In China’s new energy vehicle development, Titans Energy actively conducts research and development, as well as bidding projects on new energy vehicle charging facilities. The company mainly operates the following three products, charging power (integrated and independent electric vehicle charging), charging poles (AC and DC charging poles), and battery maintenance systems.
In 2013, the company attained revenue and gross margin of RMB 11.43 million and 44.96% from electric vehicle charging equipment, respectively down 58.95% and 0.22 percentage point year on year. In H1 2014, revenue from electric vehicle charging equipment climbed up by 161.89% yr-on-yr to RMB 28.61 million, but the gross margin fell down 1.85 percentage points to 43.11%.
The decrease of revenue was caused by reduced number of newly started construction projects on electric vehicle charging equipment. Although macroscopic policy on new energy vehicle popularization remained unchanged, vehicle subsidy policy and new energy vehicle popularization policy on key cities had not been issued. As a result, market demand on electric vehicle charging equipment suffered downturn. However, the company still kept steady investment on research and development.
Titan's Revenue and Gross Margin from EV Charing Equipment, 2011-2014
Since publication of the policy on new energy vehicle industry from the end of 2013, the popularization speed of new energy vehicle has become more and more rapid. Under such circumstance, Titans accelerated construction on electric vehicle charging equipment. As a result, revenue from the equipment increased accordingly.
Titans electric vehicle charging and discharging project included 2008 Olympic Games Electric Vehicle Charging Stations, and Shanghai World Expo Electric Vehicle Charging Stations. In the second batch of bidding invited by State Grid, Zhuhai Titans Technology won the bid of 500 sets of AC charging poles, 500 sets of 220V double-port 32A AC charging poles, 5 sets of 220V single-port 32A AC charging poles, and 30 sets of 380V single-port 63A AC charging poles.
Titans' Operation Forecast, 2014-2017
