() The operating comments of the Board of Directors in 2023 are as follows:
I. The industry in which the company is located during the reporting period.
(1) The industry in which the company is located
Since its establishment in 1989, the company has been taking "technology makes dreams come true, persistence makes brilliance" as its business philosophy, and based on power electronics and energy efficiency management technology, it has successfully developed and extended UPS power supply, data center, inverter, converter, charging pile, energy storage and other businesses with the development strategy of concentric circles of technology, with the same technology source and high customer overlap, and can reuse technical ability and sales ability to provide customers with satisfactory overall system solutions. After 35 years of exploration and development, the company has fully deployed high-end power supply equipment, data center products, new energy photovoltaic and energy storage products, and electric vehicle charging piles, and has industry-leading all-round solution capabilities. The integrated solutions are widely used in finance, communication, government, Internet, transportation, medical care and other fields and different scenarios. Now it has become several major product lines of high-end power equipment and data centers, photovoltaic new energy, energy storage and automobile charging piles.
The company’s industry belongs to the strategic industry encouraged by the state, and the industry policy is conducive to the sustained growth of the company’s profits as a whole.
(II) The development of the company’s industries during the reporting period.
During the reporting period, the industry in which the company is located is still in the stage of steady development, and the overall competition pattern has not changed fundamentally, but it has shown new changes in the short term:
1. Deepen the process of industrial digitalization, and the demand for high-end power equipment is growing steadily.
At present, a new round of scientific and technological revolution and industrial transformation has provided important strategic opportunities for the high-quality development of all countries. The development of digital economy is also an important means and way of scientific and technological revolution and industrial transformation. The layout of digital economy has been continuously improved and the development momentum is strong, which has accelerated the construction of new information infrastructure. UPS is an important part of information infrastructure construction and an indispensable part of all kinds of electronic equipment. It is widely used in mining, aerospace, finance, education, industry, communication, national defense, hospitals, computer business terminals, network servers, network equipment, data storage equipment and other fields. With the advancement of information construction, the domestic UPS market scale has steadily increased.
With the implementation of the national double-carbon strategy, the deepening of social electrification information construction and the continuous progress of the aerospace industry, the strategic significance of the power industry to the country has become increasingly prominent. According to the data of China power industry yearbook, the output value of China power industry reached 517.4 billion yuan in 2022, up 32.33% year-on-year. Power technology is applied to the generation, transmission, distribution and use of electric energy. It is a key supporting technology in the fields of new energy and smart grid, industrial automation, electrified transportation, network communication, aerospace and national defense. It plays an indispensable role in transforming traditional industries and developing high technology, and is an important means to accelerate the low-carbon transformation of energy system. In March, 2023, the National Energy Administration issued "Several Opinions on Accelerating the Development of Energy Digitalization and Intelligentization", aiming at the needs of digital and intelligent transformation and development in electric power and other industries, through the integration and application of digital and intelligent technologies, urgent use is the first, easy is the first, and difficult is the second. The shortcomings of transformation and development are filled by industries, links and stages, providing effective support for the high-quality development of energy; Give play to the extension of smart grid to expand the potential of energy network, promote the formation of energy intelligent regulation system, and improve the level of accurate and efficient allocation of resources. Under the guidance of peak carbon dioxide emissions and the goal of carbon neutrality, China’s energy industry is accelerating the process of green and low-carbon transformation. The construction of digital power grid has improved the consumption level of new energy and the comprehensive utilization efficiency of energy. Automation, digitalization and intelligence of power grid are the key development directions.
According to the data of the Ministry of Industry and Information Technology, as of November 2023, there were 771 million 5G mobile phone users, accounting for 44.7% of mobile phone users, and the total number of 5G base stations reached 3.282 million; With the construction of 5G network, the Internet of Things with low power consumption, high speed and wide coverage will gradually develop and mature. In this process, traditional terminals will gradually be iteratively upgraded to intelligent terminals. As typical features of 5G, edge computing and network slicing will sink information and data into intelligent terminals for storage and calculation, and then the derived edge data center computer room and base station side will become the link of its network side. The construction of high-power and high-density data centers and base stations in the 5G era has brought new profit growth space for the company’s high-voltage DC power supply. Faced with the massive demand brought by many application scenarios in the 5G era, the company has continuously developed a complete series of supporting power products that meet the high-quality requirements of the 5G era, meet the expansion, transformation and construction of high-density base stations, and seize the commanding heights for the company in the new data economy era.
High-performance power supply products have the requirements of high efficiency, high reliability, high power density and excellent electromagnetic compatibility, and need a team of technicians specializing in circuit structure, software, technology and reliability to jointly carry out research and development. Among them, the high-end power supply field has higher requirements on manufacturing technology and reliability design, which requires long-term and large-scale accumulation of technological experience and R&D investment. Establishing a management platform for development and testing according to international industry standards requires a higher level of intellectual property identification and management capabilities, and at the same time requires a large number of test instruments and equipment that meet international standards. In this regard, the company, as a leading enterprise in the industry, also focuses on the deep development of high-end power products market, focusing on improving independent research and development capabilities and process level, meeting customers’ requirements for high-performance products and enhancing the company’s influence and competitiveness in the industry.
2. The demand for computing power has increased, and the data center business has ushered in new opportunities.
As the world enters the "internet plus" era, technologies such as the Internet of Everything, cloud computing, AI and big data are widely infiltrated in all walks of life, and data traffic is exploding. Data center is an important infrastructure of the digital economy, and a physical entity bearing computing power based on the three major technologies of computing, storage and communication plays an important role in the digital transformation of China’s industry and the improvement of the digital level of public services. With the coming of the 5G era, data generation, processing and processing are coming.
The 14th Five-Year Plan for the Development of Digital Economy points out that in 2020, the added value of the core industries of digital economy in China will account for 7.8% of the gross domestic product (GDP). During the 14th Five-Year Plan period, China’s digital economy will turn to a new stage of deepening application, standardized development and universal sharing. The goal is that by 2025, the digital economy will move towards a comprehensive expansion period, and the added value of the core industries of digital economy will account for 10% of GDP.
In 2023, the Central Committee of the Communist Party of China and the State Council issued the Overall Layout Plan for the Construction of Digital China, pointing out that the construction of digital China is an important engine for promoting Chinese modernization in the digital age and a powerful support for building a new competitive advantage of the country. Accelerating the construction of digital China is of great significance and far-reaching influence on building a socialist modern country and promoting the great rejuvenation of the Chinese nation. It is clear that the construction of digital China is laid out according to the overall framework of "2522", in which the first "2" is to consolidate the "two foundations" of digital infrastructure and data resource system. With the rapid development of the global digital economy and the development of information technologies such as 5G and artificial intelligence, the demand for computing power is increasing. The landing of digital application scenarios cannot be separated from the effective support of computing power. As the core carrier of high-performance computing power, the value of industrial empowerment is gradually highlighted. Countries around the world actively guide the development of data center industry, the market demand for data centers is expanding, and the trend of green and low-carbon development is remarkable. China has continuously increased investment in computing, storage and network infrastructure, and attached great importance to the high-quality development of computing infrastructure such as data centers, intelligent computing centers, supercomputing centers and edge data centers.
According to the Research Report on the Development of Digital Economy in China (2023) issued by China ICT Institute, in 2022, the scale of China’s digital economy reached 50.2 trillion yuan, a nominal increase of 10.3% year-on-year, which has been significantly higher than the nominal growth rate of GDP in the same period for 11 consecutive years. The proportion of digital economy in GDP is equivalent to that of the secondary industry in the national economy, reaching 41.5%. China’s data center industry is in the stage of deepening the cloud center and moving towards the intelligent center, and it is in the growth period. There is still room for value in China’s data center industry in the next 10 years. It is estimated that the compound growth rate will remain at around 20%-25% during the Tenth Five-Year Plan period.
With the outbreak of the global digitalization process, the technical requirements for data center infrastructure carrying data are getting higher and higher, and the demand for high-performance computing such as AI computing and HPC computing is constantly increasing. Computing chips such as CPU and GPU are evolving in the direction of high computing power and high integration, which also leads to a significant increase in the power consumption of a single computing chip, and the power of traditional server equipment is getting higher and higher to adapt to supercomputing scenarios. The Ministry of Industry and Information Technology’s "Three-year Action Plan for the Development of New Data Centers (2021-2023)" proposes that by the end of 2023, the PUE of newly-built large and above data centers will be reduced to below 1.3, and the hub nodes and cold areas will strive to be reduced to below 1.25; The first-tier cities in Beijing, Guangzhou and Shenzhen have stricter restrictions on PUE.
3. Global PV installed capacity maintains a high prosperity, and double carbon+energy security drives green transformation.
Photovoltaic industry is an industry derived from the combination of semiconductor technology and new energy demand. Vigorously developing photovoltaic industry is of great significance for adjusting energy structure, promoting energy production and consumption revolution and promoting ecological civilization construction. With the increasing challenge of global climate change and the accelerated depletion of fossil energy, the development and utilization of renewable energy has attracted the attention of the international community. According to the statistics of Net Zero Tracker, a net zero initiative organization, more than 150 countries have announced the goal of carbon neutrality, and the development of renewable energy represented by photovoltaic has become a global consensus. In addition, photovoltaic power generation has become the most competitive form of power supply in more and more countries, and it is expected that the global photovoltaic market will continue to grow at a high speed. According to the report of the International Energy Agency, in 2023, the newly installed photovoltaic capacity in global solar reached 375GW, with a year-on-year increase of 31.8%. According to statistics from the International Renewable Energy Agency and Bloomberg, from 2010 to 2022, the kilowatt-hour cost of photovoltaic power generation decreased from 2.75 yuan /KWh to 0.34 yuan /KWh, with a cumulative decrease of 87.64%, and the kilowatt-hour cost of photovoltaic power generation was lower than that of coal-fired power generation. At the end of 2023, the price of photovoltaic modules dropped by nearly 50% compared with the beginning of the year, which further greatly reduced the installed cost of photovoltaic. At present, photovoltaic power generation has obvious economy compared with traditional energy generation.
China has listed the photovoltaic industry as one of the national strategic emerging industries. Under the dual role of industrial policy guidance and market demand drive, the national photovoltaic industry has achieved rapid development. According to the data of the National Energy Administration, in 2023, China’s newly added photovoltaic installed capacity greatly exceeded expectations, reaching 216.88GW, up by 148.12% year-on-year, and the cumulative photovoltaic grid-connected installed capacity exceeded 600GW. It is estimated that the newly added photovoltaic installed capacity will exceed 200GW in 2024, and the cumulative installed capacity is expected to exceed 810GW.
On June 2, 2023, the National Energy Administration issued the Blue Book of New Power System Development, which anchored the strategic goal of "3060" according to the "two-step" strategic arrangement proposed by the CPC Central Committee in the new era, and took 2030, 2045 and 2060 as important time nodes to build a new power system, and formulated a "three-step" development path of the new power system, that is, accelerating the transition period (currently to 2060)
When Premier the State Council introduced this year’s government tasks in his government work report on March 5th, he proposed to further promote the energy revolution, control fossil energy consumption and speed up the construction of a new energy system. Strengthen the construction of large-scale wind power photovoltaic bases and delivery channels, and promote the green and low-carbon development strategy of distributed energy development and utilization. Although domestic PV installations are now facing challenges such as consumption, the policy side is still actively promoting the green and low-carbon development of new energy. In the future, driven by favorable factors such as the continuous decline of photovoltaic power generation costs and the recovery of global green economy, the newly installed photovoltaic capacity in the world will continue to grow.
