Far East Shares: The new energy industry is picking up, and batteries are ushering in new opportunities

In the first month of 2021, a strategic procurement agreement of not less than 900 million yuan brought a "good start"
to the smart battery business of Far East Smart Energy Co.
, Ltd.
(hereinafter referred to as Far East Stock Code: 600869).
This may be a major feature of new opportunities brought by the recovery of the new energy industry, and to a certain extent, it also indicates that larger industry opportunities are brewing, how can relevant enterprises better grasp them? What did the forerunners catch?

The dual value of policy + market,

What will the industry pick up bring?

"New energy is the general trend of development", after years of exploration and accumulation, this view has gradually evolved into a practical phenomenon, which can be felt from more and more innovative electric vehicles on the highway, but also from the endless flow of electric two-wheelers on the trail, consumers have begun to accept and get used to their existence, which also means that the industry has picked up
significantly.

At the end of last year, the State Council issued the "New Energy Vehicle Industry Development Plan (2021-2025)", which made it clear that China's new energy vehicle sales will account for about 20% in 2025, combined with the current automobile market scale analysis, its average annual growth rate of sales will be more than 30%, directly corresponding to the demand-side growth
of power batteries.
The clear top-level design further boosts the confidence
of the power battery market.

In addition to the new energy vehicles that have attracted a lot of attention, those electric two-wheelers that have been accustomed to are also undergoing drastic changes, and the corresponding companies have taken the transformation of lithium batteries as an important strategy in stages
.
It is foreseeable that with the end of the transition period of the new national standard, electric two-wheelers will be successively equipped with lithium battery power supply, which will coordinate to improve the endurance, power, charging and discharging performance of electric two-wheelers, and then become the most suitable "replacement" after the "ban on motorcycles"
policy has landed.
Based on such factors, GGII predicts that the penetration rate of lithium batteries in the electric two-wheeler market will reach 23%
in 2021.

In fact, not only electric vehicles (power batteries), electric two-wheelers (small power batteries), including 3C digital, power tools and other market segments are being explored, the corresponding growth space is also expanding, it can be said that various new opportunities follow the recovery of the new energy industry
.
In addition, affected by the market share of power battery head enterprises, the small power market may be the biggest breakthrough for other pioneers
.

Under the change, what does Far East Shares grasp?

We can see the wind and seize the opportunity
.
Far East Holdings insists on deeply cultivating the new energy industry, strives to build a power battery industrialization base integrating production, learning and research, and further creates four advantages
of scale, technology, production and industrial chain synergy.
In the process of development, adhering to technology-driven and innovation-led, Far East Holdings has continuously built and improved the research institute, introduced and trained advanced talents, and established a technical team
composed of professionals.
At the same time, Far East has also undertaken the construction of "postdoctoral research workstation" and "academician workstation"
.

It is relying on strong R&D strength that its Far East Battery continues to catalyze product upgrades and vigorously develop products with high safety, long life and high specific energy
.
In view of the range anxiety of short-distance travel at this stage and the typical characteristics of the cordless era of power tool products, Far East Battery puts forward higher R&D requirements for technologies such as discharge rate, battery capacity and cycle life, and develops 21700 cells
with both capacity and rate based on 18650.
The corresponding production capacity has also been scaled, and it can currently achieve more than 1.
4 million 18,650 and 21,700 cylindrical lithium-ion batteries per day
.

Thanks to the sufficient production capacity and excellent performance of the product, Far East Battery can develop its business layout
with more confidence.
According to the early strategic planning, the layout of power batteries, small power batteries, and 3C digital market segments has been carried out one after another, among which the effect on small power is remarkable, and a new blue ocean
of subdivision has been successfully explored.

Multiple strategic signings, what else is in the future?

In the past year, Far East Battery has focused on expanding the small power battery market, and has successively signed strategic cooperation agreements with two-wheeler OEMs such as Niu, Ninebo, and Xinri and become suppliers
.
In the next three years, Maverick Electric will purchase no less than 150 million 18650 ternary lithium batteries from Far East Shares, and is expected to generate operating income of not less than 900 million yuan; Xinri shares said that it will deepen cooperation with Far East Co.
, Ltd.
in the two major fields of electric bicycles and electric vehicles, and realize the lithium battery transformation as a leading electric bicycle company.
.
.

Not only that, based on regional economic considerations, Far Eastern enterprises are headquartered in Wuxi, and Wuxi is China's four major electric two-wheeler production bases (the only two listed companies in the field of electric two-wheelers, Xinri and Yadea, are located here), which can be described as "near the water", and there are a large number of customers
next door.
At the same time, with the deepening of the lithium battery transformation of electric bicycle companies, a larger scale of cooperation and win-win
cooperation will be achieved with Far East Shares in the future.

As for the field of power tools, Far East has signed a strategic cooperation agreement with Baoshide Technology, an international first-class power tool company, and has tested and redeveloped
the products according to demand.
In the field of power batteries, it has consolidated cooperation with new energy vehicle companies such as Jiangling around the leading product 21700 cylindrical lithium-ion battery, and continuously expanded cooperation
with other new energy vehicle companies.
In the future, it can be seen that Far East will continue to increase research and development efforts, and base on existing advantages to deepen the three major market
segments.

New energy is a giant ship sailing to the future, Far East Shares has already boarded the ship, and at the same time linked with Far Eastern companies and related industrial chain companies, combined efforts, with the mission of "creating value and serving the society", to build a safe, green and better life
together.
The future is coming! (Zuo Tianyou)