Hello Tech: Aim at the energy-storage market and strive for the listing of NEEQ in 2016
2015-12-05 Back to list >
Abstract: Zhongwei Sun indicates that the capital market operation of the current power bank industry is almost zero and no company focusing on power bank has been listed, which is because power bank industry has no high requirements to technology, various levels exist in the industry, the good and bad are mixed together, and there is no mighty brand. In the future, Hello Tech Energy shall devote itself to building a global stored energy product brand which mainly concentrates on OBM and takes OEM as the secondary business throughout the world.
On August 1st this year, China's first national mandatory standard for power bank "Safety requirements to lithium-ion battery and lithium-ion battery pack used for portable electronic products" has been officially implemented, people in the industry believe that the implementation of new national standard has wholly covered the whole power bank market and shall promote the further market reshuffle. Up to now, the new national standard has been implemented for four months, has it reached the desired effect? As the drafter of the national standard for power bank, Zhongwei Sun, the general manager of Shenzhen Hello Tech Energy Co., Ltd. (hereinafter referred to as “Hello Tech”), said in the exclusive interview of ITDCW, “The enterprises in the industry are very concerned about the standard, they perfect their products in accordance with this standard, and the new standard is very helpful for improving the quality of the whole power bank industry.”
The first national standard power bank enterprise speeds up the industrial concentration
Zhongwei Sun said that Hello Tech is the drafter of the national standard for power bank, in 2008, as the wholly owned subsidiary of Hello Tech, Guangdong DX Power Science and Technology Co., Ltd. (hereinafter referred to as "DX Power") is the first enterprise that proposes the industry standard of power bank in China, because power bank is li-ion battery product with potential safety hazards, DX Power has always been insisting on safety first in 12 years, and the industry standard proposed by them is more aligned with consumer needs and interests and has been accepted and vigorously promoted.
Qingjiao Yu, the Secretary-General of Lithium "Davos" Organizing Committee and the founder and CEO of ITDCW, thinks that the whole power bank industry has entered an era of integration in 2014, the manufacturing enterprises have rapidly reduced from 5000 to about 500 until the end of 2014. “Shuffling does always exist in an industry, the more mature the industry, the higher market shares shall be taken by large enterprises, the more rapidly the industry shall concentrate, and the less the enterprises shall become. It is predicted that there shall be less than ten enterprises with real sales volume of over 6 million by the end of 2015. The industry consolidation is too fast.” Zhongwei Sun said, “In my personal opinion, only the enterprises withannual output over 6 million are of scale, China’s power bank market is mature when the enterprises decrease to thirty or forty.”
China's first power bank enterprise that only makes power bank in 12 years
It is learned that Hello Tech was established in 2003, it had developed a prototype power bank before the establishment, it started producing and selling the portable power bank in 2004 and has always been striving to become a global power bank technology leader. Until now, Hello Tech has totally gained 30 patents for utility models and more than 120 patents for product design.
“I started the business in 2003, and I had nothing at that time. But I knew there is always a venture for the first time, I decided to make the products different from other mobile phone battery manufacturers who mainly do built-in batteries, and I chose the external battery for mobile phones. At that time, I thought external battery (power bank) shall be the best way to solve the power shortage problem of mobile phones, and we are the first enterprise making power bank in China.” Zhongwei Sun said, “The market was very small at first, we had insisted for a very long time until we had some sales volume in 2008, we started to grow in 2009, and we have been growing rapidly since 2010.”
Today, except researching and developing, manufacturing and selling for DX Power, Hello Tech also researches & develops and does OEM for international brands. Hello Tech has many products welcomed by North America, Japan and EU. “Hello Tech makes its self-owned brand and focuses on R&D and manufacturing at the same time, each takes the proportion of 50%. We always serve the first-class brands such as BMW, SAMSUNG, JACKERY, CHERRO, GP,LENMAR, etc.” Zhongwei Sun has stated that the company earns more profits by doing OEM in the current scale, the company makes high-end and safety first power bank products even for OEM by 100% using Panasonic cells, and the company thinks price is not the first element considered by the clients but the concept and management of safety first.
Personalized consumption era has come, high-end custom business accounts for 70%
Zhongwei Sun said that power bank is an industry with low threshold, there are many well-known manufacturing companies including LeTV, Xiaomi, and Samsung are making power bank. How does Hello Tech create a brand in the fierce market competition to meet the personalized demands? "I think it is to avoid the cutting edge, keep away from the strong points of competitors and give play to our own advantages, specifically make some market segments, such as power bank special for iPhones and high-end power bank."
It is said that DX Power has started researching and developing high-end power bank for Apple mobile devices since 2007, it has the world's most professionalresearch and development team to make power bank for iPhones, and has over 20 patents for utility models and more than 100 patents for product design.
Zhongwei Sun said that ODM business accounts for 70% of DX Power’s total business. DX Power only makes power bank special for iPhones currently, which is a high-end market segmentation and very suitable to be used as gifts by some large enterprises of mobile phones, cars, and banks for brand promotion. After a year of promotion, DX Power has found that the ODM business of high-end gifts has a very good market, some high-tech enterprises in Shenzhen including Tencent, Huawei, Baidu, and 360, as well as Guangdong Development Bank, China Everbright Bank, China Merchants Bank and some securities trader are all DX Power’s customers. In addition, because of the good brand positioning and image, DX Power has become a power bank supplier for BMW.
Aim at the stored energy market and strive for the listing of NEEQ in 2016
What’s the relationship between power bank and energy-storage products? In Zhongwei Sun’s point of view, power bank is a small energy-storage product in nature, and is an energy-storage power source providing convenience to the consumers, in the future, the application of power bank shall not be limited to the mobile phone market, it shall develop towards more directions, and there shall be more consumer demands if it has more functions. The energy storage market is just opened now which is predicted to reach hundreds of billions in the next three or five years.
Power bank is a small-sized energy-storage power source; DX Power desires to be a medium-sized or even large-scale energy- storage power source. "Over the past decade, DX Power has been concentrating on power bank, in the next decade, DX Power plans to build a global brand of energy-storage products, focus on the energy-storage products, mainly undertake the echelon use of power battery which is the brand value of DX power and the role it plays in the industry as a large associated industry." Zhongwei Sun thinks that the echelon use of power battery is very promising, “Making energy-storage battery is preparing for abandoning the power battery five years later, we have the energy–storage market and brand and we recycle the cells of power battery, which has great economic value. We already have a very profession team who is researching the echelon use of power battery now, this team has been specialized in the research of energy storage and UPS system in the past ten or twenty years and is very professional in technology implementation of energy storage battery. The subject matter of the echelon use of power battery cells is overhauling, which is not a technological difficulty to Hello Tech."
It is reported that DX Power has already been developing the power bank for electric vehicles and shall launch new products by the end of December this year which is expected to appear on the market in June 2016. In addition, Hello Tech shall exhibit the power bank and energy-storage products at 2016 International Consumer Electronics Show, whose goal is to become China's Powerwall and compete with Tesla.
For future planning, Zhongwei Sun indicates that the capital market operation of the current power bank industry is almost zero and no company focusing on power bank has been listed, which is because power bank industry has no high requirements to technology, various levels exist in the industry, the good and bad are mixed together, and there is no mighty brand. In the future, Hello Tech Energy shall devote itself to building a global stored energy product brand which mainly concentrates on OBM and takes OEM as the secondary business throughout the world. “We have already been preparing for financing negotiation and planning to help accelerate the development of global green energy industry by the strength of capital and energy-storage power sources so as to make a green earth.