Hunan Corun New Energy Co., Ltd. Business Report FY ended Dec. 2020
Finacncial Overview |
(CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | Rate of Change (%) | Factors | |
| Sales | 2,545.78 | 2,079.70 | 22.41 |
-Higher sales of products for Toyota HEVs and increased production and sales of the Company's lithium batteries led to a year-on-year increase. |
| Operating profit | 49.98 | (413.93) | - | |
| Ordinary profit | 54.30 | (417.47) | - | |
| Net profit | 40.90 | (409.43) | - |
Business trends
-The third plant of Kalimei Automotive Power Battery Co., Ltd. started mass production on 17 May 2021, bringing the annual production capacity of power batteries for HEVs to 360,000 units. The fourth plant is scheduled to be expanded in August. Kalimei produces mainly power cells for HEVs, all of which are currently used in Toyota's Corolla, Levin, Camry, Avalon, RAV4, Wildlander. and other hybrid models. (From June 23, and June 24, 2021 press releases)
-On May 11, 2021, Hunan Kepa Automotive Power Battery Co., Ltd. completed the third phase of a production-plant expansion and started mass production and shipment. The company's annual production capacity is now 360,000 units. In the first quarter, the company shipped 77,000 units of electrode plates, up 148% year-on-year. After the third expansion project was completed, the operating capacity rate was 100%. (From a June 24, 2021 press release)
-During the first quarter of 2021, the Company delivered approximately 88 MWh of power cells, an increase of 146% compared to the same period last year. (From a June 24, 2021 press release)
New company
-On October 4, 2020, the Company established a wholly owned subsidiary, Yiyang Keli Yuanxin Energy Co. The registered capital is CNY 150 million. The company mainly conducts research, development, manufacture, and sale of metal materials, batteries, and ancillary electronic products. (From the 2020 Annual Report)
-On December 11, 2020, a subsidiary, Lanzhou Jinchuan Chemiliyuan Battery Co., Ltd., established its own subsidiary, Foshan Jinchuan Chemiliyuan Technology Co. The registered capital is 30 million yuan. In 2020, Jinchuan Kerryuan will invest CNY 6 million in the new company. (From Annual Report 2020)
Strategic alliances
Wuxi Ming Heng signed a technology license agreement on December 22, 2020 with Kärgyi Yuanmixing Power Technology Co Ltd (CHS), a subsidiary of the Company. Based on the agreement, CHS will license patents and technology for its HT18000 series of products to Wuxi Ming Heng. The amount of the licensing agreement is CNY 70 million. The agreement covers nine patents and the right to use non-patented technologies, including the technology on second-generation, hybrid, power-distribution synthesis boxes, i.e., the HT18000 series boxes that were developed by CHS for public buses. Established in 2017, Wuxi Ming Heng is an enterprise engaged in the research and development of automotive hybrid-power technology, and the production of automotive components, motors and their control systems. Wuxi Ming Heng will use CHS's patents to improve its technology and produce diesel, gasoline, and hybrid-power units compliant with HT18000 products used on medium- and heavy duty trucks. (From a December 23, 2020 press release)
R&D trends
-In 2021, the subsidiary Kärgyi Yuanmixing Power Technology Co Ltd (CHS) will jointly develop with OEMS products for a new generation of hybrid systems. (From the 2202 Annual Report)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | |
| R&D Expenditure | 88.64 | 210.20 | 269.18 |
| Ratio of R&D expenses to operating income (%) | 3.48 | 10.11 | 14.22 |
-By the end of 2020, the company had 420 R&D staff members, accounting for 14.33% of the total number of employees.
R&D structure
-With five R&D centers and seven production plants, the Company developed a series of nickel-hydrogen batteries and foamed-nickel raw materials.
| R&D Centers | Main business | Year founded | Location | Shareholding (%) | Other shareholdings |
|
National Engineering Research Centre for Advanced Energy Storage Materials Co. |
R&D activities on nickel-battery materials, lithium-battery materials, supercapacitor-battery materials, fuel cell materials, etc. | 2010 | Hunan Changsha |
87.50 | Jinchuan Jidan Company Limited 6.25% Central South University Education Foundation 6.25% |
| Shenzhen National Engineering Research Centre for Advanced Energy Storage Materials Co. | R&D activities and sale of high performance, nickel batteries, lithium batteries, flow batteries, fuel cells, supercapacitors, key materials, energy storage technologies, and integrated system products. | 2010 | Guangdong Shenzhen |
80.00 | Shanghai Delanergy Battery Company Limited 20.00% |
| Shenzhen Advanced Energy Storage & Testing Technology Co. | Technical consulting, inspection, and certification of electronic products | 2018 | Guangdong Shenzhen |
66.00 | General owner 34% |
| Shanghai Keliyuan Power Technology Co. | Development of new energy, automotive and energy saving areas | 2018 | Shanghai | Subsidiary of Qualicom Hybrid Technologies Limited, indirectly owned 87.99% | |
| Kari Kien CHS Nippon Giken Co. | Development of HEV systems | 2016 | Nagoya Japan | ||
Permits
-In the fiscal year that ended on December 31, 2020, the Company had been granted 716 patents. This represents a 15.7% increase year-on-year. Of these, 421 patents were for advanced power batteries and materials. The number of patents for gasoline, electric, and hybrid power was 295. In addition, 150 patents are pending. (From the 2020 Annual Report)
Factory construction
-Hunan Corun New Energy Co., Ltd. (Corun) announced that it is planning the construction of its fourth production line for electrode plates. With a total investment of about CNY 401.64 million, the project will be constructed by Foshan Copower NEV Battery Co., Ltd. and have an annual production capacity of about 120,000 sets of electrode plates. Operation is expected to officially begin in March 2021. After construction of the new production line is completed, Corun will have an overall annual production capacity of 480,000 sets of positive and negative electrode plates. (From a Corun’s Shanghai Stock Exchange press release on January 16, 2020)