SMM: on August 4, 2020, Ningde Times non-public offering of new shares listed on the Shenzhen Stock Exchange, according to the previously issued listing notice, the non-public offering of 122360248 new shares, the issue price of 161.00 yuan per share, raising funds of about 19.7 billion yuan.
According to the notice, a total of 38 investors participated in the purchase, and nine issuance targets were finally identified. They are Hillhouse Capital Management Co., Ltd., Honda Technology Research Industry (China) Investment Co., Ltd., Pacific Asset Management Co., Ltd., UBS AG, Beixin Ruifeng Fund Management Co., Ltd., J.P. Morgan Securities plc, Guotai Junan Securities Co., Ltd., JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, Zhuhai Hillhouse Suicheng Equity Investment Partnership (limited partnership).
Placement of nine issuers Photo Source: screenshot of Ningde Times announcement
As can be seen from the table, Hillhouse Capital subscribed for 62 million shares, with a subscription amount of 10 billion yuan, accounting for 50.76% of the total placement. After the registration of the non-public offering of new shares, Hillhouse Capital will become the ninth largest shareholder in Ningde era, with a total of 52795031 shares, or 2.27%.
The restricted period of the shares subscribed for this issue is 6 months from the date of listing of the new shares, and the circulation time of the listing is expected to be February 4, 2021 (non-trading day extension).
According to the announcement, Ningde's operating income has maintained growth in the past three years, with operating income of 19.9968608 billion yuan in 2017, 29.6112654 billion yuan in 2018, 45.7880206 billion yuan in 2018, 45.7880206 billion yuan in 2018 and 9.0307941 billion yuan in January-March 2020. The net profits attributed to the owners of the parent company were 3.8779549 billion yuan, 3.3870352 billion yuan, 4.5603074 billion yuan and 742.0432 million yuan respectively.
The main reason for the revenue growth in Ningde era is that with the rapid development of domestic new energy vehicle industry and the growing demand of domestic power battery market, Ningde era, as a leading power battery supplier in the industry, has a strong competitive advantage. with the gradual release of production capacity, its production and sales continue to grow.
According to the data of China Automotive Power Battery Industry Innovation Alliance, in the power battery market of new energy vehicles in China in the first half of 2020, the installed capacity of power batteries in Ningde era is 8.44GWH, accounting for nearly half of the market share, ranking first. It is worth noting that, driven by the sales of domestic Tesla, the market share of foreign battery enterprises has increased compared with the past. In the first half of 2020, LG and Panasonic entered the top five in the installed capacity of power battery enterprises, with a market share of 16.24%. The competition pattern of power battery market at home and abroad has intensified.
In the global market, Yonhap News Agency reported on August 3, 2020, according to data released by market research agency SNE Research, LG Chemical surpassed Ningde era to become the world's largest supplier of electric vehicle batteries in the first half of 2020. LG Chemical accounted for 24.6 per cent of the electric vehicle battery market in the first half of the year, up from 10.4 per cent in the same period in 2019, according to the data. LG Chemical used 10.5 gigawatt-hours of batteries for electric vehicles in the first half of the year, compared with 5.7 gigawatt-hours in the same period in 2019. Ningde Times ranked second with a market share of 23.5% in the first half, down slightly from 25.1% in the same period last year.
According to the second quarter of 2020 results released by LG Chemical, the sales of its battery business is about 16.6 billion yuan, and the operating profit is about 900 million yuan, both of which are the highest in history. For the reason for the growth of the battery business, LG Chemical said it was mainly due to the increase in electric vehicle sales due to the expansion of global environmental policies such as Europe and China, as well as the supply of large energy storage projects in North America. Among them, Tesla, who ranked first in global electric vehicle sales in the first half of the year, is the main factor in the growth of LG chemical performance.
Since 2020, there has been a lot of news of cooperation between Ningde Times and Tesla. In addition to providing power batteries for domestic Tesla, Zeng Yuqun previously said in an interview: "We do not rule out the possibility of supplying batteries to Tesla's Berlin factory." This will greatly promote the return of the Ningde era to the first place of global market share.
The competition for the power battery market of new energy vehicles is becoming more and more fierce. in the face of the strong attack of foreign-funded enterprises, the Ningde era is also increasing its activity. the release of the successful signal of nearly 20 billion yuan in fund-raising shows the value of the power battery industry and verifies the position of the Ningde era in the capital market.
In addition to the power battery industry, since the first half of 2020, Ningde era has tried to extend its industrial chain across the border, setting up a number of new subsidiaries one after another, involving intelligent manufacturing, unmanned mines, new energy industry investment and so on.
Since 2020, with the support of the state and policy to the power exchange mode, the power exchange infrastructure business has also become a hot spot in the new energy vehicle investment market. On July 28th, the official Wechat of Ningde Times released the news that Ningde Times, together with Futian Zhilan New Energy, helped China's first commercial application scene of heavy truck for power exchange officially landed. Ningde era provides an efficient solution for the replacement of heavy trucks for "public transfer iron" and promotes the electrification transformation and upgrading of the transportation industry. This inevitably reminds people that the Ningde era may begin to make efforts in terms of power exchange facilities.
In the face of the increasingly fierce competition environment in the new energy vehicle market, the multi-faceted cross-border layout may be a major measure to improve its influence and improve the new energy vehicle industry chain in Ningde era.
"SMM online Q & A" has come to the market, price, information if you have any questions, feel free to ask!
Scan the QR code and join the SMM metal communication group.