4. The demand of energy storage industry is strong, and the installed capacity continues to increase.
At present, new power systems are being built to achieve peak carbon dioxide emissions and carbon neutrality, and energy is the main adjustment field. With the formulation and implementation of net zero emission targets in many countries around the world, many new technologies are widely used in energy power systems, and it is possible to realize two-way interaction between source, grid, load and storage, and intelligent control on demand side, which has laid the technical foundation for the development of emerging industries in power industry. With the rapid growth of photovoltaic and wind power cumulative installed capacity, the absorption pressure of power grid is increasing, and energy storage has become necessary for new energy installed capacity, which is widely used in power supply side and power grid side, and the proportion of distribution and storage is gradually increasing. On the user side, with the increase of peak-valley spread and the decrease of energy storage system cost, the income of industrial and commercial energy storage peak-valley spread arbitrage rises, the cost decreases, and the sharp increase of yield promotes its demand to rise sharply. As a key supporting technology, energy storage can improve the utilization rate of renewable energy and ensure the safe and stable operation of power grid, which is an important support for energy transformation. According to the Clean Energy Annual Market Report 2023 issued by the American Clean Energy Association (ACP), the installed capacity of clean energy in the United States increased by 33.84GW in 2023. Among them, the newly installed capacity of photovoltaic and energy storage both reached record highs, with 19.6GW and 7.9GW added respectively. In 2023, the new installed capacity of renewable energy in China was 305 million kilowatts, accounting for 82.7% of the new installed capacity of power generation in China. Driven by the growth of wind power photovoltaic installed capacity and the fall of lithium carbonate price to improve energy storage economy, the demand for energy storage continued to increase. In 2023, the newly installed capacity of new energy storage in China is about 22.6GW.The average energy storage time is about 2.1 hours. By the end of 2023, the cumulative installed capacity of new energy storage projects has reached 31.39 million kilowatts/66.87 million kWh, with an average energy storage time of 2.1 hours. With the further implementation of policies, unexpected cost reduction and continuous improvement of technology, new energy storage will better meet the power storage needs of power generation side, power grid side and user side.
The National Development and Reform Commission and the Energy Bureau issued the "14th Five-Year Plan for Modern Energy System". By 2025, the proportion of non-fossil energy consumption will increase to about 20%, the proportion of non-fossil energy generation will reach about 39%, and the proportion of electric energy in terminal energy consumption will reach about 30%. On January 27th, 2024, the National Development and Reform Commission, the Bureau of Statistics and the Energy Bureau jointly issued the Notice on Strengthening the Connection between Green Power Certificates and Energy Saving and Carbon Reduction Policies to Promote Non-fossil Energy Consumption, strengthening the effective connection between green certificate transactions and policies such as dual control of energy consumption and carbon emission management, stimulating the demand potential of green certificates, consolidating the trading foundation of green certificates, expanding the application scenarios of green certificates, and strengthening mutual recognition of green certificates at home and abroad. On February 27th, 2024, the National Development and Reform Commission and the Energy Bureau jointly issued the Guiding Opinions on Strengthening the Capacity Building of Power Grid for Peak Regulation, Energy Storage and Intelligent Dispatching, pointing out that the capacity building of peak regulation, energy storage and intelligent dispatching of power grid is the main measure to improve the regulation capacity of power system, the key support to promote the large-scale and high-proportion development of new energy, and the important content to build a new power system. On March 1, 2024, the National Development and Reform Commission and the Energy Bureau issued the Guiding Opinions on the High-quality Development of Distribution Network under the New Situation, and set a clear goal that "the distribution network will have about 500 million kilowatts of distributed new energy access capacity in 2025". The broad prospect of the future energy storage market has brought great development opportunities to the company. As an important application of the company’s energy Internet industry technology, energy storage has core energy storage equipment such as photovoltaic, hybrid optical storage, inverter and converter.In particular, it has perfect energy storage system solutions and mature energy storage system integration capabilities. The company will continue to track the field of energy storage, increase investment in research and development, and maintain its good development trend.
5. The new energy charging pile business ushered in a historic development opportunity.
In recent years, China’s new energy vehicles have developed at a high speed, and core technologies such as motors and batteries have continuously made breakthroughs, forming a new energy vehicle industrial system covering the entire upstream and downstream chain, laying the foundation for comprehensive marketization. According to the statistical analysis of China Automobile Industry Association, under the dual effects of policy and market, in 2023, China’s new energy vehicles continued to grow rapidly, and the production and sales of new energy vehicles were 9.587 million and 9.495 million respectively, up by 35.8% and 37.9% respectively. According to the data of the Ministry of Public Security, by the end of December 2023, the number of new energy vehicles in China reached 20.41 million, accounting for 6.07% of the total number of vehicles; In 2023, China registered 7.43 million new energy vehicles, accounting for 30.25% of the newly registered vehicles, an increase of 2.07 million vehicles compared with 2022, with an increase of 38.76%, from 1.2 million vehicles in 2019 to 7.43 million vehicles in 2023, showing a rapid growth trend. The rapid increase in the number of new energy vehicles has given birth to the demand for charging, and the construction of charging infrastructure has entered the fast lane of development. The rapid development of production and sales of new energy vehicles has forced the demand for charging piles, and the construction of charging infrastructure has entered a stage of rapid development.
According to the data of the Ministry of Industry and Information Technology, by the end of 2023, China’s charging infrastructure had reached 8.596 million units, a year-on-year increase of 65%. In 2023, China’s charging infrastructure increased by 3.386 million units, a year-on-year increase of 30.6%; The domestic sales volume of new energy vehicles is 8.292 million, up 33.5% year-on-year. China has built the charging infrastructure system with the largest number, the largest radiation area and the most complete service vehicles in the world.
Charging capacity and growth rate of public charging facilities in 2018-2023; quantity of charging piles and quantity of new energy vehicles in 2016-2023.
In 2023, China’s new energy vehicle charging piles were frequently supported. In January 2023, the Ministry of Industry and Information Technology and other eight departments issued the Notice on Organizing the Pilot Work of Fully Electrified Vehicles in Public Areas, proposing to start the pilot work of fully electrified vehicles in seven key areas, including official vehicles, urban public transport, rental, sanitation, postal express delivery, logistics and distribution, and airports.
In May 2023, the National Development and Reform Commission issued "Implementation Opinions on Accelerating the Construction of Charging Infrastructure to Better Support New Energy Vehicles to Go to the Countryside and Revitalize the Rural Areas", which encouraged the research on key technologies such as the two-way interaction between electric vehicles and the power grid (V2G) and the coordinated control of light storage and charging, and explored the construction of charging infrastructure providing photovoltaic power generation, energy storage and charging integration in rural areas with low utilization rate of charging piles.
On June 8, 2023, the General Office of the State Council issued the "Guiding Opinions on Further Building a High-quality Charging Infrastructure System", proposing that by 2030, a high-quality charging infrastructure system with wide coverage, moderate scale, reasonable structure and perfect functions will be basically built, which will strongly support the development of the new energy automobile industry and effectively meet the people’s travel and charging needs; We will build a charging network with urban surface layout, highway linear layout and rural point layout. The proportion of parking spaces with standardized charging conditions in commercial parking lots in large and medium-sized cities will strive to exceed the proportion of registered electric vehicles in cities, and the coverage rate of charging services in rural areas will increase steadily.
On July 14th, the National Development and Reform Commission, the Energy Bureau and the Rural Revitalization Bureau jointly issued "Guiding Opinions on Implementing Rural Power Grid Consolidation and Upgrading Project", clearly requiring that the construction of rural charging network and the development of transmission and distribution network should be considered as a whole, the rural power grid planning and charging infrastructure planning should be well connected, the construction, transformation and operation and maintenance of charging infrastructure supporting power grid should be strengthened, the capacity-to-load ratio level of county-level high-voltage transmission network should be planned according to local conditions, moderately advanced, scientifically and reasonably, the power supply margin of medium-voltage distribution network should be appropriately improved, and the power grid support and guarantee capacity should be enhanced. In the eastern region, we will cooperate with the establishment of demonstration counties and demonstration towns for charging infrastructure, build a high-quality charging infrastructure system, and serve new energy vehicles to the countryside.
On July 21, the National Development and Reform Commission and other departments issued a notice on "Several Measures to Promote Automobile Consumption", clearly stating that it is necessary to strengthen the construction of supporting facilities for new energy vehicles. Implement policies and measures such as building a high-quality charging infrastructure system and supporting new energy vehicles to the countryside. Accelerate the construction of charging infrastructure in townships, counties, highways and residential areas, guide users to participate in intelligent and orderly charging and vehicle-network interaction, and encourage the pilot demonstration of interactive application of new energy vehicles and power grids.
On September 1st, seven departments, including the Ministry of Industry and Information Technology, issued the Work Plan for Steady Growth of the Automobile Industry (2023-2024), mentioning the improvement of infrastructure construction and operation. Implement the "Guiding Opinions on Further Building a High-quality Charging Infrastructure System" and optimize the supporting environment. Encourage all localities to scientifically predict the charging demand of new energy vehicles, do a good job in the layout planning of public charging networks in cities and surrounding counties, and promote the layout construction of charging facilities and the expansion and transformation of supporting power grids in an orderly manner. Encourage the popularization and application of new technologies such as high-power charging, intelligent and orderly charging, and "optical storage, charging and discharging" integrated station to improve the charging service support capability. Guide local subsidies and support for guaranteed charging infrastructure such as highways and towns, and increase industry support.
In November 2023, eight departments, including the Ministry of Industry and Information Technology and the Ministry of Transport, issued the Notice on Launching the First Pilot Area of Fully Electrified Vehicles in the Public Sector, and it is planned to identify 15 cities as pilot cities to promote the use of new energy vehicles in the public sector. The number is expected to exceed 600,000; More than 700,000 charging piles and 7,800 power stations will be built in the pilot cities in terms of charging and replacing power infrastructure.
II. Main businesses of the Company during the reporting period
The company shall comply with the disclosure requirements of "photovoltaic industry chain related business" in the Guidelines for Self-regulatory Supervision of Listed Companies of Shenzhen Stock Exchange No.4-GEM Industry Information Disclosure:
(a) the company’s main business and products
The company has been focusing on power electronic conversion technology for a long time, focusing on power electronic technology and energy efficiency management, and continuously deepening the two fields of industrial digitalization and "new energy+energy storage", mainly engaged in smart power supply (UPS/EPS, power supply, communication power supply, high-voltage DC power supply, special power supply, battery system, power gateway and cloud management platform, etc.). Data center (modular data center, container mobile data center, industry customized data center, intelligent power distribution, dynamic ring monitoring system, precision air conditioning, etc.) and new energy (energy storage system, PCS, EMS, BMS, sodium/lithium battery cells and PACK, photovoltaic inverter, wind converter, charging pile, power exchange cabinet, air energy heat pump, energy gateway and cloud management platform, etc.).
Based on the R&D and intelligent manufacturing capabilities of core products, the company strives for market development and business model innovation. Help users to provide hybrid power supply solutions, intelligent micro-module data center solutions, high-voltage DC remote supply solutions, intelligent computer room comprehensive solutions, edge computing solutions, smart photovoltaic solutions, smart wind power solutions, energy storage system solutions, optical storage and charging (replacement) integrated solutions, multi-energy complementary integrated solutions, source-network-load-storage integrated solutions, distributed photovoltaic county-wide propulsion solutions, electric vehicle charging solutions, and electric two-wheeled electric vehicle replacement solutions.
After thirty-five years’ development, it has become one of the top 500 new energy enterprises and the top 100 competitive enterprises in the world, the first batch of key high-tech enterprises in the national torch plan, national technological innovation demonstration enterprises and national intellectual property demonstration enterprises.
