Kehua 2024 Annual Results: #1 Chinese ESS PCS Shipper, But Margins Under Pressure

Key takeaways

• Kehua’s New Energy segment (PV inverters + ESS PCS combined) generated CNY 3.608 billion, down 16 % year-on-year, at a gross margin of 16.78 %.
• The company claims the #1 position among Chinese companies for ESS PCS shipments globally, with cumulative installed capacity exceeding 30 GW / 12 GWh by end of 2024.
• Data Center infrastructure revenue reached CNY 3.152 billion (+14 %) at a 28.77 % gross margin, 12.0 pp above New Energy’s 16.78 % (derived).
• Kehua launched the S3-EStation 2.0 with grid-forming capability and full liquid cooling, and delivered several projects including what it describes as the world’s largest single-unit LFP grid-forming ESS project.
• Overseas revenue contracted 25.8 % to CNY 725 million (9.35 % of total), at a 39.28 % gross margin against 23.08 % domestically.

1. Headline numbers

Kehua reported total revenue of CNY 7.757 billion for the year ended December 31, 2024, down 4.71 % from CNY 8.141 billion in 2023. Net profit attributable to shareholders fell 37.90 % to CNY 315.2 million.

The profit decline (-37.90 %) was steeper than the revenue decline (-4.71 %). Operating cash flow improved 7.84 % to CNY 1.512 billion.

R&D spending reached CNY 468.1 million, representing 6.03 % of revenue. The company employed 4,250 people at year-end, of which 1,238 (29.13 %) were R&D staff.

2. Revenue by segment

Kehua operates three reporting segments. The revenue breakdown is:

Segment	2024 Revenue (CNY B)	% of Total	YoY Change	Gross Margin
New Energy	3.608	46.51 %	-15.98 %	16.78 %
Data Center	3.152	40.63 %	+14.07 %	28.77 %
Smart Power (UPS)	0.922	11.88 %	-9.01 %	41.06 %

New Energy was the largest segment by revenue at 46.51 % of the total, down 15.98 %, while Data Center grew 14.07 % to 40.63 % of revenue. Smart Power (traditional UPS) was 11.88 % of revenue, down 9.01 %, at the highest gross margin of the three segments at 41.06 %.

Kehua frames the company strategy around “Green Power + AI + Storage” convergence — positioning its PCS, data center power, and energy storage capabilities as a unified offering.

3. New Energy margins and pricing pressure

The New Energy segment’s gross margin of 16.78 % is the lowest of Kehua’s three segments. The annual report states that minimum quoted prices for 2-hour and 4-hour ESS systems in China fell below CNY 0.4/Wh in 2024.

An important caveat: Kehua’s New Energy segment combines PV inverters and ESS PCS into a single line item. The company does not disclose ESS-specific revenue or margins separately. This limits the analysis — we cannot determine whether ESS PCS margins are better or worse than PV inverter margins, or how the mix is shifting between the two product lines.

New Energy units sold fell 29.62 % to 79,039 units in 2024, while segment revenue fell 15.98 %. The filing does not state whether PCS or PV inverters accounted for more of the decline.

Sungrow and Sineng Electric use different segment structures and disclosure levels, so their reported margins are not directly comparable with Kehua’s.

4. ESS market position: #1 PCS in China

Kehua states it ranked #1 among Chinese companies for ESS PCS shipments globally in 2024, with cumulative installed capacity exceeding 30 GW and 12 GWh by year-end.

The basis and methodology for the ranking are not detailed in the filing. The 30 GW cumulative figure represents PCS power capacity shipped over the company’s history in energy storage, not a single-year number.

For context, China’s new-type energy storage grid-connected capacity reached 44.6 GW / 111.6 GWh in 2024 alone, a 115 % year-on-year increase. The company does not quantify its 2024 share of that capacity.

5. ESS product developments

Kehua highlighted several product milestones in the annual report.

S3-EStation 2.0 Smart Liquid-Cooled ESS System

The S3-EStation 2.0 features grid-forming capability and full liquid cooling across all components. The annual report states that grid-forming capability is becoming a standard requirement for standalone and weak-grid projects, and that standalone storage exceeded 50 % of new installations in China for the first time in 2024.

5 MWh Liquid-Cooled ESS Battery System

Using 300 Ah+ LFP cells, this battery system targets utility-scale projects.

