Science and Technology Innovation Board IPO of Paron Technology has been registered. The overseas income of domestic energy storage battery system in the first half of the year is nearly 352 million.

SMM: according to the news released by the Securities Regulatory Commission on December 1, recently, according to legal procedures, the Securities Regulatory Commission agreed to the registration of Science and Technology Innovation Board's initial public offering of Shanghai Paron Energy Technology Co., Ltd. (hereinafter referred to as "Paneng Technology"). This time, IPO, Paron Technology plans to issue no more than 38.7112 million shares and to raise 2 billion yuan, mainly to invest in lithium-ion battery and system production base projects, 2GWh lithium battery efficient energy storage production projects and supplementary working capital projects.

Paron Technology is one of the early commercial manufacturers of lithium battery energy storage system in China, focusing on the energy storage application of lithium battery for more than 10 years, and establishing a fully automatic line cell production base and PACK assembly base in Jiangsu and Hubei, with more than 100 BMS and system teams.

In terms of production capacity, the production process of the main products of Paron Technology includes three major links: soft package cell production, battery management system production and energy storage battery system assembly. the limiting factor of the company's production capacity mainly lies in the production process of soft package battery. From 2017 to 2019 and the first half of 2020, the production capacity of the soft package battery of the company was 224MWh, 310MWh, 476MWh and 348.80MWH, respectively, and the capacity utilization rate was 42.94%, 90.37%, 99.64% and 85.49% respectively, showing a continuous upward trend from 2017 to 2019. There has been a decline from January to June 2020, mainly due to the impact of the Spring Festival holiday from January to February and the domestic epidemic. Since March 2020, the company's capacity utilization has been close to saturation, and the overall capacity bottleneck still exists.

In terms of performance, Paron Technology's operating revenue mainly comes from sales of energy storage battery systems and batteries. From 2017 to 2019 and the first half of 2020, the company's operating income was 143.3377 million yuan, 426.0255 million yuan, 819.8492 million yuan and 494.6062 million yuan. It is worth noting that the company's products are exported to overseas markets such as Europe, South Africa, Southeast Asia, North America and Australia. From 2017 to 2019 and the first half of 2020, the proportion of the company's overseas sales income in the main business income was 54.42%, 71.42%, 71.22% and 88.02%, respectively.

In the household energy storage market, PaiNeng technology already has a strong competitiveness. According to the registration draft of Painon Technology, Pone Technology faces direct competition with giant enterprises such as Tesla and LG Chemistry in the global household energy storage market. In 2019, the top three shipments of self-branded household energy storage products in the world were Tesla, LG Chemical and Paron Technology, with a market share of 15 per cent, 11 per cent and 8.5 per cent, respectively.

At present, the global household energy storage demand mainly comes from overseas markets such as Europe, Japan, North America, Australia and South Africa. From 2017 to 2019 and the first half of 2020, the overseas sales income of Paieng Technology household energy storage battery system was 70.0764 million yuan, 287.1866 million yuan, 554.9675 million yuan and 351.6055 million yuan respectively, accounting for 53.25%, 73.14%, 74.54% and 74.26% of the total revenue of the energy storage battery system, respectively. The company's business is concentrated in the overseas household energy storage market.

In addition, in terms of R & D investment, from 2017 to 2019 and the first half of 2020, the R & D expenditure of Paron Technology was 29.2786 million yuan, 26.5807 million yuan, 60.194 million yuan and 29.8628 million yuan respectively, accounting for 20.43%, 6.24%, 7.34% and 6.04% of operating income, respectively.

According to the forecast of the International Renewable Energy Agency, by 2030, the cost of energy storage batteries will be reduced by 50% and 70% compared with 2016, while the service life and recharging times without serious wear and tear will be significantly increased. With the continuous innovation and development of battery energy storage technology, it will accelerate its penetration into various application fields in the future, which has great development potential and wide application prospects.

The application prospect of energy storage market is expected to be good. After the listing of Paineng Technology, with the blessing of the capital market, it will win a broader space for development.