of the company's audited revenue from the previous year.

"The contract signed with Volkswagen in the second half of the year is the largest single order the company has ever received. This order is for the lithium battery downstream equipment needed for battery production by the Volkswagen Group in Spain and Canada. The company is currently actively promoting the process. Due to the large order amount, deliveries are expected to begin in the first half of 2025." Yan Lei stated that this milestone marks a significant breakthrough for the company in the european market and signifies an important transition of the customer base from traditional battery factories to automakers.

Regarding overseas production capacity construction, he mentioned that the company currently has overseas factories in south korea and japan, and plans to build a large manufacturing facility in malaysia to meet future overseas demand and changes in market policies.