In 2021, the new energy vehicle market entered an explosive phase: new energy passenger vehicles developed rapidly with a penetration rate exceeding 20%, and new energy commercial vehicles surpassed 10,000 units for the first time, entering a substantive promotion stage. In 2022, the "Medium- and Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035)" was released, and the work of demonstration city clusters was officially launched, ushering in significant development opportunities for fuel cell vehicles.
The century-long transformation of the automotive industry, coupled with the "dual carbon" goals, has brought new opportunities for a large number of small and medium-sized enterprises to overtake their competitors. The rapid development of new energy passenger vehicles has led to an endless stream of technological and model innovations, with Tesla, NIO, and others emerging as representatives. However, in the commercial vehicle sector, due to the specificity of application scenarios, the development path has yet to be clearly defined. Under the demonstration and impact of foreign advanced enterprises such as Tesla and Nikola, domestic commercial vehicle enterprises, especially small and medium-sized ones, face not only innovations in power technology but also considerations for innovations in business models and even industrial logic. Grasping development opportunities has become a challenging issue for the industry to explore.
Foshan Feichi Motor Technology Co., Ltd. (hereinafter referred to as "Feichi Technology") is an important representative of domestic small and medium-sized commercial vehicle enterprises transforming into new energy enterprises. In 2008, Feichi Technology began research and development of new energy buses and successfully developed fuel cell vehicles in 2015. With the rise of the hydrogen energy industry, Feichi Technology has become the hottest fuel cell vehicle enterprise in China, making positive contributions to exploring the industrial development model of hydrogen-powered vehicles.
HydrogenCloud Chain believes that understanding Feichi Technology's experience of transforming from a traditional bus manufacturer to a leading fuel cell vehicle technology enterprise over several years will help domestic small and medium-sized automotive enterprises seize opportunities amidst the century-long transformation of the automotive industry, keep up with trends, and catch up with advanced players in the global new energy commercial vehicle, especially hydrogen-powered commercial vehicle, industrialization race.
Transformation to Fuel Cells: Feichi's "Transformation"
The rise of Feichi Technology is inseparable from the strong support of local governments as well as the continuous empowerment of its shareholder Meijin Energy.
Meijin Group is among China's Top 500 Enterprises and the Global Top 500 Energy Enterprises. Meijin Energy, an A-share listed company under Meijin Group, possesses an integrated "coal-coke-gas-chemicals" industrial chain and is one of the largest independent producers of coke and coking coal in China.
Leveraging the advantage of abundant hydrogen production from coke oven gas, coal chemical enterprises have significant advantages in hydrogen production, generally entering the hydrogen production field through business extension. However, Meijin Energy took the opposite approach. After establishing Meijin Hydrogen Source in 2017, it focused on developing infrastructure, midstream components, and downstream application markets, with particular emphasis on terminal applications: in 2017, it acquired a 51.2% stake in Feichi Technology, becoming its controlling shareholder.
At that time, Meijin Chairman Yao Jinlong introduced that Meijin Energy had formed an overall plan of "one point (vehicle manufacturing), one line (fuel cell upstream and downstream industrial chain), and one network (hydrogen refueling station network)" and two development paths: first, a coordinated development model combining the coal and coke sector with the hydrogen sector to build hydrogen production factories; second, a circular development model for the hydrogen fuel heavy truck industry chain to promote the construction of hydrogen-powered heavy trucks at the application end.
Feichi Technology plays a significant role in Meijin Energy's hydrogen energy business, serving as its "pioneer" and an important force driving the development of Meijin's hydrogen sector.
Feichi Technology has lived up to expectations. Leveraging the capital advantages and close collaboration of its parent company's industrial chain resources, Feichi Technology's hydrogen energy products quickly broke through the scope of buses, launching various products such as logistics vehicles, refrigerated vehicles, dump trucks, and tractors, with continuously expanded application ranges. Additionally, Feichi Technology has mastered various control technologies such as VCU, FCU, BAT, and motor, and possesses the capabilities to develop and manufacture body and chassis, new three-electric system products, and FCV, EV, HEV, PHEV, evolving into a provider of vertically integrated product solutions for the new energy automotive system.
