In January 2022, data released by the Traffic Management Bureau of the Ministry of Public Security showed that the number of motor vehicles in the country reached 395 million in 2021, of which 302 million were cars. With the increase in car ownership, the demand for the automotive aftermarket has grown rapidly.
In this issue, the company's magnifying glass will focus on a supplier service provider focusing on the non-vulnerable parts in the automotive aftermarket - Qingdao Jianbang Automobile Technology Co., Ltd. (hereinafter referred to as: Jianbang Technology).
Source: Jianbang Technology Company official website
Focus on non-vulnerable parts segments
Jianbang Technology was established in 2004 and listed on the Beijing Stock Exchange in November 2021 as one of the first enterprises. The company is committed to the design, development and sales of non-vulnerable parts in the global automotive aftermarket, while providing customers with perfect supply chain management services, the main products include brake systems, transmission systems, electronic and electrical systems, steering systems, starting systems and so on.
For example, in the field of braking systems, the company's main products include brake calipers, electronic parking brakes, vacuum boosters and other products; in the field of traditional systems, the company's main products include drive shafts, transfer case motors, oil pans, flywheels and other products; in the field of electronic and electrical systems, the company's main products include induction wiper motors, air suspension pumps, distribution valves and other products.
Revenue distribution of Jianbang technology products
Source: Jianbang Technology Company Financial Report
It can be seen that compared with 2018, the proportion of the company's various businesses in the first half of 2021 is more balanced. Among them, the revenue proportion of the brake business decreased from 40.14% in 2018 to 12.66% in the first half of 2021, and the revenue proportion of the transmission system increased from 16.16% in the same period to 27.45%.
However, compared with the domestic market, Jianbang Technology relies more on exports.
From 2018 to 2020, the company's foreign sales amount was 391 million yuan, 314 million yuan and 275 million yuan, and the revenue accounted for 88.94%, 82.37% and 73.59% respectively. It should be noted that the setbacks in trade globalization and the global COVID-19 epidemic in 2020 have led to a decline in the company's exports, which has greatly affected the company's operating performance in the past two years.
In this context, the company accelerates the market development of domestic and foreign auto parts chain enterprises.
In China, in May 2020, Jianbang Technology signed cooperation agreements with the three-headed and six-arm auto parts led by Legend Capital, the Tuhu Yangche led by Tencent, and the Zhongkang auto parts led by Ali Holdings. In foreign markets, the company's main customers are well-known auto parts manufacturers or suppliers, the main customers include Cardone Industries, Inc, Dorman Products, Inc, Amott, LLC and so on.
Jianbang Technology and traditional parts enterprises are different, the company can take the initiative to develop new products, with the development and design capabilities of non-vulnerable parts in the automotive aftermarket, the company's products mainly enter the market through third-party auto repair channels, and are used in passenger cars with a vehicle age of more than five years. In terms of production, the company adopts an asset-light operation model, entrusting the production link to external manufacturers in the form of outsourced processing, and the company is mainly engaged in market research, product development, product technology control, quality testing, warehousing management, etc. The company relies on the integration ability in logistics, business flow, information flow and other aspects to provide customers with comprehensive solutions.
At present, the company has the ability to manage and deliver the auto parts supply chain covering major regions of the world, and through the most effective way to coordinate and coordinate production, to meet the personalized product needs of different regions and customers in different regions of the world.
According to the third quarterly report, the "Ningquan Zhiyuan No. 55" under Ningquan Assets has newly become the top ten shareholders of Jianbang Technology, holding 360,000 shares; the "Kuanyuan Shanghai-Hong Kong-Shenzhen Selection" under Kuanyuan Assets has increased its position for two consecutive quarters, holding 1.288 million shares. That is to say, the listed company on the Beijing Stock Exchange has won the favor of two tens of billions of private placements.
Keen market forecasting and resource integration ability
Build a competitive advantage for your company
Jianbang Technology adopts an asset-light operation model, entrusting the production process to external manufacturers in the form of outsourced processing. Under this business model, the company's grasp and prediction ability of the market is particularly important.
On the one hand, the company has established a good cooperative relationship with customers with excellent product and service quality, and has won the trust of customers, and can understand customer needs for the first time; on the other hand, the company has established a professional market research team, which can go deep into the market line to conduct research, visit 4S stores, auto parts city, auto repair shops, etc., and deeply understand the use of end customers.
