Core Viewpoint - The company, Kelun Electronics, is recognized as one of the early entrants in the energy storage system integration field in China, with significant technical expertise and project experience in the sector [1] Group 1: Company Overview - The company has participated in the formulation of industry-related technical standards multiple times, showcasing its commitment to the energy storage industry [1] - It has achieved comprehensive self-research and production of core control units for energy storage systems, including PCS, BMS, EMS, DC/DC converters, and O&MS [1] - The company offers complete station solution services, indicating its capability to provide integrated energy storage solutions [1] Group 2: Market Presence - The company's grid-side business covers multiple major provinces for grid-side energy storage, highlighting its strong domestic market presence [1] - The overseas market footprint of the company is gradually expanding, suggesting growth potential in international markets [1]

Core Viewpoint - The company, Kelu Electronics, clarified that it does not engage in the production of energy storage cells, but has successfully developed and produced core control units for energy storage systems, including PCS, BMS, EMS, DC/DC converters, and O&MS [1] Group 1 - The company confirmed its non-involvement in energy storage cell production [1] - The company has achieved self-research and self-production of key components for energy storage systems [1]

Core Viewpoint - The company is actively monitoring industry-related policies and market dynamics, focusing on product updates and innovations to align with industry trends and market demands [1] Group 1 - The company is closely observing relevant policies and market trends within its industry [1] - The company is promoting product updates and iterations based on its main business operations [1] - The company is launching new products and technologies in response to industry development trends and market needs [1]

Core Viewpoint - Kelu Electronics (002121) emphasizes the strong support from its controlling shareholder, Midea Group (000333), in various aspects such as R&D, manufacturing, supply chain, and branding [1] Group 1 - Kelu Electronics responded to investor inquiries on October 20, highlighting the capabilities of Midea Group [1] - The company acknowledges the significant empowerment provided by Midea Group in multiple areas [1]

Core Viewpoint - The company, Kelu Electronics (002121.SZ), has clarified that it is not involved in the production of energy storage cells, but has successfully developed and produced core control units for energy storage systems, including PCS, BMS, EMS, DC/DC converters, and O&MS in-house [1] Group 1 - The company does not engage in the production of energy storage cells [1] - The company has achieved self-research and production of key components for energy storage systems [1] - The core control units developed include PCS, BMS, EMS, DC/DC converters, and O&MS [1]

Core Viewpoint - The report by Zhiyan Consulting highlights a significant decline in the production of electrical instruments and meters in China, with a projected decrease in output for 2025 compared to previous years [1]. Industry Summary - According to data from the National Bureau of Statistics, the production of electrical instruments and meters in China for August 2025 is expected to be 21.77 million units, representing a year-on-year decrease of 12.2% [1]. - From January to August 2025, the cumulative production of electrical instruments and meters in China is reported to be 178.886 million units, showing a cumulative decline of 8.2% [1]. - The report provides a comprehensive analysis of the supply and demand forecast for the Chinese instrument and meter market from 2025 to 2031, indicating potential challenges in the industry [1]. Company Summary - Listed companies mentioned in the report include Weisheng Information (688100), Linyang Energy (601222), Samsung Medical (601567), Haixing Electric (603556), XJ Electric (000400), Pinggao Electric (600312), Guodian Nanzi (600268), *ST Huayi (600290), Dongfang Electronics (000682), and Kelon Electronics (002121) [1].

