“Science and Technology Innovation Board Daily”, November 22 (Reporter Yu Jiaxin) At Li Yuanheng's performance briefing for the third quarter of 2024, the company's chairman and president Zhou Junxiong said, “The new energy market environment (faces) many challenges (facing) complex and changing competitive conditions, etc. (The company) experienced a slowdown in business growth and loss under pressure on business performance.”

Zhou Chun-xiong further stated, “The company will dynamically adjust its business strategy and optimize management and operation in a timely manner in line with changes in the market environment, expand overseas markets, lay out photovoltaic equipment, dig deeper into the power lithium battery and consumer lithium battery equipment business, and focus on introducing market-competitive intelligent warehousing and logistics lines, battery assembly lines, coating machines, chemical conditioning equipment, etc., to minimize the adverse effects of the downturn in the industry cycle and operating losses.”

“On the other hand, the company will continue to invest around 10% in R&D, especially in the research and development of core equipment production lines such as anemone Yunshuzhi factory, coating, lamination, blade batteries, large cylindrical batteries, solid state batteries, sodium batteries, and perovskite.” That's what Chow Chun-hung said.

In the first three quarters of this year, Li Yuanheng achieved revenue of 2.323 billion yuan, a year-on-year decrease of 45.17%; realized net profit to mother -0.52 billion yuan, a year-on-year decrease of 3328.84%. Among them, in the third quarter of this year, the company had a net loss of 0.347 billion yuan, which changed from profit to loss over the previous quarter.

According to Li Yuanheng's presentation at the performance conference, it is mainly engaged in R&D, production and sales of high-end intelligent manufacturing equipment, and mainly provides smart factory solutions for enterprises in the field of new energy (lithium batteries, photovoltaics, hydrogen energy, electric drives, intelligent storage). “Facing the rapid development opportunities of the industry, the company will seize the new equipment needs generated by the industrialized application of new technologies and new processes.”

On November 12 this year, Li Yuanheng announced that it won the bid for the first complete sulfide solid state battery line project from a leading domestic company. The project covers the front, middle and back stages of solid-state battery production equipment.

At the results meeting, in response to the above project progress issues that many investors are concerned about, Li Yuanheng, Chairman and CEO Zhou Junxiong, said, “The entire solid-state battery sulfide line that the company won the bid for is currently in the internal design and manufacturing stage.”

“The industrialization of solid-state batteries is currently progressing rapidly, and there is great potential for future development. The company's solid-state battery business began to be laid out as early as 2020. Qingtao Energy has successively provided equipment such as chemical classification, laser welding, laser module division all-in-one machines, and battery cell assembly lines. The main equipment has already been delivered. At present, the company has successfully developed prototypes of key equipment such as dry electrodes, solid electrolyte pressing and transfer printing, lithium copper composite equipment, etc., and has achieved phased results in electrode insulation frame forming equipment and high-pressure chemical composition equipment.” Chow Chun-hung said.

However, Chow Chun-hung also confessed, “Currently, the company is actively developing and producing solid-state battery equipment with customers. It is expected that the revenue share in 2025 will be relatively small, and it is expected that it will gradually increase as the industry develops and customer demand.”

Recently, Li Yuanheng revealed the matter of receiving a batch order for a high-speed intelligent coating machine from a leading car company. In response, Chow Chun-hung said that the company recently announced the winning coating order and is expected to deliver inspection and revenue confirmation in 2025.

“In terms of the market competition pattern, the domestic market of the lithium power battery industry is still in a state of inventory removal, and overseas markets will become a new direction for power lithium battery equipment companies to expand their business.” Chow Chun-hung said.

In terms of overseas markets, up to now, Li Yuanheng has set up subsidiaries and offices in 13 overseas countries and regions, and provides localized services to overseas enterprises and local customers.

Chow Chun-hung said, “It is expected that the popularity of overseas new energy business investment will continue to increase in the next few years. The company will closely follow domestic companies going overseas, strengthen communication with overseas customers, continue to deepen the Southeast Asian, European and American markets, and provide high-quality high-end equipment production lines such as lithium batteries, photovoltaics, intelligent warehousing and smart logistics for global new energy customers.”

Regarding matters related to mergers and acquisitions that investors are concerned about, Chow Chun-hung said, “The company will actively evaluate and grasp mergers, acquisitions and restructuring according to the company's strategy and development needs, taking into account market and policy factors. If there are any relevant plans, the company will promptly fulfill its information disclosure obligations in strict accordance with relevant regulations.”