(2) The company’s business model
1. R&D mode
Through continuous investment in R&D for many years, and constantly increasing the proportion of R&D in revenue, the company adheres to the R&D concept of "market-oriented, customer-oriented, technological innovation and Excellence", and builds a R&D model of "independent R&D as the mainstay+joint development as the supplement", with the product development strategy of mass production, development, pre-research and exploration. At the same time, Enterprise Post-Doctoral Research Center and Academician Expert Workstation continuously strengthen cooperation and exchanges with domestic universities and research institutes, and rely on the research strength and innovative resources in the fields of power electronics and new energy where the research institutes are located to carry out innovative research and development of new materials and technologies and transformation of achievements.
2. Purchasing mode
The raw materials required for the company’s production are mainly purchased directly from the manufacturers by the purchasing department, and some power electronic devices are purchased from the agents of foreign manufacturers in China. The company has formulated the Procurement Management Procedure and the Supplier Management Procedure, established a perfect and strict procurement management system, comprehensively evaluated suppliers according to core indicators such as product quality and timely delivery ability, and conducted public bidding to qualified suppliers in the specific procurement process, so as to ensure that the materials needed by the company can be purchased in a timely and appropriate amount, with reasonable prices and quality meeting production requirements.
In the settlement mode of procurement, in order to improve the bargaining power of procurement and save the procurement cost, the purchasing department of the company signed a procurement agreement with suppliers at the beginning of the year. In addition, the company signed strategic agreements with some large enterprises to purchase at preferential prices and ensure priority supply. The company’s suppliers are relatively stable, and the purchase is mainly settled by remittance and bank acceptance bills. In terms of transportation, the supplier generally bears the transportation and freight, and the goods are transported to the designated place of the company. In terms of inspection, the company shall implement the Management Procedure for Incoming Material Inspection, the external supplier shall deliver the goods according to the delivery date confirmed by both parties, and the warehouse personnel shall count the quantity and receive it before warehousing.
3. Production mode
The company implements the production mode of standard products stocking and non-standard products "fixing production by sales and tailoring". Due to the wide application fields of high-end power supply, users in different use environments and industries have different requirements for equipment configuration. Product specifications and technical parameters need to be designed according to the actual needs of users. After obtaining the order, technology research and development and product design are carried out according to the specific needs of customers. The main components are manufactured and processed by specialized production lines and workshops, and then the assembly, processing, testing and aging of the whole product are completed in the assembly workshop.
For standard products, the company guarantees that the warehouse has a certain amount of inventory. Generally, according to the recent sales and shipments, the company determines the maximum inventory as one-month shipments; The minimum inventory is guaranteed for half a month’s delivery.
In addition, the company’s photovoltaic and other new energy power stations and energy storage-related businesses are mainly development, construction, operation and transfer, and the business models adopted are EPC and BT. Entrusted by the owner, the company undertakes the whole process or several stages of contracting for the preliminary survey, design, equipment procurement, construction and grid connection of the project according to the contract, and carries out procurement, construction and settlement according to the construction progress of the project, or transfers the projects it has built and held to a third party to obtain benefits.
4. Sales model
The company’s products are widely used downstream, with users in many industries and wide geographical distribution, and at the same time, the requirements for product personalization are high. In order to meet customers’ purchasing requirements, at present, the company’s products are sold in the domestic market by combining direct selling and distribution, while in foreign markets, they are mainly sold by distribution. The company has more than 260 customer service centers around the world, providing perfect pre-sales technical support and after-sales service.
On the one hand, the company’s photovoltaic power station, data center and charging pile business realize the sales of core products and equipment through independent promotion; on the other hand, it integrates and coordinates the company’s projects in distributed photovoltaic power stations, charging piles and comprehensive energy services through the development, investment, construction, operation and trading of new energy investment, EPC, equipment introduction and intelligent operation and maintenance of new energy power stations. Actively cooperate with partners to develop business through complementary advantages and capture business opportunities in the fields of new technology research and development and new product manufacturing in the new energy field.
During the reporting period, the company’s main business model has not changed significantly.
(3) Key technical indicators
According to the general knowledge of the industry, the key technical index of inverter products is conversion efficiency. The conversion efficiency refers to the ratio of the energy output by the inverter to the AC power grid and the input energy of the inverter (usually energy generated by photovoltaic effect of solar panels), and the inverter conversion efficiency = inverter output power/inverter input power *100%. The related technical indexes of inverter products of the company are introduced as follows:
1. Key technical indicators and technical advantages of the company’s photovoltaic inverter.
(1) The company’s distributed tandem photovoltaic inverter has multi-channel MPPT, high efficiency, small size, light weight and high-precision intelligent tandem detection technology, which comprehensively improves the power generation. The internal layout of the whole machine is reasonable and distinct, integrated with die casting, beautiful and elegant, optimized circuit structure, reduced device usage, safe and reliable. Strong heat dissipation capacity, no derating at 45 degrees; Integrated PID repair function; Built-in AC and DC lightning protection module, all-round lightning protection. Terminal temperature detection; Integrate AFCI DC arc protection function; Intelligent DC disconnect switch. Strong environmental adaptability, support for high capacity ratio, matching components of various specifications, support for 182/210/ double-sided components, and support for aluminum wire access. The company’s distributed series photovoltaic inverter products are used in household and industry and commerce, and the product certification is complete, mainly in the export-oriented market, taking into account the domestic market and meeting the needs of the mainstream sales market; In the aspect of operation and maintenance, the operation of the power station can be known at any time through the monitoring means of the remote intelligent monitoring platform system of the power station, so as to ensure the customer’s income and reduce the maintenance cost.
(2) The company’s station-level high-power 1500V series photovoltaic inverter adopts three-level technology, with the highest efficiency of 99.01%, wide MPPT voltage, longer all-day power generation time, high efficiency+wide full load MPPT voltage range, and comprehensive improvement of power generation; PID protection+repair, all-weather protection of component health, increase power generation income. IP66 protection grade and C5 anti-corrosion grade, suitable for various harsh environments; The series DC fault is automatically disconnected, which is safe and reliable. Brand-new weak network control strategy, from adapting to power grid to supporting power grid; I-V curve detection and scanning, accurate and intelligent management; Current harmonic compensation, grid-connected current harmonic < 2%. Ultra-high capacity ratio design, better LCOE；; Fast reactive response, replacing SVG；; Support PLC communication, reduce cable and construction cost. The semiconductor device adopts imported first-line brands, which ensures excellent performance and can achieve a longer design life. The control adopts multi-MCU control core redundancy design to ensure the reliability of the machine. The company’s cascade photovoltaic inverter products are applied to large-scale ground power stations and complex hill power stations, and the product certification is complete.
(3) The company’s 1500V centralized inverter adopts I-type three-level technology, with the highest efficiency of 99%, which improves the power generation; Modular design concept, supporting redundant sleep function, single module running under light load, whole machine running under heavy load, independent operation between modules, improving power generation efficiency and effectively prolonging life cycle; Dual-core DSP digital control, faster operation speed, higher precision, safer and more reliable system operation; Reactive power can be adjusted, and the power factor can be adjusted from 0.8 ahead to 0.8 behind. The system has damping, comprehensive suppression of oscillation, and stronger adaptability of power grid; With power harmonic filtering function, improve the quality of output power; Intelligent terminal, integrated with SVG function, fully responds to power grid dispatching and reduces initial investment. The company provides 1500V centralized end-to-end solutions, from the junction box, inverter, container, to the integration of box transformer (container and step-up transformer), reducing system cost and improving power generation efficiency have become the mainstream of photovoltaic industry development, so it is easy to think positively and promote the technological progress of the industry. Box-to-box integrated products, reducing on-site construction and civil construction time, saving construction costs; The transformer is connected with double windings, which reduces the cost of the transformer; Compared with the traditional 1000V system, EA1250KHV increases the DC input voltage to 1500V, reduces the DC side current, and reduces the investment cost of DC cable and junction box. The output voltage of the AC side is improved, the current and power loss can be reduced, the overall efficiency of the system is improved, the power generation is improved, and the system investment cost is reduced.The larger the investment scale of power station, the more obvious the advantages will be, and the customer return rate will be increased.
2. The unit production cost of the company’s photovoltaic inverter products
The photovoltaic inverter products produced by the company are complete in categories, with different sizes of power and slightly different production costs. At present, the company’s unit production cost range is 0.08 yuan /W-0.5 yuan /W.
Third, the core competitiveness analysis
1. Continue to invest in R&D to promote the high-level development of R&D strength.
As a key high-tech enterprise in the National Torch Program and a national technological innovation demonstration enterprise, the company insists on independent research and development, deeply cultivates the field of power electronic energy conversion and control, has a national enterprise technology center, and has set up expert enterprise workstations of academicians from Post-Doctoral Research Center and Guangdong provinces. A number of heavyweight scientific research platforms, such as Industry-University-Research Joint Demonstration Base of Guangdong Education Department (R&D Center of Distributed Power Generation Electrical Engineering Technology) and Guangdong Modern Power Electronic Engineering Technology Research and Development Center, have been successively established. The company has successfully promoted the implementation of the intellectual property management system and the integration of industrialization and informatization management system, which has provided a solid foundation for the company’s scientific research to lead the market and technology as the company’s first productive force. The company has accumulated sufficient kinetic energy for the subsequent development with strong R&D strength, and its R&D planning is forward-looking, forming a four-generation integrated system of "mass production generation, development generation, pre-research generation and exploration generation" to ensure that the company’s product technology is always at the forefront of the industry.
Adhering to the concept of building a first-class team in power electronics technology research and development, the company has set up technology research and development centers in Songshan Lake, Xi ‘an, Shenzhen, Guangzhou and Nanjing, with strong professional background. With huge R&D investment and strong scientific research strength, by the end of the reporting period, the company had accumulated more than 1,000 patents and software copyrights, and organized and implemented the patent layout of the European Union, the United States, Germany and other countries along the Belt and Road overseas. The company has successively won many honors such as "National Intellectual Property Demonstration Enterprise", "China Patent Excellence Award" and "Guangdong Top 100 Enterprise Patent Innovation Enterprise", which consolidated the company’s technological leading position in the field of power electronics. During the reporting period, the company and its subsidiaries obtained 12 new authorized patents, including two invention patents, five utility model patents and five design patents. All the above new authorized patents were originally obtained by the company, which fully reflected the innovation ability and core competitiveness.
During the reporting period, the company invested 240,987,100 yuan in R&D, accounting for 5.03% of the current operating income, and the R&D investment increased by 15.07% year-on-year.
2. Intelligent manufacturing promotes quality improvement and helps industrial development.
The company has accumulated more than 30 years of professional production experience in the power electronics and energy efficiency management industry, has a leading production line in China, has a high degree of automation, has a strong competitive advantage in production technology, product quality, cost control and after-sales service, and has won a good reputation from users. The company’s advantages such as production technology and quality management are highly recognized in the industry, and it has obtained the qualification certifications such as CE, CQC and TV certification, passed the IS09001:2015 quality system and ISO14001:2015 environmental system certification, and the product quality has been widely recognized by customers with perfect supply chain management and raw material procurement system, as well as innovative process standards. The company continues to promote intelligent manufacturing, accelerate the transformation of manufacturing to automation and data, improve product quality and production efficiency, reduce production costs and inventory through lean production and intelligent manufacturing, and then achieve the goal of high-quality development of enterprises.
