SHANGHAI, Mar. 29 (SMM) – Wolong Electric stepped up its efforts in structure adjustment given the intensifying competition, and tried to improve the core competitiveness of its batteries through technology upgrade.
According to the company’s annual report, it realized RMB 2.507 billion in sales income, down 20.31% YoY, but profit increased 10.13% from a year ago to RMB 151.29 million, with net profit distributable to listed company up 5.85% YoY to RMB 117.51 million.
Unlikely other battery enterprises specializing in lead-acid battery production, Wolong Electric also produces electric and control devices, as well as transformer, and revenue from storage battery business, which dropped 6.4% YoY to RMB 226.11 million in last year, only accounted for 9.3% of the total
Wolong Electric accelerated the relocation and reviews of its lead-acid battery plant in Paojiang to expand its capacity and take the initiative in competition. The company has been committed to building new capacity since the government started the environmental protections inspection to lead-acid battery industry in May 2011. The company resumed its battery operation after being proved qualified in the inspection in 2012. Moreover, its battery capacity doubled to hit 2 million kvah with new capacity coming online last year.
Wolong Electric plan to expand its battery business while maintaining its firm position in communications sector. Dengta Power Source, a subsidiary of Wolong Electric, is now a leading enterprise in communicative battery area with high-end products, advanced technology, concentrated production lines, and solid customer flows which make it more competitive in battery market.
As the Entrance Requirements for Lead-Acid Battery Industry tightened regulation on battery producers, Wolong Electric strengthened the efforts in restructuring of battery businesses, and promoted wider application of its products through technological innovation. The company is now focusing on developing ignition, motive and lithium battery market.