Recently, Yuneng Technology announced the completion of tens of millions of yuan in Series A financing, led by Delian Capital, with participation from Shenzhen Guarantee Group, old shareholders Qingsong Fund and BAIC Industrial Investment.
The funds obtained will be mainly used for the expansion of production capacity of commercialized product lines, iterative development of new products, and continued investment in R&D of core technology platforms.
As a technology-based company, Yuneng Technology focuses on the research and development, production and sales of new materials. Its products are mainly used in consumer electronics, new energy vehicles, photovoltaics and other industries.
At present, the company has established three commercial product lines including electromagnetic shielding materials, magnetic cores, and functional adhesive films.
In terms of iteration cycle, consumer electronics products take 6-12 months, and new energy vehicle products take about a year.
In the field of electromagnetic shielding materials, Yuneng Technology provides differentiated product solutions for multiple segmented applications such as wireless charging. Taking wireless charging of mobile phones as an example, it can ensure greater charging power while reducing losses, making the thickness of mobile phones thinner.
Thinner and lighter.
In the field of magnetic cores, the company's high-performance magnetic core product line has achieved domestic substitution of the products of German VAC and Hitachi Metals, an international soft magnetic material company.
For example, the inverter for new energy vehicles can reduce the size by 20-30% while supporting a maximum current of 800A.
At present, the company's team size exceeds 100 people, and its production workshops in Shenzhen and Dongguan total 7,000 square meters. This year's R&D investment has exceeded 10 million yuan, and it has more than a dozen patents.
According to Yuneng Technology CEO Zeng Zhichao, the company’s revenue this year is nearly 100 million yuan, and it has customers such as Huawei, Xiaomi, Samsung, BMW, SAIC, and BAIC.
In the course of several years of development, how to smoothly enter the supply chain of major customers has always been a headache for Zeng Zhichao.
In order to obtain the opportunity to test in the customer's supply chain, Yuneng Technology on the one hand continues to polish its products so that its performance exceeds that of foreign giants; on the other hand, it adopts a more competitive price strategy.
In addition, with team members having experience in DuPont, 3M and other companies, as well as the help provided by industrial investors, the company's success rate in expanding customers has also improved.
In the trillion-level market of new materials, it covers a wide range and involves many types.
According to calculations by Yuneng Technology, in the subdivisions such as electromagnetic shielding materials, magnetic cores and functional films, the potential market space corresponding to each product line is in the billions of yuan.
What cannot be ignored is that under the influence of the COVID-19 epidemic and the complicated national situation, the operations of some players in the new materials industry have also been affected to a certain extent.
Zeng Zhichao said bluntly that some customers originally accounted for a relatively high proportion of the company's revenue, but due to the aforementioned factors, their product sales have declined, which has indirectly had an adverse impact on the company's revenue.
But there is also good news.
According to data from the Automobile Market Research Branch of the China Automobile Dealers Association, the retail sales of new energy vehicles from January to November this year were 2.514 million, a year-on-year increase of 178.3%, and the penetration rate reached about 15%, while this number was 5.8% last year. It is expected that the penetration rate next year
rate will exceed 20%.
As the market share and penetration rate of new energy vehicles gradually increase, the company's products for the new energy vehicle industry will also have more opportunities.
Due to the characteristics of the industry, new materials require a large initial investment. Therefore, Yuneng Technology will still increase product research and development efforts in the next 1-2 years while increasing the company's production capacity.
In addition, the company is extending its product fields from the consumer electronics industry to the new energy automobile and photovoltaic markets, and will also work with customers to explore more new material application scenarios.