Since 2021, despite the impact of the epidemic, chip shortages, rising raw materials and other unfavorable factors, China’s automobile production and sales have remained stable, and the resilience of the entire industry has become prominent. The stabilization of vehicle production and sales has also driven the simultaneous growth of Chinese auto parts companies.
According to public data, since 2011, the operating income of my country’s A-share auto parts industry has increased from 253.594 billion yuan to 1,018.015 billion yuan, with a compound growth rate of 14.91%. At the same time, more and more parts companies have begun to turn to the new energy vehicle track, cultivating more specialized segments.
On the evening of November 7, Changqing (603768) announced that the company plans to raise no more than 800 million yuan by non-public offering of shares, which will be used for large-scale die-casting projects integrating new energy vehicles after deducting the issuance costs to supplement working capital.
Evergreen shares stated in the announcement that there are two considerations for this fundraising. One is to introduce advanced production equipment and technology to take this opportunity to enter the lightweight automobile market for the industry trend; the other is to optimize the company. Asset-liability structure, reduce financial costs and ease the company’s liquidity pressure.
Seize the automotive lightweight market space
According to public information, Evergreen Co., Ltd. was established in 2004. Its main business includes research and development, production, sales and technical consultation of auto parts and molds. At present, the company has formed a relatively complete stamping and welding technology research and development system, and has certain independent research and development and technological innovation capabilities in new technologies, new materials and new processes. Because the company is located in Hefei City, Anhui Province, and benefiting from the strong support of Anhui Province for the new energy vehicle industry in recent years, Changqing Co., Ltd. has also begun to transform into the field of new energy vehicles.
It is reported that Changqing’s fund-raising is mainly to develop the new energy integrated die-casting industry, and it plans to raise no more than 800 million yuan from no more than 35 specific investors.
Evergreen shares judged that with the economic development and the increasing tension of non-renewable energy sources such as oil and natural gas, the energy conservation and emission reduction policies of the global automobile industry have gradually become stricter, and the fuel consumption and emission standards have been continuously improved. As an important vehicle energy saving and emission reduction approach, lightweight technology can achieve vehicle weight reduction under the conditions of vehicle safety and cost control.
Studies have shown that for every 10% weight loss of a car, in terms of energy saving, the fuel consumption of gasoline vehicles can be reduced by about 3.3%, and the power consumption of pure electric vehicles can be reduced by about 6.3%. Therefore, in the context of the continuous increase in the penetration rate of new energy vehicles, the demand for automotive lightweight materials is also expected to continue to increase.
Evergreen shares announced that it is beneficial to seize the development opportunities of my country’s new energy vehicle industry and promote the realization of the company’s strategic goals by focusing on the lightweight field of new energy vehicles at this time.
The integrated die casting market is heating up
Under the demand for energy saving and emission reduction of automobiles, the lightweight of new energy vehicles has become an inevitable trend. So how to achieve effective weight reduction of automobiles? It has become a topic that automobile companies are scrambling to overcome.
It is understood that in recent years, integrated die casting has gradually become a mainstream idea. In 2020, Tesla took the lead in proposing the concept of integrated die-casting, and successively achieved mass production of integrated die-casting parts for the rear floor and front longitudinal beam, and firstly applied it to the manufacture of the Model Y rear floor assembly.
From a process point of view, integrated die-casting breaks the traditional automobile manufacturing process mode. The parts are die-casted at one time, the number is greatly reduced, and a large number of complex connection processes are avoided. With its advantages of high production efficiency and low cost, integrated die-casting provides a new model for the application of automobile lightweight and aluminum alloys, or will subvert the traditional automobile manufacturing process.
It is precisely based on the above advantages that the market of integrated die casting is gradually heating up, and it has become an important way for new energy vehicles to achieve product weight reduction. At present, Xiaopeng Automobile, Weilai, Changan Automobile, Gaohe Automobile, etc. are all exploring the mode of integrated die casting.
GF Securities judged that the integrated die-casting model can not only reduce the weight of the body, but also greatly reduce the cost of vehicle manufacturing, and the manufacturing cost of a single vehicle can be reduced by about 31%.
Because of this, this field is also attracting more and more parts companies to invest in it. It is predicted that from the perspective of volume, the sales of new energy vehicles will continue to grow rapidly, and the application of large integrated die castings in body and chassis structural parts will continue to expand, and its penetration rate will further increase. It is estimated that by 2025, the scale of the integrated die-casting market will reach 99.5 billion yuan.
It is reported that according to the plan of Changqing Co., Ltd., the company will mainly focus on the overall layout of the production of new energy vehicle die-casting parts. The planned total construction area is 37,800 square meters. It plans to purchase 21 sets of production process equipment and supporting testing equipment. The project design capacity is The annual output is 160,000 pieces of new energy vehicle chassis die castings and 40,000 pieces of new energy vehicle battery shells. After the project is put into production, the company will form a complete new energy vehicle integrated die casting production system.