Contemporary Ampere Technology Co., Ltd.: We are exploring that CTP battery and blade battery have the same effect.

On May 1 1, Contemporary Ampere Technology Co., Ltd. held the 20 19 annual performance briefing. Senior executives such as Chairman Zeng Yuqun, Vice Chairman Pan Jian, Deputy General Manager, Secretary of the Board of Directors Li Jiang and Chief Financial Officer Zheng Shu participated in the online exchange and answered questions from investors. The core issues mainly include the following points:

Not afraid of Tesla's own power generation.

"Musk told me that Tesla wanted to make his own battery. As far as I know, their technical route will not affect us. We are discussing how to make batteries better in order to serve the new energy industry. "

On 20 16, CTP with similar blade structure was started.

The blade battery reported at present is one of the innovative concepts of CTP structure in our mass production on 20 16. We chose the best CTP structural innovations, such as CTP-0, CTP- 1, CTP-2, and mass-produced.

"In terms of CTP, due to the cancellation of battery module assembly, compared with the traditional battery pack, the volume utilization rate of CTP battery pack is increased by 15%-20%, the number of battery pack parts is reduced by 40%, the production efficiency is improved by 50%, and the energy density of battery pack is also significantly improved, which will effectively reduce the manufacturing cost of power battery."

About "Cobalt-free Battery"

"The company has its own" cobalt-free "battery technology reserve, and the current research and development is progressing smoothly. We are working hard to do a good job in the supply chain, because this is a brand-new and subversive product. "

Solid-state batteries can't meet the technical requirements.

"Real solid-state batteries need to use metal lithium as the negative electrode, so as to improve the energy density. At present, the energy density of solid-state batteries of vehicle specifications is not as good as our lithium-ion batteries. We hope that they will work harder and compete with the real all-solid-state batteries that our team is currently engaged in. "

Explore the separation of vehicle and electricity

"CATL is currently exploring new business of vehicle-electric separation and maintenance in the battery aftermarket to further serve users in the whole life cycle and give play to the quality advantages of our products such as long life."

The following is a complete record of the online conference.

First of all, problems related to Tesla.

Q: Is the cooperation between the company and Tesla only aimed at the domestic market or the global market?

A: Hello, investors! The cooperation between the company and Tesla is not limited to China, thank you.

Q: Does the company only cooperate with Tesla in Shanghai Super Factory? The company has factories in Asia and Europe. Do you plan to continue to build factories in other continents in the future?

A: The company's strategic goal is to become the world's leading supplier of power battery systems and serve global customers with high-quality products. At present, capacity building has been started in Europe, and in the future, capacity building will be carried out in other regions based on customer needs and their own advantages.

Q: When is the cooperation between the company and Tesla expected to start? Is the product to be supplied lithium ferrous phosphate or 8 1 1?

A: Hello investors, the company has been communicating with Tesla's technical team for a long time, and the delivery time is about the second half of this year. We have the most advanced lithium ferrous phosphate and ternary products, and the supply is not limited to lithium ferrous phosphate or ternary products. The specific products supplied depend on the market demand.

Q: Tesla claims that the cost can be reduced by more than 4,000 by cooperating with Korean companies to manufacture power batteries. What is the impact on Ningde?

A: Hello investors, Musk told me that Tesla wants to make his own battery. As far as I know, their technical route will not affect us. We are discussing how to make batteries better to serve the new energy industry.

Q: Excuse me, Mr. Zeng, the last time the company announced that it had signed an agreement with Tesla in the United States, it did not sign an agreement with Tesla in Shanghai. Have you signed an agreement with Tesla in Shanghai now?

A: Hello investors, the agreement signed between the company and Tesla includes Shanghai Tesla.

Second, about power battery technology

Q: Hello, Secretary Dong, how is the company's progress in solid-state batteries? Taiwan-funded enterprises have been able to mass-produce solid-state power batteries. what do you think?

A: Hello, investors! For cutting-edge technologies such as solid-state batteries, the company will continue to invest in cutting-edge research and product development, pay close attention to market demand and the development of cutting-edge technologies, continue to break through technical barriers through research and development, lead by innovation, realize the commercialization of new technologies through multi-steps and multi-paths, and improve the comprehensive competitiveness of products. thank you

Real solid-state batteries need to use metal lithium as the negative electrode, so as to improve the energy density. At present, the energy density of solid-state batteries of vehicle specifications is not as good as that of our lithium-ion batteries. We hope that they will work harder to compete with the real all-solid-state batteries that our team is currently engaged in.

