■Borrowing from Tesla's "halo"?
With such a volume and market visibility, it is only natural for Tesla to enter the domestic supply chain system. In fact, before Junsun Electronics received a letter of intent from Tesla, it had already supplied Tesla in North America.
『Junsun Safety Lingang Factory』
In order to cooperate with Tesla's domestic production, Junsun Safety Lingang was formally established on May 22, 2019, with a total investment of 420 million yuan, which is only 3km away from Tesla's Shanghai Super Factory. The company is mainly engaged in the design, development, testing, manufacturing and sales of automotive passive safety systems, including airbag modules, seatbelts, steering wheels and automotive safety system integration products. Starting in 2020, Junsheng Safety Lingang gradually provides steering wheels, airbags and other automotive safety system products for domestic Tesla, with an order life cycle of about 3-5 years. It is reported that the current order of Tesla related products is 7.5 billion yuan (full life cycle), and the annual production capacity of the steering wheel production line prepared by Junsheng Safety Lingang for Tesla can reach up to 160,000 sets.『Airbag production line』
There are many suppliers who want to be related to Tesla, which can be verified by the stock market. However, in the open day of Tesla's safety harbor, Junsun Electronics introduced the factory situation and product "hardcore" technology to investors and media, as well as the future plan, and avoided the specific details of supplying to Tesla on purpose. "The leadership is very disgusted with us rubbing hot spots." A uniform electronic marketing commissioner said. The capital market always tends to be rational, more and more enterprises began to realize that among the Tesla "circle of friends" is not the focus, to cultivate core competitiveness is the key. As a matter of fact, the company does not need to rely too much on Tesla's "halo". From the business orders, it can be seen that Tesla's orders only account for a small part. As of August 2020, JSS's new orders in China have reached 10 billion yuan (full life cycle), and new customers include Great Wall, Geely, Guangzhou Automobile, SAIC-GM, Ford and others. During this time, there was a steady stream of people applying for jobs at JSS Lingang. "There was basically no stoppage after the resumption of work in the epidemic." Zhu Xiaofeng, vice president and chief operating officer of Junsheng Automotive Safety Systems China, told AutoNews, "We are constantly expanding our staff, in August alone, we have recruited more than 100 people, and the Lingang factory now has more than 1,000 employees." "It is expected that by 2025, Junsun Safety's market share in China can reach 40%, with sales reaching a scale of 15 billion yuan." said Shan Jinhui, global executive vice president of Junsheng Automotive Safety Systems and president of China.■Shipping more than 10,000 sets of steering wheels every day
Through the business integration in the past few years, Junsun Electronics*** now has four major businesses: automotive safety systems, functional parts and assemblies, automotive electronic systems and intelligent car link systems. Among them, automotive safety system is the main source of operating income of Junsheng Electronics, occupying about 70% of the share. In many factories around the world, the safety Lingang is to play an important role. It is reported that the annual production capacity of the steering wheel of the plant reaches 3.2 million pieces, accounting for one-third of the global steering wheel production capacity of Junsun, with an average of more than 10,000 sets of steering wheels to be shipped every day. In addition, the annual production capacity of airbags is 27 million pieces, and the production capacity of winders is 10 million pieces. The steering wheel is a traditional part, but there is a lot of knowledge hidden inside. As far as the factory facilities are concerned, Junsheng Safety Lingang has four functional laboratories, including physical environment laboratory, ignition explosion laboratory, chemical laboratory and measurement room, for the development of automotive airbags, steering wheels, seat belts and system integration.'CT equipment'
What impressed me was a CT equipment, similar to medical equipment, which can carry out non-destructive testing of steering wheels after assembly and integration, i.e., without disassembling the product, it can carry out internal probing, assembly analysis, numerical simulation, dimensional measurement and so on. "The cost of this set of equipment is nearly 4 million yuan, and there are no more than 5 units in China." Site staff introduced. Process-wise, the steering wheel also needs to be skeletonized, foamed, wrapped, assembled and other processes. "The Lingang factory has introduced an intelligent factory management system, and many processes have been automated." Zhu Xiaofeng said, "Only the wrapping process, in order to get a better feel and safety needs, some customers require pure hand sewing, which can not be replaced by machines." According to the scene, the steering wheel of the leather used in the first layer of leather material Nappa, and some luxury bags belong to the same supplier. And a cow's Nappa leather, can only do 1-2 sets of steering wheel. In view of the scarcity and expensive price of the first layer of Nappa leather, it is generally considered on high-end models. It is reported that Azure, Audi, Red Flag and other car companies have cooperated with Junsun Electronics and take the lead in the application, these high-end product orders can enhance the gross profit margin level of Junsun Electronics.『The center body of the steering wheel is wrapped with head-layer Nappa leather』
