Seize the development opportunities of the Guangdong-Hong Kong-Macao Greater Bay Area Century United intends to focus on the development of electric vehicle business

Reporter Jiao Yue, trainee reporter Zhang Xiaoyu

Century United (01959. HK) further announced its medium- and long-term key development strategy related to electric vehicles on January 25, following the announcement last month of the purchase of 400 GAC Aeon new energy vehicles and the entry into the online ride-hailing market in the Greater Bay Area through "Ruqi Travel".

On the morning of January 25, Century United (01959. HK) announced that in line with the national development policy, to promote corporate social responsibility and provide new growth points for enterprise development, as well as market and industry development trends, the Group's development strategy will focus on electric vehicles and even optimize its related smart travel experience, including but not limited to electric vehicle brand distribution, charging network and electric ride-hailing business, as one of the key development strategies in the medium and long term.

The "New Energy Vehicle Industry Development Plan (2021-2035)" issued by the State Council in October 2020 clearly requires that the sales volume of new energy vehicles reach 20% of the total sales of new vehicles by 2025, and by 2035, pure electric vehicles will become the mainstream of new sales vehicles. According to the Data of the China Association of Automobile Manufacturers, China's new energy vehicle sales account for 13.4% of total vehicle sales in 2021, which shows that the development potential of new energy vehicles is huge.

Under the national policy opportunities of the dual carbon target and the development of the Guangdong-Hong Kong-Macao Greater Bay Area, Century United said that "the company can replicate the successful experience accumulated by Zhongshan for a long time to other markets in the Greater Bay Area, so it plans to take the electric vehicle business as one of the group's key development strategies".

Luo Houjie, co-chairman and chief executive officer of Century, said in an interview with the Securities Daily reporter: "The Group actively strives for the right to be a distributor of competitive electric vehicle brands, and in 2021, the Group has successfully won seven electric vehicle cooperation brands of Eian New Energy, Zero-run Car, Volkswagen ID, Euler Automobile, Dongfeng New Energy, Electric House and Sihao New Energy, and the sales area has /will cover Zhongshan, Jiangmen and other cities in the Greater Bay Area." In the future, it is planned to further strengthen the agents of medium and high-end tram brands, especially potential agent brands that are conducive to regional expansion. ”

At the same time, Century United said that it will continue to expand its electric vehicle sales service network in Guangdong Province, especially in the Greater Bay Area, and the company aims to further increase the proportion of electric vehicle sales in the overall sales in 2022.

Hu Qimu, chief researcher of The China Steel Economic Research Institute, said in an interview with the Securities Daily reporter: "In 2021, the new energy city automobile market is very hot, and the industrial development has ushered in a huge outlet, mainly because under the background of 'double carbon', new energy vehicles will gradually replace traditional fuel vehicles." However, while the development of new energy vehicles needs some supporting infrastructure and services to support, while the sales volume of new energy vehicles has exploded, some problems have also been exposed, such as supporting charging facilities can not match the rapid development of the industry, which may restrict the development of the industry. But on the other hand, for enterprises engaged in the construction of new energy vehicle-related infrastructure and hardware support and industrial chain services, it is a huge business opportunity. With the advancement of the double carbon process, the infrastructure of the new energy industry chain will continue to be released in demand, and many enterprises are also based on the good industry prospects for advance layout. ”

For the current proportion of electric vehicle business and how to develop the electric vehicle market, Luo Houjie told reporters: "The sales of the group and various electric vehicle brands were gradually carried out in the second half of last year, and I believe that the contribution brought by the business is the power period in 2022." In the future, the company will continue to expand more potential electric vehicle agency brands, actively expand the layout of the electric vehicle agency network in the greater bay area cities, deepen the Group's existing electric vehicle related business, and carry out diversified expansion (such as vertical and horizontal exploration and development of smart travel related businesses such as online ride-hailing and charging stations). ”

It is worth mentioning that in addition to actively developing the distribution business of electric vehicle brands, Century United is also laying out its charging network business. Last year, Century United cooperated with Guangzhou Wancheng Wanchong New Energy Technology and Guangzhou Tlaidian New Energy respectively to promote the construction of the Group's electric vehicle charging network in the Greater Bay Area. As of December 31, 2021, Guangdong Century United New Energy Technology, a subsidiary of the Group Holdings, has built 21 charging stations in Zhongshan, Zhuhai, Foshan, Guangzhou and Dongguan in zhongshan, Zhuhai, Foshan, Guangzhou and Dongguan in the Greater Bay Area, with a total of 121 charging stations and 16 stations under construction, with a total of 171 charging stations. Century United said that the company plans to build about 60 charging stations in 2022, with a total of about 600 charging stations, which will help promote the all-round development of the Group's electric vehicle brand distribution business and online ride-hailing business.

In addition, Century United said that the company will cooperate with the trend of online ride-hailing business, purchase about 400 GAC Aean electric vehicles through its indirect wholly-owned holding company Guangdong Century United New Energy Technology, and find drivers to dock with the Ruqi travel platform for online ride-hailing purposes, and carry out online ride-hailing operation and management through comprehensive businesses such as vehicle management, driver management and platform management.

Century United said that the Group will release the long-term accumulation of used car one-stop car service potential to the used car business generated by gasoline vehicle replacement electric vehicles, providing a broader platform for the future expansion of after-sales business and increasing business profitability. Zhongshan Genesis Used Car Trading Market Co., Ltd., an indirect wholly-owned holding company of the Group, was established in April 2021 with Ideal Auto (02015. BEIJING LIDING AUTOMOBILE SALES CO., LTD., INDIRECTLY WHOLLY OWNED BY HK), SIGNED A FRAMEWORK AGREEMENT ON SECOND-HAND CAR REPLACEMENT COOPERATION TO PROVIDE USED CAR ACQUISITION SERVICES FOR CUSTOMERS WHO PURCHASE IDEAL CARS.

Luo Houjie pointed out, "The Group has always kept pace with the times, keeping up with national policies and market trends. With the Group's accumulated years of rich experience in 4S store operation and automobile-related business in Zhongshan City, and with the Group's electric vehicle brand distribution, charging network, electric online ride-hailing and second-hand car business around electric vehicles, the business can promote each other, generate positive interaction and synergy effects, and obtain the desired benefits. ”

In addition, Luo Houjie also revealed, "In order to realize the business strategy of "Entering the Greater Bay Area and Embracing New Energy" established by the Group, the Group will actively seek new partners, grasp the business opportunities related to the experience of new energy vehicles in the Greater Bay Area, and the opportunity for Hong Kong Vehicles to go north, hoping to seize the relevant market share in various fields of electric vehicles with the fastest action" .

In Hu Qimu's view, "for Century United, the company may be based on the Greater Bay Area, and will gradually expand the market to the north in the future, because from a national perspective, especially after the recent cooling of the northern weather, the shortcomings of new energy vehicle charging piles are still relatively obvious, which means that the market opportunity is very large."

(Edited by Bai Baoyu)