E-Cigarette Battery Manufacturer Acquisition: Changhong Electric Acquires Shenzhen Juheyuan
On April 10, Changhong Electric (836239) announced the acquisition of 61.6981% equity of Shenzhen Juheyuan Technology Co., Ltd. for 98.7169 million yuan. Shenzhen Juheyuan is a manufacturer of consumer lithium-ion batteries. Its products are mainly used in electronic cigarettes, the Internet of Things, and intelligent terminal equipment.
Changhong Electric said that to grasp the opportunities for the development of the battery industry in the Internet of Things era, the company plans to quickly enter the field of small-poly lithium batteries through industrial mergers and acquisitions to achieve its strategic goals.
Shenzhen Juheyuan's Product Revenue Mainly Comes from Electronic Cigarette Batteries
Based on the historical data of Shenzhen Juheyuan, Changhong Electric predicts that from 2023 to 2027, the operating income growth rate will be 33%, 23%, 10%, 10%, and 5%. Respectively, the average revenue growth rate during the forecast period will be about 12%. The forecast product revenue will mainly come from e-cigarette batteries, the Internet of Things, and intelligent terminal batteries.
From the perspective of market demand, Shenzhen Juheyuan products are mainly used in the consumer electronics market, and the product market segments are electronic cigarettes and intelligent wearables.
Shenzhen Juheyuan's Daily Production Capacity
Shenzhen Juheyuan Hunan production base has a total designed production capacity of 500,000 pcs/day of battery cells. However, since the company's products are mainly e-cigarette batteries, the current maximum production capacity is 300,000 pcs/day.
The annual average daily output in 2022 is 148,000 pieces. The predicted daily production from 2023 to 2027 is 195,000, 240,800, 264,900, 291,400, and 306,000. In the case of continuous market demand growth, Hunan's current battery production capacity can support the demand for future business scale growth.
Reference:
Announcement of Changhong Energy's New Business Development
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