edition 4/2021

EDITION 4/2021Niclas Weimar & Dricus de Rooij

Welcome to this Edition 4 - 2021 version of the SINOVOLTAICS Energy Storage Manufacturer Ranking Report.

The Altman-Z Scores in this report have been calculated from December 2018 until September 2021, and provide detailed insight how the financial strength of energy storage manufacturers has evolved over the past 3 years.

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What’s the value of Altman-Z Scores?

Why is financial stability important?

Altman-Z Scores are calculated to understand which energy storage manufacturers are financially stable, and which players are at risk of going bankrupt.

For any stakeholder involved in solar projects, the financial stability of the manufacturer is of crucial importance.

Employing energy storage from financially stable manufacturers provides for a better hedge against the potential risks of collapsing return of investment (ROI) of any PV project.

In this new emerging energy storage market, its grand variety of existing and research-in-progress technologies, purchasers face a grand and difficult choice of manufacturers, many of which only recently ventured into this market. In such a new market with average warranties that vary widely between 2 - 10 years, the financial stability of an energy storage manufacturer is crucial as it is geared to the validity and enforceability of the warranty policies on its products. Most people realize that today’s energy storage manufacturers will probably not be around in 5 years. However for the short to medium term, you want to be sure that warranties are in place.

In many years to come, lots of solar PV & energy storage projects will likely face this tough question: whom to contact with performance complaints and replacement requests regarding a malfunctioning battery after 2, 5 or 10 years?”

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2018 - 2021: rating of energy storage manufacturers worldwide

In this report we present you the Altman Z-Scores of 60+ energy storage manufacturers. This report can be used to see how one manufacturer matches up to the other, and can be an important indicator when selecting your energy storage manufacturer.

The Altman Z-Scores show you which energy storage manufacturers are financially strong, and which manufacturers are in the risk zone of going bankrupt within the coming 2 years.

On the following pages you find the full table showing the Altman Z-Scores of the major, publicly listed Asian, European and American manufacturers.

The scores have been calculated by team Sinovoltaics with the use of publicly available financial data.

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MANUFACTURERS RANKING TREND DEC18 MAR19 JUN19 SEP19 DEC19 MAR20 JUL20 OCT20 DEC20 MAR21 JUN21 SEP21 LISTING