As of the end of March 2022, the mileage of fuel cell vehicles connected to the monitoring platform of Fast-Tech has exceeded 43 million kilometers, and more than 30 vehicle models have been listed in the "Recommended Vehicle Models Directory for the Demonstration and Promotion of Energy-saving and New Energy Vehicles".
When Meijin Energy announced its intention to spin off and Feichi Technology, the industry reacted vigorously, with Feichi Technology already becoming a representative enterprise in the field of fuel cell technology.
Three Major Changes in Feichi Technology under the New Circumstances
At the beginning of 2022, Meijin Energy officially released its corporate carbon neutrality report and upgraded its overall plan of "One Point, One Line, One Network" to the "Five Ones" strategy: "One Point (vehicle manufacturing), One Line (fuel cell upstream and downstream industry chain), One Network (integrated energy supply network), One Platform (hydrogen-powered vehicle operation platform), and One Center (big data and carbon asset management center)."
As a pioneering leader, Feichi Technology has actively responded to the group's planning upgrade through three major changes.
New Positioning: From "Traditional Bus Manufacturing" to "Hydrogen Fuel Cell Vehicle Technology and Intelligent Manufacturing"
In 2021, Feichi Technology officially changed its name from "Foshan Fast Auto Manufacturing Co., Ltd." to "Foshan Feichi Motor Technology Co., Ltd.," marking a leap forward from "traditional vehicle manufacturing" to "hydrogen fuel cell vehicle technology and intelligent manufacturing."
Under the new circumstances, Feichi Technology persists in technological innovation and actively promotes the commercialization of fuel cell vehicles in China, demonstrating its technological innovation capabilities.
(1) Driving the Commercialization of Hydrogen-Powered Heavy-Duty Trucks
Feichi Techonogy's hydrogen-powered heavy-duty trucks have been put into commercial operation in Hebei, Shanxi, Beijing, Guangdong, Zhejiang, Inner Mongolia, and other regions, with trial operations conducted in Tianjin, Ningxia, Shandong, and other areas. The total safe operating mileage has exceeded one million kilometers. The company has extensive experience in application scenarios such as steel plants, ports, and mines.
(2) Persistence in Technological Innovation
In 2022, three hydrogen fuel cell vehicles from Fast-Tech successfully passed the extreme cold weather test in Mohe, where temperatures dropped to minus 40 degrees Celsius, over a period of more than two months. This breakthrough overcame the limitations and bottlenecks of Fast-Tech's hydrogen-powered vehicles in application scenarios in recent years, and also symbolizes another significant advancement in the entire hydrogen fuel cell vehicle industry.
(3) Continuous Exploration of New Directions
Feichi Techonogy, in collaboration with Shenzhen Jiahuali Road, has developed a 4.5T solid-state hydrogen storage fuel cell refrigerated truck. This vehicle employs a low-pressure alloy hydrogen storage system and hydrogen refueling system, falling within the scope of the Ministry of Industry and Information Technology's "Three New" initiatives, representing an innovative exploration in fuel cell vehicle technology.
New Direction: From Automobiles to Carbon Neutrality
Feichi Techonogy is also at the forefront of the Meijin Energy ecosystem in the field of carbon neutrality.
In May 2021, Feichi Techonogy signed a strategic cooperation agreement with the China Association of Energy Conservation, Hydrogen Hill Tech, China Automotive Technology & Research Center, and China Classification Society in Beijing, collaborating on carbon emission reduction certification in the transportation sector, marking Meijin's initial attempt at carbon neutrality practices within the transportation industry. In June, Feichi Techonogy, China Classification Society, and Hydrogen Hill Tech jointly planned to introduce "the country's first methodology for accounting carbon emission reductions from hydrogen fuel," further advancing Meijin's presence in carbon accounting and carbon asset management.
