Winter Affects The Industrial Chain. It Is Difficult For The Repayment To Bring A Survival Crisis To The Lithium Battery Industry.

- Dec 17, 2019-

The continuous decline of the new energy vehicle market has not only affected several vehicle companies trying to "turn over" by new energy vehicles, but it has also affected the power battery industry. On November 6, Rongbai Technology issued a risk alert announcement, stating that the company has a risk of irrecoverable receivables of more than 206 million yuan, including overdue accounts and unacceptable bills of exchange due on November 7; Dangsheng Technology pointed out in a "Reminder Announcement on Account Receivables Risk" that BAK Power and Zhengzhou BAK combined owed approximately 379 million yuan to the company. BAK Power, which was pushed to the forefront of public opinion for a while, issued an announcement on November 12th. While expressing apologies, the company is currently facing pressure from cash flow, mainly because Zotye and Huatai have not paid for the goods, and are currently actively negotiating. in. Wang Binggang, the leader of the expert group of the national new energy vehicle innovation project, admitted in an interview with the China Automotive News reporter that this is indeed related to the current overall state of the industry is not too good. At present, battery companies should strive to improve product quality, reduce costs, and actively face the challenge.

■ Bike is also "injured"

The first 25 companies listed on the Science and Technology Innovation Board on July 22 have been closely watched by public opinion. Therefore, Rongbai Technology immediately caused a great response from the industry. In this "Announcement on the Risk Reminder of BAK Power Receivable Bills Due to Failure to Pay", Rongbai Technology stated that the total of 70 million yuan of commercial acceptance bills from BAK Power failed to reach the date of the announcement. To realize the payment, Rongbai Technology compared with the receivables and bills receivables of Billion Dynamics (including the aforesaid commercial acceptance bills excluding bank acceptance bills) totaling 208 million yuan, of which overdue accounts and expired unredeemed bills A total of 206 million yuan, the company believes that based on BAK Power's actual solvency and other factors, there may also be a significant risk of not being able to repay on time.

In the "Rongbai Technology Announcement on the Progress of Receivables Collection" issued on November 16, the sponsors believed that the company had made additional provision for bad debts in comparison with the receivables of the company. If there is an adverse change in the subsequent assessment of BAK Power's solvency, the company will need to fully or partially make provision for bad debts; if it is fully accrued, it may cause the company's net profit to decline significantly in 2019, and may even lose money. The sponsors remind investors to pay attention to the corresponding investment risks.

In fact, there are more than one company "implicated" by BAK, and listed companies including New Zebang, Hang Ke Technology, and Dangsheng Technology have all joined the camp for accumulating bad debts. "The failure to pay the supplier's payment as promised is mainly due to the company's current cash flow pressure. The main audience, Thai Motors and Huatai Motors, has not affected the payment and has affected upstream manufacturers." BAK Power responded, "Currently, we are actively negotiating with the two companies, and have fully protected the debts involved through legal means."

Of course, BAK Battery's debtors are not only Zotye Motors and Huatai Motors. Public information shows that since June 2019, BAK Power has successively applied to Chongqing Ideal Intelligent Manufacturing Co., Ltd. and Zotye New Energy Automobile Co., Ltd. Changsha Branch. Automobile companies such as Zotye New Energy Automobile Co., Ltd., Yongkang Zotye Automobile Co., Ltd., Zotye Automobile Co., Ltd. and Guohong Automobile Group Co., Ltd. have filed lawsuits.

■ Difficulty in collecting funds has become a common phenomenon in the industry

In the view of Liu Yanlong, secretary general of the China Chemical and Physical Power Industry Association, this should be a common phenomenon in the industry.

Previously, the relevant person in charge of Guoneng Battery said: "Because of the impact of the new energy automobile industry, the company currently has 1.2 billion yuan of receivables that have not been recovered, resulting in the payment of compensation, wages and reimbursement for some employees who have left the company." Zhidou Automobile also owed as much as 364 million yuan in excessive fluorine and multi-power batteries, and affected a number of listed companies including Ocean Electric, Wanan Technology, Meili Technology, Penghui Energy, etc., the latter The corresponding preparations for accruing bad debts have been carried out one after another. "Since this year, the longest account period for vehicle companies has reached 12 months, and our company's capital chain has reached the brink of breaking." A person in charge of a battery company said.

"At present, the overall situation of the automobile market is not good. The car cannot be sold and the money cannot be returned, which has caused the working capital of the enterprise to be ineffective." According to Wang Binggang, the decline in the market is also one of the important reasons that make it difficult for power battery companies to repay. According to statistics from the China Automobile Industry Association (hereinafter referred to as the "Automotive Association of China"), in October this year, China's total installed capacity of power batteries was 4.1GWh, a year-on-year decrease of 31.4%, and the market growth rate was significantly slower than the same period last year. Among them, the installed capacity of ternary batteries and lithium iron phosphate batteries was 2.9 GWh and 1.1 GWh, respectively, a year-on-year decrease of 26% and 41.7%.

However, according to the relevant person in charge of the above-mentioned enterprise, the more important reason for the current problem is the adjustment of subsidy policies. "In the three years from 2016 to 2018, the installed capacity of power batteries was large, so a large number of subsequent supply contracts were signed." The person in charge told reporters: "But unexpectedly, with state subsidies With the increase of the threshold, some auto companies cannot receive subsidies in time, or even subsidies, and the payment of goods is delayed. The current financial pressure in the industry is basically borne by battery companies. "

An unnamed battery industry analyst bluntly stated that the reduction in "national supplement" had a direct impact on the price of power batteries. OEMs require power battery companies to reduce prices, but at the same time, the continuous rise in upstream raw material prices has increased the cost of power battery production, and battery suppliers' single product profits have fallen, which has led to further tightening of cash flow problems for battery companies. .

■ Increasing competition

The "surfaced" BAK Power is actually not low in the current power battery industry. It ranks in the top 15 and more battery companies smaller than it have quietly withdrawn from the market silently. . According to statistics, in 2015, the total number of power battery companies in China was 150. This number has changed to 100 last year. One third of power battery companies have been eliminated. According to statistics from the China Automobile Association, only October this year Forty-six power battery companies have realized vehicle installation support, which is 6 fewer than in September.

Earlier, Liu Yanlong expressed his concerns when predicting the performance of the power battery industry in 2019: "As market competition intensifies and industrial chain integration accelerates, subsidies accelerate the decline, and the threshold for power battery technology increases. It will face greater challenges. "In addition, Liu Yanlong emphasized that with the deepening of opening up and the acceleration of the layout of foreign battery companies, domestic battery companies are facing an important window period. If they are not prepared, the impact will be very serious. Big.

Wang Binggang suggested that battery companies should work hard to improve product quality and reduce costs in order to actively respond to new market challenges. Mo Ke, chief analyst of true lithium research, suggested that the market demand for the lithium battery industry is very large. It is not necessary for companies to concentrate on the field of power batteries, and there is also a large demand in areas such as energy storage or electric bicycles. Taking Tianneng's cylindrical battery as an example, it is entirely possible to continue to deepen the layout in the field of power tools and open up the market.

Of course, as Liu Yanlong said, the power battery industry also has some favorable factors such as the further implementation of the “double points” policy and the non-financial policy support of the local government after the subsidy decline, but the future competition situation is still grim. "The speed of integration of the power battery industry is continuously accelerating, and the concentration is also rapidly increasing. It is expected that by 2020, there will be only 20 or 30 power battery companies in China. At this stage, more than 80% of enterprises are facing elimination." Liu Yanlong judged.