Baoxin Technology Reports 336 Million Revenue in 2024, Strategically Positioning for Industry Cycles

Baoxin Technology Achieves Revenue of 336 Million in 2024, Actively Positioning to Tackle Industry Cycles

In 2024, the global new energy industry underwent significant adjustments, leading to challenges for the photovoltaic (PV) sector characterized by imbalances in supply and demand, price declines, and tightened financing. The latest performance results from PV companies reveal that many are facing considerable pressure, with some reporting losses in the tens of billions, even approaching one hundred billion.

Amidst accelerated industry reshuffling and cyclical fluctuations, Baoxin Technology (SZ.002514) demonstrated robust strategic resolve and operational resilience. The company’s recent annual report indicates that it achieved a revenue of 336 million, while also recording a net profit loss of 767 million. Despite short-term performance pressures, Baoxin Technology is laying a solid foundation for future sustainable development by optimizing its asset structure, focusing on core technology research and development, and enhancing cash flow management.

Dual-Engine Strategy Strengthens Core Operations

Facing a challenging environment where revenues across the industry have generally declined, Baoxin Technology reported operating income of 336 million in 2024. In the context of falling prices along the PV industry chain and intensified market competition, the company’s operational quality indicators improved against the trend, showcasing significant resilience. The net cash flow from operating activities surged by 167.97%, reflecting effective supply chain management and cost control. Additionally, the inventory turnover rate of 1.6 surpassed the industry average, while operating costs decreased by 24%, highlighting the effectiveness of Baoxin Technology’s lean management.

Furthermore, Baoxin Technology enhanced asset liquidity by divesting inefficient assets, concentrating on its core business, with total assets reaching 1.88 billion. This set of operational data reflects the decisive implementation of the company’s “declutter” strategy—by shedding non-core assets, Baoxin Technology aims to transition from scale expansion to value creation.

Under the “Smart Manufacturing + New Energy” dual-engine strategy, the smart manufacturing segment generated 250 million in revenue, accounting for 75.42% of total income. The sale of equipment components, as the main product, contributed 250 million, representing 73.88% of the total. The annual report reveals that the company is currently focused on technological reserves and capacity optimization, particularly exploring heterojunction (HJT) and heterojunction/perovskite tandem technology routes, targeting the next generation of high-efficiency battery markets.

The report indicates that the company invested 18.52 million in R&D, a reduction of 55.98% year-on-year. However, it continues to concentrate on breakthroughs in key technologies such as sheet metal structures and charging piles, preparing for future product upgrades. The annual report also states that Baoxin Technology plans to develop more efficient liquid cooling heat dissipation technology to enhance the conversion efficiency of charging modules, while exploring new material applications. This includes expanding from single liquid-cooled ultra-fast charging piles to integrated solutions for solar storage and charging, as well as a smart charging management platform to provide one-stop charging services.

Adaptation and Transformation in Adverse Conditions

Despite declines in sales revenue from PV cells and components due to industry price wars, the company has enhanced its risk resistance by adjusting project timelines, clearing receivables, and optimizing cost structures. Moreover, Baoxin Technology has embarked on a “second battlefield,” with overseas sales increasing by 23%, becoming a bright spot in the report. The proportion of foreign sales revenue has risen to 41.84%, creating a buffer against cyclical fluctuations and demonstrating the effectiveness of its international expansion efforts.

Additionally, the annual report highlights the company’s future potential in smart manufacturing, particularly in exploring overseas markets for charging and battery swapping equipment. This includes developing high-power ultra-fast charging devices compatible with various models for the European and American markets, as well as products with special protective features for the high-temperature and humid environments of Southeast Asia. Previously, the company has promoted the integration of solar storage and charging solutions, significantly enhancing brand influence through the establishment of full liquid-cooled ultra-fast charging demonstration stations in cities like Shanghai and Quanzhou.

In the context of a general industry contraction, Baoxin Technology has implemented a “defensive and offensive” transformation strategy. On the defensive front, the company actively promotes syndicate loan arrangements, coordinating with nine banks to stabilize credit lines while supplementing liquidity through supply chain financing and leasing, and gradually addressing overdue debts in regions outside its core operations to ensure cash flow safety. On the offensive front, it deepens the upgrade of smart manufacturing production lines, industrialization of heterojunction technology, and innovation of comprehensive energy scenarios, building a diversified growth engine. Baoxin Technology has clearly defined its strategic direction as “technology-led, ecological integration, and value co-creation.” In 2024, the company completed a change in its senior management team, bringing in leaders with extensive experience from large enterprises to strengthen strategic execution while optimizing its organizational structure and establishing a customer-centric operational mechanism.

Although the photovoltaic industry faces short-term pressures from overcapacity, the trend towards global energy transition remains unchanged. The International Energy Agency (IEA) projects that by 2030, renewable energy installations will exceed 5,500 GW, with photovoltaics expected to account for 80%. Despite the current pressures, Baoxin Technology’s transformation logic resonates strongly with the “dual carbon” policy. The commercialization process of its heterojunction technology coincides with the technological iteration window for TOPCon technology, supplemented by reserves in perovskite technology, positioning the company to potentially achieve a leap during the technological iteration cycle in 2025. The conversion of technological advantages is anticipated to unlock significant valuation reshaping opportunities.