Net Profit Soars 857%! A Turnaround for the Veterans of Energy Storage!
On April 14, 2025, Kelu Electronics reported its Q1 financial results, revealing a significant operational turnaround. The company recorded a revenue of 1.214 billion yuan, marking a year-on-year increase of 16.2%. More impressively, its net profit attributable to shareholders reached 67.45 million yuan, a staggering increase of 857.45% compared to the previous year. After navigating through challenges and shedding past burdens, this former dark horse in energy storage is making a striking comeback.
Strategic Support from Midea Group
In May 2022, Midea Group, a leading home appliance manufacturer, acquired Kelu Electronics, completing the share transfer in June 2023. This acquisition initiated a major overhaul, akin to a second startup for Kelu. Over the past year, Midea has empowered Kelu across several areas, including research and development, manufacturing, supply chain, and branding. Notably, Midea’s robust financial support has allowed Kelu to focus on developing energy storage products with technological innovation.
With a mature R&D framework that includes over 20,000 research personnel, Midea has integrated top-tier talent into Kelu to build an industry-leading technical team. In the financial realm, the backing from Midea has enabled Kelu to dive deep into energy storage product development while expanding its commercial client base.
Since Midea’s acquisition, Kelu has streamlined its focus, prioritizing intelligent grid solutions and energy storage as its core businesses, while reducing the number of subsidiaries by half. During the 13th International Energy Storage Summit in April 2025, Wang Kai, Director of Kelu’s Energy Storage Product Division, stated, “After a year and a half of adjustments, Kelu Electronics has shed non-performing assets and is now operating more efficiently.”
Reviving a Stalwart in Energy Storage
Kelu Electronics’ appeal to Midea stems from its extensive expertise in energy storage, having been a pioneer in the field since 2009. With 16 years of experience, Kelu has made significant contributions to China’s energy storage history. Notably, Kelu led the charge into the energy storage frequency regulation market in 2017, establishing commercial applications in regions like Shanxi and Guangdong. An exemplary project is the Hai Feng energy storage frequency regulation project in Guangdong, which has accrued over 9,000 equivalent cycles and generated over 200 million yuan in revenue over four years.
As Kelu expanded into grid-side storage projects in Hunan, it has explored applications in power generation and commercial storage. Despite the challenges faced by many energy storage companies in seeking growth abroad, Kelu has established a subsidiary in the U.S. and a localized team, successfully securing orders in various regions, including the Americas and Africa.
Facing New Challenges in Energy Storage
The release of Document No. 136 has altered the competitive landscape of the energy storage market by removing mandatory storage requirements. Wang Kai emphasized that the future competitiveness of energy storage products will hinge on a deep understanding of grid operations and the ability to provide comprehensive solutions. Kelu’s dual focus on intelligent grids and energy storage positions it uniquely as an integrator in the industry.
Kelu Electronics now covers a wide range of applications, including independent storage, joint frequency regulation at thermal power plants, energy storage coupled with renewable sources, and virtual power plants. The company offers a portfolio of energy storage solutions, including energy-type systems, power-type systems, and integrated commercial storage units.
Recently, Kelu welcomed a new chairman, Qiu Xiangwei, born in 1981 and an industry veteran with extensive experience in Midea Group. His leadership is expected to guide Kelu through the intensifying competition in the energy storage market. The company has ambitious plans, projecting a revenue increase of 43%, 90%, and 150% over the next three years.
As Kelu Electronics charts its course for the future, it stands poised to reclaim its position as a leader in the energy storage sector.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/surging-profits-kelu-electronics-remarkable-turnaround-in-energy-storage/
