The first trillion-yuan market capitalization company on gem finally appeared.

At the close of trading on May 31st, Ningde era became the first gem company with a market capitalization of 1.01 trillion yuan with a share price of 434.1 yuan.

Ningde era is a leading power battery enterprise. The batteries of electric vehicle companies such as Tesla, Inc., NIO Inc., XPeng Inc. and ideal are all provided by it. It can be said that as long as there are new energy vehicles, there will be the penetration of Ningde era products.

In just three years since landing on the gem in 2018, the market capitalization of the Ningde era has soared more than tenfold, joining the trillion market capitalization club with only eight A-shares. What are the previous eight? Let's take a look at Guizhou Moutai, Wuliangye, Industrial and Commercial Bank of China, Agricultural Bank Of China, China Construction Bank Corporation, China Merchants Bank, Ping An Insurance and China Life Insurance Company Limited. To sum up, it can be divided into three categories: alcohol, banking and insurance. Almost no Chinese manufacturing company has reached a market capitalization of trillion yuan, but the Ningde era has done so.

The trillions journey of the Ningde era revealed the same characteristics as his leader Zeng Yuqun: the typical "love to gamble" of Fujian businessmen. In 1999, Zeng Yuqun and his partners quit the iron rice bowl and started ATL. ATL did not have its own core technology at the beginning of its establishment, so Zeng Yuqun had to buy the license of battery patent from Bell Labs and solved the drum problem of Bell lithium battery. With this technological improvement, ATL subsequently won orders from customers of many large companies, such as Apple Inc and Samsung.

This first bet, bet out ATL this future lithium electricity leading enterprise. How good is ATL? Samsung blasted suppliers for quality problems in order to get rid of responsibility in the high-profile explosion of Samsung mobile phones in 2016. As a result, when checking the mobile phone batches, it was found that none of the batteries supplied by ATL had exploded.

The accumulation of ATL in the field of lithium electricity laid the foundation for the later Ningde era.

Zeng Yuqun's second bet was to run away from the heyday ATL to establish the Ningde era. In 2011, the electric car market is not clear. Tesla, Inc., as the only American electric car manufacturer, has only one model and has sold 2000 vehicles in three years. In China, BYD, the star company of new energy cars, fell into a dark period, and Chairman Wang Chuanfu publicly apologized for quality problems and growth rate.

But Zeng Yuqun is betting on the future of power batteries. ATL, which is wholly owned by TDK, a Japanese company, has lost its qualification to produce power batteries because of state restrictions on the entry of foreign-funded enterprises into China. Zeng Yuqun decided to lead the team independently and came to his hometown of Ningde to establish the Ningde era.

I have to say that Ningde is the favourite of the times, just in time to catch up with the policy dividend and the wind of the times. In 2012, the state wants to promote the development of new energy vehicle industry, among which Ningde is on the list. In 2015, the state shut out foreign battery factories, giving Ningde enough room for local growth. Under the protection of the policy, the Ningde era developed rapidly and quickly climbed to the domestic leading position. In 2016, Ningde battery shipments were still behind Panasonic and BYD, but by 2017, Ningde had become the number one battery in the world.

In 2020, new energy vehicles have once again become the tuyere, a large number of enterprises have announced cross-border car manufacturing, Huawei entered the auto market after a shortage of chips, XIAOMI's Lei Jun directly "all in", Baidu, Inc. BABA 360 have left, everyone wants to get a piece of the pie in the field of new energy vehicles, while Ningde era has long taken root in the field of power batteries and become the "invisible upstream" of most car companies. Reflecting the changes in the stock price, the share price of the Ningde era has tripled in the period from June last year to the present.

But the dividend of the times is just the icing on the cake, and it is technology that really makes Ningde break out the tight encirclement. At present, there are two kinds of power batteries on the market, which are ternary lithium battery and lithium iron phosphate battery. Sanyuan dominates the high-end market, while ferric phosphate is used in the middle and low-end market. Compared with Panasonic and LG, which specialize in ternary lithium batteries, Ningde chooses to grasp both hands and both hands are hard.

The experience of ATL at that time proved the importance of technology. To this end, Ningde has recruited a large number of scientific research and technical personnel, including more than 2000 employees with master's degrees alone. it is rumored that Ningde has poached all Chinese battery PhDs, indicating that Ningde is also willing to spend a lot of money on technological research and development. Since 2014, Ningde has invested 2.08 billion yuan in research and development, more than twice as much as the other four battery listed companies combined.

China's manufacturing industry has always been criticized as big but not strong, and in order to open overseas markets, it can only sacrifice profits for the market, while the Ningde era has an absolute say in the global market by virtue of the world-leading level of scientific research. With the exception of Ford, almost all the mainstream foreign car companies are customers of the Ningde era, including BMW, Volkswagen, Honda, Hyundai, American, German, Korean, Japanese, all in the bag. According to the current plan, in five years' time, the capacity of the Ningde era will be 10 times that of 2020.

From birth to growing up, Ningde era crawled all the way in the market. Today, this trillion giant will still rely on the excellent level of scientific research, grasp the absolute voice of the industry, and open up a new era.