Pylon Technologies(688063)2024-04-11 16:00Dividend Distribution and Share Capital Increase - The company plans to distribute a cash dividend of RMB 10.40 per 10 shares, totaling RMB 181,305,581.60, which accounts for 35.16% of the 2023 net profit attributable to shareholders[2] - The total cash dividend for 2023, including the RMB 94,884,827.30 used for share repurchases, amounts to RMB 276,190,408.90, representing 53.56% of the 2023 net profit[2] - The company intends to increase its share capital by issuing 4 additional shares for every 10 shares held, resulting in a total share capital increase of 69,732,916 shares[2] - The company's total share capital will change to 245,359,249 shares after the capital increase[2] - The company's total share capital as of April 11, 2024, is 175,626,333 shares, excluding 1,294,043 shares held in the repurchase account[2] Financial Performance - Revenue in 2023 was RMB 3,299,441,164.99, a decrease of 45.13% compared to 2022[16] - Net profit attributable to shareholders in 2023 was RMB 515,637,536.98, a decrease of 59.49% compared to 2022[16] - Basic earnings per share in 2023 were RMB 2.97, a decrease of 63.87% compared to 2022[17] - Revenue for Q1 2023 was RMB 1.84 billion, Q2 was RMB 716.28 million, Q3 was RMB 492.28 million, and Q4 was RMB 250.20 million[21] - Net profit attributable to shareholders in Q1 2023 was RMB 461.90 million, Q2 was RMB 231.24 million, Q3 was a loss of RMB 38.31 million, and Q4 was a loss of RMB 139.19 million[21] - Net cash flow from operating activities in Q1 2023 was RMB 980.62 million, Q2 was RMB 203.96 million, Q3 was a negative RMB 40.41 million, and Q4 was a negative RMB 72.29 million[21] - Revenue for the reporting period was 3.299 billion yuan, a decrease of 45.13% year-over-year[27] - Net profit attributable to shareholders was 515.6375 million yuan, a decrease of 59.49% year-over-year[27] - Revenue for 2023 was RMB 32.99 billion, a decrease of 45.13% year-over-year[62] - Net profit attributable to shareholders was RMB 5.16 billion, down 59.49% year-over-year[62] - Gross margin for the main business was 31.55%, a decrease of 2.57 percentage points compared to 2022[65] - Revenue from the energy storage industry decreased by 45.23% to RMB 32.46 billion[66] - Overseas revenue decreased by 45.98% to RMB 30.87 billion[66] - Production of pouch cells decreased by 55.21% to 1,805.94 MWh[68] - Sales of pouch cells decreased by 46.92% to 1,874.53 MWh[68] - Inventory of pouch cells increased by 14.24% to 605.81 MWh[68] - Sales of cylindrical cells decreased by 78.68% to 0.87 MWh[68] - Energy storage industry material costs decreased by 48.29% year-on-year, mainly due to a 45.23% decline in energy storage product revenue and lower raw material prices[71] - Energy storage industry labor costs decreased by 44.55% year-on-year, primarily due to reduced sales volume of energy storage products[71] - Other industry and product labor costs decreased by 32.98% year-on-year, mainly due to reduced sales volume of other products[71] - Other industry and product expenses increased by 135.19% year-on-year, mainly due to the release of new production capacity[71] - Sales expenses increased by 23.51% year-on-year to 116,808,038.28 yuan[78] - R&D expenses increased slightly by 0.99% year-on-year to 385,346,357.89 yuan[78] - Net cash flow from operating activities increased by 12.42% year-on-year to 1,071,875,002.93 yuan[80] - Net cash flow from financing activities surged by 2,266.10% year-on-year to 4,511,190,076.78 yuan, mainly due to refinancing funds[80] - Cash and cash equivalents increased by 239.60% to RMB 4,286,503,593.82, accounting for 35.34% of total assets, primarily due to the receipt of funds from refinancing[81] - Trading financial assets grew by 188.08% to RMB 2,063,191,098.83, representing 17.01% of total assets, mainly due to an increase in bank structured deposits[81] - Accounts receivable decreased by 33.58% to RMB 1,311,010,521.18, accounting for 10.81% of total assets, primarily due to a reduction in sales scale[82] - Inventory decreased by 50.06% to RMB 706,897,279.20, representing 5.83% of total assets, mainly due to reduced production and sales scale[82] - Fixed assets increased by 52.80% to RMB 1,631,550,197.48, accounting for 13.45% of total assets, primarily due to the completion and transfer of production lines[83] - Construction in progress surged by 155.41% to RMB 934,969,036.39, representing 7.71% of total assets, mainly due to increased investment in production bases and headquarters projects[83] - Overseas assets amounted to RMB 395.251 million, accounting for 0.33% of total assets[86] - Restricted cash totaled RMB 38,550,000.00, primarily due to guarantees for bill deposits and letter of credit deposits[87] - Total investment during the reporting period was RMB 780,905,995.00, a 1,461.81% increase compared to the same period last year[90] - The company invested RMB 730,000,000.00 in Anhui Pylon Energy Technology Co., Ltd., representing 86.67% ownership[91] - The company invested RMB 26 billion in Anhui Paineng Energy Technology Co., Ltd., holding an 86.67% stake, with RMB 78 million already paid in as of December 31, 2023[93] - The 10GWh lithium battery R&D and manufacturing base project has a total investment budget of RMB 500 million, with RMB 84.51 million invested by the end of 2023, representing 16.90% of the total budget[94] - The lithium-ion battery and system production base project has been completed with a total investment of RMB 103.19 million, achieving 68.79% of the RMB 150 million budget[94] - The company's financial assets measured at fair value totaled RMB 2.10 billion at the end of 2023, with a fair value change gain of RMB 