Kehua 2025 Annual Results: 53 GW Cumulative Storage, #1 Global PCS (>500kW)

Kehua’s 2025 annual report covers a year in which revenue rose 5 % to RMB 8.16 billion and net income rose 33 %. The report does not give energy storage on its own. Storage and solar are reported together in the new energy segment, which brought in RMB 3.80 billion. The report states that Kehua’s cumulative storage installations passed 53 GW, and cites S&P Global ranking it first worldwide in power conversion system (PCS) shipments above 500 kW.

1. Headline numbers

Kehua’s revenue rose 5 % to RMB 8.16 billion in 2025. Net income attributable to shareholders rose 33 % to RMB 418 million, and earnings per share rose from RMB 0.68 to RMB 0.83.

Gross margin was 24.6 %, against 25.2 % in 2024. Operating profit rose 38 % to RMB 438 million. Financial expenses fell 87 % to RMB 8 million. The report attributes this to lower interest after its convertible bonds were converted into shares.

Second-quarter revenue was the highest of the year at RMB 2.52 billion, and the first quarter the lowest at RMB 1.22 billion. Operating cash flow fell 23 % to RMB 1.16 billion. Research and development (R&D) expense fell 5 % to RMB 482 million, and R&D staff fell from 1,238 to 1,049.

2. Energy storage revenue and units

The new energy segment brought in RMB 3.80 billion, up 5 %, or 47 % of group revenue. It covers storage and solar products, and the report gives no split between them.

The subsidiary Kehua Shuneng, which runs the new energy business, reported revenue of RMB 3.82 billion and net profit of RMB 67 million.

New energy volumes fell in units:

• sold: 71,842 units, down 9 %
• produced: 64,527 units, down 23 %
• in inventory at year-end: 17,899 units, down 29 %

The report gives cumulative figures rather than 2025 shipments:

Cumulative figures at end of 2025

The report calls storage “a development focus” of the new energy business and states that its storage projects moved from “the hundred-MW class to the GW class” per site.

3. Energy storage margins

The new energy gross margin rose 1.09 percentage points to 17.87 %. It is the lowest of Kehua’s three segments: data centres earned 27.00 % and smart power 39.60 %.

Raw materials made up 96 % of new energy cost of sales. The report gives no storage-only margin.

4. Storage products and projects

The storage products shown in the report include:

• 1.25 MW and 2.5 MW storage PCS
• a 500 kW liquid-cooled modular PCS
• a 5 MWh liquid-cooled battery system
• a 5 MW PCS step-up integrated unit
• a commercial and industrial storage system

In 2025, Kehua launched a liquid-cooled storage PCS with cluster-level management. Grid-forming and liquid-cooled modular PCS projects were completed. An outdoor central storage PCS and a UL-version storage PCS and integrated unit for the North American market are in development.

Projects delivered include a 1 GW/4 GWh grid-forming storage plant in Arong Banner, Inner Mongolia, which the report describes as the largest in China. Others are a 200 MW/800 MWh independent storage plant in Atushi, Xinjiang, and a grid-forming and grid-following project in Minning, Ningxia.

5. The rest of the group

The data centre segment rose 12 % to RMB 3.52 billion, 43 % of revenue. Within it:

• data centre products: RMB 2.24 billion, up 17 %, gross margin 32.0 %
• internet data centre (IDC) services: RMB 1.28 billion, up 4 %, gross margin 18.3 %, down 5.0 percentage points

Smart power, which includes uninterruptible power supply (UPS) systems, fell 19 % to RMB 744 million. Other business brought in RMB 94 million.

Revenue by segment

6. Factories

The report states that the annual output of the new energy factories reached 68 GW. It gives no storage-only capacity in GWh and no utilisation rates.

Kehua has six manufacturing bases worldwide, including Xiamen, Zhangzhou and Malaysia. The report states that construction of the Malaysia plant has taken initial shape.

The Smart Manufacturing Base (Phase 1), funded by the convertible bond, was 16 % invested at year-end. Its completion date was moved back to 31 December 2028, and Zhangzhou was added as a second site. New subsidiaries were set up in 2025 in Ningxia, Hong Kong and Thailand.

7. Where Kehua sells

Overseas revenue rose 42 % to RMB 1.03 billion, 13 % of the total. Domestic revenue rose 1 % to RMB 7.13 billion. The report gives no breakdown by country.

Overseas sales earned a gross margin of 40.86 %, against 21.37 % in China.

