SUNWODA(SZ:300207) Hua Xia Shi Bao·2025-08-08 22:48Core Viewpoint - XINWANGDA (300207.SZ), the world's largest mobile battery manufacturer, is pursuing an IPO in Hong Kong to support its international market expansion, particularly through the establishment of a battery factory in Vietnam [2][4]. Group 1: Business Overview - XINWANGDA's primary revenue source remains consumer batteries, which generated revenues of 32.015 billion yuan in 2022, 28.543 billion yuan in 2023, and is projected to reach 30.405 billion yuan in 2024 [3]. - The company has a significant market share, with a 34.3% share in mobile battery shipments and a 21.6% share in notebook and tablet batteries, making it the largest and second-largest supplier in these segments, respectively [3]. - The company is diversifying into power batteries and energy storage systems, which are growing rapidly but have lower profitability compared to consumer batteries [3][5]. Group 2: Financial Performance - In Q1 2025, XINWANGDA's revenues from consumer batteries, power batteries, and energy storage systems were 6.61 billion yuan, 3.048 billion yuan, and 354 million yuan, respectively, with consumer batteries accounting for 53.8% of total revenue [5]. - The profitability of the power battery segment is under scrutiny, with a reported loss of 1.587 billion yuan in 2024 and cumulative losses of 6.58 billion yuan from 2022 to 2024 [6]. - The gross margin for power batteries has improved from 8% in 2022 to 10.7% in 2024, but it remains below the industry average of 21.85% [6]. Group 3: Market Expansion and Strategy - XINWANGDA is focusing on building a factory in Vietnam with an annual production capacity of approximately 56 million batteries and a total investment of no more than 2 billion yuan [4]. - The company is also developing a production facility in Hungary, with an investment of up to 1.96 billion yuan, aimed at serving the European market, which is expected to see significant growth in energy storage capacity [8][9]. - The European market presents both opportunities and challenges, with a projected 10-fold increase in energy storage installations by 2030, driven by strong legislative support for emission reduction [9]. Group 4: Competitive Landscape - The competition in the power and energy storage market is intensifying, with Chinese companies capturing 69% of the global market share, while XINWANGDA's growth rate of 47% is competitive but lower than some peers [7]. - The company has faced challenges in maintaining its market position, with the average selling price of power batteries declining from 0.8 yuan/Wh in Q1 2024 to 0.5 yuan/Wh in Q1 2025 [6]. - XINWANGDA aims to rank among the top three domestic and top five global players in the power battery sector, indicating its ambition to strengthen its market presence [8].