Achieving 500 million in revenue in two years, Shenzhen Dama has won another sub-category

The "going global" of upstream and downstream enterprises in China's new energy vehicle industry chain has become a highlight of market growth. Against this backdrop, charging pile companies are accelerating their layout in overseas markets.

In the cross-border circle, there is a big seller who seized this opportunity and made great success in the charging pile segment. After just over two years of entering the market, it has grown from 0 to 560 million yuan. It is the auto parts seller Daotong Technology. During this period, it even ranked first on Amazon's BS list in this category.

Annual revenue exceeds 500 million yuan, Shenzhen Dama wins another sub-category

Recently, the performance report released by Shenzhen auto parts giant Daotong Technology showed that the company achieved operating income of 3.251 billion yuan in 2023, an increase of 43.50% over the same period last year; net profit attributable to the parent company's owners was 183 million yuan, an increase of 79.28% over the same period last year; net profit attributable to the parent company's owners after deducting non-recurring gains and losses was 368 million yuan, an increase of 263.28% over the same period last year.

Daotong Technology stated that in 2023, while maintaining the competitive advantage of traditional diagnostic business and stable profitability, the company will further increase investment in R&D of new energy business, and continuously enhance the competitiveness of the company's products and brand influence. The company has successively released AC Compact series, AC Ultra series, DC Compact series, DC Fast series and other charging pile products in 2023. With outstanding product strength and channel advantages, it has continuously made breakthroughs in North America, Europe, Asia Pacific, the Middle East, South America and other markets, and has become a pioneer in the overseas expansion of Chinese charging pile companies. In 2023, the company's operating income from charging pile-related businesses was approximately 560 million yuan, a year-on-year increase of 489%.

Some people may notice that in 2023, the company's total operating revenue, operating profit, net profit attributable to the parent company, net profit attributable to the parent company after deducting non-recurring items, and basic earnings per share increased significantly compared with the same period last year. Daotong Technology also explained: "In 2023, the company fully explored the market in the segmented fields and continued to enrich its product categories, further consolidating the company's technological advantages and market advantages in the global diagnosis and testing fields, and further increasing R&D investment and market development in new energy businesses, and successively launched a variety of full-scenario charging equipment such as DC fast charging piles and home and commercial AC piles, achieving double growth in traditional diagnostic business and new energy charging pile business . "

Obviously, the charging pile business has become an important driving force for the growth of Daotong Technology's performance. Daotong Technology originally made automotive aftermarket diagnostic equipment and automotive electronic components, and it was a latecomer to the charging pile business, but it did not expect to make a name for itself in just two and a half years.

In September 2021, based on the accumulated battery detection technology and relying on the technological advantages in the field of digital energy, Daotong Technology officially launched a series of charging pile products , including AC Ultra series, AC Compact series, DC Compact series, and DC Fast series, to meet the differentiated needs of different customers in different scenarios. The products cover 7kW, 10kW and 12kW AC, 20kW, 120kW, 240kW, 360kW and 480kW DC products.

With a solid technical foundation as support, Daotong Technology is running fast in this field. In 2022, its charging pile-related operating income has grown to 94.5959 million yuan.

The product was launched on Amazon and quickly topped the BS list

Online sales are an important sales channel for Chinese companies going overseas. However , before 2022, Daotong Technology's business on online channels such as Amazon, eBay and AliExpress was completed through agency operation companies. It was not until June 2022 that it established its own e-commerce operation team.

Perhaps in order to test the strength of this team, shortly after the first charging pile product of 2022 was launched, Daotong Technology took it to participate in the Amazon Prime Day promotion in July.

Unexpectedly, both the team and the product performed well. During the promotion, the ranking of this charging pile product jumped directly from the top 200 to the top 5, which greatly boosted the sales performance of the charging pile product, and its sales exceeded 25 million yuan in the first year of its launch.

Last year’s Amazon Prime Day promotion achieved even more impressive results.

During Prime Day 2023, Daotong Technology's average daily sales for two days increased by 1000% compared with normal days, and the number of orders increased by 900%, and it also obtained Amazon's DOTD (Deal of the Day) qualification. During the entire Prime Day, even in the face of old rivals such as Tesla and Chargepoint, Daotong Technology still ranked in the top ten of the BS list, and once won the first place in the BS list of the car charging pile category on Amazon's US and Canadian sites.

At this time, it had been less than two years since Daotong Technology launched its charging pile products, and only one year since its charging pile products were listed on Amazon.

Charging piles are already very popular in China , but there is still a very broad market overseas. On Amazon, there are many Chinese auto parts companies like Daotong Technology that enjoy the dividends of "going global", such as Chengdu Koens Technology Co., Ltd. Since starting business on the Amazon platform in 2017, Koens has adopted the method of "going overseas" with its own brand, becoming the first charging pile company in China and one of the top four in the world that meets the three European electrical standards.

Of course, Daotong Technology is also a leader among China's similar overseas products.

Market "money" is powerful, cross-border e-commerce opens up new growth space

Currently, there is a strong demand for charging piles, mainly because new energy vehicles are rapidly popularizing around the world. According to EVTank data, global new energy vehicle sales will reach 14.653 million units in 2023, a year-on-year increase of 35.4%, of which China's new energy vehicle sales will reach 9.495 million units, accounting for 64.8% of global sales.

With the increasing popularity of new energy vehicles, the charging pile market is growing rapidly. According to a regional research report, the global charging pile market is expected to increase from US$1.2 billion in 2021 to US$3.15 billion in 2030, with a compound annual growth rate of 8.35% from 2022 to 2030.

Not only is it booming in China, the overseas market also has a strong demand for charging pile products, and now it is opening up new growth space with the help of cross-border e-commerce.

According to data from Alibaba International Station, the global hot search index for charging piles has been rising year by year since 2017, and showed explosive growth in 2020. In 2022, the number of global buyers of new energy charging piles increased by 2.5 times year-on-year, and transactions increased by 184%.

Currently, new energy vehicle charging piles have become the foreign trade products with the highest conversion rate on Alibaba International Station. In March last year, overseas demand even soared by 218%.

The overseas expansion of charging piles can be roughly divided into two parts: parts and complete piles. In terms of parts, the charging module is the core part of the charging pile hardware equipment, accounting for 45%-55% of the total cost. As an essential component of charging piles, the charging module will undoubtedly be the biggest beneficiary of the overseas expansion of charging piles. Cinda Securities predicts that the market size of charging modules in Europe and the United States will be about 6.1 billion yuan in 2025, with a compound growth rate of 69% from 2022 to 2025.

At present, the demand for charging piles mainly comes from the European and American markets, among which the United Kingdom, Germany, Ireland, the United States, and New Zealand are the top five countries in terms of search popularity for charging piles. It should be noted that Chinese charging pile companies must first obtain local certification licenses before exporting overseas. Overseas charging pile quality certification is strict, and the interface standards vary. For example, the EU's CE and the US's FCC are both mandatory certifications, which are difficult and time-consuming.

Daotong Technology