Jianbang Technology co., LTD is a leader in the subdivision field of non-fragile components

2022-07-12 0 By

According to data released by the Traffic Management Bureau of the Ministry of Public Security in January 2022, the number of motor vehicles nationwide in 2021 will reach 395 million, including 302 million cars.With the improvement of car ownership, the demand of car aftermarket has grown rapidly.In this issue, the magnifying glass will focus on Qingdao Jianbang Automobile Technology Co., LTD. (jianbang Technology for short), which is a supplier in the field of non-fragile parts and components in the automotive aftermarket.Founded in 2004, Jianbang Technology is one of the first batch of enterprises to be listed on the North Stock Exchange in November 2021.The company is committed to the design, development and sales of non-fragile parts for the global automotive aftermarket, and at the same time to provide customers with complete supply chain management services, the main products include braking systems, transmission systems, electrical and electronic systems, steering systems, engine systems, etc.For example, in the field of braking system, the company’s main products include brake calipers, electronic parking brake, vacuum booster and other products;In the field of traditional systems, the company’s main products include transmission shafts, transfer case motors, oil sumps, flywheels and other products;In the field of electronic and electrical systems, the company’s main products include induction wiper motor, air suspension pump, distribution valve and other products.As can be seen from the financial report of Jianbang Technology Company, compared with 2018, the proportion of various businesses of the company in the first half of 2021 is more balanced.The revenue share of braking business decreased from 40.14% in 2018 to 12.66% in the first half of 2021, while the revenue share of transmission system increased from 16.16% to 27.45% in the same period.However, compared with the domestic market, Jianbang science and technology is more dependent on exports.From 2018 to 2020, the foreign sales amount of the company is 391 million yuan, 314 million yuan and 275 million yuan respectively, accounting for 88.94%, 82.37% and 73.59% of the revenue respectively.It should be noted in particular that the setbacks of trade globalization combined with the global COVID-19 epidemic in 2020 led to the decline of the company’s exports, which largely affected the company’s business performance in the past two years.In this context, the company accelerates the market development of domestic and foreign auto parts chain enterprises.In China, in May 2020, Jianbang science and technology has signed cooperation agreements with Junlian capital led investment in three-headed six-arm auto parts, Tencent led investment in Tuhu Car, Ali holdings of Zhongkang auto parts.In foreign markets, the company’s main customers are well-known auto parts manufacturers or suppliers, including Cardone Industries,Inc, Dorman Products,Inc, Amott,LLC, etc.Different from traditional parts companies, Jianbang Technology can actively develop new products and has the ability to develop and design non-fragile parts in the aftermarket. The company’s products are mainly introduced into the market through third-party auto repair channels and applied to passenger cars with more than five years of age.In terms of production, the company adopts the asset-light operation mode, and entrusts external manufacturers to carry out production in the way of outsourcing processing. The company is mainly engaged in market research, product development, product technology control, quality testing, storage management and so on.The company relies on the integration of logistics, business flow, information flow and other aspects of the ability to provide customers with comprehensive solutions.At present, the company has the ability of auto parts supply chain management and delivery covering major regions of the world, and through the most effective way to coordinate and collaborative production, to meet the personalized product needs of different regions of the world and different customers.According to the third quarterly report, Ningquan Asset’s “Ningquan Zhiyuan 55” has become the top ten shareholders of Jianbang Technology, holding 360,000 shares;Kuanyuan Asset’s “Kuanyuan Shanghai, Hong Kong and Shenzhen Select” increased positions for two consecutive quarters, holding 1.288 million shares.That is to say, the North Exchange listed company won the favor of two ten billion private equity.Sharp market prediction and resource integration ability build the company’s competitive advantage Jianbang Technology adopts the asset-light operation mode, and entrusts external manufacturers to carry out production in the way of outsourcing processing.In this business model, the company’s ability to grasp and predict the market is particularly important.On the one hand, with excellent products and service quality, the company has established a good cooperative relationship with customers, and won the trust of customers, and can understand customer needs at the first time;On the other hand, the company has established a professional market research team, which can go deep into the market to conduct research, visit 4S shops, auto parts cities, auto repair shops and so on, to deeply understand the use of end customers.To put it simply, with more than ten years of experience in