F UTURE PLANS AND PROSPECTS
The Group has been successfully capturing market share in the rechargeable battery industry in the past. Last year was a record-breaking year for the Group in terms of sales and profits. The Directors believed that this momentum has continued this year and the Group will continue to stay at a prominent position in the rechargeable industry both worldwide and in the PRC.
The Group is positioned to become a global power solution provider with a mission to become the largest rechargeable battery producer and gradually diversify into other high growth areas which will leverage on the existing strengths of its rechargeable battery operation. The Group is planning to achieve this mission through the following growth strategies:
Achieving growth through expanding its existing operation scale and diversifying into other high growth areas which will leverage on the Group ’s existing strengths.
Currently, the Group is planning to develop five main projects: (i)
expansion of the production capacity and research and development of products in connection with Li-ion batteries, in particular, prismatic and cylindrical batteries and LIP batteries;
development and manufacture of chemical compounds, used in providing Li-ion batteries;
(iii) research, development and production of rechargeable batteries for electric vehicles, including batteries for pure electric vehicles (PEV), hybrid electric vehicles (HEV) and electric bicycles;
(iv) research, development and production of fuel cells and solar cells; and (v)
research, development and production of display products for mobile phones, including monochrome and colour STN-LCD panels and modules.
Strengthening market leadership position both worldwide and in the PRC
The Group intends to gain more market share through more aggressive sales and marketing efforts.
The Group aims to maintain the relationship with existing customers and establish relationship with new customers by enhancing its services and by providing training to its sales teams to further improve its service quality.
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BYD Company Limited
FUTURE PLANS AND USE OF PROCEEDS
E xpansion of the production capacity and development of products in connection with Li-ion batteries, in particular, prismatic, cylindrical and LIP batteries The growth in demand for Li-ion batteries will continue to be fuelled by the growth in mobile phones, notebook computers, PDA and other portable electronic devices. The Directors believe that this area represents the highest growth potential within the rechargeable battery industry. Sales of the Group in Li-ion batteries amounted to about RMB562.3 million in value in 2001. The growth rate of the Group ’ s sales of Li-ion batteries in 2000 and 2001 was 357% and 156% respectively. Leveraging on its expertise and goodwill from production of Li-ion batteries, the Group intends to capture further growth and market share in this segment by expanding its production capacity and broaden the product range to include cylindrical and LIP batteries.
Expansion of production capacity in prismatic batteries
The Group will continue to focus on the research, development and production of prismatic batteries and plans to expand its production capacity to increase its production capacity and reaching a daily production capacity of 0.48 million units by the end of 2004. ●
Development of cylindrical and LIP batteries
Cylindrical batteries are mainly used in notebook computers, digital cameras and camcorders. LIP batteries are used in some models of the mobile phones and PDA devices. Having identified the high market potential in cylindrical and LIP batteries, the Group has already successfully developed prototypes of cylindrical and LIP batteries, which are still in the trial production stage. The Group plans to start mass production of cylindrical and...