Recently, the Ministry of industry and information technology, the Ministry of education, the Ministry of science and technology, the Ministry of finance, the State Administration of market supervision and other five departments jointly issued the implementation opinions on the improvement of manufacturing reliability, proposing to focus on the strategic goal of manufacturing power and quality power, focusing on machinery, electronics, automobile and other key industries, A number of manufacturing enterprises with high product reliability, strong market competitiveness and great brand influence will be formed.

Shenzhen Dacheng Precision Equipment Co., Ltd. (hereinafter referred to as "Dacheng Precision") is a leading enterprise in the field of high-end equipment manufacturing in the field of lithium battery. According to the data, the company is a high-tech enterprise integrating R & D, production and sales, providing professional intelligent equipment and automation solutions for new energy power batteries, energy storage batteries, digital batteries and other fields.

Lithium-electric field of high-end equipment manufacturing leading enterprises, well-known battery manufacturers to achieve full coverage.

In recent years, due to the outbreak of the domestic new energy vehicle market, the lithium battery market has ushered in a period of rapid growth. According to data from the Ministry of Industry and Information Technology, the national lithium-ion battery output reached 750GWh in 2022, an increase of more than 130 percent over the same period last year, and the total output value of the industry exceeded 1.2 trillion yuan, about twice the total output value of 600 billion yuan last year.

In the market boom, a large number of lithium battery manufacturers with strong comprehensive strength and advanced technology, lithium battery equipment enterprises and key battery material suppliers have stepped onto the forefront of the stage and attracted the attention of the market.

Dacheng Precision was established in 2010. After more than ten years of development, the company currently has two major production bases and R & D centers in Dongguan Dalang and Jiangsu Changzhou (of which the Changzhou base was officially put into operation in August this year), and has successively established Jiangsu Changzhou, Guangdong Dongguan, Fujian Ningde, Sichuan Yibin and other customer service centers, forming an overall strategic layout of "dual R & D centers, dual production bases, and multiple service branches.

The company is a solution provider for lithium battery production and measuring equipment. Its main products are lithium battery pole piece measuring equipment, lithium battery vacuum drying equipment and X-Ray imaging testing equipment. Its functions cover important links in lithium battery manufacturing. The lithium battery pole piece measuring equipment is applied to coating and rolling processes. Drying equipment is used for drying process before liquid injection of battery core. X-Ray imaging testing equipment is applied to battery core winding/lamination and shelling process.

It is reported that with outstanding technical strength, rich research and development experience and high-quality products and services, Dacheng Precision has achieved full coverage of top20 customers in the industry and has clinched deals with more than 200 well-known lithium battery manufacturers. The customer list includes Ningde Times, BYD, New Energy Technology (ATL), Zhongchuang Xinhang, Yiwei Lithium Energy, Zhuhai Guanyu, Xinwanda, Trina Solar and other well-known downstream battery manufacturers. Among them, the company's lithium battery pole piece measurement equipment occupies more than 60% of the domestic market share.

Thanks to strong product competitiveness, Dacheng Precision's consolidated gross margin for the first quarter of 2019-2022 was 37.26 percent, 41.88 percent, 44.71 percent and 41.31 percent, respectively, and profitability was at a high level in the domestic lithium battery equipment industry.

In terms of performance, data show that Dacheng Precision's operating income from 2019 to 2021 is 124.9065 million yuan, 238.3042 million yuan and 386.4431 million yuan respectively, and the net profit attributable to the owner of the parent company after deducting non-recurring gains and losses is 5.6833 million yuan, 39.9641 million yuan and 66.142 million yuan respectively. the scale of income and the level of profit have maintained rapid growth.

Technology Leads Industrial Upgrading, Dacheng Precision Promotes Independent Control of China's Industry

In the field of lithium-electric industry, lithium-electric equipment market domestic substitution speed is relatively fast, high industry research institute data show that in 2019 China's lithium-electric equipment localization rate has reached 90%, of which the localization rate of square battery production equipment more than 90%, cylindrical battery production equipment localization rate of more than 95%.