non-fragile parts industry, the company has established multiple market research channels, which can accurately grasp the market demand in the first time and make market prediction.After the car market, the types of components, reliability, quality, and can timely delivery, etc., are all important considerations based on downstream customers choose supply chain service providers, customers will usually choose the industry has a good reputation, product variety, high ratio of suppliers, and once selected will establish a long-term relations of cooperation.Jianbang technology is able to maintain a good cooperative relationship with customers by virtue of its keen market forecasting ability, thus building a competitive advantage.Of course, the ability to integrate resources is also an important competitive advantage.Due to the large differences in design requirements, product types, specifications and models of parts of different models, the relevant products have the characteristics of multiple varieties, small batches, and high requirements. Such market demand puts forward higher requirements for the integration ability of various parts manufacturers at home and abroad.Jianbang technology has excellent resource integration ability, so as to reduce the procurement scale and become an important bridge between suppliers and customers.In addition, talent advantage is also crucial.Due to the car after market service supply chain has a strong professional, personalized and innovative, for research and development personnel, procurement staff, sales staff need to have the stronger professional ability, so deep understanding to auto market after the industry, understand the industry pain points and interdisciplinary talents with outstanding research and development ability is also important competitive advantage.By the end of 2020, the company’s R&D staff accounted for 12.3 percent of the total.The company has obtained 46 patented technologies, including 3 invention patents, 40 utility model patents and 3 appearance design patents.Automotive aftermarket is a very broad concept, including all the follow-up services and re-transactions involved after the sale of a new car, which can be specifically divided into six segments: auto finance, auto insurance, repair and maintenance, car rental, auto supplies and second-hand cars.The size of automobile aftermarket is closely related to car ownership and vehicle age. The larger the car ownership and the longer the vehicle age, the greater the demand for automobile aftermarket.In terms of incremental market, China’s automobile sales have ranked first in the world for many years since 2009. In recent years, more than 20 million new cars have been sold every year, making China’s automobile ownership maintain an average annual growth rate of more than 10%.In addition, combined with further investment in infrastructure construction and urbanization, China still has room for 130 million new cars in terms of the level of ownership in moderately developed countries.In terms of the stock market, according to the data of the Traffic Management Bureau of the Ministry of Public Security, in 2021, the number of motor vehicles in China will reach 395 million, including 302 million cars, making China the largest market in the world for car ownership.On the one hand, the growth of average vehicle age increases the proportion of consumers’ out-of-pocket expenses. The warranty period of most cars is three years. Beyond the warranty period, consumers will seek lower-cost service solutions, thus reducing their dependence on 4S shops.On the other hand, the increase of vehicle age increases the frequency of maintenance demand, and some auto parts enter the replacement cycle, so the demand for auto maintenance and repair will increase accordingly.According to the agency’s prediction, in the next 5 to 10 years, the independent auto market will develop rapidly, and the market share of 4S stores will be compressed. With the improvement of market maturity, the market share of the independent market is expected to exceed that of 4S stores.According to the Qianzhan Industry Research Institute, the size of China’s automotive aftermarket reached 127.9 million yuan in 2018, with a growth rate of more than 10 percent in recent years.At present, the automotive aftermarket is still in the stage of development. In the future, the automotive aftermarket will maintain the trend of integration and survival of the fittest, the industry will develop to centralization and scale, and the market order will be gradually standardized.In the automotive aftermarket, the development space of supply chain service enterprises will also be expanded.In recent years, China’s supply chain management industry presents the characteristics of globalization, refinement, coordination and information.At present, supply chain management services are widely used in automobile and other high-end manufacturing and high-tech electronics industries.With the product upgrading and technological progress of automobile high-end manufacturing and high-tech electronic industry, the complexity of supply chain service is becoming stronger and stronger, and the demand of Supply chain management service market in China is also expanding.Leading enterprises in the field of supply chain services have obvious advantages in resources, experience and customer relations.There are risks in the stock market and investors should be cautious when entering the market