Nearly 40% of IPO growth or acceleration in Ningde era last year
On March 12, Ningde Times New Energy Technology Co., Ltd. (referred to as Ningde Times) updated its prospectus on the China Securities Regulatory Commission's website. In 2017, the company saw a significant increase in power battery sales, rising by 74.22% year-on-year, with net profits reaching 4.288 billion yuan, up 38.8% from the previous year.
Earlier, on March 8, Foxconn Industrial Internet Co., Ltd. completed its IPO process in just 20 working days, becoming the fastest A-share IPO in history. The China Securities Regulatory Commission has introduced a fast-track for "unicorn" companies in sectors like biotechnology, cloud computing, AI, and high-end manufacturing that meet certain market value thresholds.
Can Ningde Times follow this fast track? As a leading player in the power battery sector, it has already shown strong potential. Its recent IPO prospectus revealed plans to list on the Shenzhen Stock Exchange’s Growth Enterprise Market, aiming to issue 217,243,700 shares, or at least 10% of total shares, with an estimated valuation of around 130 billion yuan.
In the 2017 Hurun Greater China Unicorn Index, Ningde Times ranked fifth, and in the 2018 China Unicorn TOP100, it was the highest-valued power battery company. In 2017, Ningde Power Battery shipments reached 11.84 GWh, making it the top global supplier for the third consecutive year, surpassing Japanese and South Korean competitors for the first time.
With new energy vehicle sales in China hitting 777,000 units in 2017, up 53.25% year-on-year, the demand for power batteries is growing rapidly. Ningde Times captured 29% of the installed capacity in China, reflecting its dominant position in the market.
The company serves major clients such as Zhengzhou Yutong, Geely, and Dongfeng, and its batteries power over 16% of new energy vehicles in China. Zeng Yiqun, CEO of Ningde Times, emphasized their focus on electric buses and local customers.
From 2015 to 2017, the company's revenue from power battery systems grew significantly, reaching 16.657 billion yuan in 2017. This growth is supported by strategic partnerships with global automakers like BMW and Volkswagen, which have selected Ningde as a key battery supplier.
Internationally, Ningde is expanding its footprint, with deals involving Aston Martin and Volkswagen. The company aims to build production facilities in Europe, including Germany, Hungary, and Poland, to support global automakers.
Ningde also invests heavily in R&D, with over 3,400 researchers and more than 1,400 patents pending. The company is developing advanced battery technologies, such as high-nickel ternary and silicon-carbon batteries, to stay ahead in the competitive landscape.
Despite the rapid expansion, the industry faces challenges, including overcapacity and declining prices. Ningde's gross margin dropped from 44.84% in 2016 to 35.25% in 2017, reflecting the pressure of a highly competitive market.
As the global shift toward electric vehicles continues, Ningde Times remains well-positioned to capitalize on the growing demand for reliable and high-performance power batteries. With its technological edge and strategic expansion, the company is poised to play a pivotal role in shaping the future of the automotive industry.
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Dongguan Yingxin Technology Co., Ltd. , https://www.dgyingxintech.com