With 289 million leading order in hand, Shanhui Technology will also enter the office structure.

On April 7, Shanhui Technology announced that since December 13, 2021, the total amount of contracts and fixed-point notices signed with Ningde Times and its subsidiaries has reached 289 million yuan (excluding tax). According to the announcement, the parties to the contract include Ningde Times and a number of battery factory subsidiaries, including German battery factories. The voluntary disclosure of major contract information with the leading global power battery companies also reflects the positive willingness of Xianhui Technology to participate in the power battery market.

According to the data, Shanhui Technology focuses on the field of automotive intelligent equipment, and its main business is the research, development, production and sales of all kinds of intelligent manufacturing equipment. At this stage, it mainly provides intelligent automatic production lines for domestic and foreign medium-and high-end automobile production enterprises and auto parts production enterprises.

In terms of the market, since the second half of 2020, thanks to the continuous increase in domestic production and sales of electric vehicles, the demand for power batteries has soared. As one of the leading enterprises in the production of power battery modules / PACK equipment, Xianhui technology orders have also grown rapidly.

In terms of customers, many industry leaders are on the list. At present, Xianhui Technology has power battery enterprise customers such as Ningde era and Funeng Technology, complete vehicle enterprise customers such as brilliance BMW, SAIC Volkswagen and German Volkswagen, and auto parts enterprise customers such as Zaifu.

In terms of performance, Shanhui Technology's revenue in 2021 was 1.108 billion yuan, an increase of 120.58 percent over the same period last year, and the net profit was 70.66 million yuan, an increase of 16.34 percent over the same period last year. As for the main reason for the big increase in performance last year, Xianhui Technology made it clear that mainly due to the strong demand in the downstream electric vehicle power battery market, enterprises' demand for power battery-related production lines (equipment) is growing rapidly, driving the rapid expansion of Xianhui technology electric vehicle power battery business scale compared with the previous year, and the company's business income has increased significantly.

In addition, after tasting the achievements in the field of power battery production equipment, it is understood that Xianhui Technology intends to acquire Dongheng Machinery in 2022, which will be further extended to the field of power battery module / PACK structure, with the aim of creating a two-wheel drive mode of equipment and products.

At present, the structure accounts for about 16% of the cost composition of the square shell power battery. Xianhui technology layout power battery module / PACK structure products, or based on the technology reserve, expand its new performance growth point in the power battery field.

From Xianhui technology show equipment orders to layout structural products, it is not difficult to see that with the rapid improvement of domestic electric vehicle market penetration in recent years, the market demand for power batteries has maintained a substantial growth. Bottom-up has also led the performance of power battery equipment enterprises to enter an explosive period.

From the perspective of the rapid development of power battery module / PACK production equipment, in addition to the above external reasons, the technological upgrading of module / PACK equipment within the enterprise has also played a positive role.

It is worth noting that the first overseas factory in the German state of Thuringia in the Ningde era was officially licensed for the production of batteries, with an initial scale of 8GWh. It is reported that the factory is the first battery factory in Germany and is currently in the stage of equipment installation, making final preparations for the first batch of cells to be offline by the end of 2022.

Shanhui Technology revealed in the announcement that the order includes the Ningde era German battery factory, which means that a considerable part of the equipment orders for the Ningde era German factory come from Chinese enterprises. it is expected that many Ningde era core equipment suppliers, including pilot Intelligence and Yinghe Technology, will "go to sea" with Ningde era.