TESLA 1 1,79 1,64 1,46 1,58 2,32 2,77 4,56 9,53 13,93 13,46 14,44 16,83 NAS:TSLA

GANFENG LITHIUM 2 4,59 5,34 4,09 4,15 5,71 5,39 6,21 10,42 9,83 12,67 16,12 HKSE: 1772

EVE ENERGY 3 2,2 2,95 4,1 3,86 4,57 5,14 6,67 11,24 8,33 11,24 8,73 SZSE: 300014

MUSTANG BATTERY 4 14,08 8,42 SHSE: 605378

LIVENT 5 8,86 8,35 4,79 4,08 3,38 2,29 2,47 4,99 4,47 5,16 7,27 NYSE: LTHM

CATL 6 3,61 3,48 2,86 2,9 3,65 4,02 5,1 6,94 7,13 7,5 8,04 6,21 SZSE: 300750

SACRED SUN 7 2,76 4,11 3,49 3,37 3,28 3,48 3,6 3,73 3,92 3,94 4,99 5,64 SZSE:002580

KUNG LONG BATTERIES 8 7 9,64 7,4 7,51 8,74 9,06 6,28 7,64 8,23 8,77 5,32 TPE:1537

YUASA BATTERY 9 4,12 5,16 5,07 4,77 4,85 4,42 5,32 4,51 5,16 5,13 5,18 BKK:YUASA

SANYO 10 4,67 4,65 5,21 5,06 5,34 6,46 5,04 4,85 4,49 4,51 4,69 5,03 TSE:3176

VARTA 11 5,72 6,04 8,3 12,4 15,09 7,74 6,09 6,12 6,29 6,6 7,67 5 XTER:VAR1

DESAY BATTERY 12 3,22 4,29 4,16 3,57 3,94 4,39 4,45 4,43 5,51 5,48 4,77 SZSE: 000049

ALBEMARLE 13 2,73 2,68 2,35 2,27 2,39 1,84 1,9 2,05 2,55 2,61 3,73 4,76 NYSE:ALB

DMEGC 14 5,15 5,6 5,37 4,29 4,69 5,87 5,22 5,24 5,03 5,71 4,76 4,68 SZSE:002056

SAMSUNG SDI 15 2,44 2,39 2,53 2,48 2,55 2,71 3,21 3,32 4,13 4,43 4,51 4,47 XKRX:006400

HITACHI CHEMICAL 16 — 2,95 3,31 3,41 3,69 4,12 4,01 4,19 4,32 4,32 4,32 4,32 4,32 TSE:4217

CAMEL GROUP 17 2,82 3,46 3,16 2,72 2,83 2,53 2,75 3,14 3,5 3,59 4,02 SHSE:601311

SEBANG GLOBAL BATTERY 18 3,82 3,92 3,98 3,86 3,84 3,57 2,9 2,93 3,56 4,17 4,37 3,97 XKRX:004490

BYD 19 1,5 1,46 1,53 1,5 1,51 1,58 1,71 2,49 3,28 3,1 4,16 3,78 HKSE:01211

SIMPLO TECHNOLOGY 20 3,4 3,9 3,31 3,38 3,63 3,49 4,31 3,38 3,44 3,49 3,73 3,38 ROCO:6121

TIANNENG POWER INTERNATIONAL 21 2,86 2,79 2,81 2,79 3,17 3,36 3,58 3,55 3,47 3,28 HKSE:00819

LG CHEM 22 3,39 3,05 2,85 2,72 2,70 2,5 2,79 3,1 3,39 3,17 3,16 3,19 XKRX:051910

ENERSYS 23 3,14 3,03 3,09 2,97 3,15 2,74 2,91 3,1 3,19 3,26 3,37 3,18 NYSE: ENS

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EAST GROUP 24 1,79 1,9 1,67 1,61 1,62 1,76 1,84 2,65 2,5 2,18 2,52 2,94 SZSE:300376

