Eve Energy Sub. 19.5GWh Deal with AESI.
On the evening of September 11, the leading lithium battery company, EVE Energy (300014), announced that on September 10, its subsidiary, Hubei EVE Power Co., Ltd. (hereinafter referred to as "EVE Power"), signed the "AMENDMENT NO. 1 TO MASTER PURCHASE AGREEMENT" (hereinafter referred to as "this Agreement") with American Energy Storage Innovations, Inc. (hereinafter referred to as "AESI"). ABS has transferred the original agreement to AESI. According to the terms of this Agreement, EVE Power is expected to deliver approximately 19.5GWh of square lithium iron phosphate batteries to AESI. AESI is a company registered in the United States and a provider of next-generation energy storage solutions.
Previously, on June 15, EVE Energy signed the "MASTER PURCHASE AGREEMENT" (hereinafter referred to as "the original Agreement") with American Battery Solutions (hereinafter referred to as "ABS"). According to the agreement, the company is expected to produce and deliver 13.389GWh of square lithium iron phosphate batteries to ABS.
Speaking about the signing of the agreement, EVE Energy stated outright that it is a recognition of the company's energy storage battery product performance and supply qualification, which is conducive to establishing a long-term and stable cooperative relationship between the two parties. It fully leverages their respective resources and advantages, unleashes the greater potential of sustainable energy storage solutions, and continuously consolidates and enhances the company's influence, comprehensive competitiveness, and internationalization level in the energy storage market. It is an important measure for the company to improve its global industrial layout.
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The company also pointed out the risk that this Agreement is a cooperative framework agreement reached by both parties, and the specific supply quantity and supply time are subject to the purchase orders signed separately, which still has uncertainty. If there is a formal cooperation agreement signed by both parties in the future.
Data shows that EVE Energy is a leading company in the field of lithium batteries. After 23 years of rapid development, the company has become a globally competitive lithium battery platform company, with core technologies and comprehensive solutions for consumer batteries, power batteries, and energy storage batteries. Its products are widely used in the fields of the Internet of Things and the energy Internet.
Looking at the business performance, on the evening of August 22, EVE Energy disclosed the semi-annual report for 2024, showing that the company achieved a revenue of 21.659 billion yuan in the first half of the year, a decrease of 5.73% year-on-year; a net profit of 2.137 billion yuan, a decrease of 0.64% year-on-year; and a net profit of 1.499 billion yuan after deducting non-recurring gains, a year-on-year increase of 19.32%. Looking at the business segments, EVE Energy's power battery shipment volume in the first half of the year was 13.54GWh, a year-on-year increase of 7.03%, and the energy storage battery shipment volume was 20.95GWh, a year-on-year increase of 133.18%, achieving more than double growth.
In terms of market share, according to statistics from relevant institutions, EVE Energy ranked second in the domestic new energy commercial vehicle installation volume in the first half of the year, with a market share of 13.59%, and ranked second in the domestic electric heavy truck installation volume, with a market share of 16.4%. In the field of energy storage, EVE Energy's energy storage cell shipment volume ranked second globally in the first half of the year, advancing one place compared to the global energy storage cell shipment ranking in 2023.
After the release of the financial report, EVE Energy held a telephone meeting with more than 400 institutional investors, who were generally concerned about the company's energy storage battery shipment targets, next year's energy storage demand forecast, and the outlook for the third quarter's business situation.
On August 25, EVE Energy disclosed the research notes, showing that the company's energy storage battery shipment target for 2024 is 50GWh. The company will reasonably assess the cost of renovation, and if there is economic viability in the renovation, it will consider making changes. Moreover, there are differences in battery models, and if the calculation requires a large amount of investment, it may only consider changing a part of it. In addition, in the company's new business model CLS launched this year, we can coordinate some good resources through technology licensing, service support, and other means, relying on our leading experience in the energy storage field.
When it comes to the market demand forecast, EVE Energy believes that overall, the global energy storage market has maintained rapid growth. According to some third-party institutions' statistics, the global energy storage market size will have a compound annual growth rate of over 35% in the next few years. The company will continue to strive to maintain and further expand its existing market share and overseas market shipment proportion in the future. It is expected that the company's overall energy storage will maintain a growth rate of over 35%. With the expansion of the overseas emerging market energy storage market size and the improvement of the company's market position, the company is confident in maintaining a high shipment growth rate and is also confident in increasing the overseas proportion.Looking ahead to the third quarter, EVE Energy stated that the company's consumer batteries are performing well, and the third quarter is expected to be better than the second quarter, as the shipment volume of small cylindrical batteries is expected to increase further on a sequential basis. In terms of the power and energy storage battery sectors, firstly, regarding shipment volume, there is an ample order backlog for energy storage batteries; although there was no significant change in the shipment of power batteries in the first two quarters, there are also positive factors, such as the ternary square batteries that have achieved stable delivery to BMW, and the company is working on further improving the utilization rate of passenger car battery production lines. The commercial vehicle sector is expected to see further improvement in the third quarter.
"In summary, it is anticipated that the shipment volume will be stable with an upward trend in the third quarter compared to the second quarter. Regarding pricing, the company believes that the cell prices have reached a bottom and there are few factors that can further drive prices down. Therefore, with the increase in volume and the stabilization of prices, the company believes that the operational results for the third quarter will be positive." EVE Energy disclosed.
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