Sales of lithium battery packs and replacement power stations increase Shandong Weida is expected to make a net profit of more than 320 million in 2021.

On the evening of January 19th, Shandong Weida (002026) announced that the company expects the net profit attributed to listed companies to be 320 million yuan to 400 million yuan in 2021, an increase of 25.79% and 57.24% over the same period last year.

Shandong Weida said that in 2021, the market demand in the power tools industry was strong, and the company's orders for power tool accessories (such as drill chucks, power tool switches, precision castings, powder metallurgy products, saw blades, etc.) continued to grow, further increasing market share. In addition, the company's new energy sector (such as lithium battery packs, new energy vehicle automatic power stations, etc.) sales increased, profitability improved compared with the same period last year.

Data show that Shandong Weida has three major business sectors: power tool accessories business, high-end intelligent equipment manufacturing business and new energy business. In the new energy business, the company began to change the R & D and technology reserve of the power station through the acquisition of Suzhou Demaike in 2016, and established a joint venture with Weilai in August 2017 to jointly develop and manufacture electric vehicles for power stations. At present, the company's replacement power station has been installed and operated in many places throughout the country, and the customers are mainly domestic and foreign well-known new energy vehicles, light electric vehicles, smart home appliances and other enterprises, such as Lulai, Tesla stroller, Xiaomi, Midea and so on.

The battery network learned that Weilai plans to build more than 4000 power stations worldwide by 2025, continuing to support the company's power exchange business, including 3000 in the Chinese market and about 1000 in the non-Chinese market. At present, Shandong Weida is the exclusive supplier of the second generation replacement power station in Weilai. Only Weilai's planning can also ensure that the sales of the company's replacement power station will increase significantly in the future.

It is noteworthy that Shandong Weida is currently actively expanding production capacity. The company has built a new intelligent new energy storage power production line in Jiading District, Shanghai, which is used to enhance the company's annual production capacity of new energy batteries to cover the needs of customers in the field of electric and garden tools and users in the new energy industry, such as Germany's Bosch, USA Black & Decker, Japan's Pastoral, Hong Kong, China, and other users in the new energy industry, and further enhance the company's profitability and competitiveness.