Q: Mr. Pan, can the lithium iron phosphate battery and ternary battery of Anpu Technology pass the acupuncture test at present? Are there any practical installation cases of CTP scheme for 5-series and 6-series ternary batteries?

A: Both Sanyuan and Lifeo have products that can pass the acupuncture test. CATL has products with different characteristics to meet the different needs and application scenarios of customers. The company has leading safety features at battery level, module level and system level.

Q: Nowadays, the technological innovation of power batteries is changing with each passing day. Mr. Chairman, what are the mainstream judgments and technical reserves of the company in the future?

A: Hello, investors. The innovation of battery technology can be divided into structural innovation and electrochemical system innovation. Our company has invested great efforts and long-term research and development in these two aspects. According to our technical route, the current technical reserve is about 10 years.

Q: Tesla proposed the direction of "cobalt-free" batteries. Apart from lithium ferrous phosphate, does it have its own "cobalt-free" battery technology reserve, which stage is it currently in research and development?

A: Hello investors, the company has its own "cobalt-free" battery technology reserve. At present, the research and development is progressing smoothly, and efforts are being made to do a good job in the supply chain, because this is a brand-new and subversive product;

Q: What is the proportion of 8 1 1 batteries in the current ternary lithium battery shipments? Can CTP be applied to 8 1 1 battery? How much can the energy density of the system be improved?

A: At present, 8 1 1 accounts for about 20% of ternary lithium batteries. The innovation of battery includes structural part and chemical system. CTP is a structural innovation, whether it is lithium ferrous phosphate, 8 1 1, or our future new system, it can be realized on CTP. The energy density meets the requirements of automobile for battery pack design. If we independently design the battery pack, the energy density of our battery pack can reach above 250wh/kg.

Q: Is Q:CTP better than BYD's blade battery?

A: The blade battery reported at present is one of the innovative concepts of CTP structure that we mass-produced in 20 16. We chose the best CTP structural innovations, such as CTP-0, CTP- 1, CTP-2, and mass-produced.

Third, the topic of industrial structure.

Q: Chairman Zeng, is the 5- 10 power battery standard or non-standard? Will there be a situation in which several powerful countries coexist in the future, or will there be a situation in which one superpower is stronger?

A: In the future, power batteries will have different application scenarios and different products with different positioning to meet the demand. In the scene of operating vehicles, there may be a unified product standard, but different host manufacturers of private vehicles will not be able to unify the standard products, and there will be a trend of platform-based standard products in the electric vehicle products of the same host manufacturer. Automobile manufacturers will develop a variety of models on the same platform standard battery pack, so as to achieve economies of scale.

Q: Panasonic has cooperated with auto giants to build factories, but it has been unprofitable for many years and may be abandoned. I would like to ask Chairman Zeng, if the automobile industry moves towards the smart phone industry in the future, how can Ningde get rid of the fate of being exploited by customers?

A: As a power battery industry, advanced technology is the first factor. Because technology products can bring success to customers in the market, we don't exploit customers, but win-win through cooperation. Therefore, we have always insisted on investing in technology to make our customers' products more popular and more profitable. This is our win-win cooperation.

Q: The industry is under great pressure to reduce costs, and lithium ferrous phosphate is experiencing resurgence. Market demand has undoubtedly increased, and the company's gross profit margin and net interest rate have been under pressure in recent years. Has the follow-up company calculated its own space to reduce costs, and is it confident to achieve the calculation goal?

A: Hello, investors. Profitability is the performance of comprehensive competitiveness. The safety, reliability and quality stability of the company's products are at the leading level in the industry, and it has the advantages of large-scale procurement and localized supply that competitors such as Japan and South Korea do not have. Energy density, charging speed, cycle life and other indicators are comparable to those of Japanese and Korean competitors, and generally have a high cost-effective advantage. By increasing R&D investment, technological breakthrough, industrial chain coordination, tapping the potential to reduce costs and increase efficiency, the company will give full play to its leading position in the market and maintain its profitability and sustainable development capability.

