On August 29th, Golden Crown Co., Ltd. released its 2023 interim report that the company realized operating income of 439 million yuan, an increase of-3.83%, and a net profit of 32 million yuan, an increase of 505.26%. The net profit after deducting non-return is-10 million yuan, which increases to-60.53%. The non-recurrent profit and loss items are mainly reflected in the government subsidy of 14 million yuan and Liaoyuan Hongtu's performance commitment to recover the fair value of the compensation shares of 27 million yuan. On the whole, the company's performance after deduction is still under pressure, although the gross profit margin reached 27.45%, an increase of 5.49% over the same period last year. However, the proportion of sales, management, R & D and other expenses in income increased by 4.38,1.57 and 2.92 percentage points respectively. The company began to set foot in the energy storage business in the second half of 2021, and has successively won the bid for wind power EPC, distributed photovoltaic EPC, energy storage system integration projects, etc., as the business still belongs to the expansion period, the cost increases rapidly. However, from the point of view of the income level of traditional power equipment, there has been a general improvement, especially ring network cabinets, box transformers and complete sets of high and low voltage switchgear have increased to 35.55%, 55.65% and 10.52%, while the income of charging piles has also increased to 12.3%. At the same time, the gross profit margin of traditional power equipment and charging piles has also been repaired and improved, of which the gross profit margin of charging piles has increased by 9.35% over the same period last year. Complete sets of high and low voltage switchgear increased by 6.95%, and gross profit margin of box-type substations increased by 4.05%.

Since June 2023, the total bid-winning amount of the company has reached 1.376 billion yuan, and the bidding agencies include State Grid, South Power Grid, Pinggao Electric, Xuji Group, Changchun Metro and so on. Among them, the total purchase amount of transmission and distribution materials organized by the two networks and their subordinate power companies has reached 221 million yuan, the winning bid amount of charging piles has reached 60 million yuan, and new energy EPC projects including distributed photovoltaic, photovoltaic storage and charging, and wind power have totaled 709 million yuan. Xu Ji's electric energy storage overrun project energy storage battery and ancillary equipment procurement project amount to 236 million yuan, the relevant bid-winning projects will be delivered in the second half of the year and next year. Energy storage costs continue to decline, downstream demand to maintain high growth, the company's energy storage business is expected to continue to volume. In terms of cost, lithium carbonate, an important raw material, has fallen to around 200000 yuan / ton, so that the price of energy storage battery has dropped significantly, and the reduction in cost will further enhance the willingness to install energy storage. According to the data of the National Energy Administration, the scale of new shipments in the first half of the year is about 8.63GW/17.72GWh, which is equivalent to the total installed capacity of previous years.

At present, the company's energy storage products include energy storage module, energy storage air-cooled PACK, energy storage liquid-cooled PACK, 1000V battery cluster, 1500V battery stack, 1000V energy storage system, 1500V energy storage system, energy storage converter (PCS), battery management system (BMS), energy management system (EMS), intelligent operation and maintenance cloud platform, etc., and the first batch of industrial and commercial energy storage projects have been successfully connected to the grid. With the growth of the energy storage market and the further launch of the company's production capacity, the company is expected to benefit directly. At the same time, in the future, the company will continue to expand overseas exchange of power stations and other businesses, the overall proportion of new energy business may continue to increase.

Risk hint

In the traditional business, we continue to pay attention to the progress of winning the bid for smart meters, and there is a risk that the revenue will continue to decline at the end of the year; the implementation progress of the EPC project is not as expected, the delivery is prolonged, and the performance can not be reflected; the expansion of energy storage projects is affected by fierce market competition and lagging implementation of the project itself, and revenue growth is still not ideal; the progress of overseas projects is not as expected.