ChargePoint Collaborates with Product Development and Manufacturing Leaders AcBel and Kinpo, Improving Cost Structure and Time to Market
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Insights
ChargePoint's strategic partnership with AcBel Polytech Inc. is indicative of a growing trend in the EV charging industry towards consolidation and collaboration. The agreement aims to leverage AcBel's proficiency in power design and Kinpo Group's manufacturing prowess to enhance ChargePoint's R&D capabilities. This could potentially result in shorter product development cycles and cost efficiencies, which are critical in a sector where innovation and speed to market are key competitive differentiators.
For stakeholders, this collaboration could translate into a stronger market position for ChargePoint, as it may benefit from diversified expertise and economies of scale. However, it is essential to monitor the execution of this partnership closely, as the anticipated cost savings and speed enhancements are projections that hinge on successful integration of the two companies' processes and cultures.
From a financial perspective, the expanded partnership between ChargePoint and AcBel could be a significant catalyst for margin improvement. By co-designing hardware, ChargePoint is likely to see a reduction in both product costs and operating expenses. These savings could improve the company's gross margin and ultimately contribute to a healthier bottom line.
Investors should consider the potential impact on ChargePoint's stock price, as market perception often favors companies that actively pursue cost efficiencies. Nevertheless, it's imperative to evaluate future financial statements to confirm that the anticipated cost savings are realized and to assess the impact on ChargePoint's profitability and market share.
The partnership underscores a strategic move towards vertical integration within ChargePoint's supply chain. By aligning more closely with AcBel and Kinpo Group, ChargePoint is seeking to streamline its supply chain, which could lead to increased agility and reduced vulnerability to external supply chain disruptions. In the rapidly evolving EV market, such resilience is invaluable.
However, this integration poses inherent risks, such as potential over-reliance on a single supplier and the challenge of managing a more complex supply chain. Stakeholders should watch for signs of effective supply chain management, which will be crucial for ChargePoint to maintain its promised quality and reliability standards while scaling up production.
The agreement expands ChargePoint’s existing manufacturing agreement with AcBel. By combining AcBel’s 40 years of expertise in power design and Kinpo's electronic manufacturing capabilities, ChargePoint believes the partnership will bolster its research and development capabilities, enabling it to bring new products to market faster and at a lower cost. By harmonizing the processes of engineering, design, development and production with AcBel and Kinpo, ChargePoint will have an end-to-end solution enabling ChargePoint’s engineering team to focus on future innovation.
“This collaboration with AcBel represents a significant milestone in the evolution of our product development strategy, and is a key component of our focus on execution and operational excellence,” said Rick Wilmer, CEO of ChargePoint. “With Kinpo Group, we have a trusted manufacturing partner, and now with this expanded partnership we have a development partner who we believe will enable us to bring our portfolio of world-class EV charging solutions to market faster while driving significant product cost and operating expense savings - all with no compromises to our leading quality, reliability, and durability standards.”
Jerry Hsu, Chairman of AcBel, stated, “This year marks a year of transformation for AcBel. The collaboration with ChargePoint not only demonstrates AcBel’s expertise in design for EV business, but also shows a great example of utilizing our group resources from different aspects. Furthermore, this is just the beginning, and there will be more projects and cooperation among AcBel, Kinpo and ChargePoint.”
Andrew Chen, CEO and General Manager of Kinpo Group, commented, "Combining Kinpo's communication and automation production technology with AcBel's power design capabilities and ChargePoint's market-leading position, we believe this strong alliance will significantly increase Kinpo Group's activity in the EV charging market."
Forward-Looking Statement
This release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, the benefits ChargePoint expects to derive from its manufacturing and design agreements with AcBel and Kinpo, including with respect to the speed with which ChargePoint may be able to bring new products to market or any expected product and expense savings. Forward-looking statements include statements regarding ChargePoint’s expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. These forward-looking statements involve risks, uncertainties, and assumptions, including risks and uncertainties included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in ChargePoint’s Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on December 8, 2023, which is available on ChargePoint’s website at investors.chargepoint.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that ChargePoint makes with the SEC from time to time. Forward-looking statements are not guarantees of future performance and actual results could differ materially from those expressed or implied by the statements made herein. All forward-looking statements in this press release are based on information available as of the date hereof and ChargePoint assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.
About ChargePoint Holdings, Inc.
ChargePoint is creating a new fueling network to move people and goods on electricity. Since 2007, ChargePoint has been committed to making it easy for businesses and drivers to go electric with one of the largest EV charging networks and a comprehensive portfolio of charging solutions. The ChargePoint cloud subscription platform and software-defined charging hardware are designed to include options for every charging scenario from home and multifamily to workplace, parking, hospitality, retail and transport fleets of all types. Today, one ChargePoint account provides access to hundreds-of-thousands of places to charge in
About AcBel Polytech
AcBel is a leading provider of switching power supply solutions for a wide range of applications including PCs, smart home appliances, smartphones, servers, and networking equipment. In recent years, AcBel also accelerated its investment in clean and efficient energy solutions for electric vehicles and solar farms, which has enabled AcBel to become a comprehensive power technology expert from power generation and energy storage to high-efficiency power supplies. The company’s mission is to support customers by delivering a competitive edge and revealing new opportunities in today’s smart, always power-available, and data-intensive world while promoting sustainable collaboration with the supply chain, strategic partners, and customers. www.acbel.com
About Kinpo Group
Kinpo Electronics was founded in 1973, through nearly 50 years of development, the KINPO GROUP currently owns 4 companies, 24 production bases, and more than 50,000 employees worldwide. The group's businesses range from semiconductors, consumer electronics, smart home appliances, network communications, smart retail, wearable devices, and digital platforms to industrial Internet of Things. With accumulated 50 years of lean supply chain and automated production technology, we can produce the highest quality products at the lowest costs. The group's excellent management experience of the Thai production base, through remote situation rooms plus real-time monitoring systems, Kinpo's sales, business, R&D, and manufacturing units can cross the boundary of time and space, giving the team full strength to tackle early risk warnings and effectively control production and shipping processes. Combining the vertical integration advantages of the factories in our group, Kinpo provides customers with the most complete manufacturing solutions. The group pays detailed attention to initial R&D, design, prototyping, new product introduction, manufacturing, after-sales services, and on-time delivery. Through the overall supply chain and the manufacturing system composed of internal suppliers, Kinpo holds the mission to help customers reduce production costs and bring products to the market as early as possible. www.kinpo.com.tw
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ChargePoint
John Paolo Canton
Vice President, Communications
JP.Canton@chargepoint.com
media@chargepoint.com
Patrick Hamer
Vice President, Capital Markets and Investor Relations
Patrick.Hamer@chargepoint.com
investors@chargepoint.com
Source: ChargePoint Holdings, Inc.
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