Q: Ningde will soon enter the international market, Panasonic, Samsung and LG will also enter the domestic market, and the giants will face the competition directly. In the past, the company became an industry giant in a closed domestic environment. What are the advantages of competing with these giants in the future? Can you become a supplier giant like Bosch?

A: Hello, investors. In the international market, it generally takes 36-48 months for the automobile industry to jointly develop samples A, B and C with customers to mass production. Generally speaking, customers start ordering products in the second sample stage, and the competition for ordering products in many projects has ended. In the international market competition with Panasonic, Samsung and LG, we have made remarkable achievements. We are different products from Bosch, and our products have different functions in automobiles.

Q: What does the company management think of the impact of Tesla's self-built battery factory? How to treat the influence of self-built battery factory in the future? Where will the company's future positioning and strategic direction be?

A: We have always believed in the benefits of professional division of labor. The technology, talents and experience accumulated by R&D and the production of power batteries are quite different from R&D and vehicle manufacturing. We firmly believe that the product quality, cost advantage and service brought by CATL's long-term focus, innovation ability, manufacturing experience and scale will become more and more prominent on a global scale. Of course, in this process, the OEM will also make various attempts, including possible self-built parts. We do our own thing, and the electric vehicle industry is not in conflict or worried.

Q: Is the battery cost of Contemporary Ampere Technology Co., Ltd. competitive with competitors Panasonic and LG? I read some articles on the Internet that the ternary power battery of Contemporary Ampere Technology Co., Ltd. is more than 20% more expensive than that of Panasonic.

A: CATL's ability to reduce costs through technology and innovation in material development, battery and system design has obvious advantages in the world. It is nonsense that the ternary cost is 20% more expensive than Panasonic.

Q: Hello, Mr. Zeng. Let me ask you three little questions:

1) At present, OEM batteries are mainly customized. Will the company guide them to standardization?

2) Can you elaborate on the company's work and key measures in battery safety testing?

3) How to compete with overseas rivals such as LG Panasonic in globalization, and what preparations have been made in organizational structure and team building. thank you

A: Hello, investors,

1. We are working hard with customers to standardize the design of the new platform and save development cost and time;

2. The company always regards safety as our most important strategy. Battery safety and battery abuse test are two different things, but some people equate the passing of abuse test with battery safety.

In the history of lithium-ion batteries, Sony batteries passed all abuse tests in 2005, but in 2006, Sony lithium-ion batteries experienced the biggest market safety recall in the history of lithium-ion batteries, and since then, Sony batteries have been devastated and left.

Therefore, we should pay attention to the real market security. Our design, production, testing and other safety measures should focus on the whole scene, full cycle, all-round and whole system safety of automobile collision, automobile charging, automobile water intake, automobile condensation, battery pack design and manufacture.

3. As the question answered earlier, we have had fierce competition with LG and Panasonic overseas and achieved remarkable results. We are organizing a lot of overseas production and delivery preparations. Warmly welcome people with lofty ideals to join us, meet customer needs and make contributions to the new energy cause of mankind.

Q: Hello, Mr. Zeng, what do you think of the changes in the industry structure after car companies get involved in battery production in the future? What is our core competitiveness compared with international counterparts and companies such as Tesla, which is about to enter the battery production? thank you

A: Hello investors, the battery is a product involving both physics and chemistry. In addition to quality and reliability, safety is also needed, which requires long-term experience accumulation. Technology, product quality, supply chain management, cost and financial strength all belong to the entry barriers of the power battery industry.

We have accumulated more than 15 years of technology and related management in power batteries, and have rich experience and competitive advantages. The future industry competition will be based on the comprehensive strength competition of product technology and capacity supply. The company is willing to cooperate with colleagues in the new energy industry to jointly promote the development of the industrial chain of new energy vehicles and power batteries.

Q: In the first quarter, LG ranked first in the global market share by binding Tesla. At present, LG has formed a global competitive relationship with the company in terms of capacity scale and key customer relationships. Does the company have a clear strategy and specific plans to deal with the global competition with LG?

A: Customers will only accept products that are more cost-effective, more competitive and can make their products reflect value in the market. No enterprise can easily bind customers. Our long-term product competitiveness and production capacity layout are confident to cope with global competition.

Q: Mr. Pan, how does the company cope with the competition between BYD and BYD? What is the company's domestic and overseas development strategy?

