The company is a light electric vehicle battery leader: the company's main products include lithium battery modules (including light vehicle lithium-ion batteries, energy storage batteries, consumer electronics batteries) and lithium battery batteries, and acquired Cade New Energy in 2017. to achieve an integrated cell-battery module layout, committed to becoming the world's most competitive integrated lithium solution leader. In 2021, revenue reached 2.2 billion yuan, the main product light vehicle lithium battery accounted for 56% of the main business income, mainly from overseas light power lithium battery business (accounting for 49%). Revenue and clients maintain rapid growth; during this period, the expense rate decreases marginally, and profitability increases steadily.
The company's various businesses blossom, the industry space is large: the light electric vehicle lithium electricity business market space is broad, the overseas high-end product profit margin is high, the income occupies half of the company, is the core growth point of the performance. The global demand for lithium batteries for light electric vehicles is large, with an average annual compound growth rate of more than 30 per cent from 2020 to 2025. The further expansion of the emerging consumer electronics market is expected to lead to the growth of the relevant lithium-ion battery market. The company's energy storage battery business will increase sales of high-capacity battery packs in 2021. In the future, with the outbreak of the energy storage market and the upgrading of the company's product structure, the energy storage battery business is expected to achieve a simultaneous increase in volume and price. The company's equity incentive was granted in May, encouraging a total of 128 people, and encouraging the backbone of talents to accelerate the growth of the company during the four-year attribution period from 2022 to 2025.
Multiple advantages to build the company's long-term moat, to create a global light electric vehicle lithium electric leading enterprises: technological advantages:
Master many core technologies, including intelligent management technology of battery pack. Customer advantage: the company ranks among the top three in the European electric bicycle lithium battery market, binds overseas high-quality customers, according to the customized needs of different products, in order to provide lithium battery integrated solutions, channels and technical advantages coexist. Scale advantage: IPO raises funds to accelerate the pace of production expansion of light electric vehicle battery packs. The total production capacity of 1.575 million lithium battery packs will be increased from 102.9 million in 2020 to 2.604 million after the expansion is completed. Supply chain advantages: 1, passed the factory inspection standards of well-known battery suppliers such as LG, Panasonic and Samsung, and established an international brand battery direct supply channel; 2, increase the proportion of self-supply cells. Use IPO super-raised funds to increase investment in Cade New Energy to build power lithium battery projects; in addition, it plans to invest 3 billion yuan to build lithium battery and energy storage battery capacity in Dongguan. Further improve the company's cell-battery pack integrated layout, reduce costs, consolidate and enhance the company's core competitiveness.
Risk hints: the sales of light electric vehicles are lower than expected; the capacity expansion of lithium batteries for light electric vehicles is higher than expected; the price decline is faster than expected; the pace of production expansion is not as fast as expected; the introduction of new customers is not as expected; the price of major raw materials rose more than expected.