The core modules of the company’s series of products are independently developed and manufactured, and they have considerable technical accumulation and extensive market layout in the business of industrial digitalization, new energy+energy storage. The complete product line covers the diverse product needs of users, and can provide energy optimization solutions and corresponding product support according to different application scenarios of users. The company has strict requirements on the reliability, energy efficiency and stability of products to ensure the long-term operation stability of products. With high-quality product quality, positive service response and rich industry application experience, it has established a good market reputation, and its product application diversity and technical stability also have leading advantages in the industry. At the same time, the company carries out R&D layout in advance to cope with the upgrading of product technology to ensure the high standard and stability of product quality. At the same time, the company has advanced automated production lines and modern production equipment, and the high reliability and performance advantages of products brought by modern technological processes. Focusing on power electronic conversion technology, the company has opened up manufacturing links, vigorously accelerated the development of new energy, energy storage, charging piles and other businesses, created market demand-oriented products, provided customers with photovoltaic EPC project, "photovoltaic+energy storage" system solutions, integrated optical storage and charging solutions, and integrated source network storage and load solutions. The products cover energy supply to electricity load, and established a product service system from power supply end to demand end, realizing mutual promotion and coordinated development of the industrial chain. During the reporting period, the company was recognized by the Guangdong Provincial Department of Industry and Information Technology as "Guangdong Provincial Manufacturing Individual Champion in 2023".Give high praise to the company’s production capacity.
3. Industry-wide marketing system to solve customer needs.
The company concentrates its resources on R&D and production in power quality control and conversion related fields. Over the years, in the process of serving different markets, different scenarios and different customers for a long time, we have built excellent product delivery and customer service capabilities. With the continuous improvement of the upstream and downstream concentration of the industry, the diversified needs of customers make the integrated sales of the company’s products show more comprehensive advantages. With a perfect marketing service system and a high-quality sales service team, the company operates in the mode of "business division+support platform". According to the characteristics of the industry in which each business division is located and the characteristics of each business division, the company formulates corresponding strategic objectives and dynamically guides and corrects the business direction and focus. The business divisions are responsible for market development, product research and development and related comprehensive operations of their respective sectors. Flexible allocation of corresponding after-sales service teams for major business departments (smart power supply, IDC data center, photovoltaic power generation system, new energy vehicle charging pile, rail transit), with Dongguan Songshan Lake headquarters as the center, more than 260 customer centers and marketing service outlets have been set up around the world to ensure timely response to customer needs. Professional marketing team, strict technical training, adequate maintenance parts, intensive service outlets and systematic management measures are effective guarantees for the company to improve product sales, brand value, customer satisfaction and loyalty.
4. Long-term cooperation to establish a close customer relationship.
The company has always provided customers with overall solutions and high-quality services, designed and customized according to the technical needs of different customers, and met the technical needs of differentiated products of different customers to the greatest extent. With excellent product quality, systematic solutions, good after-sales service and corporate image, the company has continuously developed and accumulated key customer resources in the fields of finance, communication and electric power. The company is a national shortlisted or centralized purchasing supplier for key customers such as the government, Agricultural Bank of China, Industrial and Commercial Bank of China, (), (), China Unicom, China Tower, China Radio and Television, China Petroleum, China Petrochemical, State Grid and China Southern Power Grid. By establishing and maintaining good cooperative relations with key customers, it will help to expand the popularity of the company’s products. Numerous excellent customer resources ensure that the company has continuous orders, enhance the brand influence of the company, and help the company improve product quality and continuous innovation ability. In addition, the company’s mature product standards and technology development system have accumulated rich industry experience in business practice and expansion. The company focuses on introducing and cultivating high-end technical talents. The management understands the characteristics and trends of the industry development, can grasp the market development trends in a timely and accurate manner, increase the investment in technology research and development in a targeted manner, and provide customized products and service solutions to customers quickly, so that the company’s technical strength and standardization level are continuously improved, and its position in the industry is continuously improved in terms of service quality, corporate culture and technical strength. So that the company has a strong ability to expand the industry,It will help the company to reach multi-level long-term cooperation with customers in different fields, further enhance its core competitiveness and achieve high-quality and sustainable development.
5. The company strives to practice the vision of sustainable development.
As an outstanding listed company of digital energy products and solutions, EasyT Group keeps up with the global development trend, actively responds to the strategic national policy and market demand, adheres to the core values of "national honor, integrity and innovation", takes ESG concept as the company’s sustainable development guide, keeps up with market demand, actively practices its social responsibility, continuously increases investment in R&D and innovation, fully exploits the market, and promotes the application of new energy such as photovoltaic, wind energy, lithium-ion energy storage, charging and replacing electricity, with "new energy+energy storage". At the same time, it has also accelerated the digital transformation and upgrading of industries, from managers to service providers, and strived to achieve convergence and progress in corporate and environmental social governance performance, creating more development opportunities and a better life. During the reporting period, the company won the 2023 Green Sustainable Development Contribution Award, the 2023ESG Practice Model Award and the 2023 ESG Outstanding Corporate Governance Award for its outstanding achievements in environment, society and governance and breakthroughs in scientific and technological innovation.
The company actively responded to the relevant plans formulated by China’s industrial green development, standardized and standardized management in strict accordance with GB/T24001-2016/ISO 14001:2015 "Environmental Management System Certification", resolutely implemented national environmental protection policies and regulations, strictly implemented national, local and industry standards, continuously increased investment in energy conservation and emission reduction, and actively eliminated backward production equipment. On the basis of ensuring the discharge of waste water, waste gas, noise and solid waste up to the standard, we will promote lean management, continuously improve the process, improve the efficiency of three wastes treatment and energy utilization, implement green manufacturing, and strive to create a green factory.
During the reporting period, the company made great achievements and breakthroughs in business management, which was recognized and praised by the government and institutions and won several honorary awards, including:
Fourth, the main business analysis
1. Overview
In 2023, the global economic recovery momentum is insufficient, the regional security situation is complex and changeable, and the energy system continues to undergo profound changes. As an important enterprise in the field of energy equipment, the Company overcame various adverse effects, anchored the goal of "double carbon", actively seized development opportunities, focused on innovation, improved quality and efficiency, promoted transformation, achieved new results in high-quality development, and continued to maintain good growth in business performance.
2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of China, and it is also a crucial year to carry out the 14th Five-Year Plan. The company’s management closely focuses on the established business objectives, closely follows the global trend of digital industry and carbon emission reduction, actively responds to the strategic national policy, seizes the opportunity of the times, comprehensively completes the production, operation, reform and development of enterprises, and makes every effort to implement key tasks such as technological innovation, market development, efficiency improvement, emerging industry development, talent construction, and risk prevention and control, so as to continuously enhance its core competitiveness. With the joint efforts of all employees, the company has a stable operating condition and a good development momentum.
During the reporting period, the operating income was 4,792,586,700 yuan, an increase of 1.07% over the previous year; Realized an operating profit of 586.194 million yuan, an increase of 23.22% over the same period of last year; The net profit attributable to shareholders of listed companies was 562,871,000 yuan, a year-on-year increase of 52.81%. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 438,589,300 yuan, a year-on-year increase of 44.15%; The net cash flow from operating activities decreased by 15.89% year-on-year. The proportion of R&D investment in the company continued to increase, and the gross profit margin of products continued to remain stable. During the reporting period, the operation of each business segment of the Company is as follows:
(1) Focus on core businesses such as new energy and energy storage to promote high-quality business development.
1. The process of industrial digitalization is accelerated, which will help China’s digital construction.
With the full implementation of domestic electronic information policy support, during the reporting period, the rapid development of industrial digitalization and digital economy promoted the business expansion of the company’s high-end power equipment and data center; During the reporting period, the company seized the market development opportunities such as 5G, cloud computing and artificial intelligence, focused on the market opportunities of communication and IDC construction, gave full play to the advantages of the company’s modular and high-voltage DC products in product technology, industry experience, engineering installation and after-sales service, continuously improved the market competitiveness of products, intensively cultivated and innovated, and made use of the existing R&D advantages to give play to their competitive advantages and achieve stable development. During the reporting period, the company continuously and stably served the power supply and data center business of China Mobile, China Telecom and China Unicom, and implemented the work of centralized procurement and distribution share. Expand the company’s business scope with the marketing strategy of "basic product industry segmentation and solution group operation", and provide differentiated power supply solutions for diverse application scenarios with different requirements and scales. The products cover a wide range of scenarios, meet the diverse power supply needs of different customers, and ensure the safe and reliable operation of data.
The company’s products are based on the four core concepts of "high reliability, green energy saving, intelligent management and easy maintenance", thus ensuring the reliability, consistency and universality of the products. The company continued to increase investment in R&D. In the field of hybrid power supply products, it successively developed intelligent lithium battery system (48V/100AH), low-temperature lithium battery system (-40℃-55℃), and integrated pole and station power supply series products to meet the application requirements in various scenarios. The fourth generation high-frequency 1KVA-3KVA high-efficiency UPS system with high energy efficiency and full digitalization is developed. The 10KVA-120KVA industrial power frequency UPS system with high performance and ultra-high reliability developed for petrochemical, rail transit and electric power and the fourth generation 3KVA-10KVA power dedicated UPS module have been fully put into production and delivered to customers. The energy-saving and efficient Dongfeng ENPOWER high-voltage DC power supply system introduced by the company puts the DC power supply of the data center in one step, realizing a new breakthrough and leap in the power supply and power saving technology of the data center. At the same time, with the strength of "wisdom", the Easy Modular Data Center has successfully won the trust of many judicial, government, university, financial, medical and other institutions, and the company has been continuously digging deep into the needs of industry customers for a long time. During the reporting period, subway projects serving Qingdao, Shenzhen, Chengdu and other places provided communication integrated UPS system, centralized procurement of EPS power supply of China Petroleum and Natural Gas Group Co., Ltd.,The company’s UPS series power supply and data center serves the 31st Universiade, providing it with stable power supply; Also participated in the construction and upgrading projects of many domestic commercial banks’ basic outlets and data centers.
2023 is a year in which the demand for computing power is fully manifested. The demand for high computing power brings the demand for high power, intelligence and greening of data centers. The strategy of East Digital and West Computing puts forward clear requirements for PUE, with the western region requiring less than 1.2 and the eastern region requiring less than 1.25. This policy also requires the industry to promote the technological innovation and development of data centers. During the reporting period, The company launched the new flagship of MC6000 Data Center 5.0 to promote the digital development of the industry, which integrates data center service cabinet, precision air conditioning, power distribution, UPS power supply, fire protection and security, integrated wiring, power environmental control, computer room lighting and other systems, which can greatly shorten the delivery cycle, provide efficient and intelligent experience, and achieve good economic and social benefits, and is widely praised. In 2023, the Qingyang data center cluster project of Gansu hub node of the national integrated computing network started, and the company’s "east-to-west computing" digital energy project started. This project is a major traction project of Qingyang data center cluster of Gansu hub node of the national integrated computing network, mainly producing combined batteries, complete sets of data center products, energy storage PCS, energy storage systems, etc. It is planned to build high-end power supply, refrigeration equipment, data center micro-modules, new energy storage, charging piles, and integration of light storage and charging.
Company MC6000 data center product display
In 2023, the revenue of high-end power supply and data center products was 2,538,481,200 yuan, a decrease of 21.61% compared with the same period of last year.
2, wind, light, storage linkage development, integrated development to promote industrial closed loop.
With the deepening of global carbon emission reduction trend, the strategic significance of "new energy+energy storage" model is increasingly prominent. Based on the deep cultivation of new energy industry for many years, with the support of state-owned assets empowerment and the opportunity of industrial development, the company continues to focus on the complementary advantages of wind power, photovoltaic and energy storage sectors, focusing on product research and development, project development, solutions and EPC projects, controlling risks and maintaining steady and healthy development. In 2023, the income from new energy power generation equipment and development business was 907,256,700 yuan, a year-on-year increase of 58.79%.
