Deye Technology Invests 2.1 Billion Yuan in 16GWh Energy Storage Production Facility

April 1st - Photovoltaic inverter and energy storage leader Deye Technology (605117) announced that its wholly-owned subsidiary, Ningbo Deye Energy Storage Technology Co., Ltd., has signed an agreement with Cixi Binhai Economic Development Zone to invest up to 2.127 billion yuan in constructing a production facility with an annual capacity of 16GWh for commercial and industrial energy storage systems.

source: Deye Technology

The project will be implemented in two phases. Phase one plans to invest 895 million yuan to build 7GWh of production capacity, while phase two will invest 1.232 billion yuan to add 9GWh of capacity, targeting expansion opportunities in overseas commercial and industrial energy storage markets.

According to public information, Deye Technology was established in 2000 with headquarters in Ningbo. The company initially specialized in household appliances such as dehumidifiers and HVAC equipment. Since 2020, the company has capitalized on the new energy trend, gradually transforming into a global technology enterprise driven by "photovoltaic inverters + energy storage systems + environmental electrical appliances."

Deye's photovoltaic inverter business has experienced explosive growth since 2021, avoiding Europe's highly competitive market through differentiated positioning and instead focusing on emerging regions such as South Africa, Brazil, and the Middle East. In 2023, the company's inverter exports to South Africa reached 1.26 billion yuan, capturing over 50% market share, while revenue from energy storage battery packs surged by 965% year-on-year to 884 million yuan.

In 2024, the company accelerated its global production capacity layout, investing $150 million to establish a factory in Malaysia serving Southeast Asian and African markets. Its products have formed strong demand barriers in power-deficient regions across Asia, Africa, and Latin America, thanks to high cost-performance ratios (gross margin exceeding 52%, significantly higher than industry peers) and localized service networks.

As of early April 2025, the company's market value has exceeded 60 billion yuan, with controlling shareholder Zhang Hejun demonstrating confidence in the business through multiple share purchases.

Industry research data indicates that Deye ranks second globally in the customer-side energy storage inverter market and fourth in the microinverter sector, with business covering over 110 countries and regions. In 2024, energy storage business accounted for nearly 40% of revenue, forming a "dual-engine" drive alongside the photovoltaic business. Meanwhile, high overseas electricity prices and weak grid infrastructure are driving growth in commercial and industrial energy storage demand, presenting market opportunities for Deye. To capitalize on these opportunities, the company is actively expanding production capacity to strengthen its market position.

In terms of financial performance, for the first three quarters of 2024, Deye reported revenue of 8.016 billion yuan, a year-on-year increase of 26.7%, and net profit attributable to shareholders of 2.24 billion yuan, a substantial increase of 42.8%, already exceeding full-year 2023 levels. Full-year net profit is expected to reach 2.9-3.1 billion yuan, representing year-on-year growth of 61.92%-73.09%, far exceeding the industry average.

The company's performance growth is primarily attributed to structural opportunities in overseas markets. In Asia, Africa, and Latin America, power shortages have promoted household energy storage demand, with the company's on/off-grid switching functionality highly suited to these conditions. In Europe, high-electricity-price countries like Germany tend to favor economical energy storage solutions, while geopolitical conflict in Ukraine has also generated rigid demand for energy storage.

According to 2024 performance forecasts, Deye expects full-year net profit attributable to shareholders to be between 2.9 billion and 3.1 billion yuan, a year-on-year increase of 61.92% to 73.09%. Non-recurring net profit is expected to be between 2.714 billion and 2.914 billion yuan, a year-on-year increase of 46.45% to 57.24%.

In summary, Deye Technology's rise from a home appliance manufacturer to a leader in photovoltaic and energy storage sectors demonstrates its strategic acumen and execution capabilities. This 2.1 billion yuan investment in commercial and industrial energy storage represents both a bet on overseas market prosperity and a long-term response to "dual carbon" goals. Successful implementation of this project will positively impact future business performance.