S3-EStore C&I All-in-One

A commercial and industrial (C&I) energy storage system aimed at behind-the-meter applications, combining PCS and battery in a single enclosure.

PCS Range: 3 kW to 10 MW

Kehua’s PCS product line spans from residential-scale 3 kW units to utility-scale 10 MW systems.

6. Key project milestones

The annual report lists several ESS projects delivered or connected in 2024:

• World’s largest single-unit LFP grid-forming ESS project — no capacity or location details are provided in the filing
• China’s first semi-solid-state battery grid-side ESS project
• China’s largest single-unit electrochemical standalone ESS project
• Tibet’s first long-duration standalone grid-forming ESS projects

These project references are sourced from Kehua’s own filing. The company does not provide MW/MWh capacity figures for individual projects in the annual report.

7. Geographic breakdown and Malaysia expansion

Region	2024 Revenue (CNY B)	% of Total	Gross Margin
Domestic (China)	7.032	90.65 %	23.08 %
Overseas	0.725	9.35 %	39.28 %

Overseas revenue fell 25.8 % year-on-year to CNY 725.1 million, reducing the international share from 12 % to under 10 %.

The overseas gross margin of 39.28 % was 16.20 pp above the domestic margin of 23.08 % (derived).

Kehua’s Malaysia manufacturing base became operational in 2024, establishing a production footprint in Southeast Asia.

8. Green Power + AI + Storage convergence strategy

Kehua frames its three business segments as parts of a unified “Green Power + AI + Storage” strategy. The thesis: data centers increasingly need clean power, energy storage provides grid stability and cost management, and Kehua can supply the full power infrastructure stack.

In 2024 the Data Center segment grew 14.07 % at a 28.77 % gross margin, while the New Energy segment declined 15.98 % at a 16.78 % gross margin. The filing does not disclose ESS sales made to data center customers.

9. Market context

Kehua’s annual report includes several data points about the broader Chinese energy storage market:

• China new-type ESS grid-connected capacity reached 44.6 GW / 111.6 GWh in 2024, up 115 % year-on-year
• Standalone storage exceeded 50 % of new installations for the first time, driven by policy mandates and merchant storage economics
• 2-hour and 4-hour ESS system minimum quote prices fell below CNY 0.4/Wh, intensifying margin pressure across the value chain
• Grid-forming capability is becoming a standard requirement for standalone and weak-grid projects

Kehua’s New Energy segment revenue fell 15.98 % in a year when China’s new-type ESS grid-connected capacity rose 115 %.

10. What to watch

New Energy declined while the market grew. The New Energy segment declined 15.98 % in a year when China’s new-type ESS grid-connected capacity rose 115 %. Because ESS PCS and PV inverters are reported as one line item, the filing does not show which product line accounted for the decline.

Segment mix. Data Center revenue of CNY 3.152 billion was 12.6 % below New Energy’s CNY 3.608 billion (derived), at a gross margin 12.0 pp higher. The filing does not break out capital allocation by segment.

Overseas revenue. Overseas revenue fell 25.8 % to CNY 725.1 million, reducing the international share from 12 % to 9.35 %, at a gross margin of 39.28 % against 23.08 % domestically. The Malaysia manufacturing base became operational during 2024.

Pricing. The annual report records minimum quoted prices for 2-hour and 4-hour ESS systems in China below CNY 0.4/Wh in 2024, against a New Energy gross margin of 16.78 %. No 2025 pricing or margin guidance is given in the filing.

Related reading

• CATL 2025 Annual Results: What the Numbers Mean for Energy Storage
• Sungrow 2024 Annual Results: What the Numbers Mean for Energy Storage
• EVE Energy 2025 Annual Results: What the Numbers Mean for Energy Storage
• Samsung SDI 2025 Annual Results: What the Numbers Mean for Energy Storage
• Gotion High-Tech 2025 Annual Results: What the Numbers Mean for Energy Storage

11. Sources

All data in this article is sourced from Kehua’s official 2024 Annual Report, filed on CNINFO (Shenzhen Stock Exchange disclosure platform).

• Kehua 2024 Annual Report (PDF, Chinese) — Filed on SZSE, full financial statements and MD&A
• Kehua Manufacturer Profile — BESS Manufacturers directory page