Tag Archives: New Energy

GBA Briefs: 11/9/2019

Gree energy: Gree Electric boss Dong Mingzhu is finding time amid the bidding war for her company’s shares held by the city government to chair another joint-venture, this one involved in new-energy industries. Read more on Yicai Global.

Keep calm and Carrie on: Hong Kong CE Carrie Lam welcomed more than 5,000 delegates to the city’s Belt and Road Initiative Forum today, saying the “Hong Kong spirit” will overcome the current turmoil. This followed an evening of protesters singing their own anthem in shopping malls and soccer fans booing the national anthem. Read the SCMP’s wrap.

No more panic: China must stay alert to the possibility of a severe market disruption in case the trade war deteriorates further, as a repeat of the 2015 sell-off will shatter the confidence of international investors, Jessie Pak, managing director for Asia at FTSE Russell, tells the SCMP.

BYD changes Shenzhen; next, the world

Shenzhen-based electric vehicle maker BYD is perhaps most famously known outside of China for the fact that Warren Buffet is a shareholder. Inside China, the company’s legendary status as a tech pioneer has taken on a new dimension since being named the only Chinese company in the top 10 of Fortune’s Change the World list this year. 

First published in 2015, the business magazine’s annual list spotlights the top 50 companies who address major social problems as a core part of their business strategy and innovation. 

BYD took third position in this year’s list, behind semiconductor giant Qualcomm and payments facilitator Mastercard. It was also the only car manufacturer listed among the 52 companies. Alibaba and Baidu were the only other Chinese companies to make it into the ranking, taking 37th and 39th spots, respectively. 

According to Fortune, BYD was chosen for the impact it has created in the global electric vehicle industry. The carmaker has not only expanded the new energy vehicle market, but also made significant contribution to environmental conservation. In Shenzhen for example, BYD’s 16,000 electric buses and 22,000 electric taxis have brought down the consumption of petrol or diesel oil by 980 million liters per year, while reducing carbon dioxide emissions by 2.22 million tones. 

As the US-based publishing group writes in its assessment of BYD: “BYD began life as a manufacturer of cell phone batteries and didn’t make its first car until 2003. But for three years, it was the world’s largest maker of vehicles that run partly or wholly on electricity (Tesla only recently overtook it).” 

Fortune sees the company’s development of a flexible “E-platform” for EV design and construction as key to its success. “A basic BYD model sells for a mere US$8,500 or so, after subsidies—a key factor in evangelizing EVs more widely,” Fortune writes. “And a recently announced joint venture with Japan’s Toyota should expand BYD’s global footprint.”

BYD has made the prestigious innovation list before, taking 15th position in the launch edition. That was when it was first commended for the fact that its electric buses only required to be charged once for the full day of operation, and their cost of maintenance was lower than diesel buses. This helped improve the city’s air quality and reduce smog. 

The timing could not have been better from a PR perspective, as Fortune’s list was published the day before BYD announced its latest financial results for the six months to June 30. Listed on the Hong Kong and Shenzhen bourses, BYD’s businesses include automobile, handset components and assembly, rechargeable and photovoltaic batteries. In the first six months, revenue rose 14.8% to RMB62.18 billion, while net profit soared 203.6% to RMB1.46 billion. 

In its typically understated style, BYD reported that sales of new models had done well in the first half of the year, generating revenue of RMB33.98 billion, up 16.27% YoY, accounting for 54.65% of the group’s total revenue. Among which, the new energy vehicle business was up 38.88%, at RMB25.45 billion, representing 40.92% of the total. 

Driving this growth (can’t escape the pun) was new models, apparently. As the company noted, its share of the Chinese market for EVs increased by four percentage points to 24%. That is against a backdrop of surging overall EV sales in China, up nearly 50% YoY, to 617,000 units in the first half, and despite a fall in overall vehicle sales across the country as demand for fuel-emitting vehicles has slumped. The company believes its newest models were largely to thank for this, particularly the “Tang EV”, which can accelerate from 0-100 km/h in 4.3 seconds and has a range of 500km. It is “regarded as the SUV with the most power in China, setting a new benchmark in the industry,” BYD writes.

In its financial report, management explained that the recent reduction in government subsidies had inevitably placed pressure on the industry. But in the long run, this is seen as being conducive to consolidating the market, promoting its healthy development. “Now the industry will be more market-driven, and new energy vehicle manufacturers with leading technology, reliable quality and good market reputation are likely to enjoy increasing market share,” it said.

Shenzhen builds big waste-to-energy plant

Shenzhen is building the world’s largest waste-to-energy plant that once operational will process up to 5,000 tonnes of waste each day. 

The process captures heat from incinerating unwanted waste materials, which drives a turbine to generate electricity. China has the world’s largest installed waste-to-energy capacity, with more than 300 plants in operation. This capacity has increased annually by 26% over the past five years, compared with just 4% average growth in capacity in the Organization for Economic Cooperation and Development (OECD) countries. 

Once constructed, Shenzhen’s new plant will combust roughly a third of the city’s daily domestic waste. It will also generate some renewable energy via 40,000 square meters of solar panels on its roof. 

Read more.

Foshan unveils new type of fuel station

Foshan has launched what it says is the nation’s first station converted from traditional gasoline fueling to handle both gas and hydrogen fueling under one roof, according to Caixin Global. 

The station in Foshan’s Zhangkeng area has also added charging facilities for electric cars. It was developed by Sinopec, which operates one of the nation’s largest filling station chains. The station has the capacity to fill up hydrogen-powered vehicles, which emit water as their only exhaust product, with up to 500 kg of the fuel each day. It can fill up a bus in about four minutes with enough fuel to take it 300 kilometers.