"As a safety system part, no matter from the regulatory requirements of each country or the technical demand, there is a trend of volume and price increase, and we are on a right track." said Chen Wei, Executive Vice President of Junsun Electronics and Chairman of Junsun Automotive Safety Systems China. With the arrival of autonomous driving and the improvement of safety requirements by regulations, the application scenarios of safety system products have become more complex, the threshold of research and development is getting higher and higher, and the unit price is also gradually increasing. This year, among the new orders of Junsheng Safety, the Driver Monitoring System (DMS) has realized mass production in Cadillac models, and at the same time, started to promote the matching for Chinese brands. The technology tracks the driver's head position and facial features in real time, recognizes the direction of the driver's line of sight, and warns the driver to focus on driving.■ First half of the new orders of 25.3 billion yuan
Large-scale acquisitions do bring a series of competitive advantages to the uniform electronic, but this year is an unusual year, by the new crown and other external factors, the global automotive industry has suffered a greater impact on the global vehicle sales decline of about 28%. From the first half of the financial report, more than half of the top ten vehicle manufacturers losses, parts and components companies as a whole are also in trouble. For the overseas market accounted for 78% of Junsun Electronics, and globalization of international auto parts, as in the epidemic period had to "play the whole game", first to deal with the domestic and then to deal with the global, coupled with a large-scale mergers and acquisitions are in the integration period, which makes Junsun Electronics business management pressure has increased dramatically. In the first half of 2020, Junsun electronic revenue of 20.5 billion yuan, a year-on-year decline of 33%, net profit attributable to the mother of three years for the first time in the loss. This report card has not been easy in the eyes of Junsheng Electronics, "Although the epidemic has brought challenges, but through globalization and cooperation, we have withstood the pressure." Chen Wei said, "The effect of integration is more satisfactory at present."『Junsun Electronics Executive Vice President, Chairman of Junsun Automotive Safety Systems China Chen Wei』
It is gratifying to see that under the general trend of double decline in revenue and net profit, Junsun Electronics added 25.3 billion yuan of new orders in the first half of the year, which makes the market have certain expectations for its performance in the second half of the year. According to Chen Wei, the company is full of confidence in the general trend of technological change, whether it is new energy vehicles, or self-driving cars, safety systems are always the core products, in line with the future development trend, the Lingang plant capacity is gradually rising. In the second half of the year, KSEC will expand its production capacity and grasp the domestic order production. Following the completion of upgrading and remodeling of Junsun's Hungarian "super factory" in November 2019, Junsun's Ningbo factory will also be upgraded to a "super factory", which will become Junsun's most advanced domestic production base for automotive safety system products. In addition to safety systems, since 2019, Junsun Electronics has set its sights on the new energy business with higher gross profit margins, providing 800V fast charging system for Porsche's first pure electric vehicle Taycan, BMS, charging/discharging and intelligent Vehicle Connectivity System for domestic FAW-Volkswagen and SAIC-Volkswagen MEB platforms, and BMS for Mercedes Benz's MFA2 platform models. It is reported that the first half of the new energy business revenue of about 580 million yuan, up 74% year-on-year. Synchronized power also Junsun Electronics subsidiary Junlian Zhixing, its independent research and development of the first generation of V2X vehicle end product is about to be mass-produced in 2021, the product is expected to become the world's first 5G-V2X mass-production project. These new tracks are the results of the early mergers and acquisitions of Juniper Electronics, and are now gradually playing a synergistic effect.■Conclusion:
Going back to the original topic, is Junsun Electronics going to take advantage of Tesla to realize a breakthrough? For Josun Electronics, the word "borrow" is obviously not accurate enough, and mutual promotion is the best answer. Now, Tesla's "catfish" has made China's new energy automobile supply chain a baptism, and there are many local small and medium-sized, professional parts and components companies growing rapidly with Tesla's localization. The next thing to consider is how China's local parts and components enterprises can carry out business layout under the transformation of automobiles and changes in the external environment, and how to combine with their own development advantages to continue to promote the high threshold of the core technology. Only they become that big tree, there is no need to rely on the halo of others. (Article/Automotive House? Peng Fei)