CENTER POWER 25 2,62 4,41 3,55 3,18 4,28 3,79 3,46 3,32 2,62 2,77 2,83 SZSE: 002733

GUOXUAN HIGH-TECH POWER ENERGY 26 1,46 1,83 1,36 1,32 1,39 1,58 1,65 1,67 2,19 2,27 2,55 2,79 SZSE:002074

CORUN NEW ENERGY 27 1,65 2,3 2,12 1,48 1,35 1,18 1,48 1,95 1,53 2,05 2,79 SHSE: 600478

EATON 28 2,64 2,79 2,79 2,7 2,95 2,69 2,66 2,88 2,92 3,16 2,94 2,78 NYSE: ETN

SUNWODA 29 2,08 2,47 2,24 2,26 2,33 1,99 2,31 2,47 2,08 2,55 2,78 SZSE:300207

ZHONGTIAN TECHNOLOGY 30 3,19 3,25 3 2,98 2,92 3,15 2,95 3,02 3,02 2,81 2,96 2,72 SHSE: 600522

BASF 31 2,48 2,41 2,41 2,39 2,46 2,22 2,17 2,1 2,08 2,43 2,39 2,58 XTER:BAS

GREAT POWER 32 2,13 2,68 2,12 2,17 2,68 2,45 2,57 2,5 1,92 2,33 2,47 SZSE: 300438

GREENSMITH ENERGY (WÄRTSILÄ) 33 3,26 2,57 2,98 2,7 2,07 2,3 1,78 2,14 2,3 2,33 2,51 2,36 OHEL:WRT1V

TOSHIBA 34 — 2,3 2,23 1,9 1,9 1,95 1,83 1,96 2,01 2,03 2,21 2,36 2,36 TSE:6502

PANASONIC 35 2,23 2,31 2,05 2,04 2,12 2,04 2,1 2,08 2,09 2,15 2,19 2,34 TSE:6752

GS YUASA 36 2,34 2,43 2,39 2,32 2,46 2,09 2,24 2,24 2,55 2,51 2,46 2,33 TSE:6674

CSSC 37 2,02 2,62 2,71 2,61 2,29 2,29 2,17 2,21 2,09 2,11 2,27 SHSE:600482

JOHNSON CONTROLS 38 1,7 1,81 2,35 2,23 1,82 1,53 1,52 1,58 1,67 1,92 2,1 2,21 NYSE: JCI

AMPEREX TECHNOLOGY (TDK) 39 2,15 2,3 2,2 2,5 2,58 2,34 2,43 2,52 2,64 2,48 2,25 2,17 TSE: 6762

CHAOWEI POWER 40 2,07 2,15 2,09 2,06 2,05 HKSE: 0951

SAFT BATTERIES (SAFT GROUPE SA) 41 — 1,99 1,99 1,99 1,99 1,99 XPAR:SAFT

FIAMM (HITACHI) 42 1,94 2,08 2,08 2,09 2,14 1,72 1,78 1,74 1,57 1,79 1,94 1,97 TSE:6501

NEC 43 1,86 1,76 1,77 1,8 1,85 1,78 1,92 2,08 2,03 1,91 1,83 1,88 TSE:6701

MAXELL 44 2,95 2,43 2,38 2,4 2,20 2,01 2,04 1,69 1,71 1,77 1,71 1,81 TSE:6810

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NARADA 45 2,1 2,15 1,69 1,77 1,72 1,8 1,78 2,06 2,05 1,84 1,64 1,73 SZSE: 300068

SK INNOVATION 46 3,07 2,77 2,72 2,76 2,59 2,17 1,92 1,66 1,64 1,58 1,58 1,73 XKRX:096770

SONNEN (ROYAL DUTCH SHELL) 47 2,7 2,6 2,5 2,41 2,46 1,95 1,88 1,52 1,44 1,27 1,35 1,65 NYSE:RDS.A

CHANGHONG 48 — 1,5 1,63 1,5 1,55 1,55 1,5 1,48 1,49 1,61 1,62 1,62 SHSE: 600839

FESE 49 1,69 1,74 1,67 1,73 1,72 1,57 1,59 1,23 1,26 1,35 1,5 SHSE: 600869

JIAWEI 50 -0,17 -0,03 -0,09 -0,28 -0,25 -0,61 -0,63 0,45 1,13 0,21 2 1,39 SZSE:300317

LEOCH BATTERY 51 — 1,54 1,54 1,54 1,53 1,39 1,38 1,17 1,24 1,35 1,35 HKSE: 00842

MERCEDES BENZ ENERGY 52 1,21 1,17 1,05 1,04 1,07 0,99 1 0,98 1,01 1,13 1,19 1,34 XTER:DAI

MITSUBISHI 53 1,43 1,57 1,53 1,5 1,51 1,15 1,15 1 1,09 1,17 1,15 1,33 TSE:7011

NISSAN 54 1,53 1,47 1,44 1,42 1,39 1,28 1,28 0,99 0,98 0,99 0,98 1,3 TSE:7201

CBAK ENERGY 55 -1,95 -1,93 -2,05 -2,1 -2,23 -2,47 -2,74 -1,56 0,19 0,25 2,1 1,23 NAS:CBAT

ENERGIZER HOLDINGS 56 1,16 1,14 1,12 1,12 1,32 1,21 1,33 1,27 1,06 1,33 1,27 1,22 NYSE:ENR

AVIC 57 1,12 1,04 1,02 0,99 1,15 1,21 1,33 1,36 1,16 1,17 HKSE:02357

HYUNDAI ELECTRIC 58 0,92 1,02 0,59 0,53 0,70 0,66 0,35 0,53 0,55 0,87 0,94 1,06 XKRX:267260

COSLIGHT 59 — 1,03 0,95 0,95 HKSE:01043

SHOTO 60 1,2 1,35 1,2 1,12 0,12 0,06 -0,15 0,12 0,34 0,29 0,32 SZSE: 002586

DYNAVOLT RENEWABLE 61 0,03 0,07 -2,09 -2,1 -2,08 -2,1 -0,32 -0,46 -0,53 -0,54 -2,23 -2,71 SZSE:002684

* The trend column in the table reflects a comparison of the current quarter score to the previous one.