To put it simply, with more than ten years of industry experience in non-vulnerable parts, the company has established a number of market research channels, which can accurately grasp the market demand in the first time and make market predictions.
In the automotive aftermarket, the variety, reliability, quality and whether the parts and components can be delivered on schedule are important considerations for downstream customers to choose supply chain service providers, usually customers will choose suppliers with good reputation, a wide range of products, and high cost performance in the industry, and once selected, they will establish long-term cooperative relations. With its keen market prediction ability, Jianbang Technology can maintain a good cooperative relationship with customers, thereby building a competitive advantage.
Of course, the ability to integrate resources is also an important competitive advantage.
Due to the large differences in the design requirements, product types, specifications and models of different models of parts, resulting in the existence of multi-variety, small batches, high requirements and other characteristics of related products, such market demand has put forward higher requirements for the integration ability of various types of parts manufacturers at home and abroad. Jianbang Technology has excellent resource integration capabilities, thereby reducing the scale of procurement and becoming an important bridge between suppliers and customers.
In addition, talent advantage is also crucial.
Since the automotive aftermarket supply chain service has a strong professionalism, personalization and innovation, requiring R & D personnel, procurement personnel, sales personnel need to have strong professional capabilities, so a deep understanding of the automotive aftermarket industry, understanding the pain points of the industry and compound talents with excellent R & D capabilities are also important competitive advantages.
By the end of 2020, the company's R&D personnel accounted for 12.3% of the total number. The company has obtained 46 patented technologies, including 3 invention patents, 40 utility model patents and 3 design patents.
"Incremental" + "Stock" business
The automotive aftermarket has broad prospects
The auto aftermarket is a fairly broad concept, including all the follow-up services and re-transactions involved in the sale of new cars, which can be divided into six segments: auto finance, auto insurance, maintenance, car rental, auto supplies and used cars. The size of the automotive aftermarket is closely related to the number of cars and the age of the car, the larger the car ownership, the longer the age of the car, the greater the demand for the automotive aftermarket.
Source: China Association of Automobile Manufacturers
In terms of incremental markets, since 2009, mainland automobile sales have ranked first in the world for many years, and in recent years, more than 20 million new car sales have been sold every year, so that China's car ownership has maintained an average annual growth rate of more than 10%. In addition, with further investment in superimposed infrastructure construction and urbanization, with reference to the ownership level of medium-developed countries, there is still room for the development of 130 million new vehicles in mainland China.
In terms of stock market, according to the data of the Traffic Management Bureau of the Ministry of Public Security, in 2021, the number of motor vehicles in the mainland reached 395 million, of which 302 million were cars, and the mainland has become the world's largest market for car ownership.
On the one hand, the average age of the car to increase the proportion of consumers' own expenses, most of the car original warranty period of three years, outside the warranty period, consumers will seek a lower cost service solution, thereby reducing the dependence on 4S stores; on the other hand, the increase in car age to improve the frequency of maintenance needs, some auto parts into the replacement cycle, then the demand for car maintenance and repair will also increase.
According to the agency's forecast, in the next 5 to 10 years, the independent automotive aftermarket will develop rapidly, the market share of 4S stores will be compressed, and with the improvement of market maturity, the market share of the independent aftermarket is expected to exceed that of 4S stores.
According to the data of the Prospective Industry Research Institute, in 2018, the scale of the mainland automobile aftermarket reached 127.9 million yuan, and the growth rate of the market scale has remained above 10% in recent years. At present, the automotive aftermarket is still in the development stage, the future automotive aftermarket will maintain the trend of integration, survival of the fittest, the industry to the centralized, large-scale development, the market order will be gradually standardized.
Under the development prospects of the automotive aftermarket, the development space of supply chain service enterprises will also be expanded.
In recent years, the mainland supply chain management industry has shown the characteristics of globalization, refinement, synergy and informatization. At present, the supply chain management service is widely used in high-end manufacturing industries such as automobiles and high-tech electronics industries. With the upgrading and technological progress of products in the high-end automobile manufacturing industry and high-tech electronics industry, the complexity of supply chain services is getting stronger and stronger, and the demand for supply chain management services in mainland China is also expanding. Leading companies in the field of supply chain services have obvious advantages in terms of resources, experience and customer relations.
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Source丨East Asia Economic and Trade News Reporting Group
Edited again and again
Audit 丨Li Zhuang Zhang Guiming
Final Judgment 丨Han Dachuan
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