Dacheng Precision is committed to solving the card neck problem in the field of China's equipment manufacturing, enhancing the competitiveness of equipment manufacturing products, and promoting the independent control of China's industry. Before Dacheng Precision, foreign lithium battery testing equipment manufacturers led by Honeywell Enterprises in the United States monopolized most of the domestic market. In November 2017, Dacheng Precision successfully obtained the order of BYD measuring machine, marking that China's mainstream battery manufacturers ATL, BYD and CATL have all realized the import substitution of measuring machine equipment through Dacheng Precision.

Since its establishment, Dacheng Precision has always adhered to the development strategy of taking technological innovation as the core driving force. Its research and development expenses have remained stable at about 10% of its operating income. From 2019 to 2021, Dacheng Precision has invested 12.8384 million yuan, 20.6533 million yuan and 42.549 million yuan respectively for research and development, accounting for 10.28, 8.67 and 11.01 percent of its revenue. As of March 31, 2022, the company had 697 employees, including 146 research and development personnel, accounting for 20.95.

In this process, Dacheng Precision has formed two technical platforms for lithium battery online detection and lithium battery vacuum drying, as well as a series of core technology reserves with independent intellectual property rights, including laser thickness measurement technology, battery pole piece coating multi-frame synchronous tracking online ray weight measurement technology, weight measurement thickness phase difference measurement (CDM) technology, vacuum drying furnace multi-layer fixture integration technology, vacuum drying furnace temperature control system, vacuum drying furnace circulating material loading trolley scheduling system, power battery X-Ray online detection technology, high-speed online CT detection technology, etc.

In addition, Dacheng Precision has also actively carried out forward-looking technical layout through independent research and development innovation and industry-university-research cooperation with universities and colleges, such as independent research and development of X-ray winding battery online detector, third-generation power blade battery automatic drawer-type vacuum monomer furnace, export version X-Ray measurement system, Super X-Ray areal density measurement instrument, anode XRR measurement system, etc; signed commissioned research and development agreements with Sichuan University, Beijing University of Aeronautics and Astronautics, Hefei University of Technology and other universities, carried out special technical cooperation, actively expanded the fields of vacuum pumps, solid-state sensors and other components, and strengthened the company's technological innovation in the field of equipment subdivision parts.

As of the date of signing the prospectus, the company has 113 authorized technology patents, including 11 invention patents and 102 utility model patents. Dacheng Precision is a national high-tech enterprise and a special new enterprise in Shenzhen. It has been awarded as one of the top ten dark horse enterprises in the lithium battery industry, one of the top ten fast-growing companies, and has won the annual innovation technology award for 7 consecutive times.

In addition, Dacheng Precision also participated in the drafting of domestic industry standards such as "Lithium-ion Battery X-ray Testing Equipment" and "Continuous Vacuum Drying System for Lithium-ion Batteries.

Market demand continues to grow, lithium-ion equipment companies have a bright future.

In 2023, driven by the demand of new energy vehicles, lithium energy storage and other market segments, the lithium battery industry is still hot. According to the data of the Ministry of industry and information technology, from January to February, the total output of lithium battery in China exceeded 102GWh, with a year-on-year increase of 24%; from March to April, the total output of lithium battery in China exceeded 138GWh, with a year-on-year increase of 45%.

At the same time, customs data show that China's lithium battery exports reached 109.79 billion billion yuan in the first quarter, an increase of 94.3 percent over the same period last year, which is called the "new three samples" of China's exports along with electric manned vehicles and solar cells ".

GGII predicts that China's lithium battery market shipments are expected to reach more than 4TWh in 2030, with a compound annual growth rate of more than 26% from 2022 to 2030. This will directly drive the market demand for lithium battery equipment to continue to increase. GGII said that the scale of China's lithium battery equipment industry will exceed 100 billion yuan in 2022, and the market scale of lithium battery production equipment is expected to exceed 150 billion yuan by 2025.