29.03 million during the year[96] - Jiangsu Zhongxing Paineng Battery Co., Ltd., a wholly-owned subsidiary, reported revenue of RMB 1.70 billion and net profit of RMB 17.49 million in 2023[101] - Huangshi Zhongxing Paineng Energy Technology Co., Ltd., another wholly-owned subsidiary, achieved revenue of RMB 294.79 million and net profit of RMB 18.12 million in 2023[101] - Jiangsu Paineng Energy Technology Co., Ltd., a wholly-owned subsidiary, generated revenue of RMB 1.60 billion and net profit of RMB 23.53 million in 2023[101] - Shanghai Paineng New Energy Technology Co., Ltd., a wholly-owned subsidiary, reported a loss of RMB 18.96 million on revenue of RMB 438,800 in 2023[101] - Anhui Paineng Energy Technology Co., Ltd., a subsidiary with 86.67% ownership, has a registered capital of RMB 3 billion, focusing on battery manufacturing and energy storage services[100] - The company's total investment in major projects reached RMB 739.89 million, with RMB 220.60 million already invested by the end of 2023[94] - Revenue for 2023 reached 178,735.77 million yuan, with a net profit of 2,125.50 million yuan[103] Energy Storage Market and Products - Sales of commercial and industrial energy storage products increased by 58% year-on-year in 2023[19] - The company plans to standardize and integrate commercial and industrial energy storage products in 2024 to improve delivery capabilities and customer satisfaction[19] - The company's sodium-ion battery products have obtained certification from TÜV Rheinland and have reached testing intentions with multiple customers[27] - The company launched the Force-H3 home storage series with a DC-side density of 189.6 kWh/m², a system cycle life exceeding 8000 cycles, and a maximum rate of 1C[28] - The Powercube-M5 industrial and commercial storage product has a DC-side energy density of 335 kWh/m²[28] - The company completed the construction and production of the first phase of the 10GWh lithium battery R&D and manufacturing base project[28] - The company's 1GWh sodium-ion battery project in Yizheng Economic Development Zone has been completed and put into production[28] - The company's energy storage battery systems support a wide voltage range from 5V to 1,500V, compatible with global mainstream energy storage inverters[30] - The company's energy storage battery systems have a lifespan of 10 to 15 years, with modular designs that allow for dynamic parallel or series expansion[31] - The company's energy storage battery systems for industrial and grid-level applications can reach a system voltage of up to 1,500V, with a single cluster storage capacity of 300KWh and a total storage capacity of up to 5.5MWh[31] - The company's energy storage battery systems for communication base stations support a wide temperature range from 0°C to 60°C and have an IP66 protection rating[31] - The company's energy storage battery systems for mobile applications support multiple charging methods, including photovoltaic, mains, and car charging, with a maximum capacity of 1kWh[31] - The company's lithium iron phosphate (LFP) cells have a cycle life of over 10,000 cycles, with high energy density, strong temperature adaptability, and excellent safety and reliability[31] - The company's aluminum shell LFP cells have a cycle life of over 12,000 cycles, with high energy density, low cost, and excellent safety and reliability[31] - The company's large-capacity aluminum shell sodium-ion cells have long cycle life, high energy efficiency, low temperature rise, excellent rate performance, and low cost[31] - The company's power-type LFP cells have excellent rate performance, strong temperature adaptability, and high safety and reliability[31] - The company's sales strategy focuses on developing and maintaining large, high-quality customers in key market regions, with a priority on meeting the needs of major clients in the domestic market[32] - Global energy storage market is expected to reach 110GW/372GWh in new installations by 2030, with lithium-ion battery storage accounting for 38.8% of China's cumulative installed capacity in 2023, up from 11.2% in 2021[34] - Europe, the Americas, and the Asia-Pacific region centered on China are the main growth areas for the global energy storage market, with China focusing on grid-side storage and Europe on user-side storage[34] - The company is a leading provider of lithium battery energy storage systems, with a strong brand reputation and market competitiveness in the global electrochemical energy storage market[35] - The company received multiple awards and certifications in 2023, including being ranked in the "2023 Hurun China Energy Private Enterprises TOP100" and recognized as a "Top Energy Storage Brand" in Europe by EuPDResearch[36] - The company's subsidiary, Yangzhou Pylon, was awarded the "National Green Factory" and "Jiangsu Province Excellent Enterprise" titles, and won the first prize of the Science and Technology Invention Award from the China Petroleum and Chemical Industry Federation[36] - The company has mastered core technologies across the entire industry chain, including lithium iron phosphate cells, modules, battery management systems, and energy storage system integration, with products validated by global customers for over 10 years[38] - The company's energy storage battery systems, based on lithium iron phosphate batteries, offer higher safety, longer cycle life, and lower overall costs compared to ternary lithium batteries, meeting the core demands of electrochemical energy storage applications[38] - The company's products have been widely used in power generation, transmission, distribution, and consumption, as well as in communication base stations and data