New-energy bulk carriers launched in Huizhou

The world’s first fleet of new-energy bulk carriers was launched in Huizhou over the weekend. Yiwei Lithium Energy has 18 ships, each of which can carry up to 5,400 tons, powered by a hybrid of batteries and combustion engines.  

Currently more than 90% of global cargo ships run on diesel. These work well at cruising speed, but not for arriving and departing from ports, which are located close to urban areas. According to Liu Jincheng, Yiwei’s chairman, the company’s new-energy fleet aims to realize zero-emissions for ships coming in and out of ports, combining fast charging capacity, daily cruise hybridization and ship intelligence, with 30% less operating costs compared with ordinary commercial fleet of the same type. 

Read morein Chinese. 

Evergrande to build NEV bases in Nansha

China’s No.1 property developer, Shenzhen-based Evergrande, plans to invest RMB160 billion in Guangzhou’s Nansha district to build three New Energy Vehicle bases. They will be fully integrated, with facilities for R&D and production of vehicles, batteries and electrical machinery. The goal is to produce more than one million vehicles once fully up and running, though no specific timeline has yet been given. The land parcel on which the bases will be built was acquired recently in the Wanqingsha area of Nansha. It is 858,000 sqm and RMB847 million.

Read more in Chinese.

Guangdong adds 7,000 car license quotas

Guangdong recently added 7,000 more quotas for vehicle licenses in June, following the government’s announcement it would ease the restrictions on the industry earlier this month. These include 5,000 for new energy vehicles and 2,000 for fuel vehicles.

The success rate of applying for a new energy vehicle license is expected to reach 40% this month if the number of applicants remains steady.

Read more in Chinese.

Guangdong zooms ahead with electric cars

New Energy Vehicle* production is surging in Guangdong, which is already the country’s largest market for electric cars. In Q1, sales jumped 252.1%, by far the fastest in the country. Leading the charge were Guangzhou Auto (+71% YoY) and Shenzhen-based BYD (+147%).

Guangdong is the country’s biggest producer and consumer of NEVs. There are more than 250,000 on provincial roads, which is around one-eighths of the country’s total. Add in the number of Teslas in Hong Kong – it is the largest per-capita market for Tesla worldwide – and the Greater Bay Area’s dominance in electric vehicles becomes clearer.

Despite falling car sales overall, and despite the headlines about carnage in the startup sector for electric cars, the NEV market is accelerating quickly: around 1.7 million are expected to be sold nationwide this year.

Shanghai will likely catch up in terms of production once Tesla’s Gigafactory there starts pushing out Model 3s, but the Greater Bay Area is expected to remain in the lead on sales. Moreover, looking ahead, production capacity is accelerating fastest here.

Three factors are driving this growth in the GBA. One, industrial policy adjusted quickest here once the central government made it a national priority. This enabled traditional manufacturers such as Guangzhou Auto to undertake major upgrades of production capacity while their startup compatriots were still raising money and learning how to make cars. Total production capacity of NEVs in Guangdong under construction has already exceeded 2 million units annually, including 400,000 for the new energy line of Guangzhou Auto and 400,000 for its Japanese joint venture, GAC Toyota. These should be completed by 2022.

Two, electric vehicles fit into the national game plan for stimulating consumption, and Guangdong has been quick to launch supportive policies such as increasing the quotas for new licenses.

Three, two of the world’s most efficient multinational car companies have been attracted here by favorable policies and deeper consumer markets. They are Toyota, which has invested RMB11 billion into its existing partnership with Guangzhou Auto to produce NEVs, and Mercedes-Benz, which is partnered with BYD.

Read more (in Chinese).

Tech boosts Guangdong GDP in Q1

Industries in the “new economy” contribute 25.1% of Guangdong’s GDP, according to the provincial government. Growing at 7% – which is in line with overall GDP growth – companies across the spectrum are ramping up R&D spending, too. This is underpinning future growth and is spreading to older industries as well: as of the end of March, 35% of Guangdong’s 40,000 industrial enterprises had established a science and technology R&D department. Overall investment in new technologies came in at RMB140.55 billion in the quarter, up 8.7% YoY.

Sales of 4K television sets are a bright spot, up 44.4% to RMB6.48 million. The star standout, however, was new energy vehicles (NEVs), which saw sales up 252%.

Probably the single brightest spot in this landscape is the Nanshan Science Park, in Shenzhen, where the total market cap of its constituents is over RMB4 trillion. This is where Tencent and Huawei are based. Last year, the park’s GDP hit RMB 501.8 billion, generated by more than 3,500 nationally accredited tech companies across a swathe of new industries such as AI, big data, quantum communication, and biotech.

Read more (in Chinese).

BYD rolls out 300th E-bus in California

Shenzhen-based BYD has rolled out the 300th electric bus at its Lancaster manufacturing plant in California, reports Xinhua Net.

In a celebration with its customer, the Antelope Valley Transit Authority, BYD said that AVTA is closing in on a landmark of its own as it expected to realize 1 million miles of zero-emission bus operations in early May.

BYD called AVTA a model for transit agencies seeking affordable green technology – especially those in California that need to comply with state regulations requiring zero-emission fleets by 2040.

Lancaster Mayor R. Rex Parris termed the 300th bus as “the tip of the iceberg.” He credited BYD for creating hundreds of American jobs with more on the horizon as the company expands its product lines of battery-powered buses, trucks and forklifts.