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’s power battery sales surged by 74.22% year-on-year, with net profits reaching 4.288 billion yuan, a 38.8% increase from the previous year. This marked a significant milestone for the company, which has been steadily expanding its market presence. Just a few days earlier, on March 8, Foxconn Industrial Internet Co., Ltd. made history by completing its IPO process in just 20 working days, becoming the fastest A-share IPO in Chinese financial history. The China Securities Regulatory Commission has recently introduced a fast-track process for “unicorn” companies—those in key sectors like biotechnology, cloud computing, artificial intelligence, and high-end manufacturing that have reached a certain market valuation. This development raises the question: could Ningde Times follow a similar path? Ningde Times is often referred to as a "power battery unicorn." Its IPO prospectus, published in November of the previous year, revealed plans to list on the Shenzhen Stock Exchange’s Growth Enterprise Market, issuing 217,243,700 new shares, representing at least 10% of the total share capital post-issue. The company's estimated market value is around 130 billion yuan. In the 2017 Hurun Greater China Unicorn Index, Ningde Times ranked fifth, while in the 2018 China Unicorn TOP100 list, it was the highest-valued power battery company. In 2017, Ningde Times secured the top spot in global power battery shipments for the third consecutive year, surpassing Japanese and South Korean competitors with 11.84 GWh shipped. This marked the first time a Chinese company topped the global rankings in this sector. With China’s new energy vehicle (NEV) sales reaching 777,000 units in 2017—a 53.25% increase from the previous year—Ningde Times has positioned itself at the heart of the industry. According to GGII data, the company accounted for 29% of China’s lithium battery installed capacity in 2017, highlighting its dominant role in the market. Unlike many Japanese and Korean battery manufacturers that focused on passenger vehicles, Ningde Times has also gained a strong foothold in the bus market. As Zeng Yiqun, CEO of the company, once stated, “We serve more local customers, but our main focus is on producing power batteries for electric buses.” From 2015 to 2017, Ningde Power Battery System revenue grew from 4.981 billion yuan to 16.657 billion yuan, accounting for a large portion of the company’s main business. Major clients include Zhengzhou Yutong, Beijing Pride, Geely, and Dongfeng Motor. By the end of 2017, over 16% of new energy vehicles in China used Ningde batteries, making it the most powerful battery supplier in the country. Looking back, the rise of Ningde Times reflects the broader growth of China’s battery industry. From the early 2000s, when electric vehicles were included in the national “863” program, to the 2010 State Council’s designation of new energy vehicles as a strategic industry, the stage was set for rapid development. In 2011, Zeng Junqun founded Ningde Times after spinning off the automotive battery division from ATL, a global leader in mobile phone batteries. Since then, the company has partnered with major automakers such as BMW, SAIC, and Geely, becoming one of the few Chinese suppliers chosen by international brands. Its overseas expansion continued in 2018, with partnerships with Aston Martin and Volkswagen, marking a significant step into the global market. The company’s technological edge lies in its high-energy-density batteries, with current specific energy exceeding 270 Wh/kg, aiming to reach 350 Wh/kg by 2020. With over 3,400 R&D personnel and 1,440 patents pending, Ningde Times continues to innovate and push boundaries. As the power battery industry expands, so do challenges. Capacity utilization rates have declined, and prices have dropped due to oversupply. However, with ambitious targets to reach 50GWh of production capacity by 2020, and plans to build factories in Europe, Ningde Times remains confident in its future.

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