Small Lithium-ion Battery Development Enterprises Have Closed Down And Strong In Order To Survive

- Mar 15, 2012-

Towards the end of 2014, due to business pressures and fierce competition in the industry, has been staged more than lithium-ion battery production enterprises to stop production collapse tragedy, world, CIC, pilot, bidike lithium over 30 small and medium enterprises have not escaped this tragic ending.

Most of the lithium battery enterprises products is for mobile phones, tablet computers, electronic cigarettes and mobile power supply and mobile phones, mobile power market concentration has increased significantly, electronic cigarette demand is shrinking fast. Phone lithium battery technical requirements demand more and more high profile requires more and more smaller and thinner, increasing demand capacity, security requirements have become more sophisticated ... ...

It is understood that an annual production capacity of 20 million Ah line of at least 50 million Yuan investment, for batteries with no capital accumulation businesses, only through bank loans to support the capacity expansion. Most lithium batteries capacity belong to the lower-end repeat, homogenization competition, often through price wars, extend payment terms to obtain customers; adverse business environment is the fundamental reason leading to successive failures by the lithium batteries manufacturer. This is because most of our downstream clients are small and medium PACK lithium battery manufacturers or electronic factories, hidden costs in the customer development process the rebate link, accounts payable recovery is difficult.

Core business gross margin is generally in about 20%; deduction of selling expenses, finance costs, after-sales service, such as equipment depreciation, most companies selling net interest rate is lower than 5%, or even losses. Therefore, no group of enterprises through new loans to repay old debts in the form of corporate cash flow. Like CHANGHONG is CHANGHONG electrical appliances new energy group background the famous battery enterprises, winning is the best battery of accumulation of funds, these powerful lithium-ion batteries in order to survive in this competitive environment, development.

Then take a look at the global lithium industry, first half of 2014, global lithium-ion battery output to 54.6 billion yuan, an increase of 16.2% from battery cell production value ranks, concentration of big companies rising, small business is in decline. In 2013, the enterprise's market share of the top 10 was 50.4%, and in 2014, this proportion rose to 54.4% in the first half. Global trends are strong powerful lithium-ion battery business and SMEs collapse into tide, not to mention China. So small businesses are unreliable, choose lithium battery products are sure to set our sights, to choose a big brand, a well-known enterprises Ah!

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