Analysis Report on the Performance Turnaround of Peicheng Technology (874553) in the First Three Quarters of 2025

Based on the collected data, I provide you with a comprehensive analysis report on the performance turnaround of Peicheng Technology in the first three quarters of 2025.

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Peicheng Technology (Shenzhen Peicheng Electronic Technology Co., Ltd., Stock Code: 874553) is a local circuit value-added service provider positioned in the lithium battery new energy industry. The company was listed on the National Equities Exchange and Quotations (NEEQ) on September 20, 2024, and is currently applying for listing on the Beijing Stock Exchange (BSE)[1]. The company’s main business focuses on the demand for key components of the “four electric systems” (battery, power supply, electric drive, and electric vehicle) in the new energy industry, specializing in the independent R&D, production, and sales of third-party battery power control systems (BMS, PCS, etc.), and providing component application solutions centered on integrated circuits and discrete devices[2].

The company’s controlling shareholder and actual controller is Yan Xiaohan, who directly holds 54.50% of the company’s shares, and indirectly controls 22.51% of the company’s shares through Peichuang Partnership, Peiying Partnership, and Peichi Partnership, with a total control of 77.01% of the company’s shares[2].

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According to publicly disclosed data, Peicheng Technology achieved operating revenue of

in January-September 2025, a , successfully reversing the previous two-year consecutive decline trend[3]. In terms of profits, the company achieved operating profit, total profit, and net profit of respectively, with year-on-year increases of respectively[3].

Financial Indicator	Jan-Sep 2025	Same Period Last Year	YoY Change
Operating Revenue	RMB 886 million	RMB 502 million	+76.49%
Operating Profit	RMB 145 million	RMB 65 million	+124.50%
Net Profit	RMB 129 million	RMB 60 million	+114.83%
Gross Profit Margin	28.76%	-	Significant Improvement

It is worth noting that the company’s profit growth rate is significantly higher than its revenue growth rate, which is mainly due to the increased revenue share of the battery power control system business with a relatively high gross profit margin, rising from approximately 45% in the same period last year to approximately 65% in the current period[3].

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The core driving factor for the company’s performance turnaround is the

. From 2023 to 2024, the company’s performance was under obvious pressure due to the global residential energy storage market entering a destocking cycle[3]. Since 2025, with the end of the destocking cycle, the procurement demand of downstream customers has increased significantly, driving a year-on-year increase of approximately RMB 210 million in the company’s battery power control system business revenue.

According to data released by GGII (Gaogong Industry Research Institute), the company’s customer coverage is extremely impressive[3]:

• 6 out of the top 10 global energy storage lithium battery shipment manufacturers
• 7 out of the top 10 Chinese residential energy storage lithium battery shipment manufacturers
• 4 out of the top 5 Chinese communication energy storage lithium battery shipment manufacturers

In the 2024 shipment ranking of Chinese third-party energy storage BMS enterprises, the company ranks

, and is a well-known third-party battery power control system product supplier in the industry.

The company has gradually formed a business development pattern of

. In the first half of 2025, the revenue share of the battery power control system business reached , and its gross profit contribution share was as high as [3]. Due to the high gross profit margin of this business, the optimization of the business structure has directly driven the improvement of overall profitability.

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According to data disclosed in the prospectus, in the first three quarters of 2025, the export value of lithium-ion batteries from China to other major global regions showed a

, and the demand in the terminal energy storage market remained strong. The global residential energy storage market is expected to reach an installed capacity of in 2026, a year-on-year increase of 11%[4].

As the

of energy storage terminal products, the Battery Management System (BMS) is an indispensable key component of energy storage systems, and its functions directly determine the safety, operation efficiency, and service life of energy storage batteries. With the rapid growth of the downstream energy storage terminal market, the [4].

BMS products need to collect parameters such as voltage, temperature, and current of each cell in real time, accurately estimate core indicators such as SOC and SOH, and avoid risks such as overcharge, overdischarge, short circuit, and thermal runaway through multi-level fault protection mechanisms. With the continuous improvement of requirements for safety and efficiency in the energy storage market, technological iteration will continue to drive the demand for BMS product upgrades.

