16GWh, over 2.1 billion yuan! DeYe Co. intensifies its overseas energy storage efforts
Shanghai, April 2 (Reporter Guo Muqing) – Chinese energy storage companies are making unique strides to capture the global market. Recently, DeYe Co. announced that its wholly-owned subsidiary, DeYe Energy Storage, plans to invest 2.127 billion yuan to establish an industrial and commercial energy storage production line with an annual capacity of 16GWh in Cixi, Zhejiang, focusing on the overseas market. This marks another significant step following the company’s investment in a Malaysian facility in 2024.
On April 2, DeYe Co. disclosed its progress regarding land use rights and foreign investments. The announcement revealed that the company acquired the state-owned land use rights for a plot in the Cixi Coastal Economic Development Zone for 94.078 million yuan. The investment project will be executed in two phases: the first phase will produce 7GWh with a fixed asset investment estimated at no less than 895 million yuan, and the second phase will produce 9GWh with an anticipated investment of at least 1.232 billion yuan.
DeYe Co. stated that the construction will be completed and put into production within 36 months after acquiring the land, with a full production review expected within 60 months. When discussing the impact of this foreign investment on the listed company, DeYe Co. expressed that as the demand for overseas industrial and commercial storage continues to grow, the management has preemptively aligned production capacity with future sales needs. The company affirmed that this investment will not significantly harm its operational performance in 2025, and successful project implementation will positively impact future results.
According to a previous earnings forecast, DeYe Co. expects to achieve a net profit attributable to shareholders of between 2.9 billion and 3.1 billion yuan in 2024, representing a year-on-year increase of 61.92% to 73.09%. Notably, energy storage inverters and batteries are projected to contribute over 60% of this profit. Amidst a generally sluggish industry environment, DeYe Co. stands out as a “dark horse.”
It’s worth mentioning that, according to data from the third quarter of last year, the gross margin for DeYe’s energy storage inverters reached 53.12%, significantly higher than that of photovoltaic inverters. An industry insider in Shanghai noted that the key to this high margin lies in the “integrated software and hardware” model; their self-developed intelligent energy management system substantially enhances the profitability of the energy storage systems, while the marginal cost of software services is nearly zero.
Furthermore, DeYe’s focus on overseas energy storage aligns with its global strategy. By adopting a model of “core components produced in China + assembly in Southeast Asia,” the company can effectively avoid high tariffs imposed by the U.S. on Chinese inverters and quickly respond to the needs of emerging markets in Southeast Asia and the Middle East, thus continuously boosting both revenue and profits in the future.