The report names customers including China Huaneng, State Power Investment Corporation, China Datang, China Resources, CNNC, SDIC Power, CECEP, China Energy Engineering, PowerChina, CNPC, Sinopec, CRRC, CATL and HyperStrong. The five largest suppliers made up 25 % of purchases and are not named.

8. Market context in the report

The report calls 2025 a “harvest year” for storage. It states that in the fourth quarter the industry saw its first reversal of supply and demand in three years, moving from “supply-driven growth” to “demand leading supply”. For 2026 it describes competition shifting from hardware cost to “full lifecycle value creation”.

Third-party data cited:

• National Energy Administration: new-type storage commissioned in China in 2025 reached 62.24 GW/183 GWh; the report states this was up 84 % on end-2024 and that the energy added exceeded all previously installed capacity
• China Photovoltaic Industry Association: 315.07 GW of solar added in China in 2025, up about 13.5 %
• S&P Global: first worldwide in storage PCS shipments above 500 kW
• BloombergNEF: Tier 1 storage integrator
• Omdia: fourth worldwide and first in Asia-Pacific in industrial UPS

The report also states that Kehua’s storage PCS shipments ranked first in China, without naming a source. It lists two National Development and Reform Commission pricing notices: No. 136 of 2025, which moves new-energy power into market pricing, and No. 114 of 2026, which sets a capacity price for grid-side independent storage.

9. Dividend and convertible bond

Kehua proposes a dividend of RMB 5.00 per 10 shares, RMB 258 million in total, plus 4.5 new shares per 10 from capital reserve. Share capital would rise to 747,350,359 shares.

The convertible bond issued in 2023 was fully converted or redeemed in 2025: bonds still registered at the 15 April 2025 record date were redeemed at RMB 100.32 each, and the bond was delisted from the Shenzhen Stock Exchange on 24 April 2025. Conversion added 53,846,650 shares. Net assets attributable to shareholders rose 37 %, and the debt-to-asset ratio fell from 62.46 % to 53.59 %.

10. Risks listed

The report lists six risks:

• changing market demand and more intense competition
• product and technology change, including uncertain R&D outcomes
• supply chain: geopolitics, trade and key material prices
• receivables collection and cash flow
• scaling up and operational management
• loss of core talent

The auditor highlighted receivables of RMB 3.85 billion (allowance RMB 373 million) and goodwill of RMB 1.01 billion (impairment RMB 327 million). The report does not give storage revenue, margins or GWh shipments, an order backlog, battery cell suppliers or numeric 2026 guidance.

11. Key data

Group results

Revenue by segment and product

New energy units

Balance sheet

12. Data notes

• Energy storage boundary. The report has no storage line. Storage is reported with solar in the new energy segment, which uses the same figure for “new energy industry” and “new energy products”. Kehua Shuneng’s revenue (RMB 3,818.3M) is slightly higher than the new energy segment (RMB 3,799.1M). The report does not reconcile the two.
• Domestic revenue. The report gives two figures: RMB 7,128.7M in the revenue composition table and RMB 7,034.2M in the segment table (p.20). The difference, RMB 94.4M, equals “other business” revenue. Direct-sales revenue shows the same gap (pp.20–21). This article uses RMB 7,128.7M.
• Research and development. R&D expense on the income statement (RMB 481.6M) is higher than total R&D investment (RMB 437.8M, 5.36 % of revenue). The report does not reconcile the two.
• Global New Energy Enterprise 500. The report says Kehua has been on the list for 11 consecutive years on p.14 and for 10 years on p.19.
• Ningxia Minning project. Sized as “100MW/200MW” in the report, with both figures in MW. Reported as printed, so the article gives no size.
• Our calculations. BESSmanufacturers calculated: gross profit and gross margin for both years and their changes; the change in operating profit; the change in the debt-to-asset ratio; and the total cash dividend per share (RMB 0.50). All other growth rates are from the report.
• Page numbers are PDF page numbers:
  • headline numbers: pp.7–8, 23, 25–26, 86–87
  • storage revenue and units: pp.13–14, 20–21, 29
  • margins: pp.20, 22
  • products and projects: pp.13–14, 25
  • rest of the group: p.20
  • factories: pp.18, 29, 63, 65
  • where Kehua sells: pp.14, 20, 23
  • market context: pp.13–14, 16, 19, 30
  • dividend and convertible bond: pp.2, 7, 49, 67, 77–78
  • risks: pp.32–33, 79–80

Sources