liveroulettegameonline| Behind the investigation of the chairman of Paineng Technology: Major decisions or obvious mistakes, gross profit margins exceed those of the Ningde era

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Author: Hao

On the evening of May 19, Panon Technology announced that it had recently received a notice from the company's controlling shareholder, Zhongxingxin Communications Co., Ltd. (hereinafter referred to as "Zhongxingxin"). Zhongxingxin received a notice issued by the Yongqing County Supervisory Commission that Wei Zaisheng, chairman of the company, was placed on file for investigation and retention.

Affected by the breaking news, the share price of Paron Technology plunged 14% on May 20, reaching its lowest level since its listing.

According to the data, Wei Zaisheng is not only the chairman of Paineng Technology, but also the chairman and legal person of Zhongxingxin, which is also the controlling shareholder of the listed company ZTE, which directly holds 20% of the latter.Liveroulettegameonline.09% equity.

Although the reason why Wei Zaisheng is placed on file for investigation is not clear, the daily operation of Paineng Technology has indeed faced a lot of pressure in recent years due to problems such as major decision-making mistakes.

After its listing at the end of 2020, Paineng Technology is catching up with the rapid development of the domestic energy storage industry, and its performance has also ushered in growth. However, as soon as the industry entered the inflection point in 2023, the company's performance dropped rapidly, accelerating the decline in the first quarter of this year, and the ability to resist risks was fragile. More importantly, the company chose to boost fixed-growth financing at the peak of the 2022 boom, more than doubling capacity, and with the downturn, even without considering new capacity, the company's current capacity utilisation is only 10%.

It is worth noting that the gross profit margin of Paineng technology energy storage products has long been higher than that of the leading Ningde era. In 2023, in the case of a sharp decline in performance, the gross profit margin is still far higher than that of its peers, and there is a big doubt about its profitability. In addition, while revenue halved, sales and management expenses continued to grow, and expenses were quite unusual during the period.

The peak of the industry boom is set to increase production and expand production. The utilization rate of capacity at the end of the year is less than 10%.

Paron Technology is a provider of energy storage battery systems, mainly engaged in the research, development, production and sales of lithium iron phosphate cells, modules and energy storage battery systems.

After Science and Technology Innovation Board went public in December 2020, it coincided with the rapid development of the domestic energy storage industry, and its performance has been growing for two consecutive years. However, as soon as the industry boom entered a downward inflection point in 2023, the company's performance declined rapidly.

According to the financial report, the operating income of Peneng Technology in 2023 was 3.299 billion yuan, down 45.13% from the same period last year, and the net profit was 516 million yuan, down 59.49% from the same period last year. Of this total, the operating income in the fourth quarter was 250 million yuan, down 89.77% from the same period last year, and the net profit returned to the mother was-139 million yuan, which was negative for the first time.

In the first quarter of this year, the operating income of Paron Technology was 386 million yuan, down 79.05% from the same period last year, and the net profit was 4.0004 million yuan, down 99.13% from the same period last year. As soon as the prosperity of the industry has just declined, the performance of Paron Technology has fallen sharply, which shows that the company's ability to resist risks is weak.

More importantly, Paineng Technology chose to increase production at the highest point of the energy storage industry.

In June 2022, Paineng Technology issued a plan to raise an additional 5 billion yuan for the 10GWh lithium battery R & D and manufacturing base project, headquarters and industrialization base project, as well as supplementary liquidity.

After the completion of the above increase in early 2023, Paineng Technology accelerated the pace of capacity expansion, with a battery capacity of about 7GWh at the end of the year, as well as 10GWh lithium power and 1GWh sodium power under construction, which reached 935 million yuan, an increase of 155 per cent compared with the end of 2022.

However, while Paron Technology accelerated production expansion, the company's energy storage battery sales fell sharply.

In 2023, shipments of soft bag batteries, the main products of Paron Technology, were 1.87GWh, down 47% from the same period last year, while production was 1.81GWh, down 55% from the same period last year, and inventory 0.6GWh, up 14% from the same period last year.

According to brokerage estimates, Pone technology shipments of about 0.2GWh in the fourth quarter of last year rose slightly to about 0.25GWh in the first quarter of this year, and even excluding the new 10GWh capacity, 7GWh's capacity utilization is only about 10 per cent.

Gross profit margin far exceeds peer revenue halving sales and management expenses continue to grow

In fact, PaiNeng Technology not only made mistakes in major decisions, but also made extraordinary profitability.

According to Wind data, Pone Technology's gross profit margins in the past three years were 29.73%, 34.11% and 31.65% respectively, significantly higher than the 28.52%, 17.01% and 23.79% gross profit margins of energy storage products in the Ningde era, the industry leader.

In 2023, despite the sharp decline in performance, Paineng Technology still far exceeded the gross profit margin of energy storage business of its peers such as Ningde era, Xin Wanda, Yiwei LiNeng (rights protection), Guoxuan Hi-Tech, and so on. In the first quarter of this year, the gross profit margin of Paron Technology was 35.76%, which was also significantly higher than that of its peers.

Not only that, in 2023, the operating income of Paron Technology was 3.299 billion yuan, down 45.13% from the same period last year, while the sales expenses for the same period were 117 million yuan, up 23% from the same period last year, and the management expenses were 110 million yuan, up 10% from the same period last year. While the revenue is nearly halved, the sales and management expenses continue to grow, which is quite unusual.

It is worth mentioning that, according to the Huaxia Energy Network, exceptLiveroulettegameonlineThe chairman of the board was checked out, and recently, there was a huge personnel earthquake in Paron Technology. Shi Lu, the former general manager of VP and energy storage system, who was in charge of R & D center, production and procurement, was transferred, resulting in major changes in R & D center and manufacturing center. In the context of overcapacity, the Kunshan battery system production base established by the company in 2019 has even been completely cut off.

In addition, Paron Technology's second largest shareholder, Pai Li (Ningbo) Venture Capital Partnership (Limited Partnership), has also pledged 15.8522 million shares of the company, accounting for 72.5 per cent of its holdings. At the same time, the shareholder is also seeking the transfer of 2 million shares.

Under the continuous new lows in the share price of Paron Technology, it is still unable to stop the reduction and cash out of its important shareholders.