In the first half of the year, the company achieved energy storage system revenue of 3.65 billion yuan, an increase of 24.50% compared to the same period in 2023. In the first half of the year, the company's purchase of Eve Energy power cell has increased significantly, reducing the risk of procurement from a single supplier. However, its supplier concentration is still high, mainly due to the upstream cell market supply concentrated in a few leading enterprises. As of the signing date of the prospectus, Haibosichuang has six major lawsuits with significant impact.
"Science and Technology Innovation Board Daily" October 13 news (Reporter Qiu Siyu) Recently, the Shanghai Stock Exchange Listing Committee announced that it will review Haibosichuang's application for the Star Market listing on October 17, 2024.
Haibosichuang is an electrochemical energy storage system solutions and technology service provider, mainly engaged in the research and development, production, and sales of electrochemical energy storage systems. The company's IPO matters were accepted by the Shanghai Stock Exchange on June 20, 2023.
After 7 rounds of financing, the revenue of the energy storage system in the first half of the year was 3.65 billion yuan.
In the latest prospectus, Haibosichuang updated the latest financial performance. At the end of each period from the first half of 2021 to the first half of 2024, the company achieved operating revenue of 0.838 billion yuan, 2.626 billion yuan, 6.982 billion yuan, and 36.87 billion yuan respectively; net income attributable to shareholders were 0.011 billion yuan, 0.177 billion yuan, 0.578 billion yuan, and 2.82 billion yuan respectively.
Among them, the proportion of energy storage system revenue to main business revenue was 78.52%, 94.61%, 99.30%, and 99.04% respectively, which is the main source of revenue for Haibosichuang.
In the first half of 2024, Haibosichuang achieved energy storage system revenue of 3.65 billion yuan, an increase of 24.50% compared to the same period in 2023; grid-side and power-side energy storage system revenue were 2.129 billion yuan and 1.482 billion yuan respectively, accounting for 58.34% and 40.59% of the current energy storage system revenue, with an increase of 28.82% and 16.15% respectively compared to the same period last year.
In terms of sales volume, with the increase in energy storage capacity, during the reporting period, Haibosichuang's energy storage system sales volume increased to 590.29MWh, 2101.05MWh, 6212.36MWh, and 4468.05MWh respectively. In addition, according to CNESA statistics, Haibosichuang ranked second in the 2023 China Energy Storage System Integrators delivery volume ranking (excluding the delivery volume sold to New Source Intelligence Storage).
In this IPO, Haibusichuang plans to raise 0.783 billion yuan. Among them, 0.299 billion yuan will be invested in the construction of a 2GWh energy storage system production project per year, accounting for 38.24% of the total fundraising amount; 0.164 billion yuan will be used for energy storage system research and industrialization projects, accounting for 20.99% of the total fundraising amount. The remaining funds raised will be used for the construction of a digital intelligence laboratory project, marketing and after-sales service network construction projects, and supplementary working capital.
Before this issuance, Haibusichuang's total share capital was 133.2976 million shares, and this time it plans to publicly issue no more than 44.4325 million RMB ordinary shares. The company's chairman and general manager, Zhang Jianhui, holds a 27.08% stake, making him the company's largest shareholder; Yinxing Angels, Tengye Innovation, and Jiaxing Haibo hold 6.83%, 6.83%, and 5.25% respectively, all being major shareholders with a stake of 5% or more before the offering.
Tianyancha shows that Haibusichuang has gone through 7 rounds of financing. Among them, the company completed a Pre-IPO round of financing in October 2021, with the financing amount undisclosed, with investors including NIO Capital, Beijing Haidian State-owned Assets Management Holdings, and other funds.
High supplier concentration, with a downward trend in gross margin.
In the inquiry in April this year, the Shanghai Stock Exchange conducted key inquiries regarding Haibusichuang's cell procurement, costs, and gross margin.
From 2021 to 2023, Haibusichuang purchased raw materials from its largest supplier, Contemporary Amperex Technology and its subsidiaries, in amounts of 0.665 billion yuan, 2.82 billion yuan, and 3.444 billion yuan, accounting for 60.57%, 80.97%, and 63.33% of the total raw material purchases of the respective period. The proportion of cell purchases from them accounted for 87.05%, 98.56%, and 89.00% of the total cell purchases in each period.
However, in the first half of this year, the proportion showed a significant downward trend. The amount the company purchased raw materials from Contemporary Amperex Technology and its subsidiaries was 0.304 billion yuan, accounting for a decreased proportion of 20.91% of the total raw material procurement, with the proportion of purchasing cells from them accounting for 36.92% of the total cell procurement amount.
It is reported that in the first half of the year, Haiboscience and Technology's procurement amount of Eway battery cells has increased significantly, reducing the risk of single supplier procurement. However, the concentration of suppliers for Haiboscience and Technology remains relatively high, mainly because the market supply of upstream cells is concentrated in a few leading companies such as Contemporary Amperex Technology and Eway Power.
On the other hand, the prices of Haiboscience and Technology's electrochemical energy storage system products have declined. According to Haiboscience and Technology's comparable companies' bid prices for similar products and CNESA-related statistics, the prices of products in the electrochemical energy storage system industry have shown an overall decrease since 2023.
CNESA statistics show that the taxed average bid price of the energy storage system industry has decreased from 1.52 yuan/Wh in January 2023 to 0.74 yuan/Wh in June 2024. During the reporting period, Haiboscience and Technology's sales prices of electrochemical energy storage system products were 1.07 yuan/Wh, 1.16 yuan/Wh, 1.11 yuan/Wh, and 0.81 yuan/Wh, showing a decreasing trend since 2023.
With the decline in product prices combined with numerous new entrants in the energy storage market, the market competition becomes increasingly fierce, and Haiboscience and Technology's main business gross margin is also showing a declining trend.
During the reporting period, Haiboscience and Technology's main business gross margin was 20.49%, 20.79%, 19.80%, and 19.47%, while the gross margin for energy storage system business was 24.80%, 23.05%, 20.02%, and 19.00% respectively.
Furthermore, the gross margin of Haiboscience and Technology's energy storage system business in the first half of the year was significantly lower than the industry average.
Haiboshichuang frankly stated that if the price of electrochemical energy storage system products continues to decline, it may have an adverse impact on the company's operation performance, thereby affecting the company's profitability, leading to a slowdown in performance growth or a decline in performance.
It should also be noted that as of the date of the prospectus signing, Haiboshichuang has six significant lawsuits. Among them, the Zhongyu Hotel case involves a lawsuit amounting to 27.3406 million yuan, and Haiboshichuang has now submitted an application for retrial.
