Analysis of the Impact of Siyuan Electric's 50GWh Energy Storage Order from CATL on Its 2026 Performance

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On December 25, 2025, Siyuan Electric and CATL signed a three-year energy storage cooperation memorandum, with a target cooperation capacity of

[1][2]. Based on their respective traditional advantageous areas, the two parties will promote the market-oriented dual-procurement model for energy storage, and achieve two-way collaboration across the industrial chain upstream and downstream focusing on energy storage systems, power transmission and distribution supporting equipment, etc.[3] Zeng Yuqun, Chairman and CEO of CATL, and Dong Zengping, Chairman of Siyuan Electric, jointly witnessed the signing, which marks the strategic deepening of the cooperation between the two parties since they established partnerships in 2022[1].

Siyuan Electric (Stock Code: 002028.SZ) is an enterprise focusing on technological R&D, equipment manufacturing, and engineering services in the power sector[4]. The company’s main products include GIS and GIL of 750kV and below, substation relay protection equipment and monitoring systems of 1000kV and below, dynamic reactive power compensation systems, high-voltage active power filter systems, power station-level energy storage systems, etc.[5]

[4][6]:

Indicator	Value	YoY Change
Operating Revenue	RMB 15.458 billion	+24.06%
Net Profit Attributable to Shareholders	RMB 2.049 billion	+31.42%
Gross Profit Margin	31.25%	+1.75pct
Net Profit Margin Attributable to Shareholders	13.3%	+0.7pct
Newly Signed Contracts	RMB 21.457 billion	+30%
Order-to-Revenue Ratio	1.39	-

The company exceeded its 2024 operating targets, with 103% of revenue target achieved and 104% of newly signed contracts target achieved, demonstrating strong growth momentum[6].

Based on the current energy storage market conditions and the cooperation model between the two parties, we calculate the value of the 50GWh energy storage order as follows:

Calculation Parameter	Value	Explanation
Energy Storage Cell Price	RMB 0.32/Wh	2025 Q4 average market price range: RMB 0.28-0.35/Wh[7][8]
System Integration Premium Coefficient	1.6x	Including supporting equipment such as PCS, BMS, EMS, and containers
Cooperation Period	3 years	2025-2027
Siyuan Electric’s Revenue Share	35%	Estimated value proportion in system integration

:

Item	Value
Value per GWh System	RMB 512 million
Total System Value for 3 Years	RMB 25.6 billion
Annual Average System Value	RMB 8.53 billion
Annual Average Revenue Contribution from Siyuan Electric	RMB 2.99 billion
Annual Average Gross Profit Contribution from Siyuan Electric	RMB 840 million (calculated based on 28% gross profit margin)

Based on the above calculation, we predict the impact of the 50GWh energy storage order on Siyuan Electric’s 2026 performance as follows:

• 2024 Actual Revenue
  : RMB 15.458 billion
• 2026E Revenue Increment (from the order)
  : Approximately +RMB 2.99 billion
• 2026E Expected Revenue
  : Approximately RMB 18.45 billion (including contribution from the order)
• Revenue Increment Ratio
  :
  +19.3%

• 2024 Actual Net Profit
  : RMB 2.049 billion
• 2026E Net Profit Increment (Estimated)
  : Approximately +RMB 500 million (calculated as 60% of gross profit contribution)
• 2026E Expected Net Profit
  : Approximately RMB 2.55 billion
• Net Profit Increment Ratio
  :
  +24.5%

Indicator	2024A	2026E (including order)	Change
Revenue Growth Rate	24.1%	36.2%	+12.1pct
Net Profit Margin	13.3%	13.8%	+0.5pct
ROE	4.34%	5.2%	+0.86pct
Energy Storage Business Proportion	~8%	~23%	+15pct

In recent years, Siyuan Electric has actively laid out its energy storage business, and this in-depth cooperation with CATL will significantly enhance its competitiveness in the energy storage field. The company can leverage CATL’s battery technology advantages to build more competitive energy storage system solutions[1][2].

The “market-oriented dual-procurement model for energy storage” promoted by the two parties will achieve two-way collaboration across the industrial chain upstream and downstream, optimize overall solution capabilities, improve project delivery efficiency and reliability, and accelerate the large-scale application of energy storage systems in new power networks[3].

According to CNESA DataLink data, from January to June 2025, the new overseas order volume of Chinese energy storage enterprises reached 163GWh, a year-on-year increase of 246%[7]. The domestic energy storage market also maintains rapid growth, and Siyuan Electric’s acquisition of this large order comes at the right time.

The 50GWh is the target cooperation capacity for three years, and the actual execution volume may be affected by factors such as market demand, production capacity supply, and project implementation, with uncertainties existing.

Energy storage cell prices continue to be under pressure. In 2025, the winning bid prices of some centralized procurement projects have dropped to RMB 0.28-0.29/Wh[8], which may compress the profit margins of system integrators.

Competition in the energy storage market is becoming increasingly fierce. Enterprises such as EVE Energy and Envision Energy Storage are accelerating their layout, and industry competition may further intensify.

The payment collection cycle of energy storage projects is relatively long, which may exert certain pressure on the company’s cash flow.

: The 50GWh energy storage order will have a significant positive impact on Siyuan Electric’s 2026 performance, which is expected to drive approximately 19% revenue growth and 25% net profit growth. The order will bring stable business increments to the company, while enhancing its industry status and competitiveness in the energy storage field.

: Considering the high prosperity of the energy storage industry and the company’s leading position, this order is a major positive, but attention should be paid to risks such as order execution progress and price fluctuations. It is recommended that investors keep an eye on it and allocate positions at an appropriate time.

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[1] CATL Official Website - “3-Year 50GWh: CATL and Siyuan Electric Sign Energy Storage Cooperation Memorandum” (https://www.catl.com/news/9504.html)

[2] Sina Finance - “3-Year 50GWh: Siyuan Electric and CATL Sign Cooperation Memorandum” (https://finance.sina.com.cn/roll/2025-12-25/doc-inhczhsi3492160.shtml)

[3] NE Time - “3-Year 50GWh Energy Storage Order Finalized! CATL Deepens Cooperation with Siyuan Electric” (https://ne-time.cn/web/article/37538)

[4] Siyuan Electric 2024 Annual Report Summary (http://static.cninfo.com.cn/finalpage/2025-04-19/1223145418.PDF)

[5] Dongfang Fortune Securities Research Report - “Review of Siyuan Electric’s 2024 Annual Report” (https://pdf.dfcfw.com/pdf/H3_AP202504201659364128_1.pdf)

[6] Jinling API Market Data

[7] Time Weekly - “Energy Storage Order Boom Shockwave: Cell Prices Rise by Nearly 20%, Some Factories Have Orders Scheduled to the End of the Year” (https://time-weekly.com/post/323971)

[8] Battery China Network - “Energy Storage Cells: ‘Price War’ and ‘Price Hike Wave’ Coexist” (http://www.cbea.com/djgc/202512/804611.html)

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This chart shows the forecasted impact of the 50GWh energy storage order on Siyuan Electric’s 2026 revenue and net profit, including changes in revenue structure, performance growth trends, and comparisons of key financial indicators.

This chart details Siyuan Electric’s 2024 revenue structure, 2026E revenue structure forecast, performance growth trends, and pre- and post-order comparisons of key financial indicators.

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