The prices of ESS products were under pressure, and the industry growth rate slowed down. Pylontech's revenue and net profit both declined in 2024.

On the evening of April 11, Pylontech disclosed its 2024 annual report. During the reporting period, Pylontech achieved revenue of 2.005 billion yuan, a YoY decrease of 39.24%, and net profit of 41.11 million yuan, a YoY decrease of 92.03%. The company plans to distribute a cash dividend of 4.5 yuan per 10 shares (tax included) to all shareholders. Regarding the above performance, Pylontech explained that, firstly, the global economic situation is complex and volatile, with industry growth slowing down and downstream companies continuing destocking, which corresponds to the current situation in its household ESS market. Secondly, the intensifying industry competition has put pressure on the selling prices of the company's ESS products, leading to a decline in revenue. Additionally, Pylontech stated that due to fluctuations in the international foreign exchange market, the company's exchange gains and losses have significantly decreased compared to the same period last year. The reporter from the "Science and Technology Innovation Board Daily" noted that in 2024, Pylontech's net cash flow from operating activities decreased by 34.26% YoY, mainly due to a decline in sales scale leading to reduced sales collections and a decrease in received export tax refunds. During the reporting period, Pylontech's gross profit margin for its main business was 28.94%, a 2 percentage point decrease from 30.94% in 2023. As an ESS battery system provider, Pylontech focuses on the R&D, production, and sales of LFP battery cells, modules, and ESS battery systems. Its products can be applied to all aspects of the power system, including generation, transmission, distribution, and consumption, with specific application scenarios such as household ESS, industrial and commercial ESS, power generation-side ESS, communication base station ESS, vehicle-mounted ESS, and mobile ESS. In terms of revenue composition, Pylontech's overseas sales accounted for 92.86% of its main business revenue, with its products mainly exported to overseas markets. During the reporting period, the company's overseas revenue was 1.862 billion yuan, a decrease of 39.69% compared to the previous year. Regarding the future trend of the European ESS market, Pylontech stated that globally, Europe remains one of the important markets for ESS growth, and with Europe's push for energy independence transformation, the demand for ESS will be steadily supported by the volume of large-scale storage projects. "In the future, the company will continue to steadily advance its globalization strategy, consolidating its existing international market advantages while actively expanding into other regions and market segments," Pylontech said. The reporter from the "Science and Technology Innovation Board Daily" noted that to address the decline in overseas performance, Pylontech is strengthening its existing advantages in Europe, increasing investment in high-potential markets in Asia, Africa, Latin America, and Southeast Asia, accelerating the localization of overseas subsidiaries, and extending from household and industrial ESS to other new ESS scenarios. On March 18, Pylontech's first overseas factory opened in Italy, jointly invested by Pylontech's European wholly-owned subsidiary and the Italian company Energy S.p.A. Additionally, the company has established subsidiaries in European countries such as the Netherlands, the UK, and Germany, building a localized overseas sales and service system, gradually forming an "R&D-production-service" entire industry chain in the European market. Pylontech is also exploring new growth points beyond household ESS. The company's sodium-ion battery technology has achieved multi-scenario applications. Among them, in the start-stop battery field, it has developed wide-temperature-range, high C-rate pouch batteries and delivered them in batches. In terms of the progress of fundraising projects, Pylontech has experienced delays in some of its fundraising projects. The company stated that during the reporting period, due to the impact of recent global macro environment changes and industry development changes, the company has adjusted the expected usable date of one of its 2022 private placement fundraising projects, the "Pylontech 10GWh Lithium Battery R&D and Manufacturing Base Project," from April 2025 to April 2026, with the overall construction progress being delayed compared to expectations.

SMM

The prices of ESS products were under pressure, and the industry growth rate slowed down. Pylontech's revenue and net profit both declined in 2024.

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