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During the reporting period, the company’s top 10 customers accounted for a relatively high proportion of sales, with relatively high customer concentration. If the operating conditions of major customers undergo significant adverse changes, it may have a negative impact on the company’s performance.

In the first half of 2025, the book balance of the company’s accounts receivable accounted for

of operating revenue[3]. Although the company’s bad debt provision policy is relatively prudent, the large scale of accounts receivable still carries a certain risk of collection.

During the reporting period, the company’s capacity utilization rates were 37.59%, 92.83%, 108.55%, and 116.05% respectively, and production capacity has tended to be saturated[3]. In this IPO fundraising project, the company plans to invest RMB 294 million in the “Battery and Power Control System Capacity Expansion Project”. If the new capacity is not absorbed as expected, the company may face the risk of asset impairment.

The competition pattern of the third-party energy storage BMS market is relatively fragmented. With the development of the industry and the rise of competitors, the market competition faced by the company may intensify.

The prospectus shows that the company plans to raise RMB 500 million in its IPO, of which RMB 62 million is used to supplement working capital. However, at the end of each reporting period, the company’s monetary funds were RMB 60.2723 million, RMB 132 million, RMB 230 million, and RMB 281 million respectively, with relatively abundant bank deposits. Against this background, the actual controller took nearly RMB 60 million through dividends and other means, triggering market discussions on its rationality[3].

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1. Booming Downstream Demand
   : The global energy storage market continues to grow, and the destocking cycle of residential energy storage has ended
2. Solid Industry Position
   : The company’s customers cover major energy storage battery manufacturers, with a solid leading position in the industry
3. Profound Technological Accumulation
   : The company has been deeply engaged in the BMS field for many years, mastering core technologies such as battery SOX estimation algorithms and battery equalization management technology
4. Increasing R&D Investment
   : During the reporting period, the R&D expense ratios were 2.65%, 4.61%, 5.69%, and 4.57% respectively, with continuous increase in R&D investment[3]

1. High Performance Volatility
   : The company’s past performance has shown large fluctuations, with operating revenues of RMB 850 million, RMB 764 million, and RMB 733 million from 2022 to 2024, showing a downward trend[3]
2. Cyclicality of Downstream Industry
   : The energy storage industry is greatly affected by policies and market supply and demand, and there is a risk of cyclical fluctuations
3. Customer Dependence
   : High dependence on major customers, changes in customer operations may affect the company’s performance

, but its medium- to long-term sustainability needs to be observed:

• Short-term (1-2 quarters)
  : The recovery trend of downstream demand is clear, the company has sufficient orders on hand, and performance growth is expected to continue
• Medium-term (1-2 years)
  : Need to pay attention to changes in the industry cycle, optimization of customer structure, and market absorption after capacity expansion
• Long-term (more than 3 years)
  : Depends on the overall development of the energy storage industry, the company’s technological iteration capabilities, and changes in the market pattern

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The performance turnaround of Peicheng Technology in the first three quarters of 2025 is mainly driven by the recovery of demand in the downstream residential energy storage market, with certain

rather than fundamental improvements in fundamentals. Investors need to pay attention to:

1. Whether the performance growth rate can be maintained in subsequent quarters
2. The market absorption situation after capacity expansion
3. Whether the gross profit margin can continue to improve
4. The impact of industry cycle changes on the company’s performance

Considering that the company is in a critical period of IPO, it is recommended to pay attention to its performance after listing and subsequent performance announcements, and make decisions prudently.

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[1] Securities Times - Peicheng Technology Listing Progress (https://www.stcn.com/ipo/detail/3332.html)

[2] Eastmoney - Peicheng Technology Prospectus (https://xinsanban.eastmoney.com/F10/874553.html)

[3] Sohu/OFweek - The Volatile Performance of Peicheng Technology (https://m.sohu.com/a/970625535_121211721)

[4] Eastmoney - Peicheng Technology IPO Review Inquiry Letter Reply (https://pdf.dfcfw.com/pdf/H2_AN202512121799124758_1.pdf)