SHANGHAI, Apr. 9 (SMM) – Chaowei Power revealed in its 2012 annual report that the company has been expanding capacity and improving technology in order to meet requirements for lead-acid battery producers issued by the Ministry of Industry & Information Technology and the Ministry of Environmental Protection.
According to the annual report, Chaowei realized RMB 9.56 billion in revenue, up 93.8% YoY, and with gross profits also up 34.8% to RMB 1.89 billion. Net profits were RMB 619 million and only up 5.1% from a year ago.
SMM’s analysis of the annual report highlights three major characteristics of Chaowei’s development.
First, as a leader in the electric vehicle battery sector, Chaowei saw the potential of the lead-acid battery market even as the government cracked down on environmental protection violators, and continued to expand capacity during 2012 in order to capture larger market share. The company established production bases in Shandong, Jiangsu, Henan, Zhejiang, Anhui, and Jiangxi provinces during 2012, allowing its motive battery capacity to grow from 56 million unit/yr to 90 million unit/yr, a 60.7% gain in capacity. The company also began construction in January 2012 of new capacity in Changxing county, Zhejiang province, as well as new capacity in Xinhe county, Hebei province last July.
Second, China’s central government announced Entrance Requirements for Lead-Acid Battery Industry, designed to promote industrial consolidation required cadmium free production, but Chaowei had already mastered the technology needed to produce batteries without cadmium, with 83% of its batteries produced using this technology in 2012, compared with 57% in 2011. All Chaowei batteries are expected to be produced cadmium-free by the end of this year.
Third, Chaowei has been aggressively developing new energy and storage batteries. Since new energy automobile sales are expected to surpass 5 million vehicles by 2020, Chaowei began cooperating with major domestic automobile manufacturers and plans to develop new projects as well with domestic electric vehicle producers. The storage batteries developed by Chaowei are also now available in solar power grids and in wind power plants. As a result, the company’s income derived from electric vehicle and special use lead-acid batteries totaled RMB 734 million in 2012, up over three-fold from 2011. Income from storage batteries was also up over two-fold from the previous year to RMB 43 million.