Xinwanda Electronics Co., Ltd. Visual China data map
Following CATL (300750.SZ/03750.HK) and EVE Energy (300014.SZ), Xinwanda Electronics Co., Ltd. (hereinafter referred to as "Xinwanda", 300207.SZ), a well-established lithium battery company founded nearly 30 years ago, has become the third power battery company in China to seek an "A+H" layout.
On the evening of July 1, the company announced: In order to further promote the company's globalization strategy, build an international capital operation platform, enhance the international brand image and comprehensive competitiveness, and assist the company's long-term development, it plans to issue overseas listed foreign shares (H shares) and apply for listing on the main board of the Hong Kong Stock Exchange.
Headquartered in Shenzhen, Xinwanda is a veteran in China's lithium-ion battery industry. It was founded in 1997 by brothers Wang Mingwang and Wang Wei from Maoming, Guangdong. The company was mainly engaged in consumer battery pack business in the early days. It officially entered the field of automotive power batteries in 2008. Xinwanda established Automotive Power Battery Co., Ltd. and established the Power Cell Research Institute in 2015 to open up the energy storage market.
Xinwangda was listed on the Shenzhen Stock Exchange in 2011 and successfully issued GDRs and listed on the Swiss Stock Exchange in 2022.
In 2024, Xinwanda's revenue was 56.021 billion yuan, a year-on-year increase of 17.05%; the net profit attributable to shareholders of the listed company was 1.468 billion yuan, a year-on-year increase of 36.43%. Last year, the company's overseas revenue accounted for 41.83%. In the first quarter of this year, the company's revenue was 12.289 billion yuan, a year-on-year increase of 11.97%; the net profit attributable to shareholders of the listed company was 386 million yuan, a year-on-year increase of 21.23%.
In terms of business share, consumer batteries are still Xinwangda's largest business segment and an important source of cash flow for the company.
In 2024, the company's revenue from consumer batteries, electric vehicle batteries and energy storage systems accounted for 54.27%, 27.02% and 3.37% respectively, and other businesses accounted for 15.33%. The gross profit margins were 17.65%, 8.80%, 20.39% and 16.52% respectively. Among them, in terms of power batteries, Xinwangda's total shipments in 2024 will be 25.29GWh, a year-on-year increase of 116.89%, and the revenue of this segment will be 15.139 billion yuan, a year-on-year increase of 40.24%.
According to data released by South Korean research organization SNE Research, last year, Xinwoda's global installed capacity of power batteries totaled 18.8GWh, a year-on-year increase of 74.1%, with a market share of 2.1%, ranking tenth. Statistics from the China Automotive Power Battery Industry Innovation Alliance show that the company's domestic installed capacity ranked seventh last year, with ternary power batteries ranked fifth and lithium iron phosphate batteries ranked seventh.
It is worth mentioning that two years ago, in July 2023, Xinwanda announced that it planned to spin off its subsidiary Xinwanda Power Technology Co., Ltd. (hereinafter referred to as "Xinwanda Power") to be listed on the Shenzhen Stock Exchange Growth Enterprise Market. Subsequently, in October 2023, the official website of the China Securities Regulatory Commission showed that Xinwanda Power had signed a listing guidance agreement with CITIC Securities and officially started the IPO process.
At that time, Xinwanda Power had gone through multiple rounds of financing, with investors including IDG Capital, Shenzhen Capital Group, National Green Development Fund, Ideal Auto, NIO, Xpeng Motors, Meituan, SAIC, GAC, Dongfeng Motor, Country Garden Venture Capital, Shangqi Capital, Hengxu Capital, Source Code Capital, Cornerstone Capital, Starna Capital, Bohua Capital, Jinyi Capital, Richu Capital, Cathay Capital, Yingke Capital, etc., about 70 well-known institutions and industrial parties invested. In the last round of financing before the planned IPO, Xinwanda Power's valuation was 35.5 billion yuan, surpassing its parent company Xinwanda.
However, in the three years before the proposed spin-off and listing, Xinwanda Power continued to be in a loss-making state. The 2024 performance report also shows that Xinwanda Power has not yet achieved profitability. At the performance briefing at the end of April this year, when investors asked "when is the power battery expected to turn a profit", Xinwanda responded that in the future, as the company's market share gradually expands, the operating performance of power batteries is expected to continue to improve.
The spin-off listing that began two years ago has not had any further progress disclosed since then.
In addition, in terms of global layout, the company mentioned in its annual report that in 2024, the company will further accelerate its pace of "going overseas", and the Vietnam Liwei project, Hungary and Thailand power projects will be smoothly promoted. From the perspective of Xinwanda's power sector, in addition to Hungary and Thailand, its overseas projects basically also include Morocco.
