Pioneer Technology Hosts Research Visits from Two Institutions, Including Changjiang Securities and Dongwu Securities

On April 23, 2025, Pylon Technologies announced that it hosted an institutional research meeting with two organizations: Changjiang Securities and Dongwu Securities. The meeting took place on April 22, 2025, and included three representatives from Pylon Technologies: Tan Wen, the company’s Director and President; Ye Wenju, the Vice President, Chief Financial Officer, and Board Secretary; and Shen Lingyu, the representative for securities affairs. The research meeting was conducted via telephone.

In terms of financial performance, Pylon Technologies reported an operating income of 2.005 billion yuan and a net profit of 41.1073 million yuan for the year 2024. During the first quarter of 2025, the company achieved an operating income of 392 million yuan, but recorded a net loss of 38.1732 million yuan. The sales volume for the first quarter reached 401 MWh, marking a year-on-year increase of 60.28%. For 2024, the total sales volume was 1,521 MWh, with home energy storage accounting for over 70% of sales.

It was noted that the decline in average product prices in the first quarter of 2025 was mainly due to an increase in the share of domestic light-duty power products. The light-duty power market consists of both pre-installed and aftermarket products. The company has adopted a strategy of “collaborative layout for both pre- and post-installation,” with strong visibility on current orders. The manufacturing line at the Hefei factory is currently ramping up production to support light-duty power and large energy storage businesses.

Furthermore, the light-duty power battery exchange products have a relatively high gross margin, while conventional products maintain stable margins. It is expected that the overall gross margin in the domestic market will range between 15%-20%. The European market is showing signs of recovery, although the pace varies by country. In Japan, the first phase of a project is planned for 200 MWh, with an anticipated delivery of 100 MWh this year if all goes well. In the U.S. market, sales accounted for 7-8% of total revenue last year, and tariffs are exerting some pressure on this segment.

The sodium battery business began shipments last year, and the first quarter of 2025 saw large-scale deliveries. In the second quarter, European shipments are expected to increase by over 30% compared to the previous quarter, with the European factory currently in operation and ramping up capacity.

Details of the research meeting included:

1. 2024 and Q1 2025 Performance Overview: In 2024, the company achieved an operating income of 2.005 billion yuan and a net profit of 41.1073 million yuan. In the first quarter of 2025, it reported an operating income of 392 million yuan and a net loss of 38.1732 million yuan, with sales volume of 401 MWh, a 60.28% increase year-on-year.
2. Q&A Session: Questions included inquiries about 2024 product shipment conditions and the proportion of battery applications (home storage, industrial storage, large storage). For Q1 2025, the company reported a sales volume of 401 MWh, primarily driven by the light-duty power market, which increased its share to over 20% of total shipments.
3. Another question addressed the reasons for the decline in average product prices in Q1 2025, particularly regarding the domestic light-duty power product shipments and pricing ranges. The company explained that the light-duty power market aligns well with its soft-pack technology, which was strategically developed starting two years ago, leading to significant deliveries this quarter.
4. Further inquiries were made about the target customers in the domestic light-duty power market and the product forms. The company is pursuing both pre-installed and aftermarket strategies to expand its market presence.
5. Questions also focused on the annual capacity of the Hefei production line and how much is allocated for light-duty power modifications. The planned first-phase capacity for the Pylon Technologies 10GWh lithium battery R&D and manufacturing base is 5GWh, primarily serving light-duty power and large storage applications.
6. In terms of profitability in the light-duty power sector, the company stated that battery exchange products exhibit high gross margins, with conventional products maintaining around 15%. Future profitability will depend on cost optimization and operational control as production ramps up.
7. Questions about overseas operations in Q1 2025 indicated that while the gross margin remained steady, overall margins decreased due to the rising share of domestic light-duty power business.
8. Pylon Technologies provided insights on inventory and demand recovery in the European market, noting a general recovery trend with variations across countries.
9. Regarding the Japanese market, the company indicated plans for a 200 MWh project, with initial delivery contingent on early shipping performance and product validation.
10. In the U.S. market, total sales last year accounted for 7-8% of the company’s revenue, with short-term tariff impacts being managed through close communication with clients.
11. The sodium battery business, which began shipping last year, has seen large-scale deliveries in Q1 2025, although it faces competitive challenges due to cost factors.
12. Looking ahead to the second quarter, European demand is expected to show over 30% growth compared to Q1.
13. Finally, the European factory, mainly serving the Italian market, is just starting operations and will evolve into a localized supply base, with plans for future upgrades to support long-term development in Europe.