The company group actively responded to the policy and market demand, vigorously accelerated the pace of research and development, and officially launched EAHI-3000~6000-SL series energy storage inverters and integrated solutions. The series products of 1500V centralized energy storage converter independently developed by the company have passed CQC certification, further verifying the leading edge of products in terms of quality and performance. During the reporting period, the company officially released a full range of household energy storage inverters and integrated solutions such as 1500V series energy storage converters. The 1500V series energy storage system (container type) relies on the latest research and development achievements and application experience, adopts fully modular design, centralized intelligent control and decentralized refined management, and perfectly integrates core equipment and digital technology to realize the core values of "three highs", "three zeros" and "three friendliness" in the whole life cycle of the system. It will play a key role in reducing power abandonment, peak load shedding, power grid frequency modulation and smooth output, effectively accelerate regional green and low-carbon transformation, and cultivate new growth poles for high-quality development. During the reporting period, the 100,000 kW photovoltaic power generation and storage project in Yuli County of Bazhou Energy was completed, with a total energy storage capacity of 10 MW/20 MW. The company’s 1500V series energy storage system (container type) was adopted, which was divided into four 2.5MW/5MWh energy storage units, and the grid-connected voltage level was 35kV. After the completion of the project, it is estimated that the total power generation in 25 years will be 5068246.83MWh, the annual average power generation will be 202729.87MWh, and the annual equivalent full-load utilization hours will be 1448.13h;A variety of harmful gases and waste gas emissions can be reduced every year, including carbon dioxide emissions of about 135739.73t, sulfur dioxide emissions of about 32t, nitrogen oxides of about 36t and soot of about 6t, which has good economic and social benefits. Other major energy storage projects completed during the reporting period include the 40MW/80MWh supporting energy storage system for the 100MW photovoltaic project in Dengkou County, Inner Mongolia of the State Power Investment Corporation, the 10MW/20MWh supporting energy storage system for the 100kw wind power generation project in forty wells of Xinneng Mulei, the 15MW/60MWh supporting energy storage system for the 100kw photovoltaic power generation project in Dongle north beach, Shandan County, and the 15MW/60MWh supporting energy storage system for the 100kw wind power generation project in north beach-phase of Linze Banqiao.
During the reporting period, driven by the dual-carbon goal, the company focused on the mode of "key customer development+channel expansion", focusing on the development of new energy projects, EPC projects, sales of key equipment such as energy storage and inverters, adhering to the strategy of combining wind, light and storage core businesses, and promoting the integrated project of source, grid, load and storage based on the concept of high-quality coordinated development. Overall layout of wind power and photovoltaic development projects in Guangdong, Guangxi, Shanxi, Inner Mongolia, Henan, Gansu, Xinjiang and other places, promotion of distributed photovoltaic in the whole county, continuous optimization of key regional development systems, strengthening project reserves and resource conversion, and maintaining a steady development pace. The company also cooperated with high-quality customers such as National Energy, Three Gorges New Energy, Datang, Guodian Investment, Guodian, China Southern Power Grid and State Grid New Energy to obtain the construction index of 350MW photovoltaic projects in Guangxi Zhuang Autonomous Region. Construction of 50MW-1003MWh shared energy storage power station project in Sanmenxia Lakeside Area, 500,000 kW scenery co-site project in Mulei County of Changji Guotou, 37MW distributed photovoltaic project in Shiyan, Hubei Province, 3 MW industrial and commercial energy storage project in Yiquan Science and Technology Park, 100,000 kW wind power project in Zhangye Linze, and distributed photovoltaic power generation project in Luoding Grain Depot of Guangdong Province. During the reporting period, the company was included in the third batch of smart photovoltaic pilot demonstration list by the Ministry of Industry and Information Technology. The International Energy Network and Guoneng Energy Research Institute rated the company as the top ten brands of energy storage PCS in 2023, and the company’s strength in photovoltaic and energy storage fields was once again affirmed.
In 2023, the company’s new energy/mixed energy business developed in an orderly and stable way, constantly enriching BMS and EMS series product lines. In view of the increasing energy density of energy storage systems and the temperature control problems caused by it, the liquid-cooled energy storage system introduced by the company has a natural heat exchange efficiency advantage, realizing the iterative upgrade of electrochemical energy storage safety technology, and the company’s 5MWh container liquid-cooled energy storage system was officially rolled off the assembly line in batches. The product is highly integrated, with a single box of 5MWh, supporting parallel splicing layout, and reducing the floor space by 20%. During the reporting period, the company participated in the construction of the independent battery energy storage station on the power grid side of Baotang of China Southern Power Grid, the largest new energy storage power station in Guangdong-Hong Kong-Macao Greater Bay Area. The company provided the 25MW/50MWh submerged liquid-cooled energy storage system for the independent battery energy storage project on the power grid side of Nanhai, Foshan, Guangdong Province. The battery system adopted the full-submerged mobile liquid-cooled safety scheme. By solving the problems such as the average temperature of lithium battery, fire protection and battery life, the potential safety risks caused by air cooling or plate-changing liquid cooling in the current industry were avoided, and the safety problems of lithium battery energy storage explosion and combustion were solved.
The distributed energy pattern formed by natural gas, light energy and wind energy is gradually taking shape. As an important development direction and industrial form of the industry, energy storage will play an increasingly important role in the energy pattern. Based on the company’s deep understanding of power technology and power grid attributes, the company designed energy storage products for different application scenarios. In order to meet the requirements of safety, efficiency and reliability of large energy storage power stations on the power grid side and power generation side, the company independently developed and launched an air-cooled and liquid-cooled 1500V Intel Li fully serialized (160KW, 630KW, 1MW, 1.25MW, 2.5MW) series energy storage system and 15000 MW. Based on the safety requirements of large-scale energy storage system and submerged liquid cooling technology, submerged liquid cooling energy storage systems (215KWh, 430KWh, 3 kWh, 6 3MWh) are developed. Aiming at the demand of safety, flexibility and high integration of industrial and commercial energy storage, the company introduced 1000V Meta series energy storage integrated machines (113KWh, 170KWh, 213KWh and 215KWh). Based on core products, the company provides targeted system solutions for different side features such as power generation side, power grid side and user side. On the power generation side, it can provide photovoltaic power station, wind farm to increase storage and fire storage combined frequency modulation system solutions; On the power grid side, energy storage system solutions such as substations and stations can be provided; On the user side,It can provide system solutions such as optical storage and charging integration and mobile storage and charging for industry and commerce, parks, charging stations, power shortage and other scenes; It also provides a shared energy storage solution that can be used as an independent market entity. At the same time, for high-carbon emission industries such as steel, cement, metallurgy, chemical industry, transportation, construction, etc., the company provides a complete set of intelligent green transformation solutions for traditional enterprises to help achieve the national goal of 30 and 60 double carbon.
In 2023, the revenue of energy storage products and systems business was 450,974,000 yuan, a year-on-year increase of 354.83%.
During the reporting period, the company firmly adhered to the strategic direction, vigorously promoted the capacity building of energy storage battery business and the construction of energy storage battery projects. Focusing on the energy storage battery business, in order to supplement the shortcomings of battery production in the energy storage industry chain, the sodium ion battery trial production project was launched. By the end of the reporting period, a sodium ion square aluminum shell battery pilot line and a supporting sodium ion battery laboratory had been built in this project. Among them, the pilot line has the ability to develop and verify soft bags and square sodium ion batteries and the production capacity of 0.2GWh/ year square sodium ion batteries; The sodium ion battery laboratory has the ability to independently research and develop sodium ion anode and cathode materials, electrolyte and other major materials, and to test and analyze sodium ion and lithium ion materials. The construction of this project will improve the competitiveness of the company’s related businesses in terms of product delivery, price and supply chain control. At the same time, driven by market demand, it can also develop sodium ion battery business alone, creating new profit growth points.
3. The charging and replacing equipment business has been transformed and developed, and the overseas market of charging piles has broad prospects.
Under the dual effects of policy and market, in 2023, China’s new energy vehicles continued to grow rapidly, and the rapid development of production and sales of new energy vehicles forced the demand for charging piles, and the construction of charging infrastructure entered a stage of rapid development. The company seized the development opportunity of the new energy automobile industry. In view of the development trend of new energy vehicles, the company developed a new generation of intelligent power distribution charging pile systems of 240KW, 360KW and 480KW and above, 30KW and 60KW Indian version DC charging system, 12-cabinet and 8-cabinet outdoor power exchange systems, and 200A and 300A high-power indoor power exchange systems. Relying on independent research and development production strength, At present, a 360-480kW split DC charging pile that can be upgraded to an overcharged liquid-cooled terminal has been introduced, with a maximum output current of 600A A. With a wide voltage platform of 200V-1000V, the maximum output of 480kW can be achieved. During the reporting period, the company, together with Shanghai Jiaotong University and South China University of Technology, undertook the R&D work of the key field R&D project-"Research and Industrialization of Key Technologies of Super Charging Piles", focusing on the innovative breakthrough in the development and mass popularization and application technology of high power density, high efficiency and high reliability super charging piles based on domestic silicon carbide devices, focusing on the key technologies and methods such as topology, control, structure, heat dissipation and performance of super charging piles, thus laying a solid technical foundation for the subsequent charging pile business of the company.
The company’s charging and replacing business is concentrated in the company’s wholly-owned subsidiary, Zhongneng Yidian, which develops independently, adheres to the business strategy of "value region, value scene and value customer", develops and launches charging and replacing products suitable for European and North American standards while stabilizing the domestic market, and increases the breakthrough of overseas value markets such as Europe and North America. The company not only provides product solutions, but also provides system integration, intelligent charging service network layout and planning, system operation and management, operation and maintenance services and other package solutions. It also has the ability of EPC general contractor to build stations and tailor personalized charging system solutions, which can easily solve the problems of "mileage anxiety" and various charging "pain points" and provide professional, accurate, efficient and reliable solutions for urban green travel and new energy vehicles to get on the road without worry.
During the reporting period, the company reached cooperation with China Petrochemical Sales Co., Ltd., China Oil and Gas Co., Ltd. Sales Branch, Tieta Energy Co., Ltd., Guangzhou Public Bus Station Management Service Co., Ltd., Hefei Charging Company, Yuncheng Static Traffic Operation Co., Ltd., () and many other central enterprises, city investment companies or well-known car companies to provide excellent charging experience for end users and build an optimal cooperation model. Among them, this year, the company successfully served many provinces and cities in Sinopec system, provided high-quality professional products and services for the new project of Sinopec’s "100-day attack" charging station, and ensured the smooth completion and commissioning of related construction tasks. As one of the core bid-winning units of Sinopec’s national self-operated charging station project, the company won the bid for all the south, middle and north blocks with high marks, and set up a special working team to provide self-developed and produced charging piles in time, quality and quantity, providing strong equipment supply support for Sinopec to promote the transformation and upgrading of new energy sources and actively explore new business of traditional gas stations.
In 2023, the charging facilities and equipment business of new energy vehicles realized revenue of 220,889,700 yuan, up by 75.21% year-on-year.
