On the last day of 2021, the upstream enterprise of the photovoltaic semiconductor supply chain, the pilot film, attracted 14 shareholders in one fell swoop. There are members of the national team such as Sinopec Capital, CICC Capital, and CICC Qiyuan, as well as Chinese electric vehicle giant BYD, a large A-share player , accounting for 1.6119% of the shares, which attaches great importance to this raw material supplier.
In 2021, while cutting 40% of fuel vehicles, BYD's new energy vehicles continue to soar to new highs. In the whole year, 607,000 new energy vehicles were produced and more than 603,000 units were sold, an increase of nearly 220% over 2020! In the domestic industry, it can be called a model of "oil to electricity".
On December 31, 2021, BYD's A-share closing price was 268.12 yuan per share, with a market value of 780.536 billion yuan, second only to the battery unicorn Ningde era and the wine king Guizhou Moutai. All parties are speculating whether BYD in 2022 will also become a trillion-dollar giant. According to the prejudgment of its industrial chain supply chain layout, it may only be a matter of time.
First, trace the source: into the mineral resources
On December 30, the day before the shareholding pilot film, BYD only subscribed 5 million yuan, becoming one of the four shareholders of "Sichuan Shuneng Mineral Co., Ltd." at a rate of 1%; the other three are state-owned enterprises, A-share listed companies Sichuan Luqiao, Chuaneng Power, and local state-owned enterprises of the Yi ethnic group where Shuneng Minerals are located. For BYD, 5 million is too small, the intention is not to dividends, but to bind state-owned capital, alliance "land snake", and then tighten the supply chain, get the priority supply of upstream non-renewable resources.
In the past year, it is not only chips that have strained the manufacturing supply chain, but also raw materials and energy.
Due to the expansion of demand, coupled with capital speculation, raw material prices have continued to rise. At the end of 2021, the price of lithium carbonate soared to a record high, reaching 261,500 yuan / ton, an increase of more than 5 times from the beginning of the year, and still rose at an average rate of about 4,000 yuan / ton per day; Bloomberg New Energy predicts that tight supply chains such as lithium, graphite and cobalt will continue at least throughout 2022.
New energy vehicle manufacturers with a keen sense of smell have accelerated the alliance of mineral resources.
Second, the supply downstream: the opponent is also a partner
In August 2021, industry insiders revealed the news that BYD will supply blade batteries to Tesla in the second quarter of 2022; in October, the media said that BYD had received orders for Tesla's 10GWh power batteries. Once officially announced, BYD will be among the core components of Tesla - the battery supply chain; the same position is also China's Ningde era, Japan's Panasonic, South Korea's LG and other large households. And the battery supplier itself also does the whole vehicle, BYD is the only one.
Market competitors become downstream customers at the same time, not only Tesla.
On March 25, 2020, BYD Toyota Electric Vehicle Technology Co., Ltd. was established, with both parties accounting for 50% of the shares. Reuters revealed in December that in 2022 Toyota will launch a new family bus in Chinese mainland, which will be equipped with BYD lithium iron phosphate blade batteries.
On December 26, the domestic Ford "electric Mustang Mustang" Mach-E began to be delivered, and all the series was equipped with BYD NCM811 ternary lithium batteries. Palm Chain predicts that Ford will not take long to use BYD blade batteries.
BYD's power battery supply to the outside world accelerated throughout the year, second only to the Ningde era among domestic merchants. In December 2021, the total installed capacity of BYD's new energy vehicle power batteries and energy storage batteries was about 5.049GWh, and the total annual total was about 37.921GWh.
Third, the power battery: the core technology is self-sustaining
In April 2021, TIME magazine (TIME) selected the "100 most influential enterprises", and bydir, the only new energy overall solution provider from China, was elected. "The first share of Chinese brand car companies" is well deserved, in the field of new energy, second only to Tesla.
Like BYD Semiconductor, the emergence of BYD electric vehicles is the result of the strong support of the huge self-supply system under the iceberg. Among the global car companies, the leaders are no longer satisfied with the previous supplier system - subject to the political and economic environment and force majeure, the risk of volatility is increasing, and the stability of the supply chain is generally declining. Since 2016, BYD has begun to invest in the cultivation of "Fordy" power technology products.
At the end of 2020, BYD Lithium Battery Company, which has been operating for 22 years, faded out of the management of new power batteries and was taken over by BYD's new army- Fordi Industry. In only 1 year, Fordy Industrial has rapidly expanded its territory in the battery (including blade battery) block.
The "Fordy Series" also includes the development of components such as automotive lighting, electronic systems, chassis brakes, and DM-i super hybrid systems, and the functions belong to Fordi Vision, Fordi Technology, Fordi Power and Fordi Mold Company. Starting in 2020, BYD's new energy supply chain will be fully opened, and competitive cooperation such as batteries, electronic controls, and electric drives will be carried out.
Under the global chip shortage, BYD relies on its own semiconductor supply chain to supply and export at the same time; in the wave of new energy, BYD relies on the auto parts supply chain to open a closed loop to make money.
Fourth, strengthen supply chain control and maintain coordination with suppliers
(1) Disc chain supply chain - supply chain financial services chain enterprises
In 2016, led by the Bydir Federation of Trade Unions, Shenzhen Di Chain Technology Co., Ltd. was established with a registered capital of 100 million yuan, and the Di Chain Supply Chain Information Platform came into being. Its main function is financial information services.
BYD builds this supply chain financial bridge with long-term intentions. Today, BYD has the ability to integrate the supply chain industry,
Through core enterprises and member enterprises, creditors' rights are confirmed to suppliers' accounts payable, so that small and medium-sized suppliers can obtain credit support from banks and other fund providers.
(2) BYD supply chain - strengthen the control of the whole link
In the week before the Spring Festival in 2021, Shenzhen BYD Supply Chain Management Co., Ltd., which has been established for 7 years, increased its capital by 600% and increased its registered capital from 500 million yuan to 3.5 billion yuan.
The general manager of BYD's supply chain is Wang Bo, who joined BYD in September 2001 and is also the general manager of group procurement, with 20 years of practical experience in the market and customer service, and is one of the confidants of Chairman Wang Chuanfu. Due to the relevance of the above performance, Wang Bo ranks among the "Top Ten Chief Supply Chain Officers in China in 2021" in the palm chain inventory.
On November 22, BYD Automotive Industry increased its capital by 82.62%, and the change explained the demand. In order to ensure the stable development of each business chain, the logistics force also needs to make corresponding adjustments, and the growth and expansion of BYD's supply chain enterprises is based on this.
Resources:
[1] "BYD's Stake in Pilot Film A-share New Energy Giants Compete to Layout Upstream", Shanghai Securities News Agency
[2] BYD Electronics - In-depth Study of Hong Kong Stock Companies, Guojin Securities
Editor: Xiaolan