APsystems (688348.SH) last year's level of money-making by the inventory even more shallow.

 

 

 

Earnings data show that APsystems 2023 total revenue of 1.42 billion yuan, up 6.11% year-on-year; net profit of 220 million yuan, down 38.92% year-on-year. Its micro inverse revenue of 940 million yuan, accounting for 66% of total revenue; gross margin of 36.13%, down 2.15%.

 

 

APsystems first quarter net profit of about 120 million yuan, but from the second quarter, the company's net profit fell off a cliff, the second, third and fourth quarters were 16.56 million, 46.19 million yuan, 39.84 million yuan.

 

 

 

 

 

 

For this abnormal change, APsystems Technology said to the tide of electricity, because the European market from the second quarter of the high inventory intensified, micro reverse sales fell sharply, and from this quarter onwards, R & D and overseas market channel marketing investment increased, resulting in increased operating expenses, pulling down the net profit.

 

 

 

Data show that the company last year, R & D investment of about 105 million yuan, an increase of 90.75%.

 

 

 

Based on last year's high inventory in the European market led to a sharp decline in the company's micro-reverse shipments, superimposed on the backlog of inventory in the warehouses of overseas subsidiaries, APsystems last year's micro-reverse production of about 886,000 units, down 52.16% year-on-year; sales volume of about 843,000 units, down 9.91% year-on-year, but the total inventory reached 974,000 units, down 2.3% year-on-year.

 

 

 

Based on last year's sales volume, APsystems' inventory will be able to cover nearly 13 months of sales even if it does not produce Micro Reverse this year.

 

 

 

In response to the high inventory balance of this longstanding dilemma, APsystems did not respond to specific measures to address, but said that this year's bullish micro-reverse market environment, hoping that the increase in sales volume to drive inventory back to normal levels.

 

 

 

Hoymiles and Deye shares in the same industry in 2022, the gross profit margin of the micro reversal of about 50%, 48%, respectively, while APsystems in 2022 and 2023 gross profit margin of about 38%, 36%, respectively. APsystems explains that the company's OEM model is mainly, the cost of production is higher than the peer group and due to the overseas subsidiary of the higher labor costs, marketing costs increase, resulting in micro reversal gross margin. Increased costs, resulting in micro-reverse gross margins lower than peers.

 

 

 

It is worth mentioning that APsystems last year in China's industrial and commercial energy storage market products to achieve zero breakthrough, shipments reached 308 units.

 

 

 

APsystems said that in the next few years will continue to use the OEM mode of production of micro-reverse, and is assessing the feasibility of building production lines in the United States; its holding subsidiary Jiangsu Lingchu Yuneng Technology is preparing to build a domestic industrial base, independent production of industrial and commercial energy storage products.