4. The new energy power station holds the operation and continuously contributes to the stable income.
Based on the background of the company’s long-term construction and operation of photovoltaic power plants, it has accumulated rich experience in management and operation, intensively cultivated and improved in management, mastered key links, and ensured the efficiency and safety of project implementation. During the reporting period, all power stations operated stably, achieving zero accidents and zero casualties in safe production. In addition, the company continuously improved the power generation efficiency of power stations by optimizing management measures and upgrading technical level. During the reporting period, the company transferred 100% equity of three wholly-owned photovoltaic power plant project subsidiaries, namely Jinchang Guoneng Solar Power Generation Co., Ltd., Minqin Guoneng Solar Power Generation Co., Ltd. and Chiping Xinjiayuan Photovoltaic Agriculture Co., Ltd. By the end of the reporting period, the company had a total of 560MW of operating photovoltaic power plants and realized power generation income of 653,570,900 yuan by holding photovoltaic power plants connected to the grid, down 4.71% compared with the same period of last year. The company’s independent project operation and maintenance team, through the photovoltaic operation and maintenance cloud platform developed by the company, realizes remote real-time monitoring of the real-time load, power generation and key production indicators of each power station, including the overall situation of all power stations and hierarchical monitoring of the situation of each power station, manages the whole production process of each power station, ensures the controllable operating results, guarantees the power generation through meticulous management, increases the added value of photovoltaic business, enhances economic benefits, and gradually realizes the income generation of the operation and maintenance team, which provides a strong impetus and strong guarantee for the sustainable and stable growth of the company’s operating performance in the next few years. Combined with the needs of the increasingly extensive construction of distributed photovoltaic power plants at home and abroad,An intelligent control system of layered distributed photovoltaic power generation based on cloud platform is developed, which integrates the functions of power generation capacity prediction, power grid auxiliary service, power generation efficiency analysis, component health monitoring, fault early warning, daily operation report and so on, and widely serves the daily operation management of distributed photovoltaic power stations. During the reporting period, the cumulative power generation of the power station held by the company was 853,955.34 MWh, achieving safe production throughout the year.
5. Orderly expansion of overseas business.
The company insists on "OEM+ independent brand" as the main overseas marketing strategy. While maintaining existing OEM customers, it actively seeks the meeting point between the company’s independent brand products and overseas market demand. Brand dealers and OEM partners are driven by two wheels, giving strong support in marketing, industry development, service support, etc., providing overseas customers with UPS, photovoltaic, energy storage, charging piles and other products and solutions, and continuously infiltrating domestic industry and scene application programs into overseas markets.
Relying on the company’s pre-planning and layout in overseas markets, the company continued to increase the sales of traditional superior products such as UPS, charging piles, photovoltaic power generation and energy storage systems, and actively expanded the market of smart microgrid and modular data center products. During the reporting period, the company’s overseas market business realized revenue of 738,844,800 yuan, an increase of 14.30% over the same period of last year. During the reporting period, the company expanded its influence in overseas markets and gained a large number of overseas customers’ attention through exhibitions in Canton Fair, South Africa International Solar Exhibition, Seoul International Electric Power Exhibition, Munich International Solar Exhibition, Las Vegas International Solar Exhibition and Birmingham Solar Photovoltaic Exhibition. The company will continue to expand overseas markets, focusing on promoting the company’s products at important regional and industrial economic and trade negotiations and exhibitions, and seeking greater development of overseas market business.
(2) Continuously enhance the core R&D strength, actively develop new products and apply new technologies.
During the reporting period, the company focused on its main business, adhered to the market orientation, maintained high-intensity R&D investment, grasped the changing trend of the market and customers’ needs, continuously promoted technological innovation and enhanced the core competitiveness of enterprises. The company continued to implement a group-based R&D management system, strengthened the construction of counterpart technological innovation teams and personnel training according to the business development direction, optimized the R&D process and strengthened the implementation, further promoted technical standardization, and continuously improved product iteration and quality. At the end of the reporting period, the company had 788 R&D personnel, accounting for 34.44% of the total employees. The company also continues to improve the technological innovation system, build an open R&D platform based on core technologies, promote the reform of R&D IPD, and stimulate the awareness of continuous innovation; Create a research and development center of the group, realize the sharing of talents and resources, and give full play to the team’s maximum synergy; Strengthen the R&D process, pay attention to market research and information interaction, and promote the market transformation of new products; Accelerate the standardization process and realize the overall improvement of quality, efficiency and grade; Strengthen the informatization construction of R&D design, unify software and hardware and platforms, promote the launch of new software, and continue to develop solutions around customer needs. During the reporting period, the company increased its R&D investment by a total of 240,987,100 yuan, an increase of 15.07% over the same period of last year. The increase of R&D investment, the expansion of R&D talents and the increase of patented technology have laid a solid foundation for the company to maintain its technological leadership. During the reporting period, Yishite Intelligent System Integration Co., Ltd., a subsidiary, was successfully selected as one of the "Specialization and Innovation" in Shaanxi Province in 2023.The list of small and medium-sized enterprises, Hefei Kai Guanchang, Anhui Province’s "specialized and innovative" enterprise, Eddie Baker’s list of Guangdong Province’s specialized and innovative enterprises in 2022, and Zhongneng Yidian Company’s list of Guangdong Province’s "specialized and innovative" enterprises in 2023. This is the "Little Giant" enterprise that Easy Group was awarded as a national specialized and innovative enterprise after its subsidiary Kangerxin Power and Keruite Software, and it was once again affirmed in terms of innovation and growth.
During the reporting period, the company was recognized as one of the top 500 enterprises with patent strength in China by the Organizing Committee of Brand Power Project, Guangdong Enterprise Brand Building Promotion Association, Guangdong Radio and Television Station and National Trademark Brand Innovation and Entrepreneurship (Guangzhou) Base, and was recognized as a national intellectual property demonstration enterprise by the State Administration of Market Supervision, and its relevant intellectual property strength was recognized. The company’s patent project "A Control Device of Online UPS and Online UPS" won the 23rd China Patent Excellence Award issued by the State Administration of Market Supervision (Intellectual Property Office) and the first prize of China Power Institute’s Technical Invention Award for the project "Key Technology and Application of Large-scale Energy Storage System Based on Power Electronic Battery Cell" of Shanghai Jiaotong University. The 1500V Intel Li Intelligent Tandem Full Scene Energy Storage System independently developed and produced by the company was evaluated at the 12th CFS Financial Summit and the 2023 Sustainable Business Conference.
The company’s main R&D achievements are:
1. For 5G power supply products, the company has developed 60A-1000A high-efficiency embedded communication power supply, 100A-600A indoor and outdoor station communication power supply system, 100A-600A hybrid power supply system, 100A-450A cascade battery utilization system and 1KW-3KW distributed outdoor base station power supply for 5G power supply occasions;
2. High-end power products: the company has developed the 4th generation of 6KVA-20KVA high-efficiency UPS system, the 4th generation of medium-power 10KVA-120KVA UPS power system with high power density, modularization and high energy efficiency, and the 5th generation of 10-200KVA tower/rack UPS power system with high power density; The third generation high-power industrial-grade UPS power supply system (300KVA-2.4MVA) with high power density, modularity and high energy efficiency is applied to general industries, large-scale industrial automation production lines, large data centers and other places that need high reliability and large capacity power supply. A 10KVA-120KVA industrial power frequency UPS system with high performance and high reliability is developed for important occasions such as petrochemical industry and rail transit. For the application of power system, a new generation of 3-10KVA power UPS products is developed, and 100% independent controllable design is realized. The product develops indoor and outdoor integrated power supply products integrating lithium battery, DC module, AC module, system control and power environment under 20KVA for edge computing scenarios. Aiming at the application of lithium battery, a full range of 48V(3KVA,6KVA), 192V (10-20VA power) and 384V (above 30VA power) lithium battery power products were developed. High-end modular UPS,100KVA-200KVA modular UPS system based on 25KVA power module, 200KVA-500KVA modular UPS system based on 50KVA power module and 200KVA-1200KVA modular UPS system based on 100KVA power module;
3. Industrial power supply: hydrogen production industry and other special power supply products. The company has developed 500KW-1.5MW high-efficiency modular power supply and system for hydrogen production industry and other special power supply fields;
4. Energy storage system: Focusing on the industrial technology and market development demand of "smart grid, ubiquitous power Internet of Things, transportation energy", the company adopts high-efficiency electric energy conversion and hierarchical distributed intelligent control technology to develop isolated bidirectional DC/DC modules (10KW/20KW/30KW) and 160KW IP65 energy storage modules based on independent research. 1.28MW energy storage system, BMS, EMS, container energy storage power station solution, and high-power optical storage and charging integrated system have been successfully applied to the demonstration project construction of centralized photovoltaic power station auxiliary energy storage, distributed optical storage microgrid, ultra-high-power electric vehicle charging station with optical storage and charging integration, peak-shaving energy storage power station in industrial park, grid-side energy storage system and intelligent power router;
The cold plate 373KWH outdoor energy storage system and the 3.73MWH container energy storage system are flexibly matched with serial and centralized PCS to provide users with a complete integrated solution. The newly developed 215KWH, 430KWH, 3 kWh and 6 3MWH immersion outdoor energy storage systems provide intrinsically safe solutions for scenes with high security requirements such as data centers and charging stations.
5. In the field of automobile charging, the domestic market has carried out the development of directional 80kW120kW180kW360kW integrated machine and 360kW480kW600kW960kW charging pile products around Sinopec and PetroChina, and the company has developed a new generation of 240KW, 360kW and 480kW intelligent power distribution charging pile systems. Overseas markets have developed and completed a new generation of integrated charging piles with European standard and American standard Atlas D80kWD120kWD160kW (parallel machine 320kW); Completed the development of overseas charging pile operation platform.
6. In the field of optical storage and charging, a 100KWH/200KWH optical storage integrated system is developed, which consists of 30KW bidirectional PCS module, 120KW/240KW charging pile system, high voltage battery system, cooling system and monitoring system.
7. Photovoltaic inverter: It helps to realize "parity access to the Internet" and carbon neutrality. The company has completed the development of a high-power 1500V 320kW series photovoltaic inverter at the station level. The products are suitable for large-scale ground power stations, complex hill power stations, etc. The products reach IP66 protection level and C5 anti-corrosion level, and adapt to various harsh environments; The series DC fault is automatically disconnected, which is safe and reliable. Brand-new weak network control strategy, from adapting to power grid to supporting power grid; I-V curve detection and scanning, accurate and intelligent management; Current harmonic compensation is at the leading level in the industry, which enhances the company’s influence in the field of new energy.
8. Smart battery system: To meet the demand of green electricity and energy storage, BMS and smart battery system suitable for lithium ion battery and sodium ion battery are developed, and standard products are applied to various system-level solutions such as energy storage and power reserve.
9. Operation and maintenance management system: The company has developed an intelligent control system for distributed photovoltaic power generation based on cloud platform, which integrates the functions of power generation capacity prediction, power grid auxiliary service, power generation efficiency analysis, component health monitoring, fault early warning, daily operation report and so on, and widely serves the daily operation and management of distributed photovoltaic power stations.
10. According to the development needs of domestic and international markets, the company has developed the third generation of efficient and intelligent 5KW-30KW and 100KW-120KW photovoltaic inverters to meet the market demand. In the field of household energy storage, a new generation of 6KW-12KW single-phase optical storage integrated machine and 5KW-20KW three-phase optical storage integrated machine have the advantages of small size, light weight, high efficiency and strong protection ability. The newly developed 5KWH-30KWH optical storage battery system has outstanding advantages such as IP66 protection level, stacked design, plug-and-play module, automatic identification, flexible battery expansion and flexible switching of various working modes. Products have been certified by Germany, Italy, Belgium, Australia and South Africa.
11. In the field of military power supply, 0.5KWH, 2KWH and 5KWH battery energy storage modules, 3KW/5KW photovoltaic shelter, 6KW fuel cell shelter, 6KW generator shelter and 30KWH energy storage shelter have been developed.
By the end of the reporting period, the company had obtained 1004 authorized patents and software copyrights. Among them, there are 210 domestic invention patents, 519 utility model patents, 106 design patents, 4 American patents and 2 European Union patents. The company has completed 163 software copyright registrations. During the reporting period, the company added 38 domestic invention patent applications and obtained 18 domestic invention patents.
