3 6 Ke·2026-02-04 01:43Core Viewpoint - Kelu Electronics is expected to report a significant loss in 2025 despite earlier profitability, disappointing investors who anticipated a turnaround in performance [1][2]. Financial Performance - Kelu Electronics forecasts 2025 revenue between 6 billion to 6.5 billion yuan, with a net loss projected between 115 million to 170 million yuan [1]. - The company reported a cumulative profit of 232 million yuan in the first three quarters of 2025, a year-on-year increase of 251.1%, but faced a substantial loss of 347 million to 402 million yuan in Q4 [1][2]. Legal Issues - A major factor contributing to the projected losses is a legal dispute with China Nanhai Engineering Co., resulting in an expected provision of 62 million yuan for non-operating expenses [2][5]. - The lawsuit stems from a construction contract dispute related to the Kelu Smart Energy Industrial Park, which faced significant delays, leading to claims totaling 237 million yuan from the engineering company [3][5]. Project Challenges - Kelu Electronics has struggled with the Smart Energy Industrial Park project, which has been a significant financial burden, contributing to ongoing losses since 2018 [5][6]. - The company has acknowledged that the actual rental area and prices for the industrial park were not ideal, leading to asset impairment provisions totaling 1.32 billion yuan for fixed assets and 30.24 million yuan for intangible assets [6]. Market Competition - The company cited increased market competition and fluctuations in raw material prices as factors leading to a decline in gross margins for its energy storage business [7]. - Despite a rise in lithium prices from 70,000 yuan/ton to around 170,000 yuan/ton, Kelu Electronics has struggled to pass these costs onto customers due to intense competition in the energy storage system integration sector [7][9]. Strategic Changes - In April 2025, Midea Group appointed a new chairman to Kelu Electronics, aiming to leverage industrial experience to reverse the company's fortunes [10]. - The company is under pressure to improve its financial performance as Midea continues to invest in the renewable energy sector, with Kelu Electronics expected to play a crucial role in this strategy [11].