The annual performance of the energy storage sector has been revealed, showing that PaiNeng Technology boasts the highest gross margin, while China Innovation Aviation recorded the fastest growth rate. In 2023, the global energy storage market continued its rapid growth; however, the decline in energy storage battery prices led to a sharp decrease in the revenue growth of most lithium battery companies in the energy storage sector.
According to statistics compiled by Jiemian News, among ten leading lithium battery companies, seven—including Ningde Times (300750.SZ)—experienced a decline in revenue growth for their energy storage segments compared to 2023. BYD (002594.SZ), Yuanjing Power, and Penghui Energy (300438.SZ) did not disclose financial data for their energy storage sectors, thus they are not included in this analysis.
Based on last year’s revenue scale from energy storage business, Ningde Times maintained its leading position among the listed lithium battery companies, showing a significant lead over others. In 2024, the revenue from Ningde Times’ energy storage segment reached 57.29 billion yuan, which is equivalent to the combined total of the second to eighth companies on the list. Yiwei Lithium Energy (300014.SZ) and Haicheng Energy ranked second and third respectively, with revenues exceeding 10 billion yuan each.
The energy storage segment of lithium battery companies generally comprises two parts: energy storage batteries and energy storage systems. Energy storage batteries are the core components used to store electrical energy and release it when needed, typically accounting for about 60% of the overall energy storage system’s cost. As a result, the business models of lithium battery companies vary: some sell energy storage batteries to downstream system integrators, while others produce energy storage systems themselves for sale to end customers. The proportion of energy storage batteries to energy storage systems varies among companies. For instance, Haicheng Energy has a revenue ratio of approximately 6:4 between energy storage batteries and energy storage systems. However, Ningde Times and Yiwei Lithium Energy have not disclosed the revenue proportions for their two business segments.
According to a shipment volume ranking for energy storage batteries released by the Beijing Zhongguancun Energy Storage Industry Technology Alliance, Shanghai Nonferrous Network, and Xinluo Lithium Battery, Ningde Times and Yiwei Lithium Energy secured the top two spots. Xinluo Lithium Battery ranks BYD third, while Haicheng Energy is ranked 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 record negative revenue growth. Senior researcher Long Zhiqiang from Xinluo Lithium Battery attributed this to the substantial drop in energy storage battery prices last year. Despite an increase in sales volume for Ningde Times’ energy storage segment, the negative impact of falling product prices could not be offset. Ningde Times did not disclose the change in sales prices for its energy storage segment. For reference, the average sales price of Haicheng Energy’s energy storage batteries decreased by 40% year-on-year, reaching 0.3 yuan/Wh.
Last year, the sales volume for Ningde Times’ energy storage segment was 93 GWh, representing a year-on-year increase of 34.32%, a growth rate below the industry average. According to industry research firm SNE, the total global shipment of energy storage batteries reached 301 GWh last year, marking a 62.7% year-on-year increase. GWh is a unit of energy that indicates the capacity of storage batteries.
As key competitors of Ningde Times, companies like Yiwei Lithium Energy and Haicheng Energy recorded higher increases in energy storage battery shipments last year. Yiwei Lithium Energy’s shipments reached 50.45 GWh, reflecting a year-on-year growth of 91.9%, while Haicheng Energy’s total sales volume was 33.6 GWh, growing by 88.7%. In absolute terms, the increase in energy storage business for Ningde Times last year was comparable to that of Yiwei Lithium Energy and 1.5 times that of Haicheng Energy.
Among the ten lithium battery companies analyzed by Jiemian News, China Innovation Aviation (03931.HK) achieved the fastest revenue growth in its energy storage business last year at 72.6%. As a result, its revenue surpassed that of Guoxuan High-Tech (002074.SZ) and Ruipu Lanjun (00666.HK), allowing it to rank fourth. However, compared to the 131.9% growth rate in 2023, China Innovation Aviation’s revenue growth has also declined to double digits.
Besides Ningde Times, both Nandu Power (300068.SZ) and PaiNeng Technology (688063.SH) also saw revenue declines in their energy storage businesses 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% year-on-year, contributing to a total loss of 1.2 billion yuan for the year. PaiNeng Technology, focusing primarily on the overseas home energy storage market, experienced a continuous decline in its energy storage business for two consecutive years due to a slowdown in demand. Last year, its energy storage sales reached 1.5 GWh, down 18.9% year-on-year.
However, in terms of profitability, PaiNeng Technology ranked first among the analyzed lithium battery companies, with a gross margin of 28.9% in its energy storage segment last year. Ningde Times followed in second place with a gross margin of 26.8%. In 2023, both PaiNeng Technology and Ningde Times also held the top two positions for gross margin.
The primary market for PaiNeng Technology’s products is overseas, with exports accounting for 93% of its sales last year. Long Zhiqiang believes that PaiNeng Technology’s high gross margin is attributed to its focus on home energy storage products, which generally command higher margins compared to large-scale grid and commercial energy storage products. Conversely, Ningde Times’ energy storage business is mainly applied in large-scale grid storage and commercial energy storage markets, with its high gross margin benefiting from brand premium, as its battery prices typically exceed those of its competitors.
Energy storage system integrator Haibo Sichuang (688411.SH) previously disclosed that for bulk purchases of the same specifications, Ningde Times’ prices are generally higher than its primary supplier, Yiwei Lithium Energy, although specific data was not disclosed. Among the lithium battery companies surveyed by Jiemian News, Desay Battery (000049.SZ) reported the lowest gross margin in its energy storage business last year. Due to persistent market price declines and lower-than-expected product sales, Desay Battery’s subsidiary, Hunan Battery, suffered a net loss of 405 million yuan, further widening from a loss of 168 million yuan in 2023.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/annual-energy-storage-performance-reveals-highest-profit-margins-and-fastest-growth-among-leading-lithium-battery-companies/