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Graph overview

Graph #1 - The latest energy storage manufacturers ranking, recorded September 2021

Graph #2 - Energy storage manufacturers that are currently in the Safe Zone

Graph #3 - Energy storage manufacturers that are currently in the Grey Zone

Graph #4 - Energy storage manufacturers that are currently in the Distress Zone

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Graph #1 - Full ranking overview of energy storage manufacturersSinovoltaics energy storage manufacturer ranking - Edition #4 - 2021

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Graph #2 - Energy storage manufacturers – Safe ZoneSinovoltaics energy storage manufacturer ranking - Edition #4 - 2021 - Safe Zone

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Dec18 Mar19 Jun19 Sep19 Dec 19 Mar 20 Jun 20 Oct 20 Dec 20 Mar 21 Jun 21 Sep 21

TeslaGanfeng Lithium Eve Energy Mustang Battery Livent CATL Sacred SunKung Long BatteriesYuasa Battery SanyoVartaDesay Battery Albemarle DMEGC Samsung SDIHitachi ChemicalCamel Group Sebang Global BatteryBYD Simplo TechnologyTianneng Power InternationalLG ChemEnerSysEast GroupCenter Power Guoxuan High-tech Power EnergyCorun New Energy EatonSunwoda Zhongtian Technology

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Graph #3 - Energy storage manufacturers – Grey ZoneSinovoltaics energy storage manufacturer ranking - Edition #4 - 2021 - Grey Zone

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Basf

Great Power

Greensmith Energy (Wärtsilä)

Toshiba

Panasonic

GS Yuasa

CSSC

Johnson Controls

Amperex Technology (TDK)

Chaowei Power

Saft Batteries

Fiamm (Hitachi)

NEC

Maxell

Narada

SK Innovation

Sonnen (Royal Dutch Shell)

Changhong

FESE

Jiawei

Leoch Battery

Mercedes Benz Energy

Mitsubishi

Nissan

CBAK Energy

Energizer Holdings

AVIC

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Graph #4 - Energy storage manufacturers – Distress ZoneSinovoltaics energy storage manufacturer ranking - Edition #4 - 2021 - Distress Zone

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Hyundai Electric

Coslight

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Dynavolt Renewable

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How is the Sinovoltaics Ranking Scorecalculated?

The Sinovoltaics Energy Storage Manufacturer Ranking Score is based on the Altman Z-Score Altman Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

The original formula is broken down as following:

A Working Capital/Total Assets: measures liquid assets in relation to the size of the company.

B Retained Earnings/Total Assets: measures profitability that reflects the company’s age and earning power

CEarnings Before Interest & Tax/Total Assets: measures operating efficiency apart from tax and leveraging factors. It recognizes operative earnings as being important to long-term viability.

D Market Value of Equity/Total Liabilities: adds market dimension that can show up security price fluctuation as a possible red flag

E Sales/Total Assets: a standard measure for total asset turnover

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How are the Altman Z-Scores interpreted?

Z > 2.6 Safe Zone

1.1 < Z < 2.6 Grey Zone

Z < 1.1 Distress Zone

The scores are categorized into 3 zones called the Safe Zone, Grey Zone and Distress Zone:

How to interpret companies in the ‘GREY ZONE’?

With a large number of companies in the ‘Grey Zone’, how to interpret these scores when selecting a manufacturer?

While ideally a manufacturer is in the ‘Green Zone’, some companies have been consistently in the Grey Zone for years.

Take for instance CSSC. Here a number of Altman Z-Scores over the years:

2.02 on Q4-2018

2.29 on Q4-2019

2.21 on Q4 2020

2.27 on Q3 2021

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Johnson Controls Toshiba

2.21 (Q3 2021) 2.36 (Q3 2021)

2.1 (Q2 2021) 2.36 (Q2 2021)

1.67 (Q4 2020) 2.03 (Q4 2020)

1.82 (Q4 2019) 1.95 (Q4 2019)

1.7 (Q4 2018) 2.3 (Q4 2018)

Currently stands at 2.27 (September ‘21)

These numbers show that CSSC has been stable for years. Add the fact that CSSC AZ score has seen a gradual improvement since 2018 and they may just as well be one of the most solid companies on the list.

You could argue the same for known players such as Johnson Controls and Toshiba. As you can see each of these companies show a rather stable score since 2017:

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SINOVOLTAICS ENERGY STORAGE MANUFACTURER RANKING

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