A: Power battery is a long-term and high-speed development industry with great potential. We welcome competition from all sides. Competition will promote innovation and accelerate the development of the industry.

For CATL, based on the core team's 20-year successful experience in the consumer electronics lithium battery industry, the ultimate goal is to continuously improve product performance and reduce costs through long-term focused scientific and technological innovation, and continue to achieve people without me, people with me are superior, and technology is reduced, bringing long-term added value and competitiveness to products brought to customers.

Four. Related financial problems

Q: At the end of 20 19, the company expects to have a high debt rebate balance. If it doesn't actually happen in these two years, how to deal with it financially and what impact will it have on the income statement?

A: Hello, investor! Estimated liabilities-rebate items reflect the difference between the final settlement price of products and the final actual transaction price reasonably estimated by the company and customers before reaching a final agreement and signing a contract on the annual product price, and are included in the rebate. When the rebate actually occurs, offset the "estimated liabilities" and "accounts receivable" in the account; The company comprehensively considers customer demand, product characteristics, company pricing policy and negotiation between the two parties, reasonably predicts and accrues rebates, and there is no big difference.

Q: Hello, Mr. Zheng, I want to ask you something. Based on the expected debt-quality guarantee balance at the beginning and the end of the period and the sales expenses, the amount of 20 19H 1 actual quality guarantee is1.200 million, and 20 19 is 60 million. What caused the decrease in the whole year?

Hello, investor,

(1) With the intensification of market competition in new energy vehicles and power batteries, customers' demand for customization is increasing day by day, and the company attaches great importance to product quality. In order to provide better service and guarantee for customers, the company has gradually established service station outlets, and the after-sales model has improved compared with the previous year. The company uniformly treats the after-sales expenses incurred by service station outlets as after-sales service expenses, and the expenses incurred by daily after-sales departments as normal sales expenses.

(2) The company has always attached importance to product quality and safety issues, adopted high quality and safety standards, and established strict quality management and risk control systems in all aspects such as procurement, production and sales. There are no major product quality and safety problems this year, so the actual after-sales comprehensive service fee this year is very small.

Q: In the past three years, the company's asset impairment losses were 65,438+0,670,005,974,965,438+02,244,744 respectively, accounting for 3.6%, 3.3% and 65,438+0.2% of the operating income respectively. Both the total amount and the proportion of operating income are rising rapidly. Can you explain the background and future trends? And what is a reasonable operating income ratio?

A: Hello, investors. The Company has been making provision for impairment of assets based on the principle of prudence, and will continue to make provision in the future to ensure that the Company's performance is truly reflected.

Q: Hello, General Manager Zheng, I want to ask you two financial questions:

1) The company's maintenance expense rate has always been 2.5%. Will it be adjusted with the expansion of sales scale and the increase of historical data?

2) On a quarterly basis, the company's management expenses fluctuated greatly. 19Q4 only managed 200 million yuan, down 65% from the previous month. What is the reason behind this and how to make predictions in the future? thank you

Hello, investor,

1) The comprehensive after-sales service fee of the company's products has been accrued at 3% of the product income;

2) In the fourth quarter, the company's management expenses dropped sharply, mainly because the company continued to improve management, strengthened the fine control of expenses, and ensured that expenses were recorded in a timely manner in strict accordance with the accrual principle, thus avoiding the situation that a large number of expenses were confirmed at the end of the year; At the same time, according to the production and operation of industries and enterprises in 20 19, the peak of expenses occurred and confirmed in the first three quarters. Thank you for your attention.

Q: Hello, Mr. Zheng. Did the proportion of accounts receivable in the company's income and the turnover rate of accounts receivable increase in 20 19? How does Ningde intend to avoid the slow payment of new energy industry?

A: Hello investors, the company is highly concerned about the recovery of accounts receivable and actively takes measures to recover them in business. Ensure the timely recovery of accounts receivable in the case of rapid business growth. Thank you for your attention.

Q: Excuse me, Mr. Zheng, what is the consideration for the company to speed up the depreciation of equipment? 20 19 Are most of the inventory products added by the company non-standard products customized for some customers?

A: Hello, investors,

1) at the end of 2018, the company reviewed the service life, estimated net salvage value and depreciation method of fixed assets. The industry characteristics, technical development and the use of existing equipment are comprehensively evaluated.

