On April 11, 2024, Paineng Technology released its annual report for the year. During this period, the company achieved a revenue of 2.005 billion yuan, reflecting a year-over-year decrease of 39.24%. Its net profit also saw a significant decline, falling to 41.1073 million yuan, which is a 92.03% drop compared to the previous year. The company plans to distribute a cash dividend of 4.5 yuan (before tax) for every 10 shares to its shareholders.
Paineng Technology attributed its disappointing performance to several factors. Firstly, the complex and volatile global economic situation has led to a slowdown in industry growth, with downstream companies continuing to reduce inventory, reflecting the current state of the household energy storage market. Secondly, intensified competition in the industry has put pressure on the sales prices of the company’s energy storage products, contributing to the decline in operating income. Additionally, the company noted that fluctuations in the international foreign exchange market have significantly impacted its exchange gains and losses compared to the same period last year.
In 2024, Paineng Technology reported a 34.26% year-over-year decrease in net cash flow from operating activities, primarily due to a reduction in sales scale leading to decreased sales collections, along with a decline in received export tax rebate payments. Throughout the reporting period, the company’s gross margin for its main business was 28.94%, down 2 percentage points from 30.94% in 2023.
As a provider of energy storage battery systems, Paineng Technology focuses on the research, development, production, and sales of lithium iron phosphate battery cells, modules, and energy storage battery systems. Its products are applicable across various segments of the power system, including household storage, commercial and industrial storage, generation-side storage, communication base station storage, vehicle-mounted storage, and mobile storage.
When analyzing revenue composition, it was noted that 92.86% of Paineng Technology’s sales revenue came from international markets, indicating a strong reliance on exports. In the reporting period, the company’s overseas revenue totaled 1.862 billion yuan, a 39.69% decrease from the previous year.
Regarding the future of the European energy storage market, Paineng Technology stated that Europe remains one of the key growth markets globally. The push for energy autonomy in Europe, along with the large-scale deployment of projects, is expected to provide stable support for energy storage demand. The company plans to continue its global strategy, strengthening its existing international market advantages while actively expanding into other regions and segments.
In response to the decline in overseas performance, Paineng Technology is reinforcing its existing strengths in Europe while intensifying efforts in high-potential markets in Asia, Africa, and Latin America. The company is also accelerating the localization of its overseas subsidiaries and expanding beyond household and commercial storage into new storage scenarios. On March 18, Paineng Technology inaugurated its first overseas factory in Italy, built in partnership with its wholly-owned European subsidiary and the Italian company Energy S.p.A. Furthermore, the company has established subsidiaries in the Netherlands, the UK, and Germany to create a localized sales and service system, gradually forming a complete “R&D-production-service” industrial chain in the European market.
Paineng Technology is also exploring new growth points beyond household storage. Its sodium-ion battery technology has been successfully applied in various scenarios, including a wide-temperature range, high-rate pouch battery for the start-stop battery market, which has been delivered in bulk.
In terms of investment project progress, Paineng Technology has encountered delays in some fundraising projects. The company indicated that due to recent changes in the global macro environment and industry development, the timeline for one of its key fundraising projects, the “Paineng Technology 10GWh lithium battery R&D and manufacturing base,” has been adjusted from April 2025 to April 2026, resulting in a delay in overall construction progress.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/pylon-technologies-reports-decline-in-revenue-and-profit-amidst-pressure-on-energy-storage-prices-and-slowing-industry-growth/
