Lead storage battery industry: Improve access barriers and accelerate industry integration

New production capacity is high, and backward production capacity will be eliminated. "Entry conditions" make clear requirements for enterprises from the scale of production capacity and production process.

1) On the scale of production capacity, the “Entry Requirements” requires that the lead-acid company's new production capacity and existing production capacity must reach the lower limit of 500,000 and 200,000 kvah (single class) respectively, so the output value of new production capacity is limited to 250 million yuan. More than yuan, and the current output value of 100 million yuan or less will be eliminated.

2) In terms of production process, existing enterprises in the industry are required to adopt a fully enclosed production environment within 2 years, and adopt automatic lead, paste, split board, acid, brush plate, and automatic welding or automatic welding. Automatic cleaning and other advanced automatic technology, the total elimination of backward technology. The current annual production capacity of 500,000 kavh (single class) fully automatic production line equipment investment and bottom-laying capital investment is about 100 million yuan, which will be difficult for small businesses to bear.

At the same time, the “Entry Requirements” restricts the backward production capacity migration and prevents the backward production capacity from relocating to less developed areas.

Based on the input of the capacity scale and the required technological upgrading, we estimate that about 80% of lead-acid battery companies will face the risk of elimination, and the total capacity ratio is about 35%.

Restrictions on plate production and sales highlight governance determination. In the “admission requirements”, in the production process, the polar board’s annual production capacity is required to be no less than 1 million kvah (single shift). In addition, the production enterprises are required to report to the provincial-level competent authority on the sales record of the polar plate. Boards are sold to companies that do not meet this access requirement. This is undoubtedly a lot of small companies that rely on self-purchasing plates for self-assembly. It is a large-scale enterprise that integrates production and assembly of pole plates with complete industrial chain will benefit significantly.

In the "Entry Conditions", there is no equal replacement requirement for new production capacity and elimination capacity plus increment. The "Entry Requirements" did not impose a quantitative limit on the expansion of industry capacity. We believe that this provision is actually good for industry leaders. Regulatory departments have reduced interference in the market behavior of the expansion of production capacity, and lead-acid companies can obtain approvals as long as they meet the “admission requirements” for expansion of production, which is conducive to efficient expansion of advantageous companies.

Investment advice and risk warnings. After the introduction of the “admission requirements”, the lead-acid battery industry will usher in a new wave of rectification peaks, the backward companies will withdraw, the industry concentration will increase, and profitability will increase.

Companies with economies of scale and technological advantages, as well as enterprises with integrated industrial chains (integration of production and assembly of plates, qualifications for the production of recycled lead) will benefit in the long-term consolidation process. The listed companies, such as camel shares and Nandu Power, will benefit in different degrees due to the differences in industry segments. The risk factor is that the implementation of the policy is not as expected.

Digital currency transactions allow users to convert existing digital currencies into other digital currencies. The entire transaction does not involve any legal tender. Because of the relatively loose regulation, the mainstream digital currency trading platform also opened this function.Digital Asset Exchange (DAE) is a platform for matching transactions between digital currencies, digital currencies and legal currencies. It is the main place for encrypting the circulation and price determination of digital currency transactions.

Compared with traditional stock exchanges, digital asset trading platform not only matches transactions, but also plays the role of market maker and investment bank. The role of the market maker in the trading platform can increase the liquidity of the market, and the trading platform can earn the transaction price difference. The role of the investment bank of the trading platform is to provide services such as issuance and underwriting of digital currency, from which the trading platform collects money fees, or collects deposits in the form of community voting of the trading platform.

Currency Exchange

Currency Exchange,Digital Currency Exchange,Virtual Digital Currency Exchange,Display Currency Exchange

China youbi digital assets limited , https://www.ubcoinchina.com