Another Listed Company Enters Energy Storage!

On the evening of June 20, Xili Technology (688616.SH) announced that its wholly-owned subsidiary, Zhejiang Xili, plans to use its own funds of 20 million yuan to carry out research and development, production and sales of energy storage products and their supporting products. , The specific product is a portable energy storage battery that provides green power for outdoor activities such as tourism, camping, fishing, and solves emergency power supply for earthquakes, typhoons, tsunamis, and volcanic eruptions.

According to the data, the main business of Xili Technology is the research and development, production and sales of electric energy metering products such as smart meters, electricity information collection terminals, and electric energy metering boxes. Regarding the subsidiary's entry into the field of portable energy storage, Xili Technology said that due to factors such as market capacity and scale, the further development of the company's business has been constrained to a certain extent.

At the same time, Xili Technology stated that the development of the portable energy storage business is a strategic reflection of the power, extending the industrial chain layout, and entering the new energy industry. It is a prudent decision based on the company's long-term interests. Based on the original power information collection and battery application technology , Entering the energy storage industry has certain advantages, which will help the company to further expand business types and improve profitability.

In terms of product technology, Xili Technology has set up a research and development team to carry out the research and development of portable energy storage products BMS boards; use the energy efficiency collection management system platform and its APP platform to expand energy storage application functions.

In terms of capital arrangement, Xili Technology emphasized that Zhejiang Xili currently has a low asset-liability ratio and abundant cash flow. Therefore, the source of funds for the new business development this time is the company's own funds, which will not cause funds for the development of the existing main business. The pressure will not affect the normal development of the company's production and operation activities.

In recent years, under the goals of "carbon peaking" and "carbon neutrality", the state has issued a number of policies to vigorously promote the development of the energy storage industry, and central enterprises, state-owned enterprises and local enterprises have begun to accelerate the layout of the energy storage field.

Portable energy storage is a new blue ocean branch of the energy storage market. It is widely used in environmental protection, communication, fire protection, electricity, tourism, home energy storage, etc. The industry is in a period of rapid development.

Data shows that in 2020, the market demand in the United States, which is dominated by outdoor camping, and the Japanese market, which is dominated by home backup power, will account for 47% and 30% of the global market respectively. At present, the global portable energy storage industry chain, such as upstream batteries, inverters, etc., and midstream integration, are concentrated in China; downstream brand operators are also mostly Chinese brands, and the main channels are cross-border e-commerce. And because the product structure, supply chain, and brand attributes are similar to home storage, portable energy storage companies are also extending to home storage.

According to the report data of the China Chemical and Physical Power Industry Association, the market size of the portable energy storage industry has reached 11.13 billion yuan in 2021, and is expected to reach 88.23 billion yuan by 2026, and the average annual compound growth rate will remain at about 66%. The industry will continue to maintain a rapid growth trend, with huge market capacity and development potential.

At present, the portable energy storage market is in the early stage of industry development, and some companies such as Huabao New Energy and Zhenghao Technology are slightly ahead, but the current market structure has not yet been finalized. With the increase, more and more new players will be poured in, and Xili Technology is just one of the epitomes. In other words, risks and opportunities coexist, and the barriers to entry for portable energy storage are not high. As a new entrant, Xili Technology should aim to be more refined.