Exceeding 2.1 Billion Yuan! Annual Production of 16 GWh! Deye's Industrial and Commercial Storage Project to Be Launched in Cixi, Zhejiang

On the evening of April 1, Deye Technology (605117) announced that its wholly-owned subsidiary, Ningbo Deye ESS Technology Co., Ltd. (hereinafter referred to as "Deye ESS"), signed an investment agreement with the Management Committee of Cixi Binhai Economic Development Zone to invest in the construction of a 16GWh commercial and industrial ESS production line project in Cixi Binhai Economic Development Zone, Zhejiang Province. Specifically, the project will be implemented in two phases: the first phase with 7GWh, and fixed asset investment is expected to be no less than 895 million yuan; the second phase with 9GWh, and fixed asset investment is expected to be no less than 1.232 billion yuan. Regarding this project investment, Deye Technology stated that with the further release of overseas commercial and industrial ESS market demand, the company's management, based on the current industry environment and prospects, aims to meet the future growth needs of commercial and industrial ESS sales scale and proactively plan for capacity expansion. According to a previous research report by Soochow Securities, Deye Technology is expected to complete its 20~50kW commercial and industrial ESS product line in 2024, with significant growth potential in Europe/America and emerging markets. Additionally, Deye Technology expects to achieve a net profit attributable to the owners of the parent company of 2.9 billion to 3.1 billion yuan in 2024, up 61.92% to 73.09% YoY. Deye Technology believes that in 2024, the growth in overseas PV ESS market demand will be more regional. In Asia, Africa, and Latin America, due to outdated State Grid infrastructure, the demand for household ESS products with grid-connected and off-grid switching capabilities continues to grow significantly. In Europe, such as Germany, the market focuses more on the economic benefits of ESS products due to high electricity prices, while in Ukraine, the market emphasizes the rigid demand for electricity due to geopolitical influences, leading to sustained market demand growth. Deye Technology's R&D team has conducted in-depth research on product demands in different markets, quickly adjusted technical solutions based on regional characteristics, improved product designs, and the sales team promptly followed up with market promotion, preemptively laid out potential overseas markets, established after-sales service centers, strengthened localized services, and further expanded to surrounding markets. In 2024, the revenue and profit of ESS inverters and ESS battery packs increased YoY.