Market Overview - The A-share market continues to adjust, with the Shanghai Composite Index falling by 1.95%, dropping below 3900 points, while the Shenzhen Component Index and the ChiNext Index decreased by 3.04% and 3.36% respectively [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.95 trillion yuan, marking the second consecutive trading day below 2 trillion yuan [1] Sector Performance - The Hainan sector experienced a brief surge in the afternoon, with Haixia Co. hitting the daily limit, Hainan Airport rising over 5%, and Hainan Highway and Hainan Shipping Group also seeing significant gains [1] - The Ministry of Finance and other departments announced adjustments to the duty-free shopping policy for travelers in Hainan, set to take effect on November 1 [1] New Energy Sector - The new energy sector faced a significant pullback, with solar energy, charging piles, and energy storage experiencing collective declines. Notable stocks such as Igor, Kelu Electronics, and Tongrun Equipment hit the daily limit down, while Sunshine Power dropped by 10% and EVE Energy fell by nearly 9% [1] - Popular concepts in consumer electronics, HBM, liquid cooling, and copper-clad boards also saw substantial adjustments, with multiple stocks including ZTE Communications, Deep Technology, Huazheng New Materials, and Invec hitting the daily limit down [1] - A total of 4783 stocks in the market experienced declines [1]

Group 1 - The data center power supply sector experienced a significant decline in early trading on October 17, with several companies hitting their daily limit down [1] - Companies such as Igor and Zhongheng Electric reached their limit down, while Jinpan Technology fell nearly 10% [1] - Other companies in the sector, including Kelon Electronics, Yingweik, Sunshine Power, Shenghong Co., and Magmi Tech, also reported notable declines [1]

Core Insights - The article discusses the rapid development of the energy storage market, highlighting the expansion plans of five companies in the sector, which collectively aim to increase production capacity by 26 GWh for various energy storage products and 15 GW for storage inverters [1]. Group 1: Company Expansion Plans - Kelu Electronics is constructing a 3 GWh energy storage production base in Indonesia, with plans to adjust capacity based on business development [2]. - Jiangsu Badar Energy is progressing on a 10 GWh lithium iron phosphate battery and smart energy storage system project, with a total investment of approximately $620 million [6][7]. - Guosheng Technology is investing in a 10 GWh solid-state battery AI smart manufacturing project, acquiring a 51.11% stake in a subsidiary to facilitate this [8][10]. - Shangneng Electric plans to raise up to 1.649 billion yuan to expand its production capacity, including a 15 GW storage inverter project, which will increase its capacity tenfold [11][13]. - Yuheng Battery is set to produce 3 GWh of lithium iron phosphate storage batteries, with a total investment of 1.1 billion yuan and expected annual output value of 2 billion yuan upon full production [14][15]. Group 2: Market Trends and Opportunities - The energy storage industry is identified as a key support for energy transition, with emerging markets in the Middle East, Latin America, and Africa driving demand for large-scale solar-storage projects [4]. - Kelu Electronics reported that its energy storage business generated 1.282 billion yuan in revenue, accounting for 49.83% of total revenue, with a gross margin of 32.95% [5].

Company Overview - Kelu Electronics, established on August 12, 1996, and listed on March 6, 2007, is located in Nanshan District, Shenzhen, Guangdong Province. The company specializes in the research, production, and sales of electrical instruments, power automation products, and renewable energy and energy-saving products [1]. Financial Performance - For the first half of 2025, Kelu Electronics achieved a revenue of 2.573 billion yuan, representing a year-on-year growth of 34.66%. The net profit attributable to shareholders was 190 million yuan, showing a significant increase of 579.14% [2]. - The company has cumulatively distributed 218 million yuan in dividends since its A-share listing, with no dividends distributed in the past three years [3]. Stock Performance - As of October 15, Kelu Electronics' stock price was 8.86 yuan per share, down 2.10% during the trading session. The total market capitalization stood at 14.715 billion yuan [1]. - Year-to-date, the stock price has increased by 103.68%, although it has seen a decline of 5.74% over the past five trading days [1]. Shareholder Information - As of June 30, the number of shareholders for Kelu Electronics was 69,900, a decrease of 8.55% from the previous period. The average number of circulating shares per person increased by 9.35% to 20,013 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited ranked as the fifth largest, holding 22.5663 million shares, an increase of 7.988 million shares from the previous period [3]. Business Segments - The main business revenue composition for Kelu Electronics includes energy storage (49.83%), smart grid (48.74%), property management (0.91%), comprehensive energy management and services (0.43%), and other supplementary services (0.10%) [1].