Core Viewpoint - The energy storage industry is experiencing rapid growth, but companies are facing significant pressures due to market reforms, intensified competition, and rising operational costs [1] Group 1: Company Overview - Jiangsu Beiren initiated its commercial energy storage business in 2023, coinciding with a surge in the sector [2] - The company adopted an integrated business model encompassing product design, manufacturing, project development, asset holding, and operation [2] - Jiangsu Beiren's energy storage capacity reached a total of 4 GWh with two production lines [2] Group 2: Financial Performance - Revenue from Jiangsu Beiren's energy storage business for 2023 and 2024 was 11.79 million and 87.72 million yuan, respectively, indicating a year-on-year growth of 643.99% [4] - The breakdown of energy storage business revenue in 2024 shows that sales of energy storage systems accounted for 74.92%, while contract energy management contributed 25.08% [6] Group 3: Challenges Faced - Jiangsu Beiren identified several reasons for underperformance in energy storage, including overheating industry development, declining equipment prices, and increasing project costs due to evolving government standards [7] - The average price of commercial energy storage systems dropped significantly from approximately 1.10 yuan/Wh to around 0.65 yuan/Wh [7] - The company reported a drastic decline in gross margin from 34.62% in 2023 to 8.83% in 2024, a decrease of 25.79 percentage points [9] Group 4: Operational Issues - The company faced challenges in project profitability due to various risks, including customer and policy uncertainties, leading to a reduction in operational revenue [13] - Fixed costs as a percentage of total costs increased from 10.94% in 2023 to 28.57% in 2024 due to low capacity utilization of newly built production lines [13] - Jiangsu Beiren withdrew from 63 projects involving 191 energy storage devices, incurring a total expense of 7.83 million yuan, which was fully accounted for in 2024 [15]