The competitive advantage of Changhong Energy on the selected layer of the New Third Board: alkaline zinc manganese battery

Changhong Energy has two core businesses: alkaline zinc manganese batteries and lithium ion batteries. The parent company and Changhong Flying Lion are mainly responsible for the company's alkaline manganese battery business. The parent company is an important production base for alkaline manganese batteries, and Changhong Flying Lion is the alkaline manganese battery production base in East China. In 2016, the company obtained the controlling rights of Changhong Flying Lion through mergers and acquisitions, quickly established a coastal manufacturing base, added coastal external windows, and further strengthened the contact between the company's headquarters and customers. Changhong Sanjie is mainly responsible for the company's lithium-ion battery business. Changhong Sanjie established a wholly-owned subsidiary, Changhong Jiechuang, in Mianyang in May 2020. In the future, it will choose an opportunity to build a lithium battery production base in Mianyang. The zinc-manganese battery has mature technology, stable performance, safety and reliability, and convenient use. Compared with ordinary carbon zinc-manganese batteries, alkaline zinc-manganese batteries have high capacity (about 5-7 times of ordinary zinc-manganese batteries), large discharge current, good leakage resistance, and long storage period (about ordinary zinc-manganese batteries). 3-7 times), good low temperature performance, mercury-free environmental protection and other advantages, has become an indispensable electronic consumable in consumers' daily life. At the same time, as an internationally standardized product, the size and shape of the alkaline manganese battery are standardized, easy to carry, and inexpensive. At present, there is no better alternative product on the market, and the downstream market is relatively stable, and it is difficult to be replaced by other battery products in a short period of time. With the continuous advancement of science and technology, the development of the Internet of Things, intelligent technology, and the improvement of residents' living standards, various new electrical appliances continue to emerge. As a daily necessities, zinc manganese batteries will continue to be used in home medical equipment, smart security and other application fields. Expansion, a wide range of application markets will further drive the increase in market demand for zinc-manganese batteries. The company's alkaline manganese battery business will continue to rise steadily, but it should rise at a low rate. After all, the entire industry is currently only rising in single digits. Changhong Energy's alkaline manganese battery products are mainly sold to battery brands or brand agents through OEM methods. It is a manufacturing supplier of internationally renowned battery brands such as Energizer, Duracell, Toshiba, Mitsubishi, and Panasonic. The top five customers of alkaline manganese batteries: Hangzhou Nengpai is the designated agent of AMAZON (Amazon). After Changhong Energy entered its supplier system, after several years of screening and certification, it has gradually become the main supplier of its alkaline battery products. Its sales scale has risen sharply. Energizer and its affiliates are the largest battery companies in the United States, under the 'Energy' brand. As an internationally renowned battery brand, it takes a long time to certify and evaluate manufacturing suppliers. Changhong Energy officially entered its qualified supplier list in 2016, so after 2017, its sales have risen sharply; in addition, under SpectrumBrands The 'Rayovac' brand battery was acquired by Energizer in 2018. In 2019 and from January to June 2020, the issuer's sales to Energizer and its affiliates increased significantly. In the field of alkaline manganese batteries, internationally renowned companies have a complicated and long process for supplier selection and certification. Once the cooperation and trust relationship is established, they will be relatively stable and will not be easily replaced, which to a certain extent hinders the intervention of other competitors. High viscosity.