Another domestic leader going abroad! How did Dangsheng Technology earn 1.2 billion from overseas?

In recent years, the outbreak of the new energy vehicle market has driven the development of the global power battery industry, and even upstream of power battery suppliers, electrode material suppliers have also followed the trend from behind the scenes to the front, becoming one of the focuses of attention.

For example, Dangsheng Technology, the lithium battery cathode material supplier of the head battery company BYD, is one of the lucky ones who quickly grew into a domestic leading enterprise and went abroad with the help of the favorable market.

According to public information, Dangsheng Technology was formally established in 2001, and its predecessor was just a research group of the Beijing General Research Institute of Mining and Metallurgy.

Only later did it become a leading professional supplier of cathode materials for lithium-ion batteries in China, and its customers gradually covered overseas giants such as SK, SDI, and LGC.

Public data shows that in 2020, Dangsheng Technology achieved revenue of 3.183 billion yuan, of which 1.218 billion yuan was earned from overseas, accounting for a substantial increase to nearly 40% year-on-year.

Affected by the increase in the proportion of overseas customers, in the first quarter of 2021, the company’s operating income and net profit attributable to the parent increased by 204% and 354% respectively.

Know that the company

and become a leading supplier in the upstream of the power battery industry chain?

In my opinion, this is mainly due to two reasons.

On the one hand, the favorable market environment and development trend provide an excellent development opportunity for Dangsheng Technology.

The outbreak of the new energy vehicle market in the past two years has led to a surge in the demand for power batteries in the global market, which has put forward higher requirements for the supply of power battery cathode materials. Affected by this, Dangsheng Technology has entered the fast track of performance.

Shell Investment Research predicts that the global cathode market demand is expected to increase by more than four times from 2020 to 2025, and the demand for lithium battery cathode materials may reach 2.03 million tons in 2025.

On the other hand, of course, is the company’s R&D capabilities.

A favorable market can only provide development opportunities for a group of enterprises, but whether an enterprise can successfully seize the opportunity under favorable conditions still depends on its own strength.

The author understands that Dangsheng Technology has attached great importance to research and development since its establishment. In recent years, the proportion of the company’s R&D expenses to total revenue has continued to rise. In the first quarter of 2021, the R&D expense ratio will reach 5%.

Moreover, 27% of the employees of Dangsheng Technology in 2020 are R&D technicians.

Thanks to this, according to the data released by Tianyancha and the State Intellectual Property Office, the number of patents in the hands of Dangsheng Technology has reached 129, which is at the leading level in the industry.

The technical advantages and precipitation have laid the foundation for the improvement of Dangsheng Technology’s product power, which is also the main reason why the company can win overseas giant customers such as Sanyo Energy, Sony, and SKI.

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