Pylontech — FY2024 at a Glance

SHSE: 688063 · Founded 2009 · Shanghai, China
Total revenue
CNY 2.005 B
YoY change
-39.24 %
Net profit
CNY 41.1 M (-92.03 %)
ESS revenue
CNY 1.958 B (97.6 % of total)
ESS gross margin
28.90 % (-1.54 ppt)
ESS shipments
1,521 MWh (-18.90 %)
Overseas revenue share
93.79 %
R&D spending
CNY 345.1 M (17.22 % of revenue)

Key takeaways

  • Pylontech’s revenue fell 39 % to CNY 2.0 billion, alongside a 19 % volume decline. Implied ASP (derived: revenue divided by MWh shipped) was roughly CNY 1,287/kWh.
  • Net profit fell 92 % to CNY 41.1 million, with the company posting a net loss when excluding non-recurring items.
  • Energy storage accounted for 97.6 % of total revenue.
  • Overseas markets delivered 93.8 % of revenue at a 30.33 % gross margin, while the domestic business ran at a 2.67 % margin.
  • New products disclosed in the report include the Force-H3X, the Elva residential system, the M7 liquid-cooled C&I system, and a sodium-ion home storage unit.

1. Headline numbers

Pylontech reported total revenue of CNY 2.005 billion for the year ended December 31, 2024, down 39.24 % from CNY 3.300 billion in 2023. Net profit attributable to shareholders was CNY 41.1 million, a 92.03 % decline from the prior year. Excluding non-recurring gains, the company posted a net loss.

ESS segment gross margin came in at 28.90 %, down 1.54 percentage points year-on-year, while company-wide gross margin was 28.94 %, down 2.00 percentage points. Gross profit for the year was not sufficient to cover operating expenses. R&D spending was CNY 345.1 million, or 17.22 % of revenue, against a revenue base that fell 39.24 %.

The company employed 2,114 people at year-end, with 713 (33.73 %) in R&D roles.

2. Revenue decline: volume and pricing

Revenue fell 39.24 % while shipments fell 18.90 % to 1,521 MWh. The revenue decline was just over double the volume decline, which implies average selling prices also fell.

The implied ASP (derived: revenue divided by MWh shipped) was approximately CNY 1,287/kWh, below prior-year levels. The annual report attributes the demand decline to conditions in the residential ESS channel, particularly in Europe.

Quarterly revenue rose through the year: Q1 revenue was CNY 386 million and Q4 revenue was CNY 593 million.

3. ESS margins: overseas vs domestic

Pylontech reports gross margin separately for overseas and domestic sales.

Region Revenue share Gross margin
Overseas 93.79 % 30.33 %
Domestic 6.21 % 2.67 %
Blended 100 % 28.90 %

Overseas markets — primarily Europe, but also South Africa, Southeast Asia, North America, and Australia — delivered a 30.33 % gross margin. The domestic Chinese market generated a 2.67 % margin. Because overseas sales account for 93.79 % of revenue at more than eleven times the domestic margin, overseas sales account for substantially all of the company’s gross profit.

4. Product developments

The 2024 annual report discloses several product additions alongside the residential LFP battery packs that make up Pylontech’s established range.

Force-H3X

A model in Pylontech’s Force series for residential storage, addressing the high-voltage home battery segment.

Elva

A residential energy storage system added to the company’s product line. The annual report does not give further specifications.

M7 liquid-cooled C&I system

A liquid-cooled system for the commercial and industrial segment.

Sodium-ion home storage

Pylontech disclosed work on a sodium-ion battery for residential storage. The annual report does not state a launch date or capacity for this product.

5. Manufacturing capacity and the 10 GWh expansion

Pylontech’s primary manufacturing base is in Yangzhou, Jiangsu province, operated through its subsidiary Jiangsu ZTE Pylontech Battery Co., with a secondary facility in Guangde, Anhui province (Anhui Pylontech). Production volume in 2024 was 1,801.56 MWh and sales volume was 1,521.00 MWh.

The company’s planned 10 GWh new R&D and manufacturing base, funded through the 2022 share issuance and originally scheduled for completion in April 2025, has been rescheduled to April 2026.

6. Geographic mix: 93.79 % overseas

Pylontech derived 93.79 % of revenue from overseas markets in 2024, with 6.21 % from China.

Europe is Pylontech’s primary export destination, with residential solar-plus-storage demand in markets including Germany, Italy, and the UK.

The company holds BNEF Tier 1 status (Q4 2024) and a CSI ESG rating of AAA.

7. Market context

The European residential storage market, Pylontech’s largest end market, contracted in 2024 after growth in 2022 driven by energy price spikes. Multiple residential ESS-focused companies, both Chinese exporters and European brands, reported revenue declines for the year.

Pylontech’s product range is weighted toward the residential and smaller C&I segments. The 2024 report adds the M7 liquid-cooled C&I system to that range.

Pylontech is controlled by ZTE Xin Communications (中兴新), the parent company of ZTE Corporation.

8. Additional disclosures

Revenue fell 39.24 % against an 18.90 % decline in shipment volumes, so revenue fell roughly twice as fast as volume. Quarterly revenue rose from CNY 386 million in Q1 to CNY 593 million in Q4.

The 10 GWh new R&D and manufacturing base was rescheduled from April 2025 to April 2026. Production volume in 2024 was 1,801.56 MWh, against the 10 GWh of planned additional capacity.

Domestic gross margin was 2.67 %, compared with 30.33 % overseas. Domestic sales were 6.21 % of revenue.

Pylontech disclosed that its chairman was subject to detention measures during 2024, which were subsequently lifted. The annual report does not report an operational impact from the measures.

Sources

All data in this article is sourced from Pylontech’s official 2024 Annual Report, filed on the SSE STAR Market.

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