On March 26, 2024, Hekang New Energy (300048) announced its annual report, revealing a remarkable 220.31% increase in revenue, totaling 4.776 billion yuan. The company also reported a net profit of 10.2961 million yuan, marking a turnaround from previous losses, with basic earnings per share of 0.01 yuan. Additionally, the operating cash flow reached 306 million yuan, achieving a historic high with seven consecutive years of positive cash flow. The asset turnover ratio hit 1.22, the highest since 2008.
Hekang New Energy, a technology company controlled by Midea Group (000333), focuses on the fields of new energy and industrial automation, primarily covering three main business areas: green energy solutions, residential energy storage, and photovoltaic grid-connected inverters, as well as high-voltage variable frequency drives.
In 2024, all three core business segments posted significant growth, with the green energy solutions sector generating 3.778 billion yuan, a staggering 524% increase year-on-year. The annual report highlighted three key reasons for this breakthrough in the green energy sector:
- In the residential photovoltaic EPC sector, the company executed a channel flagging initiative, achieving targeted breakthroughs in high-capacity and high-density areas.
- In the commercial and industrial photovoltaic EPC sector, leveraging Midea Group’s channel advantages, the company quickly built market capabilities through its “Energy Flash Delivery” product model.
- In the Meishu Green Electricity Solutions sector, the company launched industry-leading villa green electricity solutions for high-end clients, facilitating nationwide product installations and enhancing market competitiveness.
The Hekang New Energy management stated, “Our major shareholder, Midea Group, has been very supportive. They have authorized us to use the ‘Midea’ brand for our photovoltaic inverter products, allowing us to market them as ‘Midea Photovoltaic Inverters’. This brand recognition and credibility significantly ease our entry into the procurement whitelist of power station investors, greatly empowering our company.”
In the residential energy storage and photovoltaic grid-connected inverter sectors, Hekang New Energy is closely monitoring global market demands and continuously innovating products and technologies. In 2024, the residential energy storage business generated 137 million yuan, reflecting a 303% increase compared to the previous year. The company focuses on two key product areas: residential energy storage and photovoltaic inverters, independently developing an array of products, including integrated residential energy storage units, energy storage PCS, BMS, EMS, battery packs, photovoltaic grid-connected inverters, micro-inverters, and charging stations, establishing a vertically integrated R&D and production capability to maintain a foothold in the energy storage sector.
The annual report also disclosed that Hekang New Energy is collaborating with Midea Group’s Building Technology Division on overseas sales channels for heat pumps, leveraging Midea’s sales channels and technical support to help the company’s energy storage products reach target customers swiftly.
In the domestic high-voltage variable frequency drive business, Hekang New Energy is focusing on high-growth industries while avoiding low-price competition in the general standard market. The company has successfully penetrated high-margin sectors like nuclear power and has consistently secured upgrade orders against competitors. In 2024, revenue from high-voltage variable frequency drives reached 547 million yuan, up 9%, with a gross margin of 30.30%, an increase of 11.37 percentage points compared to the previous year, solidifying its position in the top tier of domestic high-voltage variable frequency drive brands.
In 2024, Hekang New Energy invested 320 million yuan in R&D, a substantial increase of 117.22% year-on-year. During this period, the company filed for 348 new patents, including 139 invention patents and received 91 new authorized patents. Over the past three years, the company has significantly ramped up its R&D investment, with 2024’s R&D expenditure nearly quadrupling compared to 2021. This intense focus on R&D has yielded technological advancements across all business segments.
In the residential energy storage and photovoltaic grid-connected inverter sectors, Hekang New Energy has officially launched the first generation of self-developed residential energy storage single-phase integrated units and three-phase stacked units, while simultaneously developing the second generation of residential energy storage integrated units, split units, and photovoltaic grid-connected inverter products. These products have received the highest safety certifications globally, addressing critical industry safety issues in residential energy storage.
With the rapid advancement of third-generation power semiconductor technology, high-capacity lithium battery cell technology, and AI technology, Hekang New Energy is also preparing for the development of third-generation residential energy storage photovoltaic products, as well as micro-inverters, high-capacity intelligent battery packs, and intelligent EMS platforms with virtual power plant capabilities.
In the high-voltage variable frequency drive domain, the company has launched the new HC2000 generation four-quadrant high-voltage variable frequency drive, employing an innovative control platform and topology to meet the diverse needs of industries such as mining, power, ports, and testing.
Today, Hekang New Energy’s core business segments are firmly established in the new energy industry. The performance breakthrough achieved in 2024 signifies the company’s positive results in strategic adjustments and market expansion. The company has stated that in 2025, it will focus on “concentration, accumulation, and breakthroughs” to promote high-quality growth in its three core businesses and achieve breakthroughs in several key areas, ensuring the fulfillment of its strategic objectives.