As a result, Feichi Techonogy has become the first hydrogen fuel commercial vehicle enterprise in China to assist customers in carbon emission reduction certification and trading. With customers' voluntary participation, Feichi Techonogy collaborates with China Classification Society (CCSC) to bridge the gap between official agencies and user mileage data, allowing customers to entrust Feichi Techonogy with carbon trading. In the future, customers can transmit their carbon emission reduction certification data to Feichi Techonogy through a dedicated system. Feichi Techonogy's dedicated team will then certify and trade on behalf of customers, returning the income from certified carbon emission reductions to customers in the form of credits, thereby sharing the achievements of carbon reduction with them.
New Market: From Foshan to the Whole Country
As the hydrogen energy industry layout of Meijin Energy expands nationwide, Feichi Technology has also stepped out of Foshan and ventured into the whole country.
By adopting the approach of "building chains and establishing clusters," Feichi Technology has rapidly replicated its mature and extensive production and operational experience nationwide, attracting upstream and downstream supporting enterprises in the industrial chain to settle down, helping various regions rapidly establish hydrogen energy vehicle industrial chains, and forming industrial clusters. Currently, starting from the Greater Bay Area, Feichi Technology has extended its reach to the Yangtze River Delta, the Bohai Rim region, central China, Beijing-Tianjin-Hebei region, and even the western Energy Golden Triangle region. The footprint of Feichi Technology has spread across the country.
"Foshan Feichi" has transformed into "Feichi Emerging from Foshan."
Feichi's Vision: Continuous Exploration and Innovation
In the third decade of the 21st century, the automotive industry, a century-old pillar, has undergone unprecedented transformations under the impetus of advancements in energy, transportation, communication, and computer technology:
Alternative Automotive Power Systems: Revolutionary breakthroughs have been made by emerging players like Tesla and traditional enterprises such as Toyota and Cummins in the areas of pure electric fuel cells and hydrogen internal combustion engines, rendering the replacement of fossil fuels no longer a mere aspiration.
Changes in Automotive Market Logic: Both Tesla in the passenger vehicle segment and Nikola in the commercial vehicle segment have initiated mode innovations in production and consumption, spurring a shift in traditional automakers' mindset. Developments in autonomous driving, the establishment of carbon asset accounts for enterprises and individuals, and the growth of the energy internet have fundamentally altered the consumption logic of automobiles.
Clearance of the Domestic Automotive Industry: The government is gradually phasing out zombie enterprises, marking the end of automakers relying solely on their qualifications for survival. Complete vehicle enterprises lacking market production capabilities and innovative capabilities will be eliminated by the market.
The market has already responded faster than the industry: While there are still quantitative gaps in overall sales and market share, Tesla has surpassed Toyota to become the automaker with the highest market value, and NIO's market value has also surpassed that of SAIC Motor. The market's evaluation of the automotive industry has evolved from a single dimension of enterprise scale to encompass multiple dimensions.
Hydrogen Cloud Chain believes that Feichi Technology's path to growth will encompass three stages: 1) Survival through route selection, 2) Expansion through foreign market layout, and 3) Future orientation through corporate transformation. Feichi Technology has excelled in the first two stages, but compared to giants like FAW and Yutong, it still needs to press on. To secure a foothold in the future market, Feichi Technology must scrutinize its market positioning and development strategies, maintaining a strategic advantage as a market disruptor.
The third stage of transformation is crucial for Feichi Technology. As early as 2021, Feichi Technology took its first step: changing its name from a "manufacturing company" to a "technology company" and expanding its business from automobile production and sales to automobile carbon asset services. Feichi has evolved from technological innovations in power replacement to innovations in business models and logic, relying on both its technological prowess and innovative mindset, as well as the comprehensive ecosystem of its parent company.
Whether actively, semi-actively, or semi-passively, Feichi Technology once again finds itself at the forefront of domestic automakers, exploring questions for which even giants struggle to provide definitive answers. This is precisely the mission of a technology company striving for excellence – to explore the unknown and change the world with technology.
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