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Road coffee Comment: Who says electric car is to make money? And a battery company is liquidated

Today, the new energy automotive industry’s growth momentum has slowed down, sales are already more than a month decline and decrease continues to expand, although closed for the entire industrial chain of new energy sources, the battery companies in the upstream end of the new energy vehicles, however, from the current situation, power battery business days are not better than, exposed the problem is constantly increasing.

November 20, * ST lion announced that a wholly owned subsidiary of Hubei lion is New Energy Technology Co. filed for bankruptcy liquidation. According to * ST lion that the lion is the reason Hubei bankruptcy, the creditors Yicheng, Hubei Rural Commercial Bank Co., Ltd. Hubei lion proposed to apply to the bankruptcy liquidation People’s Court of Hubei Yicheng city, Hubei court accepts the fierce bankruptcy liquidation lion, meaning lion Hubei will officially enter bankruptcy proceedings.

Lithium Project

At present, Hubei New Energy Technology Co., Ltd. lion has entered bankruptcy liquidation procedure, Hubei lion by the court-appointed administrator takes over, it will lose its control right, and, Hubei lion is no longer included in the consolidation statements. So, with the lion Hubei relevant creditors are stepping up to actively negotiate a settlement program, intended to reach agreement as soon as possible by way of debt restructuring with creditors on debt related solutions. According to reports, as of September 30, 2019, net assets of 784 million yuan in Hubei lion, operating income of the first three quarters of 2019 is $ 0, net profit was -3.76 billion.

Previously, Guangdong lion New Energy Technology Co., Ltd. in 2016 should the city government investment should be invited Hubei, signed the “Agreement on investment in construction projects with an annual output 5GWh battery” and the municipal people’s government should agreement, the agreement should the city government and the lion of Science and Technology jointly to raise 3 billion yuan for Hubei lion annual 5GWh lithium battery project, both the 1: 1 ratio of capital contribution, the city government should be responsible for raising funds 1.5 billion. But due to the fund has not been established, the company financial pressure, the project failed to develop normally.

To March 2017, Hubei lion annual 5GWh lithium battery project was officially launched, Technology and Hubei lion lion through cash investment, the use of credit and guarantees lion technology lease financing, construction side has actually underwritten, etc. invested over 800 million yuan, including 30 million yuan to Hubei Hubei lion loan financing agricultural businesses.

As of now, Hubei lion annual 5GWh lithium battery plant infrastructure projects a total of 90,000 square meters of construction, the completion of a joint workshop A line, B line the main cap, PACK main cap workshop, finished products and raw materials, the main library the structure is completed, a subsidiary body of supporting projects all caps. A line has been the scene equipment installation and commissioning, in the final stage of the upcoming commissioning, due to shortage of funds, the project to promote the production temporarily at a standstill and debt disputes.

and in view of stagnation, Hubei agricultural firms have the financial loan contract dispute prosecution Hubei lion and related to the secured party Hubei Xiangyang City Intermediate People’s Court, Xiangyang City, Hubei Province Intermediate People’s Court in October 2019 to the dispute of First Instance decision.

years of consecutive losses

According to the lion technological results, its first three quarters of 2019 net loss of 720 million yuan, while the lion had various types of lead-acid battery technology primarily engaged in product development, production and sales, but also has applications on the production of batteries are automotive products, but in recent years, the lion’s technology business has evolved in the direction of lithium batteries, but the progress is not smooth.

Previously, the lion OPTIMUM technology applications and also use similar means, that is equipped with its own battery purchase models from OEMs and bear the main sales tasks by themselves, such as Dongfeng Yulong and fierce lion Technology jointly launched Yu Road EV2 electric cars, which produced a total of 566 sets of models, while the lion is technology itself consumes 491 units, this we can see that this majority was digested their own business models and did not meet expectations effect, but it is leading to the degree of loss has been on the rise.

can be seen, as of September 30, 2019, total assets of 881 million yuan in Hubei lion, total liabilities of 803 million yuan and net assets of 78.39 million yuan; operating three quarters of 2019Income is $ 0, net profit of -3761 million. Own revenue and profit is zero, but have a certain net assets are liquidated Hubei lion, the lion of the science and technology can be described as a major blow.

exacerbate the plight of the knockout overwhelmed

With OPTIMUM after liquidation, Hubei lion new energy into the phase is also filed for bankruptcy liquidation, and while the situation OPTIMUM essentially similar, business expansion too fast, but also more dispersed, a direct result of continued losses in recent years, can not continue to operate, while also facing the project stalled.

At present, the new energy vehicles, including battery pack manufacturers are faced with a large-scale reshuffle, but in recent years, power battery industry chain is gradually shift from policy-driven to market-driven, from the market itself to analyze its battery installed capacity has gradually stabilized, there is no trend in the emergence of large-scale explosion, so there the whole battery industry overcapacity and structural capacity planning and other short board, leading to competitive battery market and more intense.

Of course, as the country to tighten policy, lithium equipment industry has a certain scale of strength, but the battery the main part of the manufacturing equipment giant has been gradually formed, like Ningde era, LG chemical such companies are constantly deepen their abilities, so the big battery manufacturers to expand production and the number of cells in the absence of large-scale orders situation , has been unable to meet development needs.

In addition, in the case of subsidies to speed up the slope back, power battery industry chain enterprises’ profits are directly affected, many enterprises are facing difficulties revolving funds, many companies in the industry chain has begun whom anxiety .

wrote at the end of the text

As can be seen, the trend in large environments, the current sales of new energy vehicles in gradually lower as battery manufacturers are already several companies the closure of businesses closed, and when the battery power companies do not have the ability to improve its own technology, its problems will intensify again.

With the implementation of new energy automotive industry the latest subsidy back slope policy, new energy vehicles and their related industrial chain will also receive a certain influence, account of the battery business will only become moreLong after the blind expansion of production capacity and can not achieve installed capacity of enterprises will also face the risk of fracture of funds, even once giant company, it will inevitably be eliminated on the market.

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