Impact Analysis of Peicheng Technology's BYD Order Loss

According to public information, the cooperative relationship between Peicheng Technology and BYD has undergone substantial changes [1][2]:

Year	BYD Procurement Amount	Revenue Share	Customer Ranking
2022	RMB 90.2989 million	10.62%	Top Customer
2023	RMB 42.9504 million	5.62%	Second Customer
2024	RMB 38.0691 million	5.19%	Fourth Customer
Jan-Sept 2025	Approximately RMB10 million	-	Exited Top Five

BYD’s procurement amount

over three years, dropping from the top customer to completely exiting the list of top five customers [1][2].

In 2023, the IGBT products supplied by Peicheng Technology to BYD had quality issues due to

, leading to returns and refunds involving RMB6.82 million. Although Peicheng Technology, BYD, and supplier CR Microelectronics finally signed a “Mutual Non-Liability Confirmation Letter”, the cooperative relationship has been [1][2][3].

• Revenue from 2022 to 2024 was RMB850 million, RMB764 million, and RMB733 million respectively, with
  three consecutive years of decline
  [1][2]
• Revenue in 2024 decreased by 4.02% year-on-year, and net profit decreased by 20.8% year-on-year [1]

• The revenue share of the top five customers dropped from 43.86% in 2022 to 30.69% in H1 2025 [3]
• Sunwoda became the new top customer, but its sales amount was only RMB43.2598 million, accounting for 5.90%

Peicheng Technology emphasized that “the product quality issue only led BYD to suspend procurement of new products that needed further debugging and improvement, and did not have a significant adverse impact on the original product business” [1]. However, data shows:

• BYD’s procurement amount continued to plummet, remaining at approximately RMB10 million in the first three quarters of 2025 [2]
• The cooperative relationship dropped from the top customer to completely exiting the top five

In H1 2025, revenue from the battery power control system business reached RMB372 million,

, with a continuous increase in single business dependency [2].

The company admitted that the downstream household energy storage market is affected by factors such as falling European energy prices,缓解 of South Africa’s power crisis, and channel inventory backlogs, leading to “regional rotating outbreaks” in demand, and performance has

[2].

During the reporting period, some customers switched to direct supply (e.g., Zhejiang Kayo Lighting, Shanghai Flyco Electrical Appliance), reflecting that when customers grow in scale, they often seek direct cooperation with original manufacturers, and the

[3].

###5. Conclusion

:

1. Direct Revenue Loss
   : Approximately RMB80 million in BYD business lost over three years
2. Customer Ranking Decline
   : Dropped from top customer to exiting the top five, affecting brand endorsement effect
3. Increased Performance Volatility
   : Revenue declined consecutively, with net profit dropping by 20.8% in 2024
4. Business Dependency Risk
   : Over-reliance on a single business (battery power control system accounts for 83.80% of gross profit)

Although the company claimed that revenue in H1 2025 increased by over 94% year-on-year, this “turnaround” is highly dependent on concentrated delivery of short-term orders [2]. The Beijing Stock Exchange directly questioned in the inquiry letter: “If demand in emerging markets fails to continue to release, does the company have the ability to resist another decline in performance?” [2]

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[1] Shanghai Securities News - “Peicheng Technology’s Fundraising Rationality in Doubt” (https://paper.people.com.cn/gjjrb/pc/attachement/202512/08/08f9cbc7-bf43-4ea3-ae7c-e981094f6ecc.pdf)

[2] Sohu Finance - “Peicheng Technology IPO: BYD’s Withdrawal Due to Quality Returns; Unpaid Share Grants to Secretary and Others May Be Interest Conveyance” (https://m.sohu.com/a/969095102_121353797)

[3] Sina Finance - “Peicheng Electronics: 77.5 Million Dividend Suddenly Distributed, 62 Million Raised for Working Capital; BYD Exits Top Five After Returns” (https://finance.sina.com.cn/roll/2025-12-29/doc-inhemqaw5023253.shtml)