Some personal opinions about the Ningde era

First of all, I don't go black or blow, and I declare in advance that I don't have the relevant stocks in my hands and can't afford to buy [cover my face]. But it does not prevent me from analyzing the Ningde era for all the big guys, next, I will briefly explain the Ningde era for you from both positive and negative aspects, hoping to help everyone.

First of all, when we say a company, it must be good first, and praise is the mainstay. As an important track for China's high-end manufacturing curves to overtake Europe and the United States, the importance of new energy vehicles is self-evident. When it comes to new energy vehicles, we have to mention its main components. Compared to the three-piece set of fuel vehicles, engines, transmissions, chassis none of them are in our hands. Most of the three major pieces of new energy vehicles, especially new energy electric vehicles, motors, electronic controls, and batteries, are basically in the top ten. In particular, the battery, which is the largest cost source of electric vehicles, is firmly in our hands, and with the rollout of the follow-up market and the arrival of a large number of consumer replacement needs, the prosperity of the entire industry will be greatly improved. Then, as the leader of the global battery field, the Ningde era will also be the most dazzling one in this crown. With its technological advantages and the stable production environment brought about by the domestic epidemic prevention and control, in the new round of global expansion, its market will expand rapidly and its market share will rise rapidly. With the signing of supply agreements with most domestic and foreign new energy vehicle companies, most of the demand will be rapidly released in the future, forming a company profit. What the company has to do now is to maintain scientific research and innovation, under the premise of draining the trend, continuously expand the market, increase production capacity, and quickly seize the market. With the first-mover advantage, establish brand influence and create industry benchmarks.

After saying good, of course, I have to say something bad. As the saying goes, Success is also Xiao He's defeat. As the largest cost source of new energy vehicles, batteries have always been the focus of major new energy vehicle companies. After all, in the case of the same selling price, the lower the cost, the higher the profit. Therefore, although many new energy vehicle companies are still mainly purchasing supplier batteries, the efforts of self-developed batteries have not been interrupted. That is to say, if the battery manufacturer itself stops innovating or the technology development encounters a bottleneck period, the follow-up automakers will strike later and use their own research and development batteries, thereby reducing the cost of the vehicle and improving the company's profits. Although in the short term, this situation will not happen, but as a potential danger point, it is worth paying close attention to each of our investors. Moreover, at present, there is still a small danger point, that is, the price of raw materials is rising rapidly. Why is it not big or small, because it has a big impact, it is only temporary, mainly affected by the epidemic, the global supply chain is interrupted, resulting in short supply and price increases. But the follow-up will be restored sooner or later, so the impact is not very large, after all, it is not a permanent impact. It is said that its impact is not small, because in the short term, with the rapid expansion of the raw material gap, coupled with strong demand, the rapid and irrational rise in raw material prices has led to a squeeze on profits as a terminal manufacturer. Therefore, in the short term, the financial report will not be too good, that is, revenue increases and profits slow down. However, with the increase of subsequent raw material channels, as well as the easing of the global epidemic and the recovery of the supply chain, the price will naturally fall irrationally, so it is not a big problem, the only question is when the epidemic will end.

Finally, to sum up, although it has problems of one kind or another, it is a small track leader in an emerging industry. If we look at it in a relatively long cycle, these questions are not problems, the only question is whether you are willing to take the ship of wealth of this era and sail to the next future.