After evaluation, due to the accelerated iteration of new energy vehicle technology, the technical requirements of power battery production line equipment have changed greatly, and some power battery production equipment developed based on early technology is difficult to adapt to new product production, and its economic life is lower than the original depreciation period.

In order to reflect the actual use of the company's fixed assets more reasonably and reflect the financial situation and operating results fairly and appropriately, the company changed the depreciation period of the power battery production equipment based on the previous technical development.

2) The company sells batteries, modules and battery packs according to the different needs of customers. For general platform battery products, the company produces appropriate battery inventory to meet the needs of customers for timely delivery and balance the company's production capacity. Thank you for your attention.

Q: Will the warranty expenses in the estimated liabilities be reversed in the future?

Hello, investor. According to the quality assurance agreement, the company provides quality assurance services for the products it sells, and makes reasonable provision for quality assurance fees. After the warranty expires, the unused warranty fee will be recovered. Thank you for your attention.

Q: Hello, Mr. Zheng, other receivables reached 4.879 billion at the end of 20q/kloc-0. The annual report mainly describes deposits. What kind of fund is it?

A: Hello, investors. By the end of the first quarter of 2020, the book value of the company's other receivables was 4.879 billion yuan, mainly due to the company's new trading margin for interested investment enterprises based on the improvement of industrial chain layout and other reasons. Thank you.

Q: Hello, Teacher Zheng, 1) What is the shelf life of the company's power battery?

A: Hello investors, the company provides differentiated products and services according to customer needs. At present, the warranty period of power battery products is generally 5-8 years. Thank you.

Verb (abbreviation for verb) Operation under the influence of epidemic situation

Q: Can the installed capacity of power batteries in your increase year-on-year in the second quarter?

A: Hello, investors. In the second quarter, the installed capacity of the company's power battery depends on customer demand. The company is taking active measures such as industrial cooperation, increasing revenue and reducing expenditure, reducing costs and increasing efficiency, and reasonably controlling expenses to reduce the impact of epidemic situation and market fluctuation on the company. Due to the outbreak of the epidemic, people's awareness of environmental protection has been greatly improved, which has promoted the development of new energy industry to a certain extent.

Q: Is COVID-19's influence on the company's performance in the second quarter more serious than that in the first quarter? Overall, what is the impact on the company's annual revenue and profit in 2020?

A: Hello investors, the epidemic situation has a certain impact on the company's production and operation in a short time. The company will pay close attention to the progress of the epidemic and reduce the impact of the epidemic and market fluctuations on the company through active measures such as industrial cooperation, increasing revenue and reducing expenditure, reducing costs and increasing efficiency, and controlling expenses reasonably. China is an early country in epidemic control, and the effect of epidemic control has already appeared. With the government actively introducing economic stimulus policies, the market recovered rapidly.

Q: Excuse me, Chairman, what percentage of the company's own bags accounted for in the sales of 40GWh power batteries in 20 19?

A: Hello investors, the company's power battery products can be divided into batteries, modules and battery packs according to different product forms. A certain number of batteries can be assembled into modules and further assembled into battery packs. According to the different needs of customers, the company sells batteries, modules and battery packs in three forms. Thank you for your attention.

Q: Hello, General Manager Jiang. In 0/9, the company/KLOC-sold 40GWh of power batteries and produced 47GWh, while the installed capacity of domestic certificates was about 33GWh (including Time SAIC). The overseas income of the company's main business is 654.38+07 billion yuan, which is estimated to be about 2 GW. At the same time, the products issued at the end of 19 are higher than those at the end of 18. I would like to ask if the sales volume is much higher than the installed capacity.

A: Hello, investors,

(1) The company's power battery products can be divided into batteries, modules and battery packs according to different product forms. A certain number of batteries can be assembled into modules and further assembled into battery packs. According to the different needs of customers, the company sells batteries, modules and battery packs in three forms. For general platform battery products, the company produces and reserves an appropriate amount of battery inventory to meet the needs of customers for timely delivery and balance the company's production capacity;

(2) With the expansion of the company's business scale, Ningde, Qinghai, Liyang, Times SAIC and other production bases have been put into use one after another, and each base maintains an appropriate amount of safety stock for production and shipment. (3) The long shipping cycle of overseas sales also has a certain impact. Thank you for your attention.

