In-Depth Analysis of Hangke Technology (SH688006)'s Overseas Customer Expansion

Based on the collected information, I now provide you with a comprehensive analysis report on Hangke Technology (SH688006)'s overseas customer expansion.

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Hangke Technology is a world-leading enterprise in lithium battery post-processing equipment, with its main business focusing on the R&D, production, and sales of post-processing systems for lithium battery production. The company’s products include charge-discharge equipment, testing equipment, automation systems, etc., which are widely used in new energy vehicles, energy storage, 3C digital, and other fields[1].

Hangke Technology has built a customer network covering world-leading battery manufacturers:

Customer Type	Key Customers	Cooperation Progress
Korean Customers	South Korea’s LG, South Korea’s Samsung, South Korea’s SK	Deeply bound, core customer group
European & American Automakers	Volkswagen, Tesla, Toyota	Breakthrough progress, entered mass production line system
International Battery Manufacturers	PowerCo (subsidiary of Volkswagen)	Secured large-scale orders

: Among the company’s top five customers in 2018, overseas customers accounted for of revenue (excluding Sino-foreign joint ventures), mainly LG and Samsung[2].

In August 2024, Hangke Technology issued a major contract announcement:

• Customer
  : PowerCo, a subsidiary of Volkswagen Group (Spain and Canada projects)
• Contract Subject
  : Lithium battery post-processing equipment
• Contract Amount
  : Exceeding
  45%
  of the company’s audited operating revenue in the previous year
• Reference Data
  : Based on the 2023 revenue of RMB 3.932 billion, the total contract amount is approximately RMB 1.769 billion[3]

According to the disclosure at the company’s 2024 half-year performance briefing:

“The number of new orders from overseas customers in 2024 has increased compared to last year, and among the new orders signed in 2024,

overseas customer orders account for more than 70%

”[4]

This data indicates that the company has achieved remarkable results in overseas market development, and overseas business has become a key growth driver.

Hangke Technology adopts a capacity layout strategy of “Being Close to Customers, Serving the Globe”:

Plant Location	Site	Functional Positioning
South Korea Phase I	Buyeo	Capacity expansion, serving Korean customers nearby
South Korea Phase II	Cheonan	Increase capacity, strengthen customer stickiness
Japan Plant	Osaka	Meet small-scale customer needs, stay close to the Japanese market

The company has established subsidiaries in multiple countries and regions, forming a global sales and service network:

• Asia
  : Japan, South Korea, Malaysia
• Europe
  : Hungary, Germany
• North America
  : United States

The company stated that it will enhance its international competitiveness through methods such as “cooperating with international battery manufacturers, establishing overseas subsidiaries, and building a global service network”[4].

According to publicly disclosed data, the proportion of Hangke Technology’s overseas business revenue is as follows:

Year	Proportion of Overseas Business Revenue
2022	Approximately 46.5%
2023	Approximately 45.4%
2024	Approximately 44.7%

Although the proportion has slightly decreased,

, and the slight adjustment in the proportion is mainly affected by changes in domestic market demand.

• Equipment Precision Control Capability
  : Industry-leading
• Energy-saving Performance
  : Significantly better than competitors
• Temperature/Pressure Control Technologies
  : Obvious core technological advantages

Comparative data shows that in 2020, Hangke Technology’s overall gross profit margin was

than that of its Korean competitor PNE[1].

The company has collaborated with multiple domestic and foreign solid-state/semi-solid-state battery manufacturers:

• Jointly develop post-processing production lines for solid-state and semi-solid-state batteries
• Successfully completed the setup and commissioning of multiple pilot lines and mass production lines
• Prototype of cycle testing equipment has been verified[4]

Hangke Technology and LG jointly developed high-temperature pressurized formation and grading products for pouch lithium batteries, compressing the original more than ten processes, which demonstrates the company’s integrated R&D capability and leading position[1].

• Growth in European and American Markets
  : Since 2023, demand in the US and European markets has increased
• Global Capacity Expansion by Japanese and Korean Battery Manufacturers
  : LG, SK, etc. continue to expand capacity in the US, Europe, and Southeast Asia
• Overseas Automakers Building Their Own Battery Capacity
  : Volkswagen, Toyota, etc. are actively laying out battery production

:

• Uncertainties brought by trade protectionist policies in Europe and the US
• Construction progress of some joint venture factories is lower than expected
• Tariffs and trade barriers may affect costs

:

• The wave of China’s lithium battery industry going global has become an irresistible trend
• The focus of overseas equipment demand is constantly shifting outward
• The company has first-mover advantages in technological strength and capacity layout

1. Delivery of Volkswagen PowerCo Projects
   : Continued progress on Spain and Canada projects
2. Deepened Cooperation with Korean Customers
   : Continued binding with LG, Samsung, SK
3. New Customer Development
   : Further expand customers in European and American markets
4. Technological Upgrade
   : Solid-state battery equipment is expected to become a new growth pole

As a global leader in lithium battery post-processing equipment, Hangke Technology has achieved remarkable results in overseas customer expansion:

• Optimized Customer Structure
  : Expanded from a single Korean customer base to a diversified international customer base
• Improved Order Quality
  : Overseas orders accounted for over 70% in 2024
• Improved Capacity Layout
  : Supported by factories in Japan and South Korea plus a global subsidiary network
• Solid Technological Barriers
  : Leading industry gross profit margin, with global competitiveness

With the acceleration of the global electrification process and the implementation of overseas battery capacity, Hangke Technology is expected to continue to benefit from overseas market expansion and achieve steady performance growth by virtue of its technological advantages, global layout, and high-quality customer resources.

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[1] Tebon Securities - In-Depth Report on Hangke Technology (688006.SH): A World-Leading Enterprise in Lithium Battery Post-Processing Equipment (June 2021)

[2] Soochow Securities - In-Depth Research Report on Hangke Technology (688006): Global Leader in Lithium Battery Post-Processing Equipment (October 2020)

[3] Qidian Lithium Battery - Haimuxing/Win-Honest/Hangke Technology, etc. Continue to Secure Large Orders (August 2024)

[4] STAR Market Daily - Chairman of Hangke Technology: New Orders from Overseas Customers Increase, Overseas Orders Account for Over 70% in 2024 (October 2024)

[5] The Paper - China Going Global 2.0: Hangke Technology Receives Contracts from Two Volkswagen Companies in Spain and Canada (2025)