(C) Brand building, and establish a high-quality image of the company
As an outstanding listed company with comprehensive solutions of industrial digitalization & new energy and energy storage, the company is an old brand in China local power supply industry. In recent years, it has adhered to the core of power electronics technology and energy efficiency management, actively seized the two opportunities of industrial digitalization and dual-carbon goals, continuously increased investment in R&D and innovation, and wholeheartedly provided high-quality products and first-class services, with a good market reputation, and promoted the brand value of Easy. The company’s "EAST" series products are well-known in the high-end power supply industry. After years of use and market test by users, the Easy Brand has won unanimous praise from customers for its reliable quality, rich functions, moderate price, wide adaptability and timely and professional after-sales service. During the reporting period, it was recognized by the State Administration of Market Supervision as a powerful brand with "a thousand enterprises and a hundred cities", as a high-value trademark brand in Guangdong by Guangdong Trademark Association, and as one of the top 100 global photovoltaic brands by Xinneng Think Tank and PVBL Photovoltaic Brand Laboratory of Century New Energy Network.
(D) Improve the manufacturing capacity and service level of the supply chain.
The company always puts product quality first. The quality of power supply products is related to the stability of back-end electronic, data and communication equipment and the safety of users. The company is committed to improving its own quality management system, emphasizing TQM quality management thinking, setting up a quality center, and setting up strict quality control measures in R&D, procurement, production, outsourcing and after-sales. With the excellent quality of products, the company has been recognized by well-known downstream customers and established long-term and stable cooperative relations with each other. During the reporting period, in view of the rapidly changing reality of the external environment and market, the digital management platform of the factory was further improved, the supply chain manufacturing system was built to create an agile delivery system of the supply chain, and lean manufacturing activities were carried out, from basic lean to high-level lean, from internal change to external change (building a full value chain), to support the company’s development through lean+informatization+automation.
(V) Strengthen risk prevention and control, and improve the situation of production safety.
During the reporting period, the company continued to systematically promote risk control, compliance and internal control management, further consolidated the work system of rule of law construction, revised and improved rules and regulations in the field of rule of law construction, implemented special actions to build a compliance culture, took the whole process supervision and management as an important starting point for risk prevention and control, and innovated internal audit and audit forms, effectively promoting the high-quality completion of power and responsibility audits of various business divisions and functional departments. Comprehensively investigate various business risks and formulate control measures, strengthen the supervision of risk control compliance, and conduct special supervision on risk control of key projects. The risk management system will be further optimized, and a "two verticals and one horizon" risk management system will be established, in which professional lines are connected up and down, the whole enterprise is coordinated up and down, and risk management is linked horizontally. The annual key risk management plan will be formulated and the new risks and management effects will be dynamically evaluated. Effectively handle legal disputes and effectively avoid or recover losses. We will further strengthen the work of managing enterprises according to law, optimize the external management empowerment mechanism of corporate legal departments, strengthen the prevention of internal and external compliance risks, and improve the working mechanism of operating in accordance with the law. The company earnestly implements the company’s deployment requirements on safety production, firmly establishes the concept of safety development, and builds a sound responsibility system. Strictly abide by the safety red line, and put the essential safety requirements into every link. The overall situation of safety production is stable and controllable, and no major quality and safety accidents and major property losses have occurred in the production of various projects.
V. Prospect of the Company’s Future Development
(a) the company’s development strategy and business plan
With the business philosophy of "science and technology achieve dreams, persistence creates brilliance", based on power electronics and energy efficiency management technology, the company practices the core values of "country, honor, honesty and innovation", adheres to the initial mission of "industry serving the country and strengthening the country through industry", and continuously creates value to achieve open and win-win results. Committed to becoming an expert in power electronics technology and energy efficiency management, and an excellent supplier of global digital industry and smart energy integrated solutions.
In 2024, based on the digitalization of existing industries and the smart energy industry, relying on the first-class intelligent manufacturing platform, the company will continue to reduce costs and increase efficiency, improve customer service capabilities, expand new business areas, seize the opportunity of the times around the new power system with new energy as the main body, comprehensively do a good job in the production, operation, reform and development of enterprises, and continue to focus on digitalization and new energy sectors such as wind power, photovoltaic, lithium/sodium ion new energy storage and charging piles. Actively participate in rural revitalization and construction, actively participate in the new construction in the digital energy era, earnestly practice the concept of digitalization and double carbon development, vigorously develop new energy+energy storage projects, and help the country achieve the "double carbon" goal. We will do our best to implement key tasks such as technological innovation, market development, efficiency improvement, emerging industry development, talent construction, risk prevention and control, continue to promote green and low-carbon and digital transformation, fully achieve the production and operation objectives in 2024, and vigorously promote the company’s high-quality development.
The key work of the company in 2024 is as follows:
1. Marketing: Dig deep into the market scene demand and optimize the marketing system from the customer’s perspective.
1) Continue to adhere to the customer-oriented service concept, take customers as the center, continuously improve the service quality and meet the differentiated market demand of customers. Strengthen market investment in sub-sectors, strengthen support for partners in large projects and industries, enhance the deployment of comprehensive solution capabilities in sub-sectors such as transportation, electric power, communication and Internet, increase manpower investment in technology-enabled marketing and solution teams, improve marketing system and equipment, and build industry competitiveness. Carry out in-depth industry exchanges, intensify brand promotion, and enhance the ability of industry solutions. On the basis of serving the existing sales channels of customer centers in various provinces and cities, strengthen the headquarters breakthrough of major industries such as electric power, transportation, finance, communication, and military industry, deeply integrate customer centers to promote the landing of local projects, seize the opportunity of rapid development of new energy+energy storage markets at home and abroad, and rely on the system-integrated R&D platform to increase R&D investment, build a full range of self-developed products, accelerate market model innovation, and strive to become. The company accordingly strengthened its supply chain to cope with the rapid growth of delivery demand and the uncertainty of global device supply.
2) Integrate the manpower layout of the company’s energy sales team, solution team, R&D technical support team, supply chain delivery team and other functional departments; Strengthen the construction of the marketing team system, implement the Measures for the Administration of Domestic Marketing Centers, and serve and manage all relevant departments (centers) in terms of new product approval, product quality notification, outsourced production, and low-voltage device library management; Increase the strength of project development, delivery and product research and development in the new energy industry, strengthen cooperation with offshore wind power customers, strengthen the development of new wind power products, build a team of optical storage and charging geological exploration, design and project implementation, meet the needs of direct sales project expansion, and expand the staff to drive the project expansion of customer center. We will implement the "customer-centered, market-oriented, struggler-oriented" benefit-sharing incentive mechanism, carry out the reform of marketing incentive mechanism, stimulate the sense of responsibility of all staff, and strive to build an excellent supplier of new energy+energy storage integrated solutions.
Focusing on photovoltaic and wind power generation, we will provide customers with all-round energy solutions of new energy and energy storage, actively build application scenario demonstration platforms in key areas, replace EPC/PC with project development resources, and focus on expanding energy storage and new energy business in Sanmenxia and radiating Henan Province based on Sanmenxia Easy Energy Storage Industrial Park; Relying on Qingyang Easy’s manufacturing base of east number and west number calculation, we will carry out the construction of supporting equipment manufacturing industrial park, settle in upstream and downstream industrial chain enterprises, focus on expanding Qingyang’s energy storage and new energy business, and focus on breaking through local wind power projects. Give priority to the mid-to-high-end market in various scenarios, and provide power generation and energy storage products and engineering services with high technology, high quality, high safety and low comprehensive use cost. We will provide a series of products such as inverters, energy storage and energy management systems according to customers’ needs, make great efforts to promote the green and low-carbon transformation of energy and the construction of new power systems, highlight the planning and overall planning role of the whole industry, and jointly promote integrated marketing.
3) Internationalization is an important strategic component of the company’s development. With the favorable opportunity of the country to promote the "Belt and Road" grand strategy, the company actively develops the markets of emerging countries related to the "Belt and Road". With the increasing global demand for renewable energy, there is a huge market opportunity for overseas new energy project development. In 2024, it is necessary to speed up overseas business development and establish a multi-channel marketing system. In view of the demand for charging piles and household energy storage in overseas markets, countries and regions with market potential should focus on overseas market expansion and service, carry out special expansion plans, concentrate the company’s superior resources, and reuse them in combination with the original marketing channels and means, so as to increase overseas value markets such as Europe and North America while stabilizing the domestic market.
4) Identify existing customers, optimize customer structure, strengthen customer classification management, carry out targeted marketing promotion for key potential customers, solve customer core needs and enhance customer stickiness. In the follow-up business development, we should strengthen cost control, and rationally control and intervene customers with high degree of customization but low order volume and insufficient cooperation to ensure reasonable profit rate of the business.
2. R&D: Constantly iterative and innovative to consolidate the leading position.
Relying on the platform of the research institute of Eastman Group, the company maintains the leading edge of the core technology of power electronics. In 2024, the company’s products in traditional business areas need to further strengthen the process of localization and full localization while maintaining optimization, upgrading and updating iterations. The company will continue to implement a group-based R&D management system, strengthen the construction of counterpart technology innovation teams and personnel training according to the business development direction, optimize the R&D process and strengthen the implementation of landing, further promote technical standardization, and continue to do a good job in product iteration and quality improvement. The company will continue to improve the technological innovation system, build an open research and development platform based on core technologies, and stimulate the awareness of continuous innovation; Improve the mechanism of technology development and innovation, fully mobilize the enthusiasm of employees for innovation, adopt the methods of foreign introduction and internal integration, continuously strengthen cooperation with well-known universities, research institutes and supporting enterprises at home and abroad, actively introduce senior scientific research talents at home and abroad, and at the same time continue to integrate R&D forces within enterprises, establish a sound R&D system and an efficient R&D team, so that the company can continue to have technological advantages in the market competition; Strengthen the R&D process, pay attention to market research and information interaction, and promote the market transformation of new products; Accelerate the standardization process and realize the overall improvement of quality, efficiency and grade; Strengthen the informatization construction of R&D design, unify software and hardware and platforms, promote the launch of new software, and continue to develop solutions around customer needs. Improve the standardization and planning of the technical planning of the R&D system, strengthen the technical platform construction of the R&D center and the breakthrough intelligence of key technologies,Expand industry research and cooperation resources such as universities and research institutions, continuously enhance the technological advantages in existing product fields, and establish technological advantages in new business directions.
Songshan Lake R&D Center of the company will continue to upgrade the standard EATPM series hybrid power supply system and develop a whole series of new generation series photovoltaic grid-connected inverters on the basis of the existing complete modular solution of optical storage and charging system and hybrid power supply solution. At the same time, we will continue to carry out research work on major special projects at all levels in provinces and cities such as "R&D and industrialization of key technologies for distributed intelligent charging" and "Research and industrialization of key technologies for super charging piles"; Xi’ an R&D Center will continue to rely on the local talent advantage in Xi’ an, continue to increase its construction, gradually focus on the development of products in the energy field, focus on new energy sources, build an innovation base of "internet plus low-carbon" full-scene comprehensive energy solutions, and continue to iterate the new generation of tandem 1500V energy storage PCS, 1000V energy storage PCS products and high-power photovoltaic inverter products, and strive to become the most influential innovation base of power electronic solutions in northwest China; Nanjing R&D Center will closely focus on the R&D and marketization of the product operation and maintenance platform of our company, and provide stable and efficient operation and maintenance software and hardware products for the company’s products in various scenarios. Guangzhou R&D Center will continue to improve the priority of development projects of special power supply in the industry and quickly iterate to adapt to new products in the market.
