SolaX Power (688717.SH), which has been on the market for just over 3 months, has not dipped in earnings.

 

 

 

Earnings data show that SolaX Power's total revenue in 2023 was 4.473 billion yuan, down 3.01% year-on-year; net profit was 1.065 billion yuan, down 6.12% year-on-year. Its offshore revenue amounted to 4.44 billion yuan, accounting for about 99% of the total revenue.

 

 

 

SolaX Power and Pylon Technologies are more similar in that they both focus on offshore business, with their main sales regions centered on developed countries such as Europe, and their main products are household storage.SolaX Power's European revenue accounted for 94.5% in 2022.

 

 

 

In 2023, SolaX Power will still focus on the household market, with R&D investment increasing by 80%, a new production line with a production capacity of one million, and plans to launch inverters and batteries for large-scale industrial and commercial energy storage this year, as well as to develop a micro-reverse track.

 

 

 

Chaodian here from the revenue situation, the main products, R & D investment, inventory, sales area of these five key points to explain the Ai Luo energy 2023 financial report.

 

 

 

Energy storage battery is the most absorbing, inverter gross margin 52.6%

 

 

 

Energy storage battery is about 2.35 billion yuan, accounting for about 53% of the total revenue; energy storage inverter as the company's second-largest revenue product, gross profit margin of up to 52.62% last year.

 

 

 

 

 

 

Net profit, SolaX Power last year, the first quarter, the second quarter of 503 million yuan, 472 million yuan, but the third quarter, the fourth quarter of about 43 million yuan, 46.4 million yuan.

 

 

 

SolaX Power accordingly said to the tide of electricity think tank, since the second half of 2023, the European countries household storage terminal installation workers are insufficient and other reasons to make the channel business inventory has been backlogged, as well as the impact of the superimposed factors such as the fall in the price of electricity in Europe, resulting in a reduction in the demand for household storage market, the company's shipments fell more.

 

 

 

Household storage-based, pre-enlargement type industrial and commercial storage

 

 

SolaX Power borrowed 2022 European household storage demand surge and rapid rise. That year, the company's total revenue increased by 453.86% year-on-year; net profit doubled 17 times year-on-year, and revenue from Europe accounted for 94.5%; its 2023 is still dominated by the household market.

 

 

 

The company's main products are energy storage batteries, energy storage inverters and grid-connected inverters, and is expected to launch this year more than 50kW of high-power energy storage inverters suitable for industrial and commercial energy storage, more than 100 kWh of high-capacity energy storage batteries and micro inverters.

 

 

 

 

 

 

But with this year's energy storage inverter, energy storage battery, photovoltaic power, photovoltaic energy storage system costs are downward trend, superimposed by the European subsidy regression or local industrial protection brought about by the risk of policy changes, intensified competition in the industry, the profitability of the enterprise to make a challenge.

 

 

 

R & D investment surge, per capita salary decline

 

 

Last year, the European market to inventory, superimposed on the intensification of industry volume, shipments fell, companies have practiced R & D internal skills. For example, China's micro inverse head enterprise Womai shares in the first three quarters of 2023 R & D investment increased 181.52% year-on-year, accounting for 10.12% of the proportion of operating income.

 

 

 

SolaX Power invested 275 million yuan in R&D last year, up 82.25% year-on-year, accounting for 6% of the company's total revenue. Only in last year, the company added 56 authorized patents; as of the end of last year, the company's total authorized patents reached 154.

 

 

 

It is worth noting that SolaX Power last year, the total number of R & D personnel is 802, an increase of 180%, but the average salary of R & D personnel is 338,100 yuan, a decline of about 28%. SolaX Power explained that, due to the 2023 new fresher employees are more, the salary is a little lower.

 

 

 

Vigorously de-stocking, millions of new production capacity hidden excess risk

 

 

In 2023, affected by the inventory backlog, the company's European household storage shipments dropped significantly, vigorously digesting inventory. Its energy storage inverters produced only 84,000 units last year, while sales were 115,000 units; inventory of about 37,000 units, down 48.95% year-on-year.

 

 

 

 

 

 

 

The financial report shows that SolaX Power last year, the annual output of 2GWh energy storage battery and 1 million units of photovoltaic inverter R & D, production projects. solaX Power on the tide of electricity, said the production plant there is a lease, the later will be replaced, there is no risk of overcapacity, and in October this year, began to gradually put into operation in batches.

 

 

 

Mainly in Europe, expanding Asia and Africa new market

 

 

Europe as the company's main market, the sales revenue and gross margins of the main products are higher than the sum of other regions. Last year, the company also actively expand the Asian and African markets.

 

 

 

In Asia, SolaX Power will participate in the New Energy Exhibition in Bangkok, Thailand, the International Intelligent Energy Week Fall Exhibition in Japan, the Green Technology Exhibition in Kuala Lumpur, Malaysia, and the Renewable Energy Exhibition in India in 2023 to expand the market.

 

 

 

According to the report, the U.S. is not a key market for SolaX Power to realize revenues due to the impact of the U.S. bill to boost the local energy storage industry. The company's products have been shipped to the U.S. market, but the proportion is not large.