CCM: Do-Fluoride: AEV manufacturing business not going well 10-19-2016

In early Oct. 2016, there was a rumour saying that Do-Fluoride Chemicals Co., Ltd. (Do-Fluoride)’s subsidiary, Hebei Hongxing Automobile Manufacturing Co., Ltd. (Hebei Hongxing), had suspended the production of alternative energy vehicle (AEV). For this, Do-Fluoride made a statement, clarifying that Hebei Hongxing’s AEV project was not suspended, and instead, it was under reconstructing and upgrading.

Source: Baidu

However, it was a fact that its AEVs had yet to be launched onto the market. According to its announcement made in Aug. 2015 regarding AEV manufacturing, Do-Fluoride intended to build a production capacity of 14,000 unit/a by 2016 and 30,000 unit/a by 2017. The progresses made were far behind those planned.  

Since 2011 when it achieved mass production of lithium hexafluorophosphate (LiPF6), Do-Fluoride has been firmly expanding its Li-ion battery materials business, and has been extending into power Li-ion battery and AEV manufacturing business, a move intended to construct a full supply chain and to make more profits. In May 2015, it input USD23.88 million (RMB160 million) into acquiring a 69.407% stake in Hebei Hongxing, a step into AEV manufacturing.

Thanks to the emerging concept of “alternative energy”, “Do-Fluoride” became a hot stock on A-share market: share price increased from USD2.54 (RMB17) in early 2015 to USD15.82 (RMB106) in May 2016.

However, impacted by its delay in launching AEV, the figure started falling that month: by 15.79% over May to USD4.78 (RMB32) on 30 Sept.


It is undeniable that Do-Fluoride underestimated the difficulties during AEV manufacturing.

Li Yunfeng, president of Do-Fluoride (Jiaozuo) New Energy Technology Co., Ltd. and a son of Li Shijiang, president of Do-Fluoride, listed 2 reasons for the slowdown in AEV manufacturing in Sept. 2016:

1. “Government subsidies for key electric logistics vehicle had not been received completely. Without subsidies, the company is hard to make profits. So it is not a good time for launch.”

2. “Auto manufacturing is comparatively complicated and the company is still accumulating AEV technologies. Now we slow down the production and enlarge R&D.”

For instance, Do-Fluoride increased capital of USD29.85 million (RMB200 million) in Hebei Hongxing in Aug. 2016, for which its shareholding rose to 85.294%. “This is aimed at strengthening technological R&D,” stated an official from Do-Fluoride.

Meanwhile, Do-Fluoride has already had its 300,000 set/a AEV power assembly project start up.

Nonetheless, it is of small possibility that Do-Fluoride can build a production capacity of 100,000 unit/a by 2018. In addition, huge input into AEV manufacturing will also challenge the company regarding stability of capital chain and capability of resource integration.

Probably this is also a reason why Do-Fluoride annulled the acquisitions of Shanxi Huangcheng Xiangfu Yuhang Bus Co., Ltd. and Shanxi Huangcheng Xiangfu Zhongdao Energy Co., Ltd.


This article comes from China Fluoride Materials Monthly Report 1610, CCM


About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


For more information about CCM, please visit or get in touch with us directly by emailing or calling +86-20-37616606.


Tag: fluoride


Subscribe to our Newsletter


Next Press