Intransitive verbs on profitability

Q: The company's power battery price continues to decline, which is good for the electric vehicle industry. But for the company, will there be an increase in production capacity in the future, but is it possible that the revenue and profit will not increase or increase slightly?

A: Hello investors, the long-term price and profit level of batteries mainly depend on the cost and market structure. It is expected that with the decline of new energy subsidy policy and technological progress, the price of lithium batteries will show a downward trend, but the decline will gradually slow down. The main competitiveness of the industry in the future should be reflected in product quality, safety, R&D investment and scale benefit, and the company is at the leading level in these aspects. Thank you for your attention.

Q: The company's gross profit margin was about 29% last year. With the increasingly fierce market competition, will the gross profit margin further decline in the next few years?

A: Hello investors, with the decline of new energy subsidy policy and technological progress, the price of lithium batteries will decline, but the rate of decline will gradually slow down.

The company mainly improves product performance and energy density, optimizes product design, improves production technology, improves product yield, realizes more efficient automatic production, reaches in-depth cooperation with industrial chain, and reduces production cost and raw material cost. Despite the continuous decline in product prices, the company still maintains a high gross profit margin, with a gross profit margin of 29% in 20 19.

The company insists on winning the market by product differentiation, and firmly believes that providing customers with high-quality products can make reasonable profits. Thank you for your attention.

Q: Mr. Jiang, what measures does the company take to reduce the production cost and ensure the profit rate in the face of the long-term downward trend of the unit price of new energy power batteries?

A: Hello, investors,

(1) The company mainly improves product performance and energy density, optimizes product design, improves production technology, improves product yield, realizes more efficient automatic production, reaches deep cooperation with industrial chain, and reduces production cost and raw material cost.

(2) In terms of CTP, due to the cancellation of battery module assembly, compared with the traditional battery pack, the volume utilization rate of CTP battery pack is increased by 15%-20%, the number of battery pack parts is reduced by 40%, the production efficiency is improved by 50%, and the energy density of battery pack is also significantly improved, which will effectively reduce the manufacturing cost of power battery.

(3) The company will continue to reduce the cost of lithium batteries, make contributions to the development of new energy vehicles and the large-scale application of energy storage batteries, and get reasonable returns. Thank you for your attention.

Seven, about energy storage &; shipping

Q: Excuse me, 1. Which kind of energy storage battery will release faster in the application of power generation and power supply? 2. Is the establishment of fast charging station an attempt or an important part of the company's development strategy?

A: Hello, investors,

1, energy storage battery Due to the different characteristics of power grids in different countries, the power generation terminals in some countries will develop faster, and the power supply terminals in some countries will develop faster and more economically;

2. The fast charging station is an important measure to solve the charging problem of electric vehicles at the consumer end. Our company's "integration of storage and charging" can not only serve the consumer side, but also adjust the peak and valley electricity prices through energy storage, which is the hub of linkage between energy network and transportation network;

Q: Can you predict the growth trend of electric energy storage business in three years? Did your company participate in the bidding for lithium battery of mobile 5G base station and win the bid?

A: The energy storage market has great potential in the future. The company's power generation side application: peak shaving and load adjustment functions, effectively improve power generation efficiency and reduce power consumption costs. The cost of the "clean energy+energy storage" integration project is reduced, and a large amount of demand will be released near the economic turning point. Power end: The application scenarios are diversified, covering energy storage of industrial enterprises, backup batteries of communication base stations such as 5G, and home energy storage.

The company actively deployed energy storage business. The company has always attached importance to the research and development of energy storage. In the future, we will continue to adopt the overall strategy of "global sales, deepening the region and focusing on creating some scenes", with Europe, America, Australia, South Korea, Japan and China as the main battlefields, and achieve business growth through multiple channels and modes. Thank you.

Q: Hello, Zeng Zong! Recently, I saw the marine battery developed by the company, and the related products have been put into production. In the future development direction of the company, how big is the development space of ships in the electric age?

A: Hello investors, there are several types of ship products. Civilian products are divided into inland rivers, lakes, offshore ships and large ocean-going ships. At present, our electrification solutions for inland rivers, lakes and offshore ships are very competitive in terms of technology and economic benefits. In ocean transportation, our mixed solution is also very competitive. Deep sea 0 1 is the first ship under the overall planning standards of relevant ship design institutes and classification societies.

