Nearly 80% of our income comes from it! Aluminum enterprises suffer from "BYD high dependence disease" is good or bad?
August 15, 2023
On August 9, BYD's 5 million new energy vehicles rolled off the assembly line. In May 2021, BYD's 1 millionth new energy vehicle rolled off the assembly line, and in November 2022, BYD's 3 millionth new energy vehicle rolled off the assembly line. Byd from 1 million to 3 million in a year and a half, from 3 million to today's 5 million off the production line in less than nine months. Along the way, it is inseparable from the strong support of upstream and downstream partners, including which aluminum companies?
Byd and the aluminum industry
Byd has come to its current position step by step, without the strong support of upstream and downstream partners. In the aluminum industry, we can observe: Guangdong Hongtu, as the largest precision aluminum die-casting enterprise in South China, has established a cooperative relationship with BYD to provide automotive aluminum die-casting parts and interior and exterior trim products; Fen 'an Aluminum: The development of high-performance automotive aluminum profile products successfully applied to BYD new energy vehicle Dynasty series and ocean series models; Yuefeng Aluminum Technology: is the first domestic batch supply to BYD through aluminum alloy extrusion process and FSW and other new technology manufacturing battery box manufacturers. In addition, there are countless aluminum companies to provide more power for BYD's upward development, here is not a list.
However, in this process, we need to pay attention to: the rapid development of new energy vehicles, although for the upstream and downstream of the aluminum industry chain is a development opportunity, but if excessive dependence may have a certain impact on the development of the enterprise itself. For example: Yuefeng aluminum technology.
Yuefeng Aluminum Technology: the main income comes from BYD
It is understood that Yuefeng aluminum technology is mainly engaged in the research and development, production and sales of aluminum alloy components of new energy vehicle battery system, the main products are battery boxes, which are key components of new energy vehicle power battery system, and have now become the largest supplier of BYD new energy vehicle battery boxes.
At the end of 2022, Yuefeng Aluminum Technology submitted a prospectus to the GEM, and the regulatory authorities have sent the first round of audit inquiries to it. According to the prospectus, the IPO company intends to raise 1 billion yuan, of which 800 million yuan is used for the "Nanchuan District annual output of new energy auto parts 800,000 sets" project, and the remaining 200 million yuan is used to supplement working capital.
From the disclosure of the prospectus, in 2021 and 2022, by the rapid improvement of the prosperity of the new energy industry and the improvement of downstream demand, Yuefen aluminum technology performance has grown rapidly, and at the same time, the dependence on BYD, a major customer, has become more serious. During the reporting period, the proportion of Yuefeng Aluminum Technology's sales revenue to BYD's operating income was 64.80%, 70.42% and 78.87%, and the proportion of gross profit to BYD's sales was 76.27%, 83.59% and 87.14%, respectively. Byd is the largest customer of Yuefeng Aluminum technology and accounts for a relatively high proportion.
To consolidate advantages, we need to take the road of independent research and development
From the prospectus, we can clearly see that unswervably take the road of technology research and development and innovation is the future development route, for Yuefen aluminum technology, only continue to increase investment in research and development, and continue to break through the core technology, in order to occupy the initiative in the process of heavy competition and strict verification, and better maintain their own advantages in the new energy vehicle battery box and other parts suppliers. At present, the development of new energy vehicles has brought opportunities, but also brought more challenges, the requirements of suppliers in all aspects (including: quality, technology, patents, etc.) are gradually strengthening, the majority of aluminum and aluminum processing enterprises should also actively adapt to new needs, new standards, new changes, etc., to promote the application of aluminum in new energy vehicles and make more contributions.
According to data released by the Ministry of Industry and Information Technology recently, in July, China's new energy vehicle production and sales reached 805,000 and 780,000, respectively, an increase of 30.6% and 31.6%, and the market share reached 32.7%. Since 2023, China's new energy automobile industry has "galloped all the way". From January to July, the production and sales of new energy vehicles totaled 4.591 million and 4.526 million, up 40% and 41.7% year-on-year, respectively. In addition, policies to support the development of automobiles have been intensively introduced, such as the National Development and Reform Commission and the Ministry of Industry and Information Technology and other departments to formulate "Several Measures to promote Automobile consumption"; The Ministry of Industry and Information Technology has clearly stepped up the development and implementation of the work plan for the steady growth of key industries such as automobiles...
New energy boom or will lead the next round of aluminum "super cycle", let us work together, upward growth!
