The total investment of the 10 billion-level expansion project of "Ningwang" 15 billion re-expansion of lithium electricity has reached nearly 126.2 billion.

On the evening of November 5th, Ningde Times (300750) issued an announcement that under the background of "carbon neutralization and carbon peak", the new energy industry is developing rapidly. In order to comply with the trend of industrial development and further promote the company's capacity layout, the company plans to invest no more than 15 billion yuan in new projects in Fujian and Guizhou.

Specifically, Ningde Times plans to invest in the construction of Xiamen Times Lithium Ion Battery production Base in Xiamen City, Fujian Province (Phase I). The total investment of the project is not more than 8 billion yuan, the planned land area is about 1000 mu, and the construction period is no more than 26 months. the main body is Xiamen Times New Energy Technology Co., Ltd. It is planned to invest in the first phase of Guizhou new energy power and energy storage battery manufacturing base in Gui'an New area, Guizhou Province. the total investment of the project is no more than 7 billion yuan, the planned land area is about 1200 mu, and the construction period is no more than 18 months. the company will set up a new wholly-owned subsidiary in Gui'an New area of Guizhou Province as the main body of the project.

Ningde Times said that the company's investment in the construction of a production base is in line with the company's strategic development plan, and will further improve the company's production capacity layout and meet the needs of the company's future business development and market expansion. it is of great significance to promote the long-term and stable development of the company.

In terms of lithium power production capacity, at present, Ningde era already has an effective production capacity of more than 65GWH and a capacity under construction of more than 92GWh. customers include traditional vehicle factories such as Guangzhou Automobile, SAIC and BAIC, as well as new car-making forces such as Lulai, ideal and Xiaopeng, as well as foreign car companies such as Volkswagen, BMW, Tesla, Daimler, Volvo, PSA and so on. With its strong production capacity and customer advantages, Ningde Times has been at the top of the annual competitive brand list of power batteries in China's lithium battery industry for many years in a row, and this year is no exception.

In terms of domestic loading, according to data from the China Automotive Power Battery Industry Innovation Alliance, the number of power batteries loaded in Ningde era in September was 8.87GW, accounting for 56.5%, which was 184.29% higher than that in the same period last year. 3.12GWh increased by 184.29% in January-September, accounting for 50.8%, and 16.75GWh increased by 179.34% compared with the same period last year.

From the perspective of global layout, Ningde era has nine major battery manufacturing bases in the world. According to SNE Research statistics, Ningde era power battery usage ranks first in the world for four consecutive years. From January to September in 2021, the company installed power batteries globally with a market share of 31.2%, with a global installed capacity of 60.9GWh.In the third quarter, the company installed 26GWhs worldwide, including 21GWhs at home and 5GWh overseas.

What is noteworthy is that since the beginning of this year, under the sustained high prosperity of the new energy industry, the Ningde era, as the leader of lithium power, is also seizing market opportunities and expanding production one after another. up to now, the total investment in 10 billion-level expansion projects this year has reached nearly 126.2 billion yuan.

In addition to investing no more than 15 billion yuan in Xiamen and Guizhou production bases, Ningde Times announced on September 13 that the company plans to invest in the construction of Ningde era new lithium battery production base (Yichun) project in Yichun City, Jiangxi Province. the total investment of the project does not exceed 13.5 billion yuan.

On August 12, Ningde Times disclosed that the company plans to raise no more than 58.2 billion yuan to invest in six major projects, involving new lithium-ion battery annual capacity 137GWh and annual capacity about 30GWh energy storage cabinets. The projects include Fuding Lithium Ion Battery production Base Project, Guangdong Ruiqing Lithium Ion Battery production Project Phase I, Jiangsu Times Power and Energy Storage Lithium Ion Battery R & D and production Project (Phase IV), Ningde Jiaocheng era Lithium Ion Power Battery production Base Project (Cheliwan Project), Ningde Times Huxi Lithium Ion Battery expansion Project (Phase II), Ningde Times New Energy Advanced Technology Research and Development and Application Project.

On Feb. 25, time SAIC, a subsidiary of Ningde Times, plans to invest in the expansion project of SAIC power battery production line in Liyang City, Jiangsu Province, with a total investment of no more than 10.5 billion yuan.

On February 2, Ningde Times issued three production expansion announcements in succession, with a total investment of no more than 29 billion yuan to build / expand three major bases, including "Investment in the Construction of Phase V and Phase VI of Sichuan Yibin Manufacturing Base", "expansion of Power Battery production Line of time FAW" and "Zhaoqing Project of Ningde Times Power and Energy Storage Battery (Phase I)".

Ping an Securities Research News analysis, the global electrification wave is becoming increasingly fierce, new and old players are competing on the stage to further accelerate the process of electrification, pulled by the demand side continues to exceed expectations, the head battery enterprises are starting a new round of larger-scale production expansion, building a wider moat while also enjoying the development dividend of this strategic opportunity period, with the accelerated construction of new production capacity, the growth of the Ningde era will become more prominent.

While continuously increasing the scale of production capacity, since the second half of this year, Ningde era has also continued to buy shares in new energy vehicle companies through strategic investment and deeply bind downstream customers. On November 5, Changan Automobile announced that the company's board of directors approved and agreed that the company's holding subsidiary, Avita Technology Co., Ltd., should take the asset evaluation report as the pricing basis. Ningde Times, Fujian Mindong, Chongqing Chengan, Liangjiang Xi Zheng, Southern assets and Southern Industrial Fund were introduced as the main investors in this capital increase, with a total amount of 2.42 billion yuan. After the completion of the capital increase, Ningde Times will hold 23.99% of its shares, making it its second largest shareholder.

Geely Motor's Polar Krypton Intelligent Technology Co., Ltd. signed a share purchase agreement with five investors on Aug. 27 to issue a total of 126 million Pre-A preferred shares with a transaction value of $500m. Among them, the Ningde era invested in it as one of the five ecological partners.

On Aug. 3, the self-driving truck technology and operation company Cutcher Technology announced the completion of a $270 million round of B equity financing. Among them, the Ningde era carried out a follow-up investment as the original shareholder.

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In addition to the field of power batteries and new energy vehicles, the Ningde era has also acted frequently in the field of energy storage in recent years. In October this year alone, the company successively signed strategic cooperation agreements with energy and power enterprises such as Chinalco, China Huadian, three Gorges Group and Building Materials Group to carry out in-depth cooperation in the fields of energy storage, new energy and smart energy.

Extensive industrial layout and strong market demand have accelerated the penetration rate of batteries in Ningde era, driving its sustained growth in performance. According to the company's quarterly report for 2021, in the third quarter of this year, the company achieved operating income of 29.287 billion yuan, an increase of 132.73% over the same period last year, and a net profit of 3.267 billion yuan, an increase of 130.16% over the same period last year. From January to September this year, the company achieved an operating income of 73.362 billion yuan, an increase of 132.73% over the same period last year, and a net profit of 7.751 billion yuan, an increase of 130.9% over the same period last year.

It is worth noting that at the end of October, Ningde era also threw out a massive incentive plan to assess the target of not less than 620 billion of cumulative revenue in four years to ensure sustained growth.