Eight, about the supply chain, production capacity and factory.

Q: Excuse me, leaders, what are the 22.2GWh capacity projects currently under construction? How many GWh are there in the medium and long-term capacity planning? I learned earlier that the planned output of Cheliwan is 16GWh. What products are mainly supplied? thank you

A: Hello, investors,

1) For the capacity projects under construction, see the information disclosed in the annual report of 20 19 for details;

2) The company will plan production capacity construction according to market demand. At present, the company mainly distributes five major production bases in the world (Ningde, Qinghai, Jiangsu, Sichuan and Europe). The main projects include European base/KLOC-0.8 billion euros, Cheliwan/KLOC-0.0 billion yuan, Yibin/KLOC-0.0 billion yuan, Jiangsu Phase III, and Huxi expansion, 4.6 billion yuan.

3) Power and energy storage production lines are mainly planned in Cheliwan. Thank you for your attention.

Q: Hello, Chairman, how is the upstream supply chain of our European factory currently prepared? Is it exported from the current supplier in China or re-established locally? What is the cost advantage of domestic supply chain? Can this advantage be brought to Europe? What are the biggest difficulties and obstacles? thank you

A: The supply chain of European projects will be a mixed model. Initially, China suppliers will mainly export, supplemented by local suppliers. Later, with the expansion of scale, the production capacity will be mainly local, and the local part will combine the European production capacity of China suppliers with European local suppliers. The difficulty of European supply chain lies in the long period of capacity building, high construction cost and high operating cost. It is necessary to optimize and reduce costs through innovation in all aspects of the supply chain.

Q: What is the progress of factory construction in Europe and when is it expected to go into production?

A: The progress of building a factory in Europe has been delayed due to the epidemic, and we hope to put it into production next year.

Q: Dear Chairman Zeng, how do you view and respond to the impact of the development of autonomous driving on the company? Does a car ecosystem like Huawei have adhesion as an energy provider?

A: Hello investors, the characteristics of autonomous driving are completely integrated with electric vehicles, so autonomous driving is also one of the most important driving forces to promote the electrification of automobiles.

Huawei hopes to become a major contributor to the intelligentization of electric vehicles. We are one of the main contributors to automobile electrification. We have very close cooperation with overseas automobile companies in electrification, and overseas automobile companies also have overseas intelligent partners. In China, we have deep cooperation with Huawei to promote electrification and intelligence of China cars.

Q: Hello, Mr. Zheng. The company set up many new subsidiaries on 20 19. Please introduce the main functions of these subsidiaries and their impact on the company's performance. At the same time, a real estate company was disposed of on 20 19. Please tell us the reason, the previous operation of this real estate company and its impact on the company.

A: Hello investors, the company has established a closed-loop industrial chain layout from minerals-raw materials-batteries-battery packs-recycling.

(1) Upstream resources: through equity investment and long-term purchase orders, the layout of upstream metal resources such as lithium, nickel and cobalt and processing fields will be continuously increased.

(2) Midstream materials: The company will increase investment and construction in key cathode materials through the Pingnan factory of Ningde Bangpu Company to ensure the supply and quality of raw materials.

(3) Battery application: The company has continuously increased its investment in the non-power market and set up a special business department to carry out business. Layout of charging, power exchange, energy storage network, joint venture with car companies to build factories.

(4) Battery recycling: The company will speed up the layout of battery recycling business by increasing domestic recycling capacity, starting the laying of power battery recycling outlets and setting up recycling bases overseas. Thank you for your attention.

Q: I would like to ask Mr. Zeng: In the company's fixed increase plan, there is no clear mention of how to determine the "pricing benchmark date". Can you explain it clearly? thank you

A: Hello investors, this non-public offering plan has made it clear that the pricing benchmark date is "the first day of the offering period". After obtaining the approval of the CSRC, the company will negotiate with the sponsor institution (lead underwriter) to determine the time for the official launch of the issuance. Thank you.

Q: Mr. Pan, what is the aftermarket layout of new energy vehicles of Contemporary Amp Technology Co., Ltd.? thank you

A: CATL is currently exploring new services of vehicle-electric separation and battery after-sales maintenance to further serve the whole life cycle of users and give play to the quality advantages of our products such as long life.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.