Where is the trend of power battery industry in watma bankruptcy liquidation

Posted 2024-12-02 00:00:00 +0000 UTC

After the beginning of winter, the cold wind blows. Shenzhen watma Co., Ltd. (hereinafter referred to as watma), once a power battery giant, may never see the next spring again. On November 13, Shenzhen intermediate people's Court of Guangdong Province issued the announcement on the appointment of administrator in the bankruptcy liquidation case of Shenzhen watma Battery Co., Ltd., marking watma's entry into the bankruptcy liquidation procedure. That night, the parent company of Waterma, genravonon, issued a notice confirming the above information. In fact, watma is not the first and may not be the last power battery company to fall recently. "The power battery industry is undergoing a reshuffle, and the background of the decline of the car market makes the reshuffle effect more obvious." Wang Jingzhong, full-time vice president of China Battery Industry Association, told China auto news that for some power battery enterprises, the current situation is very serious. The industry noted that in the past year, watma has gone through the twists and turns of workers' holidays, work stoppages and so on. According to the announcement of Jianrui Huaneng, Shenzhen intermediate people's court has accepted the bankruptcy and liquidation case of watma on November 7, 2019. According to the announcement, watma's external debt is about 19.7 billion yuan, and its debt to 559 suppliers is about 5.4 billion yuan. Under the influence of watma, the first three quarters of the revenue of jianruihuaneng reached 430 million yuan, a year-on-year decrease of 87.86%, the net profit attributable to the parent decreased by 2.61 billion yuan, and the non net profit deducted decreased by 2.48 billion yuan. In the face of the capital problem, Jianrui Huaneng said that if the people's court ruled that watma entered the bankruptcy liquidation procedure, it would have a positive impact on the resolution of the debt crisis the company currently faced. According to the court's preliminary finding, watma has more than 800 employees, and the company's existing assets are the construction land (59030.15 square meters) located in Kengzi street, Pingshan District, Shenzhen City, as well as foreign equity investment, vehicles, inventory, machinery and equipment, accounts receivable, etc. At present, its parent company, Jianrui Huaneng, is also encumbered by watma and gets into trouble. Bankruptcy liquidation is different from bankruptcy reorganization, a lawyer told reporters. Once entering bankruptcy liquidation, it means watma will leave the power battery industry. For genravonon, it means that a "burden" has been removed, which may be what genravonon calls "positive impact". Watmar is one of the first domestic enterprises that successfully developed new energy vehicle power battery and took the lead in realizing large-scale production and batch application. It once ranked among the top three power batteries in China. In 2015, the domestic market share of watmar battery reached 26.6%. In 2016, watma was acquired by Jianrui Huaneng (formerly Jianrui fire protection) for 5.2 billion yuan. In 2017, watmar was able to generate a net profit growth of up to 1681 times for genravo in the first quarter. Some analysts believe that watma's crisis, in addition to the market environment, also reflects that it does not pay attention to core technology, but only wants to win a temporary order through the industry alliance. It lacks the technical foundation and short-sighted market strategy. Once it encounters market turbulence, it is helpless. From watma to huanyuser, Guoneng and other battery companies, they are almost the same. In the past year or more, the power battery industry has been shuffling more and more, with obvious differentiation. Many enterprises may have capital problems or quietly fall down, which has become "Baiyun for thousands of years". From November 7, four upstream enterprises of lithium battery positive materials, including rongbai technology, dangsheng technology, Hangke technology and new Zebang, successively issued suggestive announcements on the risk of accounts receivable, suggesting that there is a risk that accounts receivable cannot be recovered. On the evening of November 12, BIC battery issued an official statement saying that the failure to pay off the supplier's payment as agreed was mainly due to the company's current cash flow pressure, which was mainly affected by the unpaid payment of two vehicle enterprises, and therefore affected the upstream manufacturers. Bik's creditor's rights have been fully protected, and will actively promote the vehicle manufacturers to collect money. In addition, actively develop payment solutions, the normal production and operation of the company is not affected. In addition, several customer orders are in normal progress, Dongfeng Nissan, Zero run, ZTE, etc. are currently loading one after another. Up to now, more than 50 power battery enterprises, such as new Taihang, Baishun Songtao, Hengdong new energy, aerospace power, Huanyu Saier new energy, Jianxing lithium battery, and Weineng, have been basically silent. At the same time, related enterprises are also affected. For example, xinzhoubang, the electrolyte manufacturer upstream of the battery, also wrote off the bad debts in full due to the bankruptcy of Zhongtao battery in Shenzhen. In its 2018 annual report, pioneer intelligence said that because Boston battery (Jiangsu) Co., Ltd. has no executable property, the company had to write off its receivables of 756100 yuan. The reporter learned that in 2016, more than 200 power battery enterprises entered the catalogue of the Ministry of industry and information technology, down to more than 90 in 2017. At that time, experts in the industry predicted that by 2020, there will be only more than 20 power battery enterprises, and more than 90% of them will be eliminated. One by one the fallen battery enterprises make the industry shudder. According to the data of China automobile power battery industry innovation alliance, from January to October of this year, 75 power battery enterprises in China's new energy vehicle market have realized loading matching, and the proportion of power battery loading volume of the top three, top five and top ten power battery enterprises in the total installed volume is 74.5%, 79.7% and 88.2% respectively. Among them, the top three enterprises in terms of power battery loading volume in the first ten months were 22.81gwh, 9.19gwh and 2.44gwh of Hefei GuoXuan. In October, the top three power battery loading enterprises were Ningde era 2.08gwh, BYD 0.47gwh and Lishen 0.29gwh. It is worth noting that even in the era of renningde, the head enterprise, the net profit also declined in the third quarter, to 1.362 billion yuan, down 7.2% year on year. According to Ningde Times financial report, this is due to the decline in the price of some products, the decrease in gross profit rate, and the increase in R & D investment and management costs in the third quarter, which led to the increase in the proportion of expenses in revenue. Industry insiders believe that from this year to 2020, it is a critical period for power battery enterprises. In the context of unclear prospects for the car market, not only will new energy subsidies gradually decline, but also will face the challenge of large-scale foreign investment, which increasingly tests the power battery enterprises' ability to resist risks and market response. "Affected by other factors, sales of new energy vehicles have declined for four consecutive months, which is also a challenge for battery companies." Cui Dongshu, secretary-general of the national passenger vehicle market information Federation, told China auto news that the industry competition might be more fierce. The industry believes that in the long run, improving the industry concentration and scale is the development direction of the power battery industry. For enterprises, only by focusing on core technology, building innovation strength and improving market competitiveness can they lead the market and grow continuously. "Only by mastering the core technology can we become bigger and stronger in the competition." Wang Jingzhong stressed.

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