Annual Performance of Energy Storage Companies Revealed: Pylon Technologies Achieves Highest Profit Margin, Zhongchu Innovation Shows Fastest Growth

In the past year, the global energy storage market continued its rapid growth. However, due to a decline in energy storage battery prices, most lithium battery companies experienced a sharp slowdown in their energy storage segment’s performance. Statistics from Jiemian News covering ten leading lithium battery companies indicate that seven of these firms, including Ningde Times (300750.SZ), saw a decrease in revenue growth for their energy storage segments compared to 2023. Companies such as BYD (002594.SZ), Envision Energy, and Penghui Energy (300438.SZ) did not disclose their financial data for the energy storage segment, so they were excluded from this analysis.

Based on last year’s revenue from energy storage operations, Ningde Times maintained its position as the top company among these lithium battery firms, showing a significant lead. In 2024, the revenue from Ningde Times’ energy storage segment reached 57.29 billion yuan, which is equivalent to the total revenue of the companies ranked second to eighth combined. Yiwei Lithium Energy (300014.SZ) and Haicheng Energy Storage followed in second and third place, respectively, with both exceeding 10 billion yuan in revenue last year.

The energy storage segments of lithium battery companies typically consist of energy storage batteries and energy storage systems. Energy storage batteries are the core components of these systems, primarily used to store electrical energy and release it when needed, generally accounting for about 60% of the system’s total cost. Consequently, lithium battery companies adopt two main business models: selling energy storage batteries to downstream system integrators or producing energy storage systems for direct sale to end customers. The revenue proportions from energy storage batteries and systems vary among different companies. For instance, Haicheng Energy Storage reported an approximate revenue ratio of 6:4 for energy storage batteries versus systems. However, Ningde Times and Yiwei Lithium Energy did not disclose the revenue breakdown for these two business areas.

According to the 2024 energy storage battery shipment rankings published by the Zhongguancun Energy Storage Industry Technology Alliance, Shanghai Nonferrous Metals Network, and Xinluo Lithium Energy, Ningde Times and Yiwei Lithium Energy secured the top two positions. The rankings placed BYD in third place according to Xinluo Lithium Energy, while Haicheng Energy Storage was listed as third by the other two organizations.

In terms of revenue growth, Ningde Times’ energy storage business experienced a decline of approximately 4% last year, making it the only company among the top six lithium battery firms to report negative growth. Long Zhiqiang, a senior researcher at Xinluo Lithium Energy, attributed this to the significant drop in energy storage battery prices last year. Despite an increase in sales volume for Ningde Times’ energy storage business, it was not enough to offset the negative impact of price reductions. Ningde Times has not disclosed the changes in the sales price of its energy storage segment. As a reference, Haicheng Energy Storage reported a 40% year-on-year decrease in the average selling price of its energy storage batteries, falling to 0.3 yuan/Wh.

Last year, Ningde Times sold 93 GWh of energy storage products, reflecting a year-on-year growth of 34.32%, which was below the industry average. According to industry research firm SNE, the total global shipments of energy storage batteries reached 301 GWh, marking a 62.7% increase year-on-year. GWh is a unit of energy representing the capacity of energy storage batteries. Major competitors of Ningde Times, such as Yiwei Lithium Energy and Haicheng Energy Storage, reported higher growth rates in their energy storage battery shipments. Yiwei Lithium Energy’s shipments amounted to 50.45 GWh, with a year-on-year increase of 91.9%, while Haicheng Energy Storage’s total shipments were 33.6 GWh, growing by 88.7%. In absolute terms, the increase in Ningde Times’ energy storage business was comparable to that of Yiwei Lithium Energy and was 1.5 times greater than that of Haicheng Energy Storage.

Among the ten lithium battery companies tracked by Jiemian News, Zhongchu Innovation (03931.HK) recorded the fastest growth in energy storage revenue, reaching 72.6% last year. This growth allowed Zhongchu Innovation to surpass Guoxuan High-Tech (002074.SZ) and Ruipu Lanjun (00666.HK), moving up to the fourth position. However, compared to the 131.9% growth rate in 2023, Zhongchu Innovation’s revenue growth has also dipped into double digits.

Aside from Ningde Times, both Nandu Power (300068.SZ) and Pylon Technologies (688063.SH) saw declines in their energy storage revenues last year. Due to lower-than-expected orders and deliveries, Nandu Power’s energy storage battery sales fell to 2.81 GWh, a decrease of 38.7%, leading to an annual loss of 1.2 billion yuan. Pylon Technologies, which focuses primarily on the overseas residential energy storage market, has faced a slowdown in demand, resulting in a consecutive decline in its energy storage business for two years. Last year, Pylon Technologies’ energy storage sales were 1.5 GWh, down 18.9% year-on-year. However, in terms of profitability, Pylon Technologies ranked first among the lithium battery companies, with a gross profit margin of 28.9% in its energy storage segment. Ningde Times followed with a gross profit margin of 26.8%. In 2023, both Pylon Technologies and Ningde Times held the top two positions for gross profit margins.

Pylon Technologies primarily sells its products to overseas markets, with exports accounting for 93% of its sales last year. Long Zhiqiang noted that Pylon Technologies’ high gross profit margin is attributed to its focus on residential energy storage products, which typically yield higher margins compared to large-scale energy storage systems used on the generation and grid sides, as well as commercial and industrial storage products. Ningde Times’ energy storage business is mainly applied in large-scale energy storage systems for generation and grid use, where high gross profit margins are bolstered by brand premium, as its battery products often command higher prices than competitors. Energy system integrator Haibosi Chuang (688411.SH) has disclosed that for bulk purchases of identical specification batteries, Ningde Times’ prices are generally higher than those of its main supplier, Yiwei Lithium Energy, although specific data was not provided.

Among the lithium battery companies listed, Desay Battery (000049.SZ) reported the lowest gross profit margin in its energy storage business last year. Continuous market price declines and lower-than-expected product sales led Desay Battery’s energy storage battery subsidiary, Hunan Battery, to incur a net loss of 405 million yuan, an increase from the 168 million yuan loss in 2023.