On March 3, Ginlong Technologies hosted research visits from multiple investment institutions. According to the meeting minutes, the company's current core focus has shifted to the production capacity ramp-up and order delivery of its energy storage system (ESS) business, which is poised to become the company's core strategic growth driver this year.
The company is gradually embarking on a diversified business expansion, extending its reach from its traditional core power electronics business into the comprehensive energy storage system sector.
Regarding product line advancement, its commercial and industrial (C&I) energy storage systems began volume shipments in January of this year and are currently in the production ramp-up phase. Meanwhile, residential energy storage systems are scheduled to officially commence shipments by the end of March, and the first ground-mounted energy storage product is expected to be launched between late May and early June. The company's flagship 125kW/261kWh C&I energy storage product boasts a healthy gross margin and is primarily tailored to meet overseas market demand.
In the residential and large-scale energy storage sectors, the company's residential storage systems are scheduled to officially begin shipping and gradually scale up in volume starting in late March. During the first quarter, this business segment has primarily been in the trial order phase, with several thousand trial orders currently secured. Furthermore, the company's inaugural ground-mounted energy storage product is projected to officially hit the market between late May and early June.
In terms of market layout, Ginlong Technologies' energy storage system products are predominantly export-oriented. Europe remains its largest overseas market, with the region expected to account for approximately 50% of its C&I energy storage product sales this year. In the U.S. market, the company currently maintains strong development momentum; however, operations are primarily focused on inverter sales rather than the direct sale of complete energy storage systems. The demand and profitability for these related energy storage inverters remain high.
Addressing current industry supply chain conditions, the company candidly acknowledged that the industry is facing challenges from tight battery cell supplies and rising prices. It will take an estimated cycle of three to six months for these cost pressures to be passed down the supply chain. At present, the company fulfills its battery production capacity needs primarily through cooperation with external contract manufacturers. On the product pricing front, domestic C&I inverters experienced a modest price increase in January, with expectations for further upward adjustments in the future, while residential models have not yet seen price hikes.
Regarding future performance expectations, Ginlong Technologies indicated that although the C&I energy storage market currently has a small base, it holds immense potential and is anticipated to achieve rapid growth. Due to significant initial investments, the corresponding sales revenue is expected to be gradually recognized starting in the second quarter. The residential energy storage segment has already secured several thousand trial orders, with volumes expected to steadily ramp up moving forward.
Source：EnergyTrend