3. Enhance the intelligent manufacturing capability and enhance the company’s market competitiveness.
In 2024, the company will further optimize the procurement, material control, production and other processes based on total quality management. Relying on the construction of software system, the supply chain is gradually transforming to intelligent manufacturing. The company invests in intelligent production, automatic testing, automatic logistics and intelligent warehousing to promote the improvement of production technology and quality level. The company’s supply chain will implement technical transformation projects to improve labor productivity, shorten the delivery cycle of equipment, enhance the universality of components, reduce the circulation of parts and reduce energy consumption to meet the needs of the new market economy. The company will constantly improve the digital management platform of the factory, realize effective control over the whole process of product manufacturing and traceability of product quality, and further improve the company’s management level and quality control ability. With the completion of the company’s production bases in Sanmenxia and Qingyang, Easy Group will gradually realize the geographical connection between the company’s production capacity and customers, reduce production costs and enhance product competitiveness.
In 2024, we will undertake the company’s strategy and business plan, rely on the company’s new energy+energy storage products as the starting point, consolidate the foundation of supply chain management, and continue to carry out the construction of digital factories. Through the transformation of intelligent manufacturing equipment and the interactive management of information-based intelligent manufacturing data, we will empower the entire supply chain system and improve the delivery of the entire supply chain system. In 2024, the supply chain system will continue to further promote lean management. Lean management goes deep into all aspects of the whole group company, and carries out multi-dimensional lean management. Through lean management, the whole supply chain management pays more attention to delivery, details management and process improvement management. Carry out quality iterative activities and total quality management activities, pay more attention to systematic, procedural and institutionalized construction, further strengthen production safety, improve the management level of environmental protection equipment and facilities, and ensure production safety and environmental safety; Explore the development, application and introduction of new processes, technologies and materials, promote the continuous improvement of automation, flexibility and intelligence of manufacturing, enhance the company’s market competitiveness, consolidate its market position and maintain its leading position in the industry;
4. Continuously optimize the management system and strive to improve the governance level of listed companies.
In 2024, the company will strengthen the construction of modern corporate governance and internal control, continue to establish a scientific and feasible modern corporate operation mechanism, continue to improve and promote the construction of Dongguan R&D operation headquarters and Qingyang digital energy projects, deepen management improvement, forge ahead, take decisive and powerful management reform measures, and realize the company’s leap-forward development through standardized operation. Based on customer-centered values, scientific methods of classified management and the spirit of teamwork, the company will achieve goal-oriented and efficient management. The company will vigorously promote management reform, strengthen strategic guidance, deepen strategic deployment, implement strategic guidance performance, build an internal staff rank system, do a good job in building promotion channels, standardize the salary system, realize the matching of income with posts and ranks, and effectively play the role of salary incentive. Improve supply chain management, strengthen performance management and optimize risk control management. Introduce professional consulting companies, promote the implementation of lean manufacturing and smart factory APS, WMS, MES and SRM projects, improve the level of planning, warehousing, production automation and intelligence, and improve the collaborative efficiency and delivery capacity of the whole supply chain such as marketing, R&D and suppliers.
Further standardize the company’s modern enterprise system, improve the company’s list of rights and responsibilities, and improve the decision-making system for major issues. We will continue to improve the support system for the operation of the board of directors and the exercise of duties by external directors, enhance the standardized operation of the board of directors and the ability of directors to exercise their duties according to law, optimize the authorized management of the board of directors, effectively play the role of managers in business management, and improve corporate governance. Continue to strengthen the company’s risk management and control capabilities, improve the management level and quality from the perspective of risk management, and ensure the company’s sustained and healthy development. Optimize the management process and improve the efficiency of decision-making. Carry out information disclosure in accordance with the law and regulations, further improve the information disclosure mechanism, optimize the disclosure content and improve the quality of information disclosure based on the needs of investors. Establish and improve a multi-channel and multi-level investor communication mechanism, strengthen investor communication through regular performance briefings, investor visits and receptions, telephone network interaction, etc., respond to investors’ demands in a timely manner, and strengthen the daily maintenance of important investors. Further improve the working mechanism of sustainable development (ESG), compile and publish ESG reports according to regulations, and promote the continuous improvement of the company’s professional governance capacity.
5. Continue to strengthen fund control and reduce various expenses.
Optimize the operation structure, continuously optimize the operation efficiency, make the company’s operation and management level match the business development speed, and enhance the synergy while reducing costs and increasing efficiency. By unifying the understanding of the importance of cost reduction and increasing efficiency, clarifying the work policy, determining the annual task index of cost reduction, implementing the methods and methods of cost reduction and increasing efficiency, and strengthening the assessment and incentives, the work of cost reduction and increasing efficiency will be solid, meticulous and effective. Focusing on financial management, comprehensively strengthen financial control and risk control of subsidiaries; Strengthen the management of fund-raising and financing, optimize the debt structure and reduce financial expenses; Establish a systematic concept, give play to the role of overall planning and coordination, allocate resources efficiently, and create new advantages in cost competition. Improve total factor production efficiency, continuously deepen system cost reduction, optimize process path and component design, promote intensive logistics reduction, improve procurement efficiency and reduce procurement costs. Strictly manage capital, cost and investment, establish a full-staff, all-round and whole-process cost control system, strictly control unproductive expenditures, and actively achieve the goal of reducing costs and increasing efficiency in an all-round way; The company will further strengthen the internal management work such as accounts receivable management and inventory management to improve the efficiency of the company’s fund use, and at the same time, apply for credit from financial institutions to ensure that the fund supply can meet the daily working capital requirements for maintaining and developing the company’s business. Through internal management improvement, process innovation, efficiency improvement, cost reduction and bid winning rate improvement, we will strengthen the credit review of customers in the early stage, control contract risks and strengthen the management of accounts receivable.
6. Improve the human resource management system and stabilize the core talents for a long time.
In 2024, the company will carry out management talent planning, continue to strengthen the construction of talent team, improve the construction of human resources management system such as job responsibilities, assessment incentives and training, formulate scientific and reasonable salary policies to attract, recruit and retain outstanding talents, stimulate the work enthusiasm of all staff, and fully mobilize the subjective initiative of all staff. At the same time, the profit center mechanism is implemented to fully stimulate employees’ initiative, so as to achieve the goal of those who can work harder and those who can get more. Focusing on the needs of strategic development, the company matches talents in corresponding industries, increases the recruitment of leading talents and core talents, accelerates the introduction of high-level talents and strengthens the construction of high-quality talents. Comprehensively improve employees’ personal ability, team competitiveness and cohesion; Create a flexible and practical performance management system, take the goal achievement as the guide, persist in stimulating vitality and improving efficiency, and create and implement a new mode of market-oriented operation. Improve the differentiated management and control mode, establish a comprehensive and efficient management system, optimize the performance evaluation system, and comprehensively deepen the "authorization+mutual benefit" mechanism; Actively explore mechanisms such as salary, equity incentives and business partners, and strive to build a high-quality management team with leading technology, exquisite business and unity.
In 2024, we will continue to implement lean 6S work, enhance corporate image and improve the working and living environment of employees; Upgrade the information system of human resources and carry out the digital reform of human resources.
(2) Possible risks and countermeasures
1. Macro-environmental changes and emergency risks
The slowdown of global economic growth, international trade friction, the rise of trade protectionism, sudden public health incidents, and the shortage or rise of raw materials at home and abroad may all affect the development of enterprises. Uncertainties at home and abroad have suddenly increased, and the economic situation is complex and changeable. In the future, changes in international and domestic macroeconomic trends and market demand will have an impact on the prosperity, production and operation of the company and upstream and downstream industries, thus affecting the company’s operating performance. Therefore, we should always be vigilant about the impact of risk changes on the company’s business and adjust our strategies in time.
2. Risk of market competition
The company continues to increase the development of high-end power equipment, data centers, charging piles, 5G power supply, rail transit and energy storage systems, and strive to expand market share. The company may face increasingly fierce market competition in the future, which will bring certain pressure to the company to further expand its market share and improve its competitive position in the market. The company’s high-end power supply equipment, data center, charging pile, 5G power supply, rail transit and energy storage system businesses already have good market advantages. However, attracted by the huge potential of domestic and international markets, many enterprises have entered the data center, charging pile, energy storage and other industries, and the market competition faced by the company is becoming increasingly fierce. In view of market competition, the company will further intensify research and development, continue to promote the development of products in the direction of systematization and overall solutions, realize the strategy of product technology leadership and differentiation, and strive to provide one-stop system services to improve the added value of products and businesses.
3. Risk of industrial policy change
The high-end power supply equipment, data center, charging pile, 5G power supply, rail transit and energy storage system implemented by the company are closely related to the national macroeconomic policy, energy policy, energy conservation and environmental protection policy, etc. In the future, the company may face the risk that the country will adjust the relevant industrial policies for macro-control needs, thus adversely affecting the company’s business development. Under the background of "new infrastructure", the company’s data center products and new energy products are favored by the market, but if the policies are not implemented in time and the support effect is not as good as expected, it will have an impact on the company’s operation. In view of the risk of policy changes, the company will continue to expand overseas markets, increase overseas market share, and spread the possible risks caused by policy changes. At the same time, the company will strive to adhere to the common development of high-end power equipment, data centers, charging piles, 5G power supply, rail transit and energy storage systems, pay close attention to customer needs and the latest technology applications and market and technology development trends in the industry, and realize the industrialization and scale of concentric circle strategy-related businesses based on the company’s core power electronics technology, so as to reduce the impact of policy changes on the company’s performance.
4. Risks in operation and maintenance management of photovoltaic projects
The photovoltaic power plant projects invested and built by the company in the early stage have all been connected to the grid for power generation, and entered the operation and maintenance stage of the project, which has risks such as operation and maintenance management and power grid absorptive capacity, which may lead to the income not reaching expectations. Aiming at the risk of operation and maintenance management of photovoltaic projects, the company established a long-term mechanism for operation and maintenance training to continuously improve the operation and maintenance ability of the operation and maintenance management team. Through the photovoltaic operation and maintenance cloud platform developed by the company, the overall situation of all power stations can be monitored remotely and in real time, and the whole production process of each power station can be managed to ensure that the operating results are controllable. Strive to achieve new value-added through the operation and maintenance services of self-owned and contracted grid-connected power station projects.
5, technology research and development innovation risk
With the acceleration of new technology innovation, the shortening of product technology advantage cycle, and the higher requirements of customers for product performance indicators and personalization, higher requirements are put forward for the company’s continuous innovation ability. Increasing R&D investment for technological innovation may lead to an increase in operating costs, or the risk that the high pricing of new products will lead to a decline in market acceptance. The company will continue to adhere to the customer demand-oriented, improve the management mechanism of R&D innovation projects, strengthen the technical risk prediction of projects, and reduce the uncertainty and risk of R&D innovation.
6, accounts receivable recovery risk
With the rapid development of the domestic market, the sales of the company’s data center, energy storage, charging piles and new energy power generation business have further increased, and the company will continue to increase the expansion of this business in the future. The customers of this kind of business are mainly large Internet group companies, power generation groups, local power investment companies, photovoltaic power station builders and distributors, and photovoltaic-related subsidies payable by the government. Due to the characteristics of large single project amount and long payment period, this kind of business will lead to a rapid increase in the company’s accounts receivable balance. In view of the risk of accounts receivable recovery, the company has formulated a strict credit management system, strengthened the management of customer accounts, and increased the assessment of accounts receivable.
7. Managing risks
In order to further expand the business of IDC data center, charging pile, photovoltaic and energy storage system, the company has set up more subsidiaries and Sun companies nationwide, which makes the management of subordinate companies more difficult. Therefore, the company has formulated the Subsidiary Management System, further improved the management process and internal control system, and has formed a mature business model and management system, and introduced SAP to establish SAP system for the company, effectively adjusting the organizational structure. We have strengthened our capabilities in production management, sales management, quality control and risk management, and avoided the management risks caused by the rapid expansion of scale. The company will further accelerate the management transformation, strengthen the construction of internal control system, optimize the management process and improve the construction of talent team, and effectively avoid the management risks caused by the company’s rapid development.
