In terms of new energy business, Hekang New Energy's household storage and photovoltaic business is entering a stage of rapid development. In order to expand production scale and promote sustainable development, the company has started the construction of a new manufacturing base located in Anqing to enhance the production capacity of the company's main business and lay a solid foundation for the company's next stage of business development.
As a listed company under the Midea Group, Hekang New Energy is rapidly seizing market heights with its innovation-driven and vertical integration competitive advantages, showing a strong growth trend.
Recently, Hekang New Energy released the first quarter of 2024 financial results. A number of financial indicators such as operating income and net profit to the mother have increased significantly, the company's operating performance has improved significantly, and the overall development of the company has shown a significant positive trend.
According to the first-quarter financial report of Hekang New Energy, the company's operating performance exceeded market expectations, and the company achieved revenue of 699 million yuan in the first quarter of this year, an increase of 110.71%; The net profit of returning to the mother was 11.03 million yuan, an increase of 1,566.40%.
Hekang New Energy is a listed company under the United States Group engaged in new energy and industrial control business. In the second half of 2023, it adjusted its strategic layout, focusing on the three main businesses of household energy storage and photovoltaic inverter self-research and self-production, photovoltaic EPC, and high and low voltage inverter self-research and self-production, vigorously investing resources to build vertical integration competitive advantages, and effectively improving business quality. In the first quarter of 2024, the company's strategic initiatives paid off and its financial indicators improved significantly, including significant revenue growth, profit turnaround, and cash flow from negative to positive year-on-year.
The highlights of Hekang New Energy's performance in the first quarter of 2024 mainly include two aspects. First, the scale of the company's photovoltaic EPC sales business has increased, becoming an important growth point for the company's revenue. In the first quarter, Hekang New Energy self-developed and self-produced household storage products have begun to sell and ship in bulk.
Second, the steady development of the company's inverter business in the first quarter also supported the overall development of the company, and the launch of new products indicated that the probability of further growth of performance continued to increase. In March this year, the company launched the new low-voltage frequency converter - CM680 series general frequency converter and EL10 general smart frequency converter, showing the company's technological innovation ability. At the same time, Nikye Electric also appeared with a new brand image.
Further, the core reason for the obvious improvement of Hekang's new business is the adjustment of the company's strategic layout and business focus. In the second half of last year, Hekang New Energy made a strategic layout adjustment, focusing on the three main businesses of household energy storage and photovoltaic inverter self-research and self-production, photovoltaic EPC, high and low voltage inverter self-research and self-production.
As a result, the company is able to use resources more efficiently, and play its technical advantages and market potential in the field of new energy and industrial control. Through the vertical integration industry chain layout, the company has achieved comprehensive coverage from research and development to production, further improving product quality and market competitiveness. In this context, at present, the main business of Hekang New can expand smoothly at home and abroad, the order is sufficient, and the competitive advantage is significantly enhanced.
For Hekang New Energy, the current performance may only be the starting point of a sustained growth trend, looking forward to the future, its performance is expected to further improve.
Hekang New quarterly report shows that the company's research and development expenses increased 134.75% in the first quarter compared with the same period last year. This means that the company's investment in research and development has increased significantly compared to the same period last year, indicating that the company is committed to product upgrades to enhance its market competitiveness. Hekang New Energy said that the company continues to cultivate the core competence of high-quality development, and vigorously invest various resources to carry out short and medium term product and technology research and development.
In terms of new energy business, Hekang New Energy's household storage and photovoltaic business is entering a stage of rapid development. In order to expand production scale and promote sustainable development, the company has started the construction of a new manufacturing base located in Anqing to enhance the production capacity of the company's main business and lay a solid foundation for the company's next stage of business development.
Data show that at present, the company has laid out production bases in many places across the country, forming a multi-point support industrial base pattern. In Suzhou, we have set up a base focusing on the research and development of household energy storage, photovoltaic inverters and inverters, and are committed to technological innovation and product research and development. As the core production base of high-voltage frequency converters, household energy storage and photovoltaic inverters, the Beijing headquarters plays an important role in supporting the industry. At the same time, the photovoltaic EPC operation headquarters in Hefei is also operating efficiently, promoting the company's business expansion in the photovoltaic field.
It is foreseeable that the increase in production capacity of Hekang New Energy will help it further expand overseas markets and open up market increment space, especially for household storage business. The company has launched household storage single-phase and three-phase single-phase products, and began mass sales.
In terms of inverter main business, with the implementation of the "Action Plan to promote large-scale equipment renewal and consumer goods for new" policy launched by the government in March, the market segment in which the company is located is expected to maintain a high boom in the next few years, which is not only conducive to the company to obtain more orders, but also help to improve its operating rate.
In the long term, the steady growth trend of the company's inverter business segment is becoming more obvious. It can be seen that with the further stabilization of the main industry of frequency converters and the continuous deepening and focus of the new energy field, Hekang New Energy is accelerating the release of development potential. The increase in research and development investment, the construction of new manufacturing bases and the continuous expansion of overseas markets will provide strong support for the company's steady growth in the next few years.
It can be seen that the core competitiveness of Hekang New Energy is continuing to strengthen, and the business model and growth logic are increasingly clear, indicating that the company is about to enter a new growth period. In the future, the rapid development of Hekang New Energy will not only enhance its core competitiveness, but also broaden the new energy industry territory for Midea Group and jointly meet the opportunities of global energy structure transformation.
