Micro inverse industry revenue not to increase the phenomenon of profit from last year has continued, AP systems (688348.SH) is also caught in a dilemma.
 

August 30, AP systems released a performance report shows that the first half of revenue of 899 million yuan, an increase of 36.61%; net profit of 87.81 million yuan, down 34.56%.
 

AP systems said to Chaodian, the company shipped about 500,000 units of micro reverse in the first half of the year, is expected to micro reverse shipments for the whole year about 20% year-on-year growth, gross profit margin will be close to 37%.
 

From Hoymiles and AP systems, the two Chinese micro-reverse enterprise on behalf of the first half of this year's overall shipment performance, micro-reverse industry reshuffle is increasing day by day. AP systems in the first half of this year in Europe and the United States have suffered a loss.

The company held on August 30, 2024 half-year results briefing that the micro reverse shipments are expected to usher in the fourth quarter of significant growth.

 

Overseas market fighting strife, AP systems plans to increase the importance of China's industrial and commercial market and capital investment this year.
 

Europe and the United States market net profit decreased by 45 million yuan
 

The company's main battlefield in Europe is not a disadvantage. Responsible for European business subsidiaries in Europe AP systems in the first half of this year's net profit of only 10.972525 million yuan, down 73%. AP systems on the Chaodian explanation for overseas subsidiaries in the reporting period of the number of local employees increased relatively quickly, resulting in an increase in the amount of salary payments; Overall, the cost of overseas markets, sales, management, operating expenses and other costs have increased.

 

What is more exaggerated is that AP systems not only suffered losses in the US market, but also got into lawsuit disputes.
 

For one thing, in April 2022, VUE USA filed a cross-complaint in the Superior Court of Fresno County, California, with AP systems of Huazhou as the defendant party in the cross-complaint, requesting the court to find AP systems of Huazhou liable for damages. As of the date of the release of AP systems' financial results for the first half of 2024, the lawsuit was still in progress; secondly, in October 2022, a U.S. company, CyboEnergy, Inc. filed a lawsuit in the U.S. District Court for the Western District of Texas alleging that AP systems of Huazhou infringed on its intellectual property rights in its inverter products.
 

Responsible for the North American business of the subsidiary Huazhou AP systems in the first half of this year, a loss of 8,681,500 yuan, but last year has 6,512,400 yuan of net profit performance, a far cry from each other.
 

Renesas technology also said that the U.S. market is more complex compared to Europe, although the overall demand is growing, but the variability of the market environment is greater.
 

 

Chaodian calculated that the two companies in Europe AP systems and China AP systems in the reporting period, a total reduction in net profit of about 45 million yuan. In other words, AP systems in the first half of this year in Europe and the United States in these two regions of the net profit if you can be flat, then the overall net profit performance will not be lower than last year's 134 million yuan.
 

The high gross profit margin of micro-reverse products to attract a large number of emerging companies to join the competition, this year, the industry-wide price war is more intense. The decline in net profit of China's headline microcosmos companies during the reporting period also indicates that the industry is bidding farewell to high growth. The U.S. market is more uncertain, small enterprises in the second half of the European market share not fought for, then the difficulty of survival will only be unabated.
 

In the European and American markets suffered a loss, AP systems turned to the Chinese market to seek performance breakthroughs. Its results in the briefing publicly stated that it plans to increase shipments in the Chinese market.
 

Revenue to catch up with old rival Hoymiles
 

In the first half of this year, Hoymiles total revenue of 908 million yuan, AP systems and its very close. But because of the main micro-reverse product gross margin difference is more, in terms of net profit data can still see the gap between the two strength.
 

The company's inventory amounted to 1.516 billion yuan in the reporting period, although compared to the same period last year fell 2.79%, but accounted for 30.23% of total assets, still higher than the peer level; AP systems is due to cooperate with the sales strategy to increase inventory, inventory amounted to 972 million yuan, accounting for the proportion of total assets of 12.74%.
 

It is worth mentioning that AP systems in the first half of last year, the amount of inventory maintained at about 1.7 billion yuan, can be seen compared with Hoymiles using independent production, AP systems using the OEM production model has a high risk of inventory turnover. AP systems said to the Chaodian, by the end of this year, the company's inventory amount will be reduced to about 1 billion yuan.
 

AP systems first half of the research and development investment of 56.619 million yuan, an increase of 30.75%, said publicly that the second half of this year will continue to increase research and development efforts.
 

Like Hoymiles, AP systems this year also attaches great importance to the German balcony photovoltaic market. AP systems to light storage integration products, in the second half of the year, began to ship a small batch of light storage hybrid micro-reversal of the new EZHI.