centers[35] - The company's energy storage systems have been recognized for their high safety, long cycle life, and low comprehensive cost, aligning with the core requirements of electrochemical energy storage applications[38] - The company's subsidiary, Yangzhou Pylon, was involved in a national-level project for low-cost, high-performance sodium-ion cells and electrolyte salts, highlighting its innovation in energy storage technology[36] - The company's long-life battery cycle life reached 15,000 cycles in 2023, with a service life extended to 20 years[39] - The new generation energy storage system has a volume energy density of 140Wh/L, a maximum output rate of 2C, and a cycle life of over 10,000 cycles at 100% DoD[39] - The company added 191 new patents in 2023, including 12 invention patents, 162 utility model patents, and 17 design patents[41] - Total R&D investment in 2023 was RMB 385.35 million, accounting for 11.68% of operating revenue, an increase of 5.33 percentage points year-on-year[43] - The UPS application power-type lithium iron phosphate energy storage battery project has a total investment of RMB 12 million, with RMB 5.62 million invested in the current period[44] - The new negative electrode material development project aims to achieve a long calendar life and ultra-long cycle life with a total investment of RMB 7.5 million[45] - The lithium supplementation technology development project aims to increase battery energy density by 5% and cycle life to 15,000 cycles with a total investment of RMB 10 million[45] - The soft-pack energy storage product performance optimization project aims to achieve a cycle life of 6,000 cycles and an energy density of ≥175Wh/kg with a total investment of RMB 20 million[45] - The long-life, high-energy, high-safety energy storage battery system development project aims to achieve a cycle life of 12,000 cycles without lithium supplementation and 15,000 cycles with lithium supplementation with a total investment of RMB 15 million[45] - The company has invested a total of 19,561.15 million RMB in R&D projects, with a cumulative investment of 5,653.01 million RMB in the 1500V liquid-cooled high-voltage lithium battery energy storage system, which is currently in the testing phase[46][47] - The portable lithium battery energy storage system has received an investment of 641.91 million RMB and is in the testing phase, featuring pure sine wave inverter technology and high safety[46] - The MW-level energy storage four-level control management system has received an investment of 1,134.48 million RMB and is in the development phase, supporting cloud platform digital management and safety early warning[47] - The company's R&D team has expanded to 793 people, a 34.41% increase from the previous year, with master's degree holders increasing by 119.09% to 229 people[50] - The company's R&D personnel accounted for 39.97% of the total workforce, with an average salary of 25.84 thousand RMB[50] - The low-temperature outdoor home energy storage system has received an investment of 775.13 million RMB and is in the project initiation phase, aiming to solve the safety hazards of lithium battery charging in low temperatures[48] - The 2KWh mobile energy storage system has received an investment of 674.53 million RMB and is in the development phase, supporting multi-module expansion and suitable for high-cold and low-temperature scenarios[48] - The industrial and commercial energy storage cloud platform software project has received an investment of 782.31 million RMB and is in the development phase, supporting remote scheduling, data monitoring, and fault diagnosis analysis[49] - The company's R&D projects aim to achieve significant technological advancements, such as increasing energy density by 12% and cycle life by 30% for the new generation high-energy long-life aluminum shell battery[46] - The company's R&D projects are focused on various applications, including power energy storage, industrial and commercial energy storage, and mobile energy storage, with several projects achieving industry-leading technological levels[46][47][48] - The company's R&D expenses for 2023 were RMB 385.3464 million, accounting for 11.68% of the annual revenue[51] - The company owns 47 invention patents, 341 utility model patents, 32 software copyrights, and 11 integrated circuit layout designs as of December 31, 2023[51] - The company has 793 R&D personnel, with key R&D personnel having over 10 years of experience in the lithium battery and energy storage system fields[51] - The company's net profit attributable to shareholders in 2023 was RMB 515.6375 million, a decrease of 59.49% year-on-year[53] - The company's sales expenses increased by 23.51% year-on-year in 2023 due to the internationalization process and the construction of localized sales service systems overseas[53] - The company's products have passed major international safety certifications, including IEC, CE, VDE, UL, CEC, JIS, and UN38.3[51] - The company launched a 200KWh commercial and industrial energy storage integrated cabinet product based on square aluminum shell cells in 2023, achieving large-scale shipments in multiple domestic regions[52] - The company has established long-term stable partnerships with major international clients, including Segen, Krannich, and Energy[52] - The company's sodium-ion battery products have passed certifications from TÜV Rheinland, UL, and IEC, and have obtained UN38.3 international transportation certifications[51] - The company received 13 awards and certifications in 2023, including being named a "Top 100 Chinese Energy Private Enterprises" by Hurun China[52] - The company's overseas sales accounted for