Asagiantinthefieldofcylindricalbatterycasings,WuxiJinyangNewMaterialsCo.,Ltd.(hereinafterreferredtoas“WuxiJinyang”)ismakinggreatstridestowardtransformationandupgrading. ItisunderstoodthatWuxiJinyangistakingthepowerbatteryfieldasabreakthroughtorealizethecompany'sstrategicupgrade.Themarketopportunityof21700batterycase/capisgraspedinonehand,andtheleadingpositioninthefieldofcylindricalshellisconsolidated.Themarketexpansionofsquarealuminumshell/coverplateisfurtherenhancedtofurtherenhancethecompany'sprofitability. Undoubtedly,WuxiJinyanghasenoughconfidenceinthecompany'sdevelopmentshiftandstrategicupgrade.Ontheonehand,itcomesfromthecompany's25yearsoftechnologyprecipitationinthefieldofstructuralparts;ontheotherhand,underthelarge-scalehigh-qualitycapacitysupplyandsupport,italsolaidasolidfoundationforthecompany'sfuturemarketdevelopmentinthefieldofpowerbatterystructuralparts. InresponsetochangesinthemarketdemandforpowerbatterymetalstructuralpartsandWuxiJinyang'sproducts,market,strategicplanningandrhythm,GaogongLithiumandWuxiJinyangSalesDirectorHuaJianfenghadanin-depthdialogue.Thefollowingisadialoguerecord. High-techlithiumbattery:WhatistheoveralldevelopmentofWuxiJinyanginthefieldofbatterymetalstructuralparts? HuaJianfeng:Thecompany'sproductscovercylindricalbatterysteelshell,cylindricalbatterycap,powersquarebatteryaluminumshellandmetalnickelbelt.Atpresent,thecompanyisalsotheworld'slargestmanufacturerofcylindricalbatterymetalstructuralparts.In2018,WuxiJinyang(includingsubordinateenterprises)achievedrevenuesofmorethan600millionyuan.Since2017,thecompanyhasaccelerateditscapacitybuilding.Inthemiddleof2019,thecompany'scylindricalsteelshellcapacitywillreach4billion,ofwhichhigh-speedstampingequipmentcapacitywillreachabouthalf,andcylindricalcapproductioncapacitywillexceed700million,allnewsince2017.Increasedautomaticassemblyline. In2017,thecompanytooktheleadinmassproductionof21,700shellsandcaps.In2018,21,700cylindricalsteelshellsandcapsweresuppliedinlargequantitiestoSuzhouLishen.Thecompanyhasalsoundertakenthepreliminarydevelopmentandverificationofmostofthe21700projectsofdomesticcylindricalpowerbatteryenterprises,suchasBAK,Tianpeng,etc.In2019,itwillalsodevelop21700batterysteelshellsforforeignbatteryfactories. Atthesametime,thecompany'ssquarealuminumshellproductionlineforCATLwasfullycertifiedandthecompanybegansupplyingCATLin2018. Intermsofproductdevelopment,in2018,thecompanymadeadifficultattackandindependentlydevelopedamirror-shapedcylindricalsteelshell.Theoutersurfaceoftheshellhashigherdensity,excellentcorrosionresistance,andgoodheatdissipationperformance.Tesla'sbatteryismainlyused.Thistypeofsteelshell,WuxiJinyangisthefirstandonlydomesticenterprisetoproducemirrorsteelshellswithdomesticequipment.Theresearchanddevelopmentofthisproductalsoembodiesthecompany'stechnicalstrengthinthefieldofbatterymetalstructuralparts.TheSlaProjectprovidesprotection. Themirrorsteelshellisshownbelow:   2019cylindricalsteelshellcapacitywillreach4billionWuxiJinyang'sstrategyandstrategy(source:high-techlithiumpowergrid)   High-techlithiumbattery:Intermsofpower,WuxiJinyanghaslayoutincylindricalsteelshellandsquarealuminumshell/cover.Whatisthecompany'sproductstrategy? HuaJianfeng:WuxiJinyanghasbeenengagedinthebusinessofcylindricalbatterysteelshellssinceitsestablishment.IthasaccumulatedrichexperienceinR&Dandmanufacturinginthefieldofbatterymetalstructuralparts.In2010,inresponsetothehugedemandforthedomesticnewenergycommercialvehiclemarket,WuxiJinyangbeganresearchanddevelopmentofsquarealuminumshells.Uptonow,thecompany'ssquarealuminumshellproductioncapacityhasreached50million/year. Inviewofthelargeshareofsquarealuminumshellsinthemetalstructureofpowerlithiumbatteries,thecompany'sfuturebusinessdevelopmentfocusisonmaintainingthecompetitiveadvantagesandpositionofcylindricalsteelshells/caps,andvigorouslydevelopsquarealuminumshells/covers,strivingfor3Aroundtheyear,theoutputvalueofcylindricalsteelshell/capandsquarealuminumshell/coveris60%and40%respectively. High-techlithiumbattery:Underthelinkageeffectofthenewenergysubsidypolicy,batterycompaniesarecontinuouslyreducingproductprices.Underthepressureofcosttransmission,whatstrategiesdoesWuxiJinyanghaveinreducingcosts? HuaJianfeng:Thecompanycanmaintainarelativelyhighcostadvantage,mainlystartingfromsixmajoraspectstoreducecosts. Firstofall,thecurrentproductionequipmentupgrades,includingtheuseofmodifiedfeederssupportingthefeeder,improvetheaccuracyoffeedingtoreducerawmateriallosses,aswellasimprovethestampingspeed,improvestampingefficiencyandothermeasures. Secondly,thenumberofhigh-speedpunchingmachineshasincreased.Uptonow,thecompanyhasaddedmorethan100high-speedpunchingmachines.Duetothehighefficiencyofhigh-speedpunchingmachines,improvedproductqualityandyield,theunitcostcanbeeffectivelyreduced. Third,forcapproducts,theautomaticproductionlinehasbeengreatlyincreasedtoreplacethesemi-automaticproductionline,whichhasimprovedtheyieldoftheproductwhilereducingthenumberandcostofpersonnel. Thefourthistoachievelarge-scaleproductionandsalesofnew