In December 2015, Yinghe Technology announced to raise USD139.12 million through a private placement for its capacity expansion to produce fully automated power Li-ion battery production facilities. This can mainly be attributed to its supply shortage under the rapid development of power Li-ion battery industry in China this year, according to CCM research.
Source: Bing
On 2 Dec., 2015, Shenzhen Yinghe Technology Co., Ltd. (Yinghe Technology), which has been listed for only about half a year, announced its private placement plan to raise <= USD139.12 million (RMB889 million), of which USD114.11 million (RMB730 million) is to be invested in constructing production lines to produce fully automated production facilities for power Li-ion battery, whilst the rest USD25.01 million (RMB160 million) is to be used as working capital.
After the construction, Yinghe Technology will have 10 production lines in total to produce fully automated power Li-ion battery production facilities, sales expected to reach USD138.34 million (RMB885 million) annually. To be specific:
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4 lines for cylinder power Li-ion battery production facilities, output valued at USD56.27 million (RMB360 million)
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2 lines for square-shaped power Li-ion battery (winded) production facilities, output valued at USD27.35 million (RMB175 million)
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4 lines for square-shaped power Li-ion battery (laminated) production facilities, output valued at USD54.71 million (RMB350 million)
"It is an important strategy for our company to raise fund to construct production lines through private placement. It will help improve our competitiveness and financial performance', said Yinghe Technology.
Yinghe Technology, established in 2006, is a high-tech company for automated equipment R&D, production, sales and after-sale services. In recent three years, it has grown fast under the rapid development of China's power Li-ion battery industry. During 2012-2014, it made the sales of USD25.64 million (RMB164 million), USD32.98 million (RMB211 million) and USD35.17 million (RMB225 million) respectively.
In Q1-3 2015, Yinghe Technology's sales hit USD39.08 million (RMB250 million), up by 52.62% YoY, of which the net profit rose by 31.26% YoY to USD7.97 million (RMB51 million). Growths were also seen in its gross profit margin and net profit margin, about 1 percentage point each. However, its sales from the top 5 clients dropped by 11 percentage points YoY to 52%. This indicated an increasingly wide recognition from other end users. For example, China's Li-ion battery giants such as China Aviation Lithium Battery Co., Ltd. and EVE Energy Co., Ltd. (EVE) chose to cooperate with it this year.
According to CCM research, Yinghe Technology's good performance mainly benefits from the rapid development of the domestic alternative energy vehicle and power Li-ion battery industries.
Data from the Ministry of Industry and Information Technology of the People's Republic of China (MIIT) showed that 206,900 alternative energy vehicles were produced in China in January-October, a YoY growth of 300%.
Besides, on the 3rd Advanced Batteries for xEV/ESS Conference (in Wuhan City, Hubei Province), power Li-ion battery companies such as Guoxuan High-Tech Co., Ltd. and Do-Fluoride Chemicals Co., Ltd. announced to continuously expand their production capacity to ease their supply shortage. "The insufficient domestic capacity of power Li-ion battery has restricted the development of alternative energy vehicle industry', said Liu Jincheng, director of EVE.
Under this circumstance, CCM predicts that China's power Li-ion battery industry and related industries will continue growing in 2016.
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Tag: li-ion battery, Yinghe Technology