Most of the companies are not yet profitable, and the cost of charging stations has increased in many places: car owners shout "too expensive" for new energy | prices | companies

"The charging price of new energy charging stations has increased," Ms. Chen, a resident of Zhengzhou City, Henan Province, told reporters. "I usually charge during the early morning hours. A month ago, it was 0.4 yuan/kWh, but now it has risen to 0.6 yuan/kWh."

The Securities Daily reporter learned that in addition to Zhengzhou, new energy vehicle owners in Guangzhou, Shanghai, Qingdao, Chongqing and other places have also reported an increase in charging station prices.

On one hand, car owners are shouting "too expensive" and reducing the cost advantage of new energy vehicles; On the other hand, most charging station operators have not yet made a profit. How to promote the healthy development of industries? Several industry insiders interviewed by Securities Daily said, "In terms of industry guidance, the subsidy dividend supporting the operation of charging stations needs to be continuously released; for enterprises, they need to improve their profitability through innovative models, improving charging station utilization, and improving technology."

Pile companies are facing loss difficulties

In July, many new energy vehicle owners in Zhengzhou reported that the prices of new energy charging stations from multiple brands such as TEDA, Xingxing Charging, and E-Charge have increased. For price adjustments, taxi drivers feel the most obvious. Mr. Liu, a ride hailing driver from Zhengzhou, told Securities Daily, "We charge our ride hailing services every day. I try to avoid peak charging periods to save costs. The charging period in the past month is not much different from last month, but the cost has significantly increased, exceeding 430 yuan."

According to multiple sources, new energy vehicle owners in Zhengzhou, Guangzhou, Shanghai, Qingdao, Chongqing and other places have reported an increase in the price of new energy charging stations.

Regarding the charging station fees in various regions, the customer service staff of the special hotline told the Securities Daily reporter, "The electricity prices of our various power stations are managed by our subsidiaries, and the specific adjustments to the electricity prices are also based on the contracts signed between the subsidiaries and the power stations. The service fees are charged at one station per price. Different regions are managed by different subsidiaries."

Star Charging customer service stated that in the past, charging prices in some regions were relatively low, and now the main purpose of price adjustments is to bring prices in these regions back to the normal range.

It is understood that the fees for public charging stations for new energy vehicles are mainly divided into two parts: one is for electricity and the other is for service. Zhang Xiang, Dean of the New Energy Vehicle Technology Research Institute of Jiangxi New Energy Technology Vocational College, said in an interview with Securities Daily, "The price increase is related to both aspects. On the one hand, electricity prices are based on the electricity price of the power grid, and during the summer when electricity consumption is tight, electricity prices rise. At the same time, the power grid now charges electricity fees for large charging stations based on industrial electricity consumption, resulting in increased costs. On the other hand, due to high operating costs, service fees have also been correspondingly increased."

Behind the increase in charging costs is the loss dilemma faced by charging station operators.

Among A-share listed companies, there are over 30 listed companies that have already laid out the charging pile industry chain. Taking Autoxun as an example, its developed electric vehicle AC charging piles, non onboard electric vehicle chargers, intelligent electric vehicle charging and discharging motors, and flexible electric vehicle charging piles have been applied to various electric vehicle charging stations across the country. From 2020 to 2022, the company's net profit attributable to shareholders was RMB 06 million, RMB 0.33 million, and RMB 0.4 billion, respectively. According to the company's recently disclosed performance forecast for the first half of 2023, it is expected that the net profit attributable to the parent company in the first half of the year will be a loss of 16 million to 24.5 million yuan.

Autoxun stated, "The company's new energy electric vehicle charging business is still in a climbing phase, with continuous growth in revenue. However, due to its high proportion of fixed expenses, the current sales revenue has not covered cost expenditures and is still in a loss making state."

"Charging pile operation is a 'high investment, slow return' business, and pile construction is a heavy asset with a long payback period. The charging pile market is still in the early stages of construction and development, and most charging pile operation enterprises are currently in a poor profit making effect. The charging service business is in a loss making state, mainly relying on businesses outside of charging pile services for blood transfusion." Zhang Xiaorong, Dean of the Deep Science and Technology Research Institute, told Securities Daily.

The market is moving towards centralization

The number of charging stations is rapidly increasing. According to the data released by the China Electric Vehicle Charging Infrastructure Promotion Alliance, from January to June this year, the increase in China's charging infrastructure was 1.442 million units, including 351000 units of public charging stations, and 65000 units in June, a year-on-year increase of 40.6%.

Charging stations are the infrastructure of the new energy industry and are related to the future development of the new energy vehicle industry. "For car owners, price increases increase the cost of using new energy vehicles, reducing the cost advantage of using new energy vehicles. In the long run, continuous price increases are not advisable, which may lead to car owners choosing other charging methods, reducing the demand for charging stations, and even affecting the sales of new energy vehicles." Xue Yunnan, head of new energy industry research at Co Foundation think tank, told Securities Daily reporters, "Charging station enterprises should enhance their profitability by exploring new models, improving utilization, improving technology, and forming economies of scale."

"The country attaches great importance to the construction of new energy vehicle charging infrastructure, and with the support of a series of policies, the number of charging stations has achieved rapid growth. The development of charging stations should focus on both construction and operation, and the subsidy dividends supporting the development of charging stations still need to be continuously released. We believe that in the future, it will effectively guide the healthy and sustainable development of charging station operation enterprises." Zhang Xiaorong said.

From the perspective of market structure, the charging station operation market is moving towards centralization. According to data, there are currently 5 charging operation enterprises with over 100000 charging stations in operation nationwide, including Xingxing Charging, Te Dian Dian, Yun Kuai Charging, State Grid, and Xiaoju Charging. The total number of public charging stations they operate accounts for 65.1% of the country.

"It is expected that in the next five years, the charging pile operation industry will further mature, with higher levels of technology, market, and profit models. The current problems faced by users such as poor experience will also be gradually solved." Zhang Xiang said.