Surge in Profit: 857% Growth Marks a Comeback for Energy Storage Veteran Kelu Electronics

Net Profit Soars by 857%: A Comeback for a Veteran in Energy Storage!

On April 14, 2025, KeLuo Electronics announced its Q1 financial report, revealing a remarkable turnaround after a year under the management of Midea Group. The report highlighted a revenue of 1.214 billion yuan, a year-on-year increase of 16.2%, and a net profit of 67.45 million yuan, marking a staggering growth of 857.45%.

After a challenging period, KeLuo Electronics is re-emerging in the energy storage sector with renewed vigor. Under the strong backing of Midea Group, which became the controlling shareholder in June 2023, KeLuo has undergone significant restructuring akin to a second startup.

To facilitate this transition, Midea Group has provided comprehensive support in areas such as research and development, manufacturing, supply chain management, distribution channels, and branding. This included a major focus on talent acquisition and financial resources.

Midea Group boasts a robust R&D system with over 20,000 personnel, including more than 700 with doctoral degrees. The Central Research Institute, Midea’s top research body, is recognized as a leading enterprise-level research center in China, particularly in pioneering new energy technologies. By integrating top talents from this institute, KeLuo has built an industry-leading technical team in the energy storage field.

With the financial backing of Midea Group, KeLuo can now focus on developing advanced energy storage products to strategically position itself for future market opportunities. The advantages of Midea’s supply chain and HVAC channels have enabled KeLuo to expand its customer base in the commercial and industrial energy storage sector.

In addition to its operational improvements, KeLuo has also streamlined its business focus, clearly defining its core areas as smart grids and energy storage. The company has significantly reduced the number of subsidiaries, eliminating half of them to focus on its primary operations.

During the 13th International Energy Storage Summit and Exhibition (ESIE 2025), Wang Kai, Director of Energy Storage Products at Midea Group, stated that after 18 months of adjustments, KeLuo has successfully divested from underperforming assets, achieving a streamlined operational model.

In the fiscal year 2024, which was the first complete operating year under Midea’s ownership, KeLuo signed new energy storage projects with a total capacity of approximately 2.4 GWh and delivered projects totaling about 1.4 GWh. This resulted in a revenue increase of 5.5%, reaching 4.431 billion yuan, marking a new high in recent years. The substantial increase in net profit in Q1 2025 signifies a successful comeback for KeLuo Electronics.

The Underestimated Veteran of Energy Storage

Despite facing challenges, KeLuo Electronics caught Midea Group’s attention due to its significant history and expertise in the energy storage sector. Established in 2009, KeLuo quickly became one of the first companies in China to integrate energy storage systems. Over its 16-year journey, the company has made notable contributions to the development of energy storage in China.

KeLuo was a pioneer in the thermal energy storage frequency regulation market in 2017, establishing projects in various locations including Shanxi and Guangdong. For instance, the HaiFeng Energy Storage Frequency Regulation Project in Guangdong has achieved over 9,000 equivalent cycle operations, generating over 200 million yuan in revenue during its four years of operation.

As the energy storage market evolved, KeLuo also participated in developing some of the first grid-side energy storage projects in Hunan and explored various applications in power generation and commercial energy storage. While many energy storage companies have sought international opportunities to find new growth avenues, KeLuo has successfully established a subsidiary in the United States and built a local team to advance its overseas strategy.

Wang Kai emphasized that KeLuo remains committed to an international expansion strategy, focusing on the Americas and Europe while also targeting the Belt and Road Initiative markets. This diversified approach aims to mitigate risks associated with reliance on a single market.

Facing New Challenges in Energy Storage

The issuance of Document No. 136 has reshaped the competitive landscape of the energy storage market by fully integrating renewable energy and eliminating mandatory energy storage requirements. Wang believes that the future competitiveness of energy storage companies will depend on their understanding of the grid and their ability to provide comprehensive solutions, especially in R&D, manufacturing, quality control, and after-sales service.

KeLuo’s dual focus on smart grids and energy storage positions it uniquely as a comprehensive integrator in the industry. Its applications range from independent energy storage systems to commercial energy storage solutions and power grid congestion alleviation.

At the ESIE 2025 event, KeLuo showcased its Aqua-C series liquid-cooled energy storage systems, which utilize advanced heat management technologies, marking it as one of the few companies capable of providing integrated AC and DC solutions.

Recently, Qiu Xiangwei, a new leadership figure born in 1981 and with extensive experience at Midea Group, has taken over as Chairman of KeLuo Electronics. His leadership is expected to bring fresh insights and strategies to the company as it navigates the competitive energy storage market.

In its upcoming three-year plan, KeLuo aims to increase its revenue by at least 43%, 90%, and 150% in successive years. With a solid foundation and the right leadership, KeLuo